Accident-and-Health-or-Sickness-Producer Exam Dumps - MarylandAccident and Health or Sickness Producer Series 20-24 Exam

Under IRC § 162, premiums paid by a corporation for group disability coverage for employees are deductible as a business expense, with benefits taxable to employees. Partnerships can’t deduct for partners (owners), individual premiums aren’t deductible (IRC § 213), and employee-paid premiums don’t qualify unless under specific plans. Maryland follows federal tax treatment.

References:Maryland Insurance Article; IRC § 162, § 213; MIA tax guidelines.

A loss on May 30, while covered (Insurance Article, § 15-201), obligates the insurer to pay upon proof, despite termination on June 1. Termination or pre-existing exclusions don’t negate prior coverage, and no one-year rule applies.

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

The MIA (Insurance Article, § 10-126) disciplines producers for misrepresentation (§ 27-202, § 27-503), but filing a consumer complaint with the MIA is a legitimate advocacy action, not a disciplinary offense. It supports consumer protection, unlike the other deceptive practices.

References:Maryland Insurance Article, § 10-126, § 27-202, § 27-503; MIA producer regulations.

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.

Accident and health plans (Insurance Article, § 15-201) cover acute needs like hospital, physician, and surgical expenses. Custodial care—non-medical daily assistance—is excluded, typically covered by long-term care insurance.

References:Maryland Insurance Article, § 15-201; MIA health insurance standards.

Standard risk applicants (Insurance Article, § 15-201) receive the standard premium rate, as their risk aligns with the average pool. Declining coverage or adjusting payment terms applies to higher risks, not standard ones.

References:Maryland Insurance Article, § 15-201; MIA underwriting guidelines.

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.

Insurance (Insurance Article, § 12-101) covers legal risks like skydiving, events, or plants, but not illegal acts like drug smuggling, barred by public policy.

References:Maryland Insurance Article, § 12-101; MIA insurability guidelines.