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NEW QUESTION # 51
All of the following factors may affect premium determination in individual life insurance EXCEPT:
Answer: C
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 # 52
The Medical Information Bureau may release information in the proposed insured's file to:
Answer: C
Explanation:
Comprehensive and Detailed Step by Step Explanation:The Medical Information Bureau (MIB) collects and shares medical information among member insurance companies to assess risk:
* Member insurance companies (B)are the only entities authorized to access MIB data, ensuring confidentiality and appropriate use.
* Employment agencies (A)andemployers (C)cannot access MIB data.
* Physicians (D)are also excluded, as MIB serves the insurance underwriting process exclusively.
References: Maryland Insurance Privacy Regulations and MIB Operational Guidelines.
NEW QUESTION # 53
A valid contract requires all of the following EXCEPT:
Answer: B
Explanation:
Comprehensive and Detailed Step by Step Explanation:To be legally enforceable, a contract must meet the following requirements:
* Offer and acceptance (A):One party must propose terms, and the other must agree to them.
* Competent parties (B):Individuals must have the legal capacity to enter a contract (e.g., not minors or mentally incapacitated).
* Consideration (C):Each party must provide something of value (e.g., money, services, or promises).
Written evidence (D)is not required for all contracts, as some verbal agreements are enforceable depending on the type of contract (except for specific cases like real estate).
References: Maryland Contract Law Principles.
NEW QUESTION # 54
Advertisements in general shall be:
Answer: D
Explanation:
Comprehensive and Detailed Step by Step Explanation:Maryland law requires that insurance advertisements be honest, transparent, and not misleading.
* Truthful (D):Correct. Ads must provide accurate information about insurance products and benefits without omitting material facts.
* Approved by the Insurance Commissioner (A):Some materials may require regulatory review, but general ads do not need pre-approval.
* Clear only by implication (B):Misleading and prohibited.
* Clear only by familiarity with insurance terminology (C):Ads must be understandable to the general public, not just industry professionals.
References:Maryland Advertising Regulations, COMAR 31.15.01, and Unfair Trade Practices Act.
NEW QUESTION # 55
A refusal to do business with a particular individual or business is known as:
Answer: B
Explanation:
Comprehensive and Detailed Step by Step Explanation:Boycottrefers to the refusal to engage in business dealings with a particular party as part of an unfair trade practice, often used to coerce or punish. It is prohibited under Maryland's Unfair Trade Practices Act.
* Boycott (C):Defined as an unfair method of competition when used in the insurance context.
* Estoppel (A):A legal doctrine preventing someone from asserting a claim inconsistent with previous actions, unrelated to business refusal.
* Injunction (B):A court order stopping specific actions, not related to refusal to do business.
* Binder (D):Temporary insurance coverage, unrelated to trade practices.
References:Maryland Unfair Trade Practices Act, COMAR 31.15.03, and Maryland Insurance Code §27-205.
NEW QUESTION # 56
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