Pass the Maryland Insurance Administration Maryland Insurance Accident-and-Health-or-Sickness-Producer Questions and answers with ValidTests

Statements on applications (Insurance Article, § 12-206) are representations—factual assertions to the best of the insured’s knowledge—where only material misrepresentations void a policy. Warranties are stricter and less common, while categorical and general provisions don’t apply.

References:Maryland Insurance Article, § 12-206; MIA application rules.

The Maryland Health Insurance Plan (MHIP, Insurance Article, § 15-1301) historically provided coverage for medically uninsurable residents rejected by private insurers, until phased out in 2014 by the ACA. It didn’t target low-income (Medicaid), seniors (Medicare), or children (CHIP) specifically.

References:Maryland Insurance Article, § 15-1301 (historical); MIA MHIP documentation.

Commissions (Insurance Article, § 10-103) require a license, but a producer earning a commission while licensed can be paid post-termination. Unlicensed individuals or brokers can’t legally receive commissions.

References:Maryland Insurance Article, § 10-103, § 10-130, § 3-306; MIA commission rules.

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.

The MIA (Insurance Article, § 2-207) can request and access producer records for audits or investigations, overriding privacy for regulatory purposes. Court orders or NAIC approval aren’t required, and access is a standard power.

References:Maryland Insurance Article, § 2-207; MIA regulatory authority.

Policy statements (Insurance Article, § 15-201) must clarify benefits with the maximum daily benefit (e.g., $200/day) and maximum time limit (e.g., 9 days) to define the $1,800 total. Minimums are irrelevant, and a mix of maximum and minimum limits lacks clarity.

References:Maryland Insurance Article, § 15-201; MIA policy disclosure rules.

Nonprofit health service plans (Insurance Article, § 14-102), like HMOs, provide medical, vision, and dental benefits, but disability income—replacing lost wages—is outside their scope and belongs to separate insurance types.

References:Maryland Insurance Article, § 14-102; MIA nonprofit plan rules.

A waiting period (Insurance Article, § 15-109) delays coverage for pre-existing conditions (e.g., 6-12 months), not permanently excluding them, starting at inception, or holding payments in escrow.

References:Maryland Insurance Article, § 15-109; MIA pre-existing condition rules.

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.

Comprehensive and Detailed Step by Step Explanation:The Maryland Insurance Administration (MIA) has sole authority to regulate, suspend, or revoke an insurance producer’s license for violations of state insurance laws:

Maryland Insurance Administration (C):Correct. The MIA oversees producer licensing, compliance, and disciplinary actions.

Appointing insurer (A):Can terminate an appointment but cannot revoke a license.

Continuing education provider (B):Only offers training and has no regulatory authority.

Attorney General (D):Handles legal actions but does not directly manage licensing.

References:Maryland Insurance Article §10-126, Producer Regulation Guidelines, COMAR 31.03.13.