Life and Accident and Health or Sickness Producer - Combo Series 20-30 - Life-and-Accident-and-Health-or-Sickness-Producer-Combo Exam Practice Test

Question 1

In determining the payment of accelerated life insurance benefits, all of the following are considered activities of daily living EXCEPT:

A. Speaking

B. Eating

C. Dressing

D. Bathing

Correct Answer: A

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Question 2

(All of the following are advantages of whole life insurance EXCEPT:)

A. The initial cost of coverage is lower than for an equivalent amount of term insurance.

B. Long-term protection is provided.

C. Policy loans may be available.

D. There is a cash value if the policy is terminated after a sufficient period of time.

Correct Answer: A

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Question 3

Accident and health policies must cover physically or mentally handicapped dependent children:

A. To age 25

B. To age 19

C. Until they become self-sustaining

D. For life

Correct Answer: D

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Question 4

Disability income insurance premiums are a deductible expense when the premiums are paid by:

A. A partnership for group disability income coverage for the partners

B. An insured for individual disability income coverage

C. An employee for group disability income coverage

D. A corporation for group disability income coverage for the employees

Correct Answer: D

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Question 5

A producer is prohibited from:

A. Splitting commissions with a licensed nonresident producer who has jointly sold a policy

B. Selling insurance to family members

C. Countersigning a policy sold in Maryland

D. Allowing an applicant to sign a blank or incomplete application

Correct Answer: D

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Question 6

The income benefits distributed during the payout phase of an annuity contract are normally payable to:

A. The nominator

B. The annuitant

C. The owner

D. The beneficiary

Correct Answer: B

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Question 7

An insurer may pay a commission directly or indirectly to:

A. An unlicensed employee of the insurer

B. A producer whose license is terminated after earning the commission

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

D. Anyone soliciting business for the insurer

Correct Answer: B

Question 8

Which activity requires an individual to be licensed as an adviser, rather than as a producer?

A. Binding insurance coverage with licensed insurers

B. Receiving commissions from an insurance company

C. Giving advice on policy coverages to an insured

D. Charging a fee for contracted insurance advisory services

Correct Answer: D

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Question 9

In general practice, can the Maryland Insurance Administration inspect the business records of an insurance company or agency?

A. No, because only an officer of the court can inspect these records

B. Yes, because of the powers defined by state laws

C. Yes, because all company and agency records are public domain

D. No, because of privacy considerations

Correct Answer: B

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Question 10

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

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

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

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

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

Correct Answer: D

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Question 11

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 can issue a cease and desist order

C. The Maryland Insurance Administration can suspend the producer's license

D. The Maryland Insurance Administration's decision is final

Correct Answer: D

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Question 12

Upon terminating employment, Kim requested the 401(k) plan trustee to distribute the entire accrued benefit by a check made payable to the custodian of Kim's individual retirement account. Under IRS rules, this transaction will be:

A. Subject to mandatory income tax withholding

B. Treated as a direct rollover

C. Considered as a Section 1035 exchange

D. Subject to an excise tax

Correct Answer: B

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Question 13

All of the following are unfair trade practices EXCEPT:

A. Fraudulent advertising

B. Reinsurance

C. Misrepresentation

D. Illegal inducement

Correct Answer: B

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Insurance Licensing Life and Accident and Health or Sickness Producer - Combo Series 20-30 - Life-and-Accident-and-Health-or-Sickness-Producer-Combo Exam Practice Test

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