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Maryland Insurance Administration MarylandAccident and Health or Sickness Producer Series 20-24 Sample Questions:
1. All of the following are true of insurance EXCEPT:
A) It transfers risk
B) It protects against uncertainty
C) It eliminates risk
D) It is a means of sharing losses
2. When the employer pays the premium, covered individuals normally receive tax-free benefits under all of the following group health plans EXCEPT:
A) Major medical
B) Dental
C) Health maintenance organization
D) Disability income
3. To be eligible for major medical extended care benefits, a patient must:
A) Be terminally ill
B) Have had surgery
C) Require continuous skilled nursing care
D) Require physical therapy
4. A policy of life insurance may NOT be delivered unless the policy has a:
A) Financial statement of the life insurance company
B) Premium coupon book
C) Legible and brief description of the policy on the first page
D) Notary seal
5. Which statement is true of trade association groups eligible for group medical benefits?
A) The association membership primarily consists of large employers
B) Members of the association are usually in the same industry
C) Such associations are formed for the purpose of purchasing insurance
D) Employer contributions are usually waived
Solutions:
Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: B |