[Nov 29, 2025] Fully Updated Maryland Insurance (Life-Producer) Certification Sample Questions
Latest Maryland Insurance Administration Life-Producer Real Exam Dumps PDF
NEW QUESTION # 11
An individual life insurance policy may include coverage for all of the following EXCEPT:
- A. Burial
- B. Workers' compensation
- C. Long-term care
- D. Disability
Answer: B
Explanation:
Comprehensive and Detailed Step by Step Explanation:Individual life insurance policies often allow riders or supplementary coverage options, but they do not cover workers' compensation, which is a separate insurance category.
* Disability (A):Can be included as a rider, such as a waiver of premium or disability income benefit.
* Long-term care (B):Often available as an optional rider to address extended medical care expenses.
* Burial (D):Final expense policies or riders can be added to cover funeral and burial costs.
* Workers' compensation (C):Not covered under life insurance policies; this is a specific insurance product regulated differently.
References:Maryland Life Insurance Rider Guidelines, Workers' Compensation Insurance Regulations, and COMAR 31.09.03.
NEW QUESTION # 12
An existing life insurance policy is sold by the policyowner to help finance the cost of a terminal illness. This is an example of:
- A. A nonforfeiture option
- B. An accelerated death benefit
- C. A survivorship policy
- D. A viatical settlement
Answer: D
Explanation:
Comprehensive and Detailed Step by Step Explanation:Aviatical settlementinvolves selling a life insurance policy to a third party for immediate cash, typically to cover expenses associated with terminal illnesses.
* Viatical settlement (C):The policyowner receives a percentage of the death benefit to cover high medical costs or improve their quality of life.
* Nonforfeiture options (A):Relate to preserving cash value if the policy lapses, not a sale.
* Accelerated death benefit (B):Involves accessing a portion of the death benefit directly from the insurer, not through a third party.
* Survivorship policies (D):Cover two insureds and pay the death benefit only after both have passed away, unrelated to this case.
References: Maryland Viatical Settlement Law and Insurance Code.
NEW QUESTION # 13
The Maryland Insurance Administration is an agency of the:
- A. Maryland General Assembly
- B. National Association of Insurance Commissioners
- C. Federal government
- D. State government
Answer: D
Explanation:
Comprehensive and Detailed Step by Step Explanation:The Maryland Insurance Administration (MIA) is a state governmententity responsible for regulating the insurance industry in Maryland.
* State government (B):MIA enforces insurance laws, reviews policy forms, licenses insurers and producers, and investigates consumer complaints.
* Federal government (A):Oversees broader regulations, like ERISA, but does not directly manage state- level insurance matters.
* National Association of Insurance Commissioners (C):A regulatory support organization, not a governing body.
* Maryland General Assembly (D):Creates state laws, but enforcement falls under the MIA.
References: Maryland Insurance Administration Overview and State Regulatory Framework.
NEW QUESTION # 14
A group policy may be issued to a labor union. The members eligible for insurance under the policy shall be:
- A. All of the members of the union
- B. Members of any union
- C. Only members of the union who are under the age of 65
- D. Healthy members of the union
Answer: A
Explanation:
Comprehensive and Detailed Step by Step Explanation:When a group policy is issued to a labor union, Maryland law requires that eligibility criteria ensure fairness and inclusivity:
* All of the members of the union (B):Eligible members must be treated equally under the group policy.
Coverage cannot exclude individuals based on factors like age or health, provided they are active members.
* Members of any union (A):Policies are issued to specific unions, not broadly.
* Only members under age 65 (C):Age discrimination is prohibited unless specifically linked to policy provisions.
* Healthy members (D):Group policies cannot discriminate based on health status.
References:Maryland Group Insurance Regulations, COMAR 31.09.06, and Labor Union Group Policies Guidelines.
NEW QUESTION # 15
A transaction in which a new life insurance policy is purchased, and an existing life insurance policy is surrendered is called:
- A. Replacement
- B. Reinvestment
- C. Nonforfeiture
- D. Rollover
Answer: A
Explanation:
Comprehensive and Detailed Step by Step Explanation:Areplacementoccurs when a new life insurance policy is purchased, and the existing policy is surrendered, terminated, or its benefits reduced to make way for the new policy.
* Replacement (B):This is regulated to ensure the policyholder is not disadvantaged by switching policies, often requiring additional disclosures and forms, like Maryland's "Important Notice Replacement of Life Insurance or Annuities."
* Nonforfeiture (A):Refers to retaining cash value benefits when a policy lapses or is canceled, not applicable here.
* Reinvestment (C):Generally relates to financial or investment accounts, not life insurance.
* Rollover (D):Pertains to tax-advantaged accounts like IRAs, not applicable to insurance.
