Free Insurance Licensing Accident-and-Health-or-Sickness-Producer Practice Exam with Questions & Answers

The MIA (Insurance Article, § 2-207) can request and access producer records for audits or investigations, overriding privacy for regulatory purposes. Court orders or NAIC approval aren’t required, and access is a standard power.

References:Maryland Insurance Article, § 2-207; MIA regulatory authority.

For non-guaranteed issue long-term care policies (Insurance Article, § 18-107), a physical exam report is required for applicants 80+ to assess risk, not family consent, living wills, or power of attorney.

References:Maryland Insurance Article, § 18-107; MIA LTC underwriting rules.

Comprehensive and Detailed Step by Step Explanation:Premium determination in life insurance depends on factors that measure risk, butrace (D)is not and cannot be used due to anti-discrimination laws.

Age (A):A primary factor; younger applicants are charged lower premiums due to lower mortality risk.

Health (B):Significant; poor health or pre-existing conditions increase premiums.

Occupation (C):Risky professions (e.g., construction or aviation) may result in higher premiums.

Race (D):Prohibited by Maryland law, which ensures fairness and prohibits underwriting based on race, ethnicity, or similar discriminatory criteria.

References:Maryland Insurance Article §27-501, COMAR 31.09.03, and Anti-Discrimination Standards in Insurance.

Maryland law (Insurance Article, § 15-401) requires coverage for handicapped dependent children beyond standard age limits if they’re incapable of self-sustaining employment and dependent on the insured. This extends for life, or as long as the policy is active, not limited to ages 19 or 25, nor tied to self-sustainability.

References:Maryland Insurance Article, § 15-401; MIA dependent coverage regulations.

The MIA (Insurance Article, § 2-201, § 10-126) can investigate, suspend licenses, and issue orders, but its decisions are appealable to Maryland courts, not final.

References:Maryland Insurance Article, § 2-201, § 10-126; MIA enforcement powers.

Disability income policies (Insurance Article, § 15-201) cover accidents, cancer, and diseases, but exclude intentionally self-inflicted injuries as non-accidental, aligning with standard exclusions to prevent abuse.

References:Maryland Insurance Article, § 15-201; MIA disability insurance standards.

Under Insurance Article, § 15-401, coverage for handicapped children extends beyond age limits if they’re incapacitated (unable to work) and dependent on the insured at the age limit. Insurability isn’t required, incapacity alone isn’t enough, and dependency isn’t time-limited to two years.

References:Maryland Insurance Article, § 15-401; MIA dependent coverage rules.

Medicare Supplement (Medigap, Insurance Article, § 15-901) covers preventive services like immunizations, hearing tests (if Medicare-eligible), and physicals, but outpatient prescription vitamins aren’t a standard benefit under Medicare or Medigap.

References:Maryland Insurance Article, § 15-901; CMS Medigap guidelines.

Underwriting involves assessing risk by rejecting high-risk applicants, issuing standard policies, or adding exclusion riders for specific conditions. Deleting uniform policy provisions—mandatory clauses like grace periods (Insurance Article, § 15-201)—isn’t an underwriting action, as these are legally required and cannot be altered by underwriters.

References:Maryland Insurance Article, § 15-201 et seq.; MIA underwriting guidelines.

Policy statements (Insurance Article, § 15-201) must clarify benefits with the maximum daily benefit (e.g., $200/day) and maximum time limit (e.g., 9 days) to define the $1,800 total. Minimums are irrelevant, and a mix of maximum and minimum limits lacks clarity.

References:Maryland Insurance Article, § 15-201; MIA policy disclosure rules.