Free Insurance Licensing Accident-and-Health-or-Sickness-Producer Practice Exam with Questions & Answers | Set: 2

Maryland mandates mental health (§ 15-802), substance abuse (§ 15-803), and hearing aids for children (§ 15-838), but weight reduction programs are elective and not required (Insurance Article, § 15-801).

References:Maryland Insurance Article, § 15-801, § 15-802, § 15-803, § 15-838; MIA mandated benefits.

Long-term care insurance (Insurance Article, § 18-101) triggers benefits based on inability to perform ADLs (e.g., bathing), unlike Medigap, major medical, or disability, which focus on medical or work criteria.

References:Maryland Insurance Article, § 18-101; MIA long-term care rules.

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.

Disability income insurance (Insurance Article, § 15-201) replaces income during disability, not life indemnity, hospital costs (health insurance), or physician fees (medical insurance). It supports financial stability when work is impossible.

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

Statements on applications (Insurance Article, § 12-206) are representations—factual assertions to the best of the insured’s knowledge—where only material misrepresentations void a policy. Warranties are stricter and less common, while categorical and general provisions don’t apply.

References:Maryland Insurance Article, § 12-206; MIA application rules.

MCHIP enrollment (Insurance Article, § 31-113) occurs through the Individual Exchange (Maryland Health Connection), where certified Navigators or Producers assist, not SHOP (business-focused) or the Commissioner (regulatory).

References:Maryland Insurance Article, § 31-113; MIA MCHIP guidelines.

Major medical plans (Insurance Article, § 15-201) cover hospice, drugs, and therapy, but excluderoutine dental care, which requires separate dental insurance.

References:Maryland Insurance Article, § 15-201; MIA major medical standards.

Comprehensive and Detailed Step by Step Explanation:Thefree-look periodis a consumer protection mechanism allowing policyholders to cancel a policy within a specific period for a full refund.

10 days (A):Maryland law requires a minimum free-look period of 10 days for life insurance policies, allowing buyers to review the policy without financial obligation.

31 days (B), 45 days (C), and 60 days (D):These exceed Maryland’s statutory minimum and are not standard requirements unless specifically offered by the insurer.

References:Maryland Free-Look Provisions, COMAR 31.09.09, and Maryland Consumer Protection Act.

Maryland HMOs (Health-General Article, § 19-701) must provide basic health services like routine physicals, well-child care, and emergency services. Dental and vision care, however, are not required unless specified as supplemental benefits. State law mandates pediatric care but excludes routine dental and vision from standard HMO coverage unless the plan explicitly includes them.

References:Maryland Health-General Article, § 19-701; Insurance Article, § 15-1201; MIA HMO guidelines.

Respite care (Insurance Article, § 18-101) offers temporary professional care to relieve family caregivers, a mandated feature in Maryland long-term care policies. Skilled nursing, custodial care, and home health care serve ongoing needs, not specifically caregiver breaks.

References:Maryland Insurance Article, § 18-101 et seq.; MIA LTC guidelines.