Free Insurance Licensing Accident-and-Health-or-Sickness-Producer Practice Exam with Questions & Answers | Set: 3

HMOs (Health-General Article, § 19-701) provide preventive care like checkups, immunizations, and exams. Experimental surgery isn’t preventive or standard, making it the exception to covered services.

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

Adviser contracts (Insurance Article, § 10-201) require fee amounts, contract duration, and commission disclosure for transparency. The consultant’s license expiration is a regulatory detail, not a client contract requirement.

References:Maryland Insurance Article, § 10-201; MIA adviser rules.

Reasonable and customary charges are the typical fees for a procedure in a geographic area, used to set reimbursement levels (Insurance Article, § 15-1005). Preapproved charges require prior authorization, utilization charges relate to service reviews, and scheduled charges are fixed fees, none of which define this standard.

References:Maryland Insurance Article, § 15-1005; MIA health insurance guidelines.

Trade associations (Insurance Article, § 15-1209) group members in the same industry for medical benefits, not solely for insurance, and include small employers with contributions typically required.

References:Maryland Insurance Article, § 15-1209; MIA group insurance rules.

Producers (Insurance Article, § 10-126) typically collect the initial premium with the application and forward it to the insurer, streamlining the process, unlike direct payment, billing, or bank drafts, which are less common initially.

References:Maryland Insurance Article, § 10-126; MIA producer procedures.

Disability income policies (Insurance Article, § 15-201) cover both accidents and sickness, providing broad income protection, not limited to one cause or occupational incidents.

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

Comprehensive and Detailed Step by Step Explanation:The Maryland Insurance Administration (MIA) is authorized to inspect the records of insurers and agencies to ensure compliance with laws:

Yes, because of the powers defined by state laws (B):Correct. The MIA has broad authority under Maryland law to audit, inspect, and investigate insurance business practices.

No, because of privacy considerations (A):Incorrect. Regulatory inspections are exempt from privacy concerns when conducted lawfully.

Only an officer of the court (C):Not required; the MIA operates independently within its legal mandate.

Public domain records (D):Incorrect; insurance records are not publicly accessible unless required by law.

References:Maryland Insurance Article §2-209, COMAR 31.03.01, and Regulatory Oversight Guidelines.