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Maryland Insurance Administration MarylandAccident and Health or Sickness Producer Series 20-24 Exam Sample Questions (Q75-Q80):
NEW QUESTION # 75
In Maryland, an insurance producer is a person who solicits, negotiates, or sells insurance plans PRIMARILY in conjunction with:
- A. Performing clerical duties
- B. Earning commission
- C. Enrolling individuals in group plans
- D. Acting as a regularly salaried officer
Answer: B
Explanation:
A producer (Insurance Article, § 1-101(aa)) solicits and sells insurance primarily for commissions, distinguishing them from clerical staff, enrollment facilitators, or salaried insurer employees. This reflects their independent role.
References:Maryland Insurance Article, § 1-101(aa), § 10-101; MIA producer definitions.
NEW QUESTION # 76
In accident and health insurance underwriting, when the risk imposed by an applicant is similar to the risks imposed by most other applicants, the applicant is:
- A. Required to pay the first year's premium in a lump sum
- B. Declined coverage
- C. Charged an additional premium for the first three years
- D. Charged the standard premium rate
Answer: D
Explanation:
Standard risk applicants (Insurance Article, § 15-201) receive the standard premium rate, as their risk aligns with the average pool. Declining coverage or adjusting payment terms applies to higher risks, not standard ones.
References:Maryland Insurance Article, § 15-201; MIA underwriting guidelines.
NEW QUESTION # 77
It is unlawful for a person to provide an advertisement that:
- A. Refers to the insurer's financial rating
- B. Uses a policy title to misrepresent a coverage
- C. Points out coverage advantages of a policy
- D. Makes a comparison of benefits between policies
Answer: B
Explanation:
Advertisements (Insurance Article, § 27-503) can highlight advantages or ratings if true, but misrepresenting coverage via a title is illegal, deceiving consumers about policy benefits.
References:Maryland Insurance Article, § 27-503; MIA advertising standards.
NEW QUESTION # 78
Medical expense insurance typically EXCLUDES coverage for:
- A. Hospital laboratory tests
- B. Maternity care benefits
- C. Hospital care extending past 30 days
- D. Expenses incurred for primarily cosmetic surgery
Answer: D
Explanation:
Medical expense insurance covers necessary treatments like hospital stays, maternity care, and diagnostic tests, but excludes elective procedures such as primarily cosmetic surgery unless medically necessary (e.g., reconstructive surgery post-injury). Maryland law (Insurance Article, § 15-103) allows exclusions for non- essential services, aligning with standard practice where aesthetic surgeries like facelifts are not covered.
References:Maryland Insurance Article, § 15-103; MIA guidelines.
NEW QUESTION # 79
Accident and health policies must cover physically or mentally handicapped dependent children:
- A. To age 19
- B. Until they become self-sustaining
- C. For life
- D. To age 25
Answer: C
Explanation:
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.
NEW QUESTION # 80
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