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Accident-and-Health-or-Sickness-Producer Test Vce Free - Trustable Maryland Insurance Administration New Accident-and-Health-or-Sickness-Producer Exam Duration: MarylandAccident and Health or Sickness Producer Series 20-24 Exam
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Maryland Insurance Administration MarylandAccident and Health or Sickness Producer Series 20-24 Exam Sample Questions (Q65-Q70):
NEW QUESTION # 65
If an employer with 200 employees wants to offer health insurance and calls a SHOP Exchange Navigator, what should the navigator do?
- A. Refer the employer to the carrier where a friend works
- B. Refer the employer to a licensed insurance producer
- C. Help the employer sign-up through the SHOP Exchange
- D. Refer the employer to the Maryland Insurance Administration
Answer: B
Explanation:
SHOP Exchange (Insurance Article, § 31-101) serves employers with 1-50 employees; a 200-employee firm exceeds this, so the navigator should refer them to a producer for large group plans, not assist via SHOP, refer personally, or send to the MIA.
References:Maryland Insurance Article, § 31-101; MIA SHOP Exchange guidelines.
NEW QUESTION # 66
Which statement describes the most likely federal income tax treatment of death benefits paid to the family of an insured under an accident and health insurance policy?
- A. Some benefits will usually be taxable
- B. Taxation depends on the beneficiary's tax bracket
- C. All benefits will be taxable
- D. Benefits will not be taxable
Answer: D
Explanation:
Death benefits from accident and health policies (e.g., accidental death, IRC § 101) are generally tax-free to beneficiaries. Partial or full taxation is rare unless tied to taxable settlements, and tax brackets don't determine this exemption.
References:IRC § 101; MIA tax treatment guidelines.
NEW QUESTION # 67
Under which marketing system do insurers solicit customers by mass media advertising and mail without the services of a producer?
- A. Captive agent
- B. Branch office
- C. Contingent
- D. Direct response
Answer: D
Explanation:
Direct response (Insurance Article, § 10-101) uses mass media and mail to sell directly, bypassing producers, unlike branch offices, captive agents, or contingent systems, which involve intermediaries.
References:Maryland Insurance Article, § 10-101; MIA marketing guidelines.
NEW QUESTION # 68
An accident and health insurance producer is most likely to become liable for professional errors and omissions as the result of:
- A. Misleading a prospective insured in replacing accident and health insurance
- B. Submitting a premium payment to an insurer in excess of the required amount
- C. Incorrect filing of federal income taxes
- D. An accounting error discovered by the producer's accountant
Answer: A
Explanation:
Errors and omissions liability arises from professional negligence (Insurance Article, § 10-126). Misleading a client about policy replacement (twisting, § 27-203) directly harms them, unlike accounting errors, overpayments, or tax issues, which are internal or personal.
References:Maryland Insurance Article, § 10-126, § 27-203; MIA producer liability rules.
NEW QUESTION # 69
All of the following factors may affect premium determination in individual life insurance EXCEPT:
- A. Age
- B. Health
- C. Occupation
- D. Race
Answer: D
Explanation:
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.
NEW QUESTION # 70
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