Maryland Life and Health Insurance License Practice Exam

The identity of the _____ must be clearly stated in every health insurance advertisement.

1. Insurer

2. Beneficiary

3. Producer

4. Underwriter

The correct answer is: Insurer

The identity of the insurer must be clearly stated in every health insurance advertisement because transparency is a key requirement in insurance marketing. This ensures that potential policyholders know who is backing the insurance product and whom they can expect to be responsible for fulfilling the terms of the policy. Clearly identifying the insurer helps to build trust and allows consumers to make informed decisions about the products they are considering. Ensuring that consumers can easily identify the insurer also helps to prevent misleading or confusing marketing practices. Regulatory bodies require this clarity to protect consumers from fraudulent activity and to promote fair competition among insurance providers. The other roles listed, such as the beneficiary, producer, and underwriter, do not require identification in the same manner for advertisements. The beneficiary is typically the person who receives the payout but is not involved in the marketing of the insurance product. The producer, who sells the policy, and the underwriter, who assesses the risk associated with the application, also do not have their identities mandated in advertisements aimed at consumers. Their roles are critical, but the insurer's identity is central to consumer trust and regulatory compliance in marketing health insurance.