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Maryland Insurance Administration Life-Producer Exam Syllabus Topics:

SectionObjectives
Life Insurance Products- Term life insurance
  • 1. Level term, decreasing term
    - Annuities
    • 1. Fixed and variable annuities
      • 2. Immediate and deferred annuities
        - Permanent life insurance
        • 1. Variable life
          • 2. Whole life
            • 3. Universal life
              State Regulation (Maryland Insurance Law)- Ethics and conduct
              • 1. Misrepresentation rules
                • 2. Unfair trade practices
                  - Producer licensing requirements
                  • 1. License application process
                    • 2. Pre-licensing education requirements
                      Policy Provisions and Riders- Common riders
                      • 1. Accidental death benefit
                        • 2. Living benefits riders
                          • 3. Waiver of premium
                            - Life insurance policy clauses
                            • 1. Incontestability clause
                              • 2. Suicide clause
                                • 3. Grace period
                                  Insurance Fundamentals- Risk management principles
                                  • 1. Pure vs speculative risk
                                    • 2. Methods of handling risk (avoidance, retention, transfer)
                                      - Insurance concepts
                                      • 1. Insurable interest
                                        • 2. Utmost good faith

                                          Maryland Insurance Administration Maryland Life Producer Exam (Series 20-27) Sample Questions:

                                          A producer is prohibited from:

                                          • A. Allowing an applicant to sign a blank or incomplete application
                                          • B. Countersigning a policy sold in Maryland
                                          • C. Selling insurance to family members
                                          • D. Splitting commissions with a licensed nonresident producer who has jointly sold a policy
                                          Answer: A

                                          Explanation: Only visible for ExamPrepAway members. You can sign-up / login (it's free).

                                          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. Coercion
                                          • D. Defamation
                                          Answer: D

                                          Explanation: Only visible for ExamPrepAway members. You can sign-up / login (it's free).

                                          The purpose of the Life and Health Insurance Guaranty Corporation is to guarantee:

                                          • A. The issuance of life insurance policies.
                                          • B. That an insurance company will never fail.
                                          • C. The issuance of life insurance and health insurance policies.
                                          • D. Benefits if the insurer is unable to pay benefits due to impairment or insolvency.
                                          Answer: D

                                          Explanation: Only visible for ExamPrepAway members. You can sign-up / login (it's free).

                                          An insurance producer's license may be suspended or revoked by:

                                          • A. The continuing education course provider
                                          • B. The appointing insurer
                                          • C. The Attorney General
                                          • D. The Maryland Insurance Administration
                                          Answer: D

                                          Explanation: Only visible for ExamPrepAway members. You can sign-up / login (it's free).

                                          A policyholder uses a Section 1035 exchange to replace an existing life insurance policy. If the new policy is later surrendered, the gain realized on termination is taxed as:

                                          • A. A capital gain
                                          • B. Ordinary income
                                          • C. Ordinary income plus a 10% surcharge
                                          • D. A deferred capital gain
                                          Answer: B

                                          Explanation: Only visible for ExamPrepAway members. You can sign-up / login (it's free).

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