The individual is paying premiums that are priced for each year or Use LEFT and RIGHT arrow keys to navigate between flashcards; Use UP and DOWN arrow keys to flip the card; Barbara's policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of instability. The entity which issues the certificate of authority is the, A policyowner has _____ days after policy delivery to return a major medical policy for a full refund, make any transactions before being approved for a licence, counsels and advises the Governor on all matters assigned to the Maryland Insurance Administration, A Maryland insurance producer solicits an insurance policy. Who would be responsible for the prosecution of this crime? What is involved when a life insurance policy has been backdated? A life insurance policyowner was injured in an automobile accident which results in a total and permanent disability. a producers secretary who solicits prospects on the telephone. Julie has a $100,000 30-year mortgage on her new home. An eligible employee can be excluded from group health coverage for up to _______ months is he/she is considered a "late enrollee". All Medicare Supplement policies MUST contain which provision? Within how many days must a producer notify the Department of Banking and Insurance of a change in address? XZY company has applied for group health insurance for its employees. The statement which best describes the relationship between the relationship between the premiums of a whole life policy and the premium payment period is, The shorter the payment period, the higher the premium. B. Under a Traditional IRA, Interest earned istaxed. A. An insurer formed according to the legal requirements of another country is called an. Why are dividends from a mutual insurer not subject to taxation? Howdo interest earnings accumulate in a deferred annuity? Whichof these benefit options would he choose? \text{Total current assets} & \underline{\hspace{8pt}144,000} & \underline{\hspace{8pt}151,000} \\ Which of the following is NOT a duty of the Commissioner? Which of the following actions is REQUIRED by a producer who is replacing an existing life insurance policy? How long is the Contestable Period for health insurance policies sold in New Jersey? Whoregulates the quality of care provided by a health maintenance organization(HMO), a. Secretaryof department of health and mental hygiene, b. NationalAssociation of insurance commissioners, A.Secretary of the department of health and mental hygiene. A _______ company is owned by its shareholders, The ___________ has the right to renew a small employer health plan, providing incorrect, misleading, incomplete, or materially untrue information in the license application, A producer who is licensed in Maryland but resident in another state is called a, A minor may receive a life insurance policy's death benefit ONLY, Interest on death benefits are NOT required to be paid by an insurance company as long as proceeds are paid within ______ after the date of the death of the insured, Submit to the replacing insurer a list of the policies to be replaced. she may need to resume premium payments, depending on actual results, Kiara filled out a life insurance application and was given a policy illustration that showed future premiums being paid out of non guaranteed values. In order for the producer's insurance business to continue, the Department of Banking and Insurance may issue to the producer's spouse a. What information would the insurer's underwriters likely use to determine the appropriate coverage and final premium rate given to the group? How many days notice must the Commissioner give prior to a hearing? A. Thepolicys elimination period is waived, B. Thetime frame for reinstating a lapsed policy is extended, C. Thepolicys probation period is earlier than the present, D. Thepolicy effective date is earlier than the present, D. The policy effective date is earlier than thepresent, Premiummode is a term used to describe the. Within how many days must a producerreport to the commissioner any administrative actions made against him/her? A life insurance policyowner is allowed ____ days upon policy delivery to return the policy for a full premium refund, A producer's license MUST be renewed every _______ years, Collecting a charge for insurance that is less than the charge applicable to that insurance. In accordance with New Jersey law, a Producer must remit health insurance premiums to the insurer within what period? How long must a life insurance policy be in effect before the policy owner may use the non forfeiture provision? Whichphase is this annuity in? A Long-Term Care policy may only exclude pre-existing conditions for up to _____ months, The identity of the ____ must be made clear in every health insurance advertisement, _______________ is the authority given to a producer to sell, solicit, or negotiate insurance on behalf of the insurer, Pre-existing conditions may only be excluded from coverage for a maximum of 6 months. An applicant's character and personal habits can be obtained for underwriting purposes from which source? Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Anapplicants character and personal habits can be obtained for underwritingpurposes from which source? How often must the Commissioner examine each domestic insurance company? Wherewould policy proceeds be paid if both the insured and primary beneficiary werekilled in the same accident? Focus of Major medical insurance is providingcoverage for: C. Medical and Hospitalization expenses. Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? Which military service exclusion clause would pay upon his death? How long must a life insurance policy be in effect before the policyowner may use the nonforfeiture provision? Jay the producer is giving insurance advice regarding a prospect's existing coverage. 14 day waiting period / 10 year benefit period. She recently replaced the policy with a new one that provides better coverage. How long is the Contestable Period for health insurance policies sold in Maryland? What are the levels of coverage as defined by the Affordable Care Act? Former dependent of employee no longer ofdependent status. Which of the following is NOT a required provision in an accident and health insurance policy? How often must an insurance producer's license in Maryland be renewed? It is administrated by the federal government, C. It is funded by federal, state, and local taxes. The Premium for a Modified whole life policy is: A. These rights are called, A producer who intentionally makes an untrue or incomplete statement in the course of an insurance transaction may be guilty of. The Federal Employees Benefit Program consists of two types of health plans for federal civilian employees. If he files an application for renewal before the expiration date, his license will, A Medicare Supplement policy can be cancelled by the insurer for, Recording the receipt and distribution of premiums due to an insurer is considered a producer's _________ responsibility. With a past due premium of $100, the insurer pays $400. A. Atourist traveling abroad on a major airline carrier, B. Anindividual who has a hobby racing cars once a month, C. Anairline pilot who flies for a commercial carrier, B. AnIndividual who has a hobby racing cars once a month. Eventually, they retire and dissolve the business. Which of the following actions is REQUIRED by an agent who is replacing an existing life insurance policy? A producer has committed an insurance crime that violates US code 1033 (interstate commerce). AMaryland insurance producer solicits an insurance policy. Whichof these will have the highest monthly payout upon annuitization? A Whole life policy option where extended terminsurance is selected is called a(n), A provision in a whole life policy that allows apolicy owner to terminate the policy in return for a reduced paid-up policy ofthe same type is called a(N). What happens to coverage under a children's term rider when that child reaches a certain specified age? Maria the insurance producer completes a sale by collecting the required signatures on the application and obtaining the initial premium. Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. You are here: leeds city council repairs phone number a producers secretary who solicits prospects on the telephone. Allof these are considered key factor in underwriting life insurance EXCEPT, Anapplicant intentionally lying to an insurance company on an application inorder to obtain a cheaper premium is an example of. Any decrease in income resulting from this injury would make him eligible for benefits under which provision? May an insurance producer licensed in New Jersey but not in New York sell a life insurance policy to a New York resident while in New Jersey? Maria is a Preferred Provider Organization (PPO) subscriber and received care from an out-of-network provider. Allows the secondary payor to reduce their benefit payments so no more than 100% of the claim is paid, A producer who shares commissions with a client. What happens to interest earned if the annuitant dies before the payout start date? After passing the state Producer licensing exam, application for the license must be made within, How long must an insurance company keep record on life insurance replacement activity, An insurance company that is organized or chartered in a country other than the United States is defined as, Advertisements of insurance in a local newspaper, must be approved by, Which of the following actions may an insurance company NOT do in a health policy that contains a guaranteed renewable premium benefit, Increase the premiums on an individual basis, Continued coverage under COBRA would be provided to a(n), A covered employee is terminated for gross misconduct, In New Jersey, health insurance advertisements are required to contain the, The purpose of a coordination-of-benefits provision in group health accident and health plans is to, If an insured dies during the grace period with no premiums paid, The policy would be payable, minus the premium amount, A 10% excise tax is normally applied to an early withdrawal from an IRA. Collecting a chargefor insurance that is less than the charge applicable to that insurance. A producer may be disciplined by the Commissioner for which of the following actions? Which of the following is TRUE regarding the federal income tax? Which of these is NOT an Unfair Claims Settlement Practice? Which of the following is a reinstatement condition? An insurance producer is issued a _____ as evidence of authority. The replacing policy may only impose a ____ month time exclusion for pre-existing conditions, forward premiums to the insurer on a timely basis, When collecting insurance premiums from a client, a producer MUST, Once a health insurance policy has been in force for _______ years, the policy may NOT be contested by the insurer, cancelling a term life policy to buy a