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Maryland Life Producer Exam (Series 20-27) Question and Answers

Maryland Life Producer Exam (Series 20-27)

Last Update Oct 15, 2025
Total Questions : 90

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Questions 1

A policy of life insurance may NOT be delivered unless the policy has a:

Options:

A.  

Legible and brief description of the policy on the first page

B.  

Notary seal

C.  

Premium coupon book

D.  

Financial statement of the life insurance company

Discussion 0
Questions 2

What does the annuitant usually receive during the liquidation phase of an annuity?

Options:

A.  

Cash withdrawals upon request

B.  

Benefit payments at regular intervals

C.  

A lump sum

D.  

Nothing

Discussion 0
Questions 3

The Maryland Insurance Administration is an agency of the:

Options:

A.  

Federal government

B.  

State government

C.  

National Association of Insurance Commissioners

D.  

Maryland General Assembly

Discussion 0
Questions 4

The penalty tax incurred for premature distributions from an IRA is:

Options:

A.  

5%

B.  

10%

C.  

20%

D.  

50%

Discussion 0
Questions 5

Splitting the commission with the buyer on a sale of insurance is an unfair trade practice known as:

Options:

A.  

Twisting

B.  

Binding

C.  

Soliciting

D.  

Rebating

Discussion 0
Questions 6

One factor in premium determination is the expenses of the:

Options:

A.  

Producer

B.  

Insurer

C.  

Policy beneficiary

D.  

Policy owner

Discussion 0
Questions 7

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:

Options:

A.  

Beneficiary of the policy

B.  

Physician of the applicant's choice upon the request of the applicant

C.  

Company’s underwriter

D.  

Physician that furnished medical information to the insurer

Discussion 0
Questions 8

A producer may be guilty of misrepresentation if the producer:

Options:

A.  

Failed to disclose exclusions of the policy

B.  

Denied a claim for failure of the policyholder to prove damages

C.  

Required timely written notice of loss for all claims

D.  

Issued a full settlement check expressly releasing the insurer

Discussion 0
Questions 9

In the event of a death claim under a life insurance policy, what happens to the amount of any existing policy loan?

Options:

A.  

It is deducted from the face amount of the policy together with any interest due.

B.  

The beneficiary has an obligation to pay the amount to the insurance company.

C.  

It represents a primary claim against the estate of the insured.

D.  

It is canceled, and the beneficiary receives the face amount of the policy.

Discussion 0
Questions 10

A refusal to do business with a particular individual or business is known as:

Options:

A.  

An estoppel

B.  

An injunction

C.  

A boycott

D.  

A binder

Discussion 0
Questions 11

Which activity is an unfair claims settlement practice?

Options:

A.  

Negotiating the payment of claims where coverage or liability is in question

B.  

Denying claims on the basis of specific policy provisions

C.  

Including an arbitration provision in the insurer's policies

D.  

Offering settlements that are less than the fair value to offset insurer expenses

Discussion 0
Questions 12

A life insurance policy beneficiary's life expectancy has a direct bearing upon:

Options:

A.  

The policy value that will be includable in the insured's estate

B.  

The taxable portion of each benefit payment under a life income settlement option

C.  

The total amount payable under the policy as a result of the insured's death

D.  

The premium rate for each $1,000 of face amount

Discussion 0
Questions 13

A producer is prohibited from:

Options:

A.  

Selling insurance to family members

B.  

Allowing an applicant to sign a blank or incomplete application

C.  

Countersigning a policy sold in Maryland

D.  

Splitting commissions with a licensed nonresident producer who has jointly sold a policy

Discussion 0
Questions 14

An insurance producer who conducts business under an assumed or fictitious name must:

Options:

A.  

File the name with the Insurance Administration

B.  

Apply for an additional license

C.  

Apply for an additional appointment

D.  

Post a $10,000 bond

Discussion 0
Questions 15

The free-look period provided in a life insurance policy is usually:

Options:

A.  

10 days

B.  

31 days

C.  

45 days

D.  

60 days

Discussion 0
Questions 16

An insurance agent's license may be revoked for all of the following reasons EXCEPT:

Options:

A.  

Having no insurer appointment in effect for ten days

B.  

Having been found guilty of rebating

C.  

Being convicted of a felony

D.  

Violating any insurance statute or regulation

Discussion 0
Questions 17

To have "an insurable interest" in the life of another person, an individual must have a reasonable expectation of:

Options:

A.  

Gaining economically by the death of the other person

B.  

Continuing on good terms with the other person

C.  

Benefiting from the other person’s continued life

D.  

Seeing the other person survive to normal life expectancy

Discussion 0
Questions 18

Which amount may be deposited into a rollover individual retirement account (IRA) for the purpose of deferring income taxes?

Options:

A.  

The proceeds of a life insurance policy paid to a beneficiary under age 70-1/2

B.  

The refund received by the beneficiary under a refund life annuity

C.  

The amount paid to the spouse of a deceased annuitant under a tax-sheltered annuity

D.  

The value of an IRA established by the beneficiary’s deceased parent

Discussion 0
Questions 19

A life insurance producer is normally responsible for all of the following EXCEPT:

Options:

A.  

Delivering newly issued policies to applicants

B.  

Notifying the company if a new policy will replace an existing policy

C.  

Approving policies for issue on behalf of the insurer

D.  

Collecting the initial premium from the applicant

Discussion 0
Questions 20

A life insurance policy becomes incontestable after it has been in force for:

Options:

A.  

30 days

B.  

6 months

C.  

2 years

D.  

3 years

Discussion 0
Questions 21

A licensee must report each of the following to the Maryland Insurance Administration EXCEPT:

Options:

A.  

Change of name

B.  

Change of residence address

C.  

Change in financial status

D.  

Felony convictions

Discussion 0
Questions 22

An insurable interest in each other's lives may exist in the absence of an economic interest when the individuals are:

Options:

A.  

Competitors

B.  

Business associates

C.  

Marriage partners

D.  

Traveling companions

Discussion 0
Questions 23

Which contract offers flexible deposits, deferred taxation, a guaranteed minimum interest rate, and death proceeds equal to the cash value?

Options:

A.  

An adjustable whole life insurance policy

B.  

Available deferred annuity

C.  

A flexible premium fixed annuity

D.  

A universal life insurance policy

Discussion 0
Questions 24

Which life annuity contract feature provides that benefit payments will continue for a minimum number of years regardless of when the annuitant dies?

Options:

A.  

Cost recovery

B.  

Period certain

C.  

Cash refund

D.  

Installment refund

Discussion 0
Questions 25

The income benefits distributed during the liquidation phase of an annuity contract are normally payable to:

Options:

A.  

The owner

B.  

The beneficiary

C.  

The nominator

D.  

The annuitant

Discussion 0
Questions 26

The purpose of licensing insurance agents is to:

Options:

A.  

Limit the number of agents who do business within Maryland

B.  

Demonstrate that the agent is qualified to act on behalf of insurers in Maryland

C.  

Monitor insurance sales activity in Maryland

D.  

Regulate rates to prevent unfair discrimination among insureds

Discussion 0
Questions 27

Publishing a derogatory article about the financial condition of an insurer that is false and calculated to injure the insurer is an example of:

Options:

A.  

Defamation

B.  

Intimidation

C.  

Extortion

D.  

Coercion

Discussion 0