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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Accident and Health Insurance Policies | 35% | - Types of Coverage
|
| Topic 2: Insurance Regulation | 30% | - Regulation of Producers
|
| Topic 3: General Insurance Concepts | 15% | - Policy Provisions
|
| Topic 4: Maryland State-Specific Regulations | 20% | - Statutory Requirements
|
1. The primary purpose of disability income insurance is to:
A) Provide benefit payments for a period of time when the insured is unable to work
B) Provide indemnity for loss of life
C) Pay necessary hospital expenses when the insured is unable to work
D) Pay any physicians' fees resulting from a disabling injury
2. All of the following are examples of unfair claims settlement practices EXCEPT:
A) Refusing arbitrarily and unreasonably to pay claims
B) Denying unsubstantiated claims on a timely basis
C) Failing to promptly provide a reason for a claim denial
D) Misrepresenting pertinent facts of coverage
3. 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) All benefits will be taxable
B) Benefits will not be taxable
C) Taxation depends on the beneficiary's tax bracket
D) Some benefits will usually be taxable
4. Before issuing a policy of long-term care insurance to an applicant who is at least 80 years old, unless the policy is guaranteed issue, the carrier shall obtain a:
A) Applicant's family's consent
B) Report of a physical examination
C) Copy of the person's living will
D) Power of attorney
5. Which of the following is a requirement of an insurable risk?
A) The loss must be catastrophic.
B) There must be a large number of different loss exposures.
C) The loss must be intentional.
D) The chance of loss must be calculable.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: B | Question # 4 Answer: B | Question # 5 Answer: D |
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