whole life policy, All of these types of benefits may be covered by a nonprofit health service plan EXCEPT, have it's content approved by the commissioner. Failingto promptly provide a reasonable explanation for the denial of a claim isconsidered to be a (n). Which of these if NOT considered to be a purpose of an annuity? A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called. Policyowners from misrepresentations and loss of benefits, Replacement regulation is designed to protect, A producer must notify the Commissioner within _____ days of a felony conviction, Dependent children under a health insurance plan must be provided coverage up to age, written authorization from the proposed insured, Prior to conducting an HIV-related test, the insurer must obtain, An insurance producer agrees to pay the first monthly premium for an insurance applicant. Find out how you can intelligently organize your Flashcards. Cram has partnered with the National Tutoring Association, Comparing Health Insurance Rates And Suppliers. D.) By providing consumer credit counseling. A. Timeperiod an insured must wait before coverage begins, B. Timeperiod a disabled person must wait before benefits are paid, C. Timeperiod after the policy issue date in which the provisions are stillcontestable, Inan insurance contract, the element that shows each party is giving something ofvalue is called. Continued coverage under COBRA would be providedto all of the following EXCEPT: a. How often must an insurance producer's license in New Jersey be renewed? Which of these statements is true? How many months can a life insurance policy normally be backdated from the date of application? a producers secretary who solicits prospects on the telephone 12. An insurer may pay a commission in which of the following scenarios? How long must an individual be unable to engage in any gainful activity due physical or mental disability in order to qualify for Social Security Total Disability? the exceptions, reductions, and limitations affecting the basic provisions of the policy, Any advertisement that mentions a dollar amount, period of time for which any benefit is payable, cost of policy, policy benefit, or the loss for which the benefit s is payable MUST disclose, All of the following is considered a form of advertising EXCEPT. b. Incomeif an insured is unable to work for a period of over six months, c. Coveragefor excess charges not paid for under Medicare. Tim's individual life insurance policy has just recently lapsed. A. Collectinga premium for insurance that is not provided. Which of the followingunfair trade practices involves an agent who makes malicious statements aboutanother person's financial condition? One or morediagnostic, preventive, therapeutic, rehabilitative, maintenance or personalcare services in a setting other than an acute care unit of a hospital. \text{Accounts receivable} & \hspace{13pt}41,000 & \hspace{13pt}44,000 \\ In what part of insurance policy benefits found? All of these are standard exclusions found in a life insurance policy EXCEPT. At minimum, a carrier is required to offer which of the following health benefit plans to small employers? The rider is called a(n), All if these are valid options for an adjustable life policy except, A non forfeiture option can be used to increase the death benefit. licensed producers not appointed by an insurer. The policyholder for a group health benefit plan is considered to be the, A Medicare Supplement policy can be cancelled by the insurer for, As of January 1, 2007, producer's license expires, Every two years on the last day of the producer's birth month, An insurer has the right to recover payment made to the insured from the negligent party. Selecting an insurance organization ought to be founded on a few components that can be broken into two general gatherings: Maryland requires that a licensee completes ______ hours of continuing education on the subject of ethics every reporting period. Long-term care insurance and Medicare Supplement plans have a free-lock period of ______ days, A ______ insurance company is one that was formed under the laws of a state other than Maryland, they are both licensed in the same line of business, Two producers may share a commission ONLY if, Mary's Medicare Supplement policy had been in effect for 12 months. EXCEPT for fraud, the time after issuance of a policy during which an insurance company may contest a health insurance claim due to the statements on an application is, All of the following are core benefits of Medicare Supplement Plan A EXCEPT, Deductible payments for the first 60 days of hospitalization under Medicare hospitalization under Medicare hospitalization insurance, Statements made by an insurance applicant on an application are considered to be. What does the amount of these credits represent? Failing to promptly provide a reasonable explanation for the denial of a claim is considered to be a. Which of the following would disqualify a company's retirement plan from receiving favorable tax treatment? Which type of life insurance policy is this? The waiting period for a disability insurance policy, Excludes payments for a short term illness or injury. Which of the following does Coordination of Benefits allow? A branch office registration form is required to be filed at least _____ days before selling insurance out of that branch. Whena qualified plan starts making payments to its recipient, which portion of thedistributions is taxable?