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MarylandAccident and Health or Sickness Producer Series 20-24 Exam

Last Update 20 hours ago Total Questions : 90

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Question # 11

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

Question # 12

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

Question # 13

The primary purpose of disability income insurance is to:

A.

Provide indemnity for loss of life

B.

Pay necessary hospital expenses when the insured is unable to work

C.

Provide benefit payments for a period of time when the insured is unable to work

D.

Pay any physicians’ fees resulting from a disabling injury

Question # 14

The phrase, "this policy pays $1,800 for hospital room and board expenses," should include the:

A.

Maximum daily benefit and the maximum time limit for hospital room and board expenses

B.

Minimum daily benefit and the maximum time limit for hospital room and board expenses

C.

Minimum daily benefit and the minimum time limit for hospital room and board expenses

D.

Maximum daily benefit and the minimum time limit for hospital room and board expenses

Question # 15

An insurance producer's license may be suspended or revoked by:

A.

The appointing insurer

B.

The continuing education course provider

C.

The Maryland Insurance Administration

D.

The Attorney General

Question # 16

Which expenses are covered by Medicare Part D?

A.

Medical

B.

Hospital

C.

Prescription drug

D.

Dental

Question # 17

When the insured’s willful failure to disclose a material fact at the time of application is discovered by the insurer shortly after the policy is issued:

A.

The insurer must continue the insurance policy in full force

B.

The insurer may cancel the policy only at the expiration or renewal date

C.

The policy is automatically void

D.

The policy is voidable at the insurer’s option

Question # 18

Which statement describes the most likely federal income tax treatment of death benefits paid to the family of an insured under an accident and health insurance policy?

A.

Benefits will not be taxable

B.

Some benefits will usually be taxable

C.

All benefits will be taxable

D.

Taxation depends on the beneficiary’s tax bracket

Question # 19

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

Question # 20

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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