Maryland Life Insurance Producer Exam (2026-2027)
Maryland Insurance Administration Comprehensive
100 Questions | 100% VERIFIED
Introduction
This comprehensive examination assesses candidate proficiency across the core domains
required for Maryland Life Insurance Producer licensure under the Maryland Insurance
Administration. Key focus areas include Maryland Insurance Code regulations, Life
Insurance Products, Policy Provisions, Ethics and professional standards, Underwriting
processes, Premium calculations and structures, and Beneficiary designations. Successful
completion demonstrates readiness for responsible professional judgment in the insurance
marketplace.
1. Under Maryland Insurance Code, what is the minimum age requirement for
obtaining a life insurance producer license?
A. 18 years [Correct Answer]
B. 21 years
C. 16 years
D. 25 years
Rationale: Maryland requires applicants to be at least 18 years of age. Option B (21) reflects an
outdated standard in some jurisdictions. Option C (16) is too young for contractual authority. Option
D (25) exceeds the statutory minimum.
2. Which Maryland statute governs the licensing and continuing education
requirements for life insurance producers?
A. Title 10 of the Insurance Article [Correct Answer]
B. Title 15 of the Insurance Article
C. Title 5 of the Insurance Article
D. Title 27 of the Insurance Article
Rationale: Title 10 specifically addresses producer licensing. Title 15 covers unfair trade practices.
Title 5 addresses assets and liabilities. Title 27 addresses unfair claims settlement practices.
,3. Maryland law requires life insurance producers to complete how many hours of
continuing education every two years?
A. 24 hours [Correct Answer]
B. 12 hours
C. 36 hours
D. 48 hours
Rationale: Maryland mandates 24 hours of continuing education biennially. Lower hours would be
insufficient for compliance. Higher requirements exceed the statutory minimum.
4. What entity administers the Maryland Life Insurance Producer licensing
examination?
A. Maryland Insurance Administration [Correct Answer]
B. National Association of Insurance Commissioners
C. Maryland Department of Labor
D. Federal Insurance Office
Rationale: The Maryland Insurance Administration directly oversees and administers producer
licensing. NAIC provides model laws but does not administer state exams. Labor Department handles
employment issues. Federal Insurance Office has limited state regulatory role.
5. According to Maryland Insurance Code, how long must a producer maintain
records of insurance transactions?
A. 5 years [Correct Answer]
B. 3 years
C. 7 years
D. 10 years
Rationale: Maryland requires retention of records for at least five years. Shorter periods risk
regulatory non-compliance. Longer periods exceed minimum statutory obligations.
,6. Under Maryland law, a producer must report a change of address to the Insurance
Administration within how many days?
A. 30 days [Correct Answer]
B. 10 days
C. 60 days
D. 90 days
Rationale: Maryland requires notification within 30 days. Shorter periods are not mandated. Longer
periods violate the timely reporting requirement.
7. Which of the following actions requires prior approval from the Maryland
Insurance Commissioner before a producer may engage in it?
A. Using a trade name different from the licensed name [Correct Answer]
B. Selling variable life insurance
C. Completing continuing education online
D. Renewing an existing policy
Rationale: Use of a trade name different from the licensed name requires Commissioner approval.
Variable products require securities registration but not Commissioner pre-approval for the
producer. CE and renewals follow standard procedures.
8. Maryland Insurance Code prohibits a producer from engaging in which of the
following activities?
A. Twisting
B. Rebating
C. Both twisting and rebating [Correct Answer]
D. Neither twisting nor rebating
Rationale: Both twisting and rebating are expressly prohibited under Maryland law. Each
individually is also prohibited, making the combined option correct.
9. What is the maximum fine the Maryland Insurance Commissioner may impose for a
single violation of the Insurance Code by a producer?
, A. $5,000 [Correct Answer]
B. $1,000
C. $10,000
D. $25,000
Rationale: Maryland authorizes fines up to $5,000 per violation. Lower amounts are insufficient for
serious violations. Higher amounts exceed the statutory cap per violation.
10. Under Maryland law, a non-resident producer license is valid for what period?
A. The same period as the home state license [Correct Answer]
B. One year
C. Two years
D. Indefinitely
Rationale: Maryland grants reciprocity matching the home state license term. Fixed periods ignore
reciprocity rules. Indefinite licensing is not permitted.
11. Which life insurance product provides coverage for a specified period and pays a
death benefit only if death occurs during that period?
A. Term life insurance [Correct Answer]
B. Whole life insurance
C. Universal life insurance
D. Variable life insurance
Rationale: Term life is pure protection for a defined period. Permanent products accumulate cash
value. Variable products involve investment risk.
12. What feature distinguishes universal life insurance from traditional whole life
insurance?
