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| Section | Objectives |
|---|
| Ethics and Professional Conduct | - Ethical responsibilities of insurance producers - Consumer protection standards
|
| Insurance Fundamentals | - Insurable interest and risk management concepts - Basic insurance principles
|
| Accident and Health Insurance | - Disability income and medical expense coverage - Health insurance plans and structures
|
| Life Insurance | - Life policy provisions and riders - Types of life insurance policies
- 1. Universal life insurance
- 2. Term life insurance
- 3. Whole life insurance
|
| Federal Regulations and Taxation | - Tax treatment of insurance products - Federal insurance-related regulations
|
| Policy Provisions and Options | - Beneficiaries and policy ownership - Standard policy provisions
|
| Annuities | - Annuity types and features - Accumulation and payout options
|
| State Insurance Regulations | - Unfair trade practices and compliance - Producer licensing requirements
|
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Insurance Licensing Life and Accident and Health or Sickness Producer - Combo Series 20-30 Sample Questions (Q190-Q195):
NEW QUESTION # 190
Which medical care benefits are emphasized in HMO plans?
- A. Home health care
- B. Emergency care
- C. Preventive care
- D. Alternative medicine
Answer: C
Explanation:
Comprehensive and Detailed in Depth Explanation:
The correct answer isB. Preventive care. Health Maintenance Organizations, or HMOs, are designed around managed care, network-based care, and controlling costs by encouraging early treatment, wellness, and prevention. Maryland's Health-General Article requires an HMO's plan to show that it has an active program forpreventing illness, disability, and hospitalizationamong its members, and that services designed to prevent major health problems and improve general health are provided by the HMO.
Emergency care, home health care, and other services may be covered under appropriate circumstances, but they are not the primary medical care benefit emphasized by the HMO model. Alternative medicine is not the core HMO emphasis. Official Maryland Reference: Maryland Health-General Article §19-705.1, HMO quality of care and preventive programs.
NEW QUESTION # 191
An insurance policy could be issued to cover losses resulting from any of the following EXCEPT:
- A. A skydiving exhibition
- B. A state-sponsored centennial celebration
- C. A drug smuggling operation
- D. A nuclear power plant
Answer: C
Explanation:
Insurance (Insurance Article, § 12-101) covers legal risks like skydiving, events, or plants, but not illegal acts like drug smuggling, barred by public policy.
References:Maryland Insurance Article, § 12-101; MIA insurability guidelines.
NEW QUESTION # 192
An insured incurs a covered accident and health insurance loss on May 30, which is submitted to the insurer on June 8. If the insured terminated coverage on June 1, the insurer:
- A. Must pay the claim upon receipt of the proof of loss
- B. Can refuse to pay the claim under the pre-existing conditions exclusion
- C. Must pay the claim within one year of termination of coverage
- D. Can refuse to pay the claim because coverage has been terminated
Answer: A
Explanation:
A loss on May 30, while covered (Insurance Article, § 15-201), obligates the insurer to pay upon proof, despite termination on June 1. Termination or pre-existing exclusions don't negate prior coverage, and no one- year rule applies.
References:Maryland Insurance Article, § 15-201; MIA claims rules.
NEW QUESTION # 193
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. Replacement
- C. Rebating
- D. Fraud
Answer: D
Explanation:
Producers hold premiums in a fiduciary capacity (Insurance Article, § 10-126) and must remit them to the insurer or a trust account. Depositing them into a personal account is fraud-specifically misappropriation- violating state law. Twisting, rebating, and replacement involve different unethical acts, not fund misuse.
References:Maryland Insurance Article, § 10-126; MIA producer conduct regulations.
NEW QUESTION # 194
The qualified first-time homebuyer distribution available in IRAs has a maximum lifetime limit per participant of:
- A. $10,000
- B. $20,000
- C. $5,000
- D. $2,000
Answer: A
Explanation:
The IRS allows a penalty-free distribution of up to $10,000 from an IRA for qualified first-time homebuyers, provided the funds are used for eligible home purchase expenses.
$10,000 (C): Correct. This is the lifetime maximum allowed per participant.
$2,000 (A) and $5,000 (B): Too low for the current IRS rules.
$20,000 (D): Exceeds the limit and is incorrect.
References: IRS Publication 590-B, Maryland IRA Distribution Rules, and COMAR 31.09.12.
NEW QUESTION # 195
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