MARYLAND STATE EXAM LIFE INSURANCE LICENSE PRACTICE EXAM | QUESTIONS & ANSWERS (VERIFIED) | LATEST UPDATE | GRADED A+

1 MARYLAND STATE EXAM LIFE INSURANCE LICENSE PRACTICE EXAM | QUESTIONS & ANSWERS (VERIFIED) | LATEST UPDATE | GRADED A+ In what part of an insurance policy or policy benefits found? Correct Answer: Declarations The act of using misrepresentation to induce an insured person to terminate an existing policy and purchase a new policy is referred to as Correct Answer: Twisting Nothing Correct Answer: Shirley has $500,000 10-year-old son nonrenewable level term life policy. If she dies 15 years after the policy inception date, how will her beneficiary receive? Average age Correct Answer: Which of these factors would and ensure consider when determining whether to except a group life plan 2 Juvenile insurance Correct Answer: Which type of life insurance is normally associated with a paler benefit rider Oh rating from A rating service company such as a.m. best Correct Answer: Which of the following is not considered advertising? Policy owner Correct Answer: During the accumulation. Who can surrender an annuity Annuity Correct Answer: Fixed period Settlement options are considered to be a form of a How to take legal action against a insurance company Correct Answer: Which of the following is not information found in a life insurance buyers guide Individual underwriting Correct Answer: All of the following characteristics of a group life insurance plan except Variable life insurance 3 Correct Answer: A securities license is required for a life insurance producer to sell Insurable interest Correct Answer: Which of the following is present when an applicant stands to lose value if the insured dies Surrender charge Correct Answer: What may be the result of replacing an existing life insurance policy with a new one The policy owner Correct Answer: Signatures for an insurance application must be obtained by the producer from all the following sources except Fraud Correct Answer: Maria the insurance producer completes a sale by collecting the required signatures on the application and obtaining the initial premium afterward she Deposits the check into our personal checking account or he is committed to what crime Child term rider Correct Answer: Jonas is a whole life insurance policy owner and would like to add coverage for his two children which of the following products would allow him to accomplish this 4 Correct Answer: Interest on death benefits are not required to be paid by the insurance company as long as proceeds are paid within 30 days after the date of the death of the insured Correct Answer: Index whole life insurance Contains a securities component that access as a hedge against inflation Correct Answer: James is the insured on a life insurance policy where his age was missed stated on the application which of the following is correct regarding the death benefit amount. The death benefit paid will be what the premium would have purchased at the correct age Transference Correct Answer: Insurance represents the process of risk Insurable interest can be established sufficiently by sentimental attachment alone Correct Answer: In regard to a life insurance contract which of the following statements is not true regarding the concept of insurable interest Correct Answer: A guaranteed issue insurance policy has no medical underwriting 5 Correct Answer: The double indemnity provision in a life insurance policy pertains to an insured's death caused by an accident At least 21 years old Correct Answer: Which of the following is not a requirement for soliciting insurance in Maryland Provide evidence of insurability pay past due premiums Correct Answer: The two major actions required for a policyholder to comply with the reinstatement clause are Only the insurer is legally bound Correct Answer: What makes an insurance policy a unilateral contract 59 1/2 Correct Answer: Eric is 35 years old and owns an IRA at what age can she began to receive distributions without a tax penalty Family term Correct Answer: A spouse and child can be added to the primary insured's coverage as what kind of rider 6 Correct Answer: John the insurance producer has an insurance license that expires in six months if you thousand application for renewal before the expiration date his license will remain in effect until a new one is issued $4000 Correct Answer: Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. If the consumer price index has gone up 4% how much may run increase the face value of the policy The face amount Correct Answer: What does the word level and level term describe Correct Answer: A table of ensure that is owed by 12 three owners is called mutual Correct Answer: A Maryland insurance producer solicit an insurance policy in the event of a controversy between the insured and the company, the producer is considered to represent the company How soon can the benefit payments begin with a deferred annuity? A minimum of 12 months after date of purchase. Correct Answer: How soon can the benefit payments begin with a deferred annuity 7 Correct Answer: A producer who sells an individual life insurance policy in Maryland must deliver the policy owner in the policy summery and buyers guide Variable universal life policy Correct Answer: Which type of policy combines the flexibility of a universal life policy with investment choices ? Correct Answer: A producer who is licensed in Maryland but reside in another state is called a nonresident producer Incontestable clause Correct Answer: Which of the following protects the policy owner from a misrepresentation caused by a innocent mistake Unfair claim settlement practice Correct Answer: Failing to properly of provide a reasonable exclamation for that now of a claim is considered to be a The insured outlived the beneficiary Correct Answer: If the beneficiary died from the same accident as the insured individual the insurer will proceed as if