Maryland Life Insurance Producer Final Exam Questions with Verified Answers Guarantee Passing score: 85% or higher

Maryland Life Insurance Producer Final Exam ss ss ss ss ss




ss Questions with Verified Answers ss ss ss




Guarantee Passing score: 85% or higher ss ss ss ss ss ss




Consist of 90 multiple choices Questions and Answers
ss ss ss ss ss ss ss




1. What kind of life insurance policy allows a policyowner the choice of invest-
ss ss ss ss ss ss ss ss ss ss ss ss




ss ments along with flexible premium payments?
ss ss ss ss ss




A. Variable universal life ss ss




B. Modified endowment contract ss ss




C. Adjustable life ss




D. Graded premium whole life ss ss ss




Answer> A. Variable universal life ss s ss ss




2. All of these statements concerning universal life insurance are false
ss ss ss ss ss ss ss ss ss




ss EX- CEPT
ss




A. Death benefits are normally taxable
ss ss ss ss




B. Policy loans are not permitted
ss ss ss ss




C. Premiums or face amount cannot 1be
/ changed ss ss ss ss ss ss ss
ss32


D. Policy indicates how much of the premium is used toward company expens-
ss ss ss ss ss ss ss ss ss ss ss




s s es

,A. Survivorship life policy is lower ss ss ss ss




B. Survivorship life policy is higher ss ss ss ss




C. Depends on the investment performance of the underlying accounts
ss ss ss ss ss ss ss ss




D. Both have the same actuarial costs
ss ss ss ss ss




Answer> A. Survivorship life policy is lower
ss ss ss ss ss ss




4. Which statement regarding universal life insurance is correct?
ss ss ss ss ss ss ss




A. Cash value accumulations have a guaranteed minimum interest rate
ss ss ss ss ss ss ss ss




B. Policyowner can change the face amount but not the premium ss ss ss ss ss ss ss ss ss




C. Policyowner can change the premium but not the face amount ss ss ss ss ss ss ss ss ss




D. Partial withdrawals cannot be made from the policy's cash value
ss ss ss ss ss ss ss ss ss




Answer> A. Cash value accumulations have a guaranteed minimum interest
ss ss ss ss ss ss ss ss ss




rate
ss




5. Which statement regarding whole life insurance is accurate?
ss ss ss ss ss ss ss




A. Cash value loans are not permitted
ss ss ss ss ss




B. Insurance coverage can continue for life ss ss ss ss ss




C. Policy normally matures at retirement
ss ss ss ss




D. No cash value accumulations
ss ss ss




Answer> B. Insurance coverage can continue for life
ss ss ss ss ss ss ss




6. How does a continuous premium whole life policy differ from a limited
ss ss ss ss ss ss ss ss ss ss ss




ss pay
whole life policy?
ss ss 2 ss/
ss32




A. The time period in which premiums will be paid
ss ss ss ss ss ss ss ss

,7. What type of premiums are associated with individual mortgage
ss ss ss ss ss ss ss ss




protection life insurance policies?
ss ss ss ss




A. Level premiums ss




B. Flexible premiums ss




C. Modified premiums ss




D. Decreasing premiums ss




Answer> A. Level premiums ss ss ss




8. Taxable income may be the result from all of these modified
ss ss ss ss ss ss ss ss ss ss




ss endowment contract (MEC) transactions EXCEPT forss ss ss ss ss




A. A cash value loan is taken out
ss ss ss ss ss ss




B. Automatic premium loan provision is utilized ss ss ss ss ss




C. The policy is surrendered for less than what was paid into it
ss ss ss ss ss ss ss ss ss ss ss




D. Dividend is issued ss ss




Answer> C.The policy is surrendered for less than what was paid into it
ss s ss ss ss ss ss ss ss ss ss ss ss




9. All of these are considered features of whole life insurance EXCEPT
ss ss ss ss ss ss ss ss ss ss




A. Cash value accumulationss ss




B. Permanent coverage ss




C. Initial premium is lower than for an equivalent amount of term
ss ss ss ss ss ss ss ss ss ss




ss insurance
D. Policy loans are allowed ss ss ss




Answer> C. Initial premium is lower than
ss 3 / for an equivalent
ss amount of term ss ss ss ss ss ss ss ss ss ss ss
ss32


insurance
ss

, D. Convertible life ss




Answer> B. Single premium life ss ss ss ss




11. What type of life insurance policy covers two or more persons and
ss ss ss ss ss ss ss ss ss ss ss




ss pays the face amount upon the death of the first insured?
ss ss ss ss ss ss ss ss ss ss




A. Joint and survivorship ss ss




B. Survivorship life ss




C. Universal life ss




D. Joint life ss




Answer> D. Joint life ss ss ss




12. Rick owns a variable universal life policy and chooses a variable death
ss ss ss ss ss ss ss ss ss ss ss




benefit option. What will typically happen to the death benefit as a result
ss s ss ss ss ss ss ss ss ss ss ss




ss of this selection?
ss ss




A. Remain the same ss ss




B. Decrease but never increase ss ss ss




C. Increase but never decrease ss ss ss




D. Fluctuate with changes in the cash account ss ss ss ss ss ss




Answer> D. Fluctuate with changes in the cash account
ss ss ss ss ss ss ss ss




13. An individual who purchases a modified life insurance policy expects
ss ss ss ss ss ss ss ss ss




A. a higher rate of return
ss ss ss ss




B. coverage for two people ss ss ss 4 ss/
ss32


C. an improvement in future income
ss ss ss ss




D. a flexible face amount
ss ss ss