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NEW QUESTION # 48
Under which marketing system do insurers solicit customers by mass media advertising and mail without the services of a producer?
Answer: C
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 # 49
If an employer with 200 employees wants to offer health insurance and calls a SHOP Exchange Navigator, what should the navigator do?
Answer: C
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 # 50
Under Maryland law, the agreement between an insurance producer and insurer under which the insurance producer, for compensation, may sell, solicit, or negotiate policies issued by the insurer is defined as:
Answer: C
Explanation:
An appointment (Insurance Article, § 10-103) is the formal agreement allowing a producer to sell an insurer's policies for compensation, distinct from a license (producer credential), certificate of authority (insurer's right), or vague binding agreement.
References:Maryland Insurance Article, § 10-103, § 4-101; MIA producer regulations.
NEW QUESTION # 51
The waiver of premium provision in a disability income policy provides that premiums will be waived during:
Answer: B
Explanation:
The waiver of premium provision (Insurance Article, § 15-201) waives premiums during the disability benefit period-when benefits are paid-easing financial strain. The elimination period requires premium payment, the grace period is for late payments, and the time limit on defenses relates to incontestability, not waivers.
References:Maryland Insurance Article, § 15-201; MIA disability insurance standards.
NEW QUESTION # 52
All of the following are characteristics of a preferred risk applicant for disability income insurance EXCEPT:
Answer: D
Explanation:
Preferred risk applicants (Insurance Article, § 15-201) have low disability risk due to non-smoking, safe jobs, and physical activity. High income affects benefit amounts, not risk classification, making it the exception.
References:Maryland Insurance Article, § 15-201; MIA underwriting standards.
NEW QUESTION # 53
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