Maryland Insurance Administration Updated Accident-and-Health-or-Sickness-Producer Exam Questions and Answers by keyaan

Errors and omissions liability arises from professional negligence (Insurance Article, § 10-126). Misleading a client about policy replacement (twisting, § 27-203) directly harms them, unlike accounting errors, overpayments, or tax issues, which are internal or personal.

References:Maryland Insurance Article, § 10-126, § 27-203; MIA producer liability rules.

Medicare Part A excludes the first three pints of blood for inpatient care, but Medigap core benefits (Insurance Article, § 15-901) cover this cost across all plans (A-J), making it a standard, not additional, benefit. Parts A and B don’t include it directly.

References:Maryland Insurance Article, § 15-901; CMS Medicare guidelines.

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.

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.