MD STATE EXAMINATION TEST 2026
COMPLETE QUESTIONS AND ANSWERS
GRADED A+
⩥ Surplus lines brokers must submit affidavits that they have tried and
failed to place the coverage with a Maryland insurer. The affidavit must
be filed with the Commissioner within how many days of the end of the
month in which the surplus lines was placed?
1. 60 days
2. 90 days
3. 30 days
4. 45 days. Answer: 4. 45 days
⩥ An insurer or producer may NOT knowingly employ an individual to
act in a fiduciary capacity if that individual has been convicted of a
felony or crime of moral turpitude within the past
1. Year only.
2. 5 years only.
3. 10 years.
4. 15 years.. Answer:
⩥ When handling premium funds in the conduct of their business,
insurance producers are acting in a
, 1. Crediting capacity.
2. Financial capacity.
3. Special capacity.
4. Fiduciary capacity.. Answer: 4. Fiduciary capacity.
⩥ ABC Insurance Company wishes to begin transacting business in
Maryland. Before it can do so, it must do which of the following?
1. Receive permission from the Governor of Maryland
2. Receive a letter of clearance from ABC's home state
3. Obtain approval of each of its corporate officers and executives
4. Obtain a certificate of authority. Answer: 4. Obtain a certificate of
authority
⩥ 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
COMPLETE QUESTIONS AND ANSWERS
GRADED A+
⩥ Surplus lines brokers must submit affidavits that they have tried and
failed to place the coverage with a Maryland insurer. The affidavit must
be filed with the Commissioner within how many days of the end of the
month in which the surplus lines was placed?
1. 60 days
2. 90 days
3. 30 days
4. 45 days. Answer: 4. 45 days
⩥ An insurer or producer may NOT knowingly employ an individual to
act in a fiduciary capacity if that individual has been convicted of a
felony or crime of moral turpitude within the past
1. Year only.
2. 5 years only.
3. 10 years.
4. 15 years.. Answer:
⩥ When handling premium funds in the conduct of their business,
insurance producers are acting in a
, 1. Crediting capacity.
2. Financial capacity.
3. Special capacity.
4. Fiduciary capacity.. Answer: 4. Fiduciary capacity.
⩥ ABC Insurance Company wishes to begin transacting business in
Maryland. Before it can do so, it must do which of the following?
1. Receive permission from the Governor of Maryland
2. Receive a letter of clearance from ABC's home state
3. Obtain approval of each of its corporate officers and executives
4. Obtain a certificate of authority. Answer: 4. Obtain a certificate of
authority
⩥ 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