References: Maryland Replacement Regulations, Disclosure Requirements, and Consumer Protections.
NEW QUESTION # 16
Which life annuity contract feature provides that benefit payments will continue for a minimum number of years regardless of when the annuitant dies?
- A. Cash refund
- B. Period certain
- C. Cost recovery
- D. Installment refund
Answer: B
Explanation:
Comprehensive and Detailed Step by Step Explanation:A "period certain" option ensures benefit payments are made for a set duration even if the annuitant dies before the end of the period.
* Period certain (B)guarantees a minimum payment period to beneficiaries.
* Cost recovery (A)andrefund options (C and D)relate to returning unused premiums or unpaid balances but do not ensure a minimum payout period.
References: Maryland Annuity Regulations and Contract Features.
NEW QUESTION # 17
If a life insurer denies a policy of life insurance, the insurer shall disclose the results of any medicalexamination administered to determine insurability to the:
- A. Physician that furnished medical information to the insurer
- B. Physician of the applicant's choice upon the request of the applicant
- C. Company's underwriter
- D. Beneficiary of the policy
Answer: B
Explanation:
Comprehensive and Detailed Step by Step Explanation:Maryland law requires that the results of medical examinations used to determine insurability:
* Be disclosed to thephysician of the applicant's choice (B), but only if the applicant requests it.
* This ensures privacy and confidentiality while giving the applicant access to critical information.
* Beneficiaries (A)andunderwriters (C)do not receive this information.
* Physicians furnishing information (D)already have access to their own submissions.
References: Maryland Insurance Code on Privacy and Disclosure of Medical Information.
NEW QUESTION # 18
A refusal to do business with a particular individual or business is known as:
- A. A binder
- B. A boycott
- C. An injunction
- D. An estoppel
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 # 19
The free-look period provided in a life insurance policy is usually:
- A. 31 days
- B. 45 days
- C. 10 days
- D. 60 days
Answer: C
Explanation:
Comprehensive and Detailed Step by Step Explanation:Thefree-look periodis a consumer protection mechanism allowing policyholders to cancel a policy within a specific period for a full refund.
* 10 days (A):Maryland law requires a minimum free-look period of 10 days for life insurance policies, allowing buyers to review the policy without financial obligation.
* 31 days (B), 45 days (C), and 60 days (D):These exceed Maryland's statutory minimum and are not standard requirements unless specifically offered by the insurer.
References:Maryland Free-Look Provisions, COMAR 31.09.09, and Maryland Consumer Protection Act.
NEW QUESTION # 20
Which contract offers flexible deposits, deferred taxation, a guaranteed minimum interest rate, and death proceeds equal to the cash value?
- A. An adjustable whole life insurance policy
- B. A universal life insurance policy
- C. A flexible premium fixed annuity
- D. An available deferred annuity
Answer: C
Explanation:
Comprehensive and Detailed Step by Step Explanation:Aflexible premium fixed annuityis designed to allow policyholders flexibility in premium payments while providing guaranteed growth.
* Flexible deposits:Policyholders can make variable contributions based on their financial situation.
* Deferred taxation:Earnings grow tax-deferred until withdrawal.
* Guaranteed minimum interest rate:Fixed annuities offer this feature to protect against market downturns.
* Death proceeds equal to cash value:Upon death, beneficiaries typically receive the accumulated cash value.
Other Options:
* Adjustable whole life policy (A):Features adjustable premiums but lacks deferred taxation and guaranteed rates.
* Deferred annuity (B):Generic and does not specify the features of fixed annuities.
* Universal life (D):Provides more flexibility but differs in guaranteed returns.
References:Maryland Annuity Guidelines, COMAR 31.09.08, and Tax-Deferred Financial Product Regulations.
NEW QUESTION # 21
A licensee must report each of the following to the Maryland Insurance Administration EXCEPT:
- A. Change in financial status
- B. Change of residence address
- C. Change of name
- D. Felony convictions
Answer: A
Explanation:
Comprehensive and Detailed Step by Step Explanation:Insurance licensees in Maryland are required to report certain changes to the Maryland Insurance Administration (MIA):
* Change of name (A):Must be reported promptly to ensure accurate licensure records.
* Change of residence address (B):Also required for communication and compliance purposes.
* Felony convictions (D):Mandatory disclosure to maintain transparency and evaluate fitness for licensure.
* Change in financial status (C):Not required unless it directly affects the licensee's ability to meet financial obligations tied to the license (e.g., bonding requirements).
References:Maryland Insurance Code §10-118, COMAR 31.03.01.
NEW QUESTION # 22
Which one of the following statements about participating life insurance is true?
