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Life and Health Insurance Producer Exam

Policy provisions (MD): practice questions

Our Life & Health Insurance bank has 8 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1 · Maryland

How may a Maryland life insurance policy limit coverage for death by suicide?

  1. It may not exclude or restrict coverage for suicide at all
  2. It may exclude suicide within 1 year of issue, only if sane
  3. It may exclude suicide for 3 years unless a court finds insanity
  4. It may exclude suicide within 2 years of issue, sane or insane
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D. It may exclude suicide within 2 years of issue, sane or insane — Md. Code, Ins. 16-215(b)(1)(v).

Question 2 · Maryland

What grace period must a Maryland ordinary life insurance policy allow for premiums after the first?

  1. 10 days for monthly premiums and 31 days for all others
  2. 30 days, or at the insurer's option 1 month of at least 30 days
  3. 31 days for all policies, regardless of the premium mode
  4. 60 days, but only if the policy has accumulated cash value
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B. 30 days, or at the insurer's option 1 month of at least 30 days — Md. Code, Ins. 16-202(a); industrial policies with more-than-monthly premiums may use 4 weeks.

Question 3 · Maryland

Under the required reinstatement provision, a reinstated Maryland health insurance policy covers sickness that begins:

  1. More than 30 days after the date of reinstatement
  2. Immediately on the date of reinstatement
  3. More than 10 days after the date of reinstatement
  4. Only after a new 2-year contestable period has ended
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C. More than 10 days after the date of reinstatement — Md. Code, Ins. 15-210(a); accidental injury is covered if sustained after reinstatement.

Question 4 · Maryland

Within what period after the first defaulted premium must an ordinary (non-industrial) Maryland life policy allow reinstatement?

  1. 2 years, with no evidence of insurability required
  2. 5 years, if the policy has not been surrendered for cash
  3. 6 months, with payment of arrears and a reinstatement fee
  4. 3 years, with evidence of insurability and payment of arrears
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D. 3 years, with evidence of insurability and payment of arrears — Md. Code, Ins. 16-210(a); industrial policies allow 2 years.

Question 5 · Maryland

Under the notice required on Maryland life insurance policies, how long does a policyholder have after delivery to return the policy for cancellation?

  1. 20 days, with a refund less a reasonable administrative charge
  2. 30 days, with a full refund of all premiums and fees paid
  3. No such right exists unless the new policy replaces existing coverage
  4. 10 days, with a pro rata refund of premium for the unexpired term
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D. 10 days, with a pro rata refund of premium for the unexpired term — Md. Code, Ins. 16-105(b).

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