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Question # 4

The Maryland State Benchmark Plan applies to which of the following?

A.

Medicaid plans sold through the Exchange

B.

Individual Health Benefit Plans sold through the Exchange

C.

Medicare supplement plans sold outside the Exchange prior to January 1, 2014

D.

Individual Health Benefit Plans sold outside the Exchange prior to January 1, 2014

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Question # 5

A policy of life insurance may NOT be delivered unless the policy has a:

A.

Legible and brief description of the policy on the first page

B.

Notary seal

C.

Premium coupon book

D.

Financial statement of the life insurance company

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Question # 6

If an employer with 200 employees wants to offer health insurance and calls a SHOP Exchange Navigator, what should the navigator do?

A.

Refer the employer to a licensed insurance producer

B.

Help the employer sign-up through the SHOP Exchange

C.

Refer the employer to the carrier where a friend works

D.

Refer the employer to the Maryland Insurance Administration

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Question # 7

In HMO coverage, all of the following services must be available 24 hours per day, 7 days per week EXCEPT:

A.

In-patient hospital services

B.

Emergency medical care

C.

Primary care

D.

Dental care

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Question # 8

Which type of Medicare Supplement information can be used without prior state approval?

A.

Insurance company brochures

B.

Radio announcements approved by the insurer

C.

Television advertisements approved by the insurer

D.

Government publications

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Question # 9

The Maryland Insurance Administration is an agency of the:

A.

Federal government

B.

State government

C.

National Association of Insurance Commissioners

D.

Maryland General Assembly

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Question # 10

Which expenses are covered by Medicare Part D?

A.

Medical

B.

Hospital

C.

Prescription drug

D.

Dental

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Question # 11

Coverage for the first three pints of blood for Medicare enrollees is:

A.

A Medicare Supplement additional benefit

B.

A Medicare Supplement core benefit

C.

A Medicare Part A benefit

D.

A Medicare Part B benefit

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Question # 12

Which type of coverage bases benefit eligibility on the capacity to perform activities of daily living?

A.

Medicare supplement

B.

Major medical expense

C.

Long-term care insurance

D.

Long-term disability

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Question # 13

When a producer engages in unfair practices, all of the following are true EXCEPT:

A.

The Maryland Insurance Administration can investigate the problem and hold a hearing

B.

The Maryland Insurance Administration’s decision is final

C.

The Maryland Insurance Administration can suspend the producer’s license

D.

The Maryland Insurance Administration can issue a cease and desist order

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Question # 14

In accident and health insurance underwriting, when the risk imposed by an applicant is similar to the risks imposed by most other applicants, the applicant is:

A.

Declined coverage

B.

Charged the standard premium rate

C.

Required to pay the first year’s premium in a lump sum

D.

Charged an additional premium for the first three years

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Question # 15

The free-look period provided in a life insurance policy is usually:

A.

10 days

B.

31 days

C.

45 days

D.

60 days

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Question # 16

A producer may be guilty of misrepresentation if the producer:

A.

Failed to disclose exclusions of the policy

B.

Denied a claim for failure of the policyholder to prove damages

C.

Required timely written notice of loss for all claims

D.

Issued a full settlement check expressly releasing the insurer

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Question # 17

Under federal law, an insurance producer may be sentenced to prison for:

A.

Selling insurance with a nonresident license

B.

Embezzling money from an insurance company

C.

Inducing a client to sign an application for insurance

D.

Suing an insurer over contract violations

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Question # 18

If an insurer pays an individual accident and health insurance claim during a policy’s grace period:

A.

The deductible is waived

B.

A 10% service fee is charged

C.

The policy is canceled automatically at the end of the grace period

D.

The amount of unpaid premium may be subtracted from the reimbursement

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Question # 19

In accident and health insurance, a waiting period for pre-existing conditions means that:

A.

Coverage for pre-existing conditions is permanently excluded by a new insurer

B.

Coverage for pre-existing conditions starts at the inception of the new policy

C.

Payment for expenses resulting from pre-existing conditions is held in escrow

D.

A period of time must elapse before pre-existing conditions are covered

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Question # 20

After completing an application for insurance, the insurance producer collects the premiums but deposits the check in the insurance producer’s checking account. What crime has been committed?

A.

Twisting

B.

Rebating

C.

Fraud

D.

Replacement

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Question # 21

Which statement is true of trade association groups eligible for group medical benefits?

A.

Members of the association are usually in the same industry

B.

Such associations are formed for the purpose of purchasing insurance

C.

The association membership primarily consists of large employers

D.

Employer contributions are usually waived

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Question # 22

All of the following are true of insurance EXCEPT:

A.

It transfers risk

B.

It is a means of sharing losses

C.

It eliminates risk

D.

It protects against uncertainty

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Question # 23

Short-term group disability income insurance:

A.

Usually provides benefits expressed as a percentage of the insured’s normal weekly wage, up to a specified weekly maximum

B.

Usually coordinates the amount of benefits paid with disability benefits received under Social Security

C.

Often has a benefit period extending up to a maximum of ten years

D.

Frequently provides coverage through age 65 for insureds who are over 55 when they become disabled

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Question # 24

An insurance policy could be issued to cover losses resulting from any of the following EXCEPT:

A.

A drug smuggling operation

B.

A skydiving exhibition

C.

A state-sponsored centennial celebration

D.

A nuclear power plant

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Question # 25

To be deemed a "qualified employer" under the Maryland Health Benefit Exchange Act, anemployer MUST:

A.

Contribute to employee premiums

B.

Have its principal place of business in the state of Maryland

C.

Have at least 50% of its employees work in the state of Maryland

D.

Have at least 50% of its employees reside in the state of Maryland

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Question # 26

Medical expense insurance typically EXCLUDES coverage for treatment of:

A.

Chronic back pain

B.

Eating disorders

C.

Intentionally self-inflicted injuries

D.

Undiagnosed diseases

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Question # 27

An insurer may pay a commission directly or indirectly to:

A.

Anyone soliciting business for the insurer

B.

An unlicensed employee of the insurer

C.

A producer whose license is terminated after earning the commission

D.

A surplus lines broker operating without a license for less than one year

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