A. Flexible premiums and death benefits [Correct Answer]
B. Fixed premiums only
Maryland Insurance Administration Comprehensive
100 Questions | 100% VERIFIED
Introduction
This comprehensive examination assesses candidate proficiency across the core domains
required for Maryland Life Insurance Producer licensure under the Maryland Insurance
Administration. Key focus areas include Maryland Insurance Code regulations, Life
Insurance Products, Policy Provisions, Ethics and professional standards, Underwriting
processes, Premium calculations and structures, and Beneficiary designations. Successful
completion demonstrates readiness for responsible professional judgment in the insurance
marketplace.
1. Under Maryland Insurance Code, what is the minimum age requirement for
obtaining a life insurance producer license?
A. 18 years [Correct Answer]
B. 21 years
C. 16 years
D. 25 years
Rationale: Maryland requires applicants to be at least 18 years of age. Option B (21) reflects an
outdated standard in some jurisdictions. Option C (16) is too young for contractual authority. Option
D (25) exceeds the statutory minimum.
2. Which Maryland statute governs the licensing and continuing education
requirements for life insurance producers?
A. Title 10 of the Insurance Article [Correct Answer]
B. Title 15 of the Insurance Article
C. Title 5 of the Insurance Article
D. Title 27 of the Insurance Article
Rationale: Title 10 specifically addresses producer licensing. Title 15 covers unfair trade practices.
Title 5 addresses assets and liabilities. Title 27 addresses unfair claims settlement practices.
,3. Maryland law requires life insurance producers to complete how many hours of
continuing education every two years?
A. 24 hours [Correct Answer]
B. 12 hours
C. 36 hours
D. 48 hours
Rationale: Maryland mandates 24 hours of continuing education biennially. Lower hours would be
insufficient for compliance. Higher requirements exceed the statutory minimum.
4. What entity administers the Maryland Life Insurance Producer licensing
examination?
A. Maryland Insurance Administration [Correct Answer]
B. National Association of Insurance Commissioners
C. Maryland Department of Labor
D. Federal Insurance Office
Rationale: The Maryland Insurance Administration directly oversees and administers producer
licensing. NAIC provides model laws but does not administer state exams. Labor Department handles
employment issues. Federal Insurance Office has limited state regulatory role.
5. According to Maryland Insurance Code, how long must a producer maintain
records of insurance transactions?
A. 5 years [Correct Answer]
B. 3 years
C. 7 years
D. 10 years
Rationale: Maryland requires retention of records for at least five years. Shorter periods risk
regulatory non-compliance. Longer periods exceed minimum statutory obligations.
,6. Under Maryland law, a producer must report a change of address to the Insurance
Administration within how many days?
A. 30 days [Correct Answer]
B. 10 days
C. 60 days
D. 90 days
Rationale: Maryland requires notification within 30 days. Shorter periods are not mandated. Longer
periods violate the timely reporting requirement.
7. Which of the following actions requires prior approval from the Maryland
Insurance Commissioner before a producer may engage in it?
A. Using a trade name different from the licensed name [Correct Answer]
B. Selling variable life insurance
C. Completing continuing education online
D. Renewing an existing policy
Rationale: Use of a trade name different from the licensed name requires Commissioner approval.
Variable products require securities registration but not Commissioner pre-approval for the
producer. CE and renewals follow standard procedures.
8. Maryland Insurance Code prohibits a producer from engaging in which of the
following activities?
A. Twisting
B. Rebating
C. Both twisting and rebating [Correct Answer]
D. Neither twisting nor rebating
Rationale: Both twisting and rebating are expressly prohibited under Maryland law. Each
individually is also prohibited, making the combined option correct.
9. What is the maximum fine the Maryland Insurance Commissioner may impose for a
single violation of the Insurance Code by a producer?
, A. $5,000 [Correct Answer]
B. $1,000
C. $10,000
D. $25,000
Rationale: Maryland authorizes fines up to $5,000 per violation. Lower amounts are insufficient for
serious violations. Higher amounts exceed the statutory cap per violation.
10. Under Maryland law, a non-resident producer license is valid for what period?
A. The same period as the home state license [Correct Answer]
B. One year
C. Two years
D. Indefinitely
Rationale: Maryland grants reciprocity matching the home state license term. Fixed periods ignore
reciprocity rules. Indefinite licensing is not permitted.
11. Which life insurance product provides coverage for a specified period and pays a
death benefit only if death occurs during that period?
A. Term life insurance [Correct Answer]
B. Whole life insurance
C. Universal life insurance
D. Variable life insurance
Rationale: Term life is pure protection for a defined period. Permanent products accumulate cash
value. Variable products involve investment risk.
12. What feature distinguishes universal life insurance from traditional whole life
insurance?
A. Flexible premiums and death benefits [Correct Answer]
B. Fixed premiums only
