MD STATE ACTUAL EXAM PAPER 2026
FULL QUESTIONS AND VERIFIED
SOLUTIONS
⩥ An agent is behind on his paperwork, so he asks a client to sign a
blank application, assuring her he'll finish it within the next two weeks.
1. This is legal if the client has other policies with the agent.
2. This is legal if the policy the client is applying for is a short-term
policy.
3. This is illegal under Maryland Insurance law.
4. This is illegal. It would need to be finished within 5 working days.
Answer: 3. This is illegal under Maryland Insurance law
⩥ A producer in another state wants to become a producer in Maryland.
The other state gives the same privileges to Maryland producers wanting
to be licensed in that state as it does its own producers. Maryland
therefore extends the privileges of its producers to the prospective
producer of the other state. What is this called?
1. Fair exchange
2. Equality
3. Equal privilege
4. Reciprocity. Answer: 4. Reciprocity
, ⩥ Mr. F is acting as a public adjuster without first obtaining his license.
What penalties might Mr. F incur as a result of his actions?
1. $500 fine or 6 months in prison for each violation
2. $1500 fine or 3 months in prison maximum
3. $1200 fine or 1 month in prison for each violation
4. $500 fine or 2 years in prison for each violation. Answer: 1. $500 fine
or 6 months in prison for each violation
⩥ According to financial responsibility laws in this state, the minimum
limits of liability provided in a vehicle liability insurance policy is
1. $15,000/$30,000/$10,000
2. $20,000/$40,000/$20,000
3. $30,000/$60,000/$15,000
4. $10,000/$20,000/$5,000. Answer: 3. $30,000/$60,000/$15,000
⩥ Which type of misrepresentation persuades an insured, to his or her
detriment, to cancel, lapse, or switch policies from one to another?
1. False advertising
2. Rebating
3. Twisting
4. Switching. Answer: 3. Twisting
FULL QUESTIONS AND VERIFIED
SOLUTIONS
⩥ An agent is behind on his paperwork, so he asks a client to sign a
blank application, assuring her he'll finish it within the next two weeks.
1. This is legal if the client has other policies with the agent.
2. This is legal if the policy the client is applying for is a short-term
policy.
3. This is illegal under Maryland Insurance law.
4. This is illegal. It would need to be finished within 5 working days.
Answer: 3. This is illegal under Maryland Insurance law
⩥ A producer in another state wants to become a producer in Maryland.
The other state gives the same privileges to Maryland producers wanting
to be licensed in that state as it does its own producers. Maryland
therefore extends the privileges of its producers to the prospective
producer of the other state. What is this called?
1. Fair exchange
2. Equality
3. Equal privilege
4. Reciprocity. Answer: 4. Reciprocity
, ⩥ Mr. F is acting as a public adjuster without first obtaining his license.
What penalties might Mr. F incur as a result of his actions?
1. $500 fine or 6 months in prison for each violation
2. $1500 fine or 3 months in prison maximum
3. $1200 fine or 1 month in prison for each violation
4. $500 fine or 2 years in prison for each violation. Answer: 1. $500 fine
or 6 months in prison for each violation
⩥ According to financial responsibility laws in this state, the minimum
limits of liability provided in a vehicle liability insurance policy is
1. $15,000/$30,000/$10,000
2. $20,000/$40,000/$20,000
3. $30,000/$60,000/$15,000
4. $10,000/$20,000/$5,000. Answer: 3. $30,000/$60,000/$15,000
⩥ Which type of misrepresentation persuades an insured, to his or her
detriment, to cancel, lapse, or switch policies from one to another?
1. False advertising
2. Rebating
3. Twisting
4. Switching. Answer: 3. Twisting