- A. Policyowners are assessed monthly for losses.
- B. Policyowners may be entitled to receive dividends.
- C. The insured must be the policyowner.
- D. The insurer must be a stock company.
Answer: B
Explanation:
Comprehensive and Detailed Step by Step Explanation:
Participating life insurance policies are typically issued by mutual insurers and allow policyholders to:
Receive dividends (A), which are excess profits returned to policyholders.
Policyholders are not assessed for losses (B); insurers absorb losses.
The insured and policyowner can be separate entities, invalidating (C).
Mutual insurers, not stock companies, issue most participating policies, making (D) incorrect.
References: Maryland Mutual Insurance Practices and Participating Policy Guidelines.
NEW QUESTION # 23
An applicant for life insurance must be informed that testing for Human Immunodeficiency Virus (HIV) infection is used to help determine:
- A. The type of policy that will be issued
- B. Whether an insurable interest exists
- C. The insurability of the proposed insured
- D. The effective date and term of coverage
Answer: C
Explanation:
Comprehensive and Detailed Step by Step Explanation:HIV testing is used by insurers to evaluate the health risks associated with the applicant anddetermine insurability.
* The insurability of the proposed insured (D):Correct. HIV status can impact underwriting decisions, subject to Maryland's anti-discrimination laws.
* The type of policy issued (A):Irrelevant, as this is determined by the applicant's preferences and eligibility.
* Effective date and term of coverage (B):Determined separately from medical testing.
* Whether an insurable interest exists (C):Based on the relationship between the policyholder and insured, not medical testing.
References:Maryland Insurance Code §27-208, HIV Testing Disclosure Guidelines, and Maryland Human Rights Act.
NEW QUESTION # 24
Publishing a derogatory article about the financial condition of an insurer that is false and calculated to injure the insurer is an example of:
- A. Intimidation
- B. Extortion
- C. Defamation
- D. Coercion
Answer: C
Explanation:
Comprehensive and Detailed Step by Step Explanation:Defamationinvolves publishing or circulating false, malicious statements intended to harm an insurer's reputation. It is prohibited under Maryland law to protect the integrity of insurers.
* Defamation (A):Includes any written or spoken communication that is untrue and harms the insurer's business standing.
* Intimidation (B):Relates to coercing individuals through threats, not publishing falsehoods.
* Extortion (C):Involves demanding something through threats, unrelated to false statements.
* Coercion (D):Involves forcing a party to act under duress, not relevant to publishing false information.
References:Maryland Insurance Article §27-205, Unfair Trade Practices and Consumer Protection Act.
NEW QUESTION # 25
Which one of the following life insurance settlement options pays a predetermined monthly benefit until principal and interest are exhausted?
- A. The interest-only option
- B. The fixed period installment option
- C. The accelerated endowment option
- D. The fixed amount installment option
Answer: D
Explanation:
Comprehensive and Detailed Step by Step Explanation:Thefixed amount installment optionprovides for a predetermined monthly benefit to the policy beneficiary. Payments continue until the principal (death benefit) and accumulated interest are fully paid out.
* Fixed amount installment option (A):Ensures consistent payment amounts until the death benefit and interest are exhausted. This option is often used when beneficiaries want a steady income.
* Accelerated endowment option (B):Not relevant as it refers to early payouts for policies reaching maturity.
* Interest-only option (C):Only pays interest earned on the death benefit, leaving the principal untouched.
* Fixed period installment option (D):Guarantees payments for a specific period, regardless of whether the principal or interest is depleted.
References: Maryland Life Insurance Policy Payout Regulations and Settlement Options Guidelines.
NEW QUESTION # 26
Which of the following is a requirement of an insurable risk?
- A. The chance of loss must be calculable.
- B. There must be a large number of different loss exposures.
- C. The loss must be intentional.
- D. The loss must be catastrophic.
Answer: A
Explanation:
Comprehensive and Detailed Step by Step Explanation:Aninsurable riskmust meet specific criteria to ensure fair and financially viable coverage:
* Chance of loss must be calculable (C):Correct. Insurers need statistical data to assess risk and determine premiums.
* Loss must be intentional (A):Incorrect; intentional losses are not insurable.
* Loss must be catastrophic (B):Incorrect; catastrophic losses (e.g., war or large-scale disasters) are often excluded or managed through reinsurance.
* Large number of different loss exposures (D):A large number of similar, not different, exposures is required for risk pooling.
References:Maryland Insurance Principles, Actuarial Standards, and COMAR 31.09.14.
NEW QUESTION # 27
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Life-Producer Practice Test Questions Updated 85 Questions: https://drive.google.com/open?id=1ntnikVS4hiAFPyhS6TZnB-IM1BJEizmL
