MD LIFE FINAL EXAM QUESTIONS|
WITH ALREADY SOLVED CORRECTLY
ANSWERS!! | ASSURED SUCCESS
All of the following actions are considered rebating EXCEPT
1. sharing commissions with other licensed and appointed agents
2.refunding part of the premium as an inducement for purchase
3.offering special dividends
4. offering anything of value not specified in the policy - 🧠ANSWER ✔✔1.
sharing commissions with other licensed and appointed agents
Peter has a policy where 80% to 90% of the premium is invested in
traditional fixed income securities and the remainder of the premium is
invested in contracts tied to a stipulated stock index. What kind of policy is
this?
1. Modified Endowment Contract
1
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,2. Current assumptive whole life
3.Credit life insurance
4. Equity index whole life - 🧠ANSWER ✔✔4."Equity index whole life". The
type of policy where 80% to 90% of the premium is invested in traditional
fixed income securities and the remainder of the premium is invested in
contracts tied to a stipulated stock index is equity index whole life.
A tax-free Section 1035 Exchange of a life insurance policy to a different
policy is permitted if it occurs
1. in the same state as the original transaction
2. within a 12 month period
3. from insurer to insurer and no cash is received by the policyowner
4. from agent to agent as long as the agents are licensed in the same line -
🧠ANSWER ✔✔3. from insurer to insurer and no cash is received by the
policyowner
2
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,*The Internal Revenue Code (IRC) enables a tax-free Section 1035
Exchange of a life insurance policy to a different policy if it occurs from
insurer to insurer and the policyowner does not receive any cash.
According to life insurance contract law, insurable interest exists
1.when any business relationship exists
2. at the time of application
3. at the time of death
4. only when determined by a judge - 🧠ANSWER ✔✔2.at the time of
application
*According to life insurance in contract law, a person most likely will have
an insurable interest in insuring a person's life if at the time of application
An example of replacement is
3
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, 1.canceling disability policy to buy a term life policy
2. canceling a term life policy to buy a whole life policy
3. canceling a long-term care policy to buy a whole life policy
4. canceling a whole life policy to buy a major medical policy - 🧠ANSWER
✔✔2.canceling a term life policy to buy a whole life policy
When must a claim on a life insurance policy be paid after proof of loss has
been received by the insurer?
1. Promptly
2.Within 10 days
3. Within 20 days
4. Within 30 days - 🧠ANSWER ✔✔1. Promptly
Variable life insurance and Universal life insurance are very similar. Which
of these features are held exclusively by variable universal life insurance?
4
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
WITH ALREADY SOLVED CORRECTLY
ANSWERS!! | ASSURED SUCCESS
All of the following actions are considered rebating EXCEPT
1. sharing commissions with other licensed and appointed agents
2.refunding part of the premium as an inducement for purchase
3.offering special dividends
4. offering anything of value not specified in the policy - 🧠ANSWER ✔✔1.
sharing commissions with other licensed and appointed agents
Peter has a policy where 80% to 90% of the premium is invested in
traditional fixed income securities and the remainder of the premium is
invested in contracts tied to a stipulated stock index. What kind of policy is
this?
1. Modified Endowment Contract
1
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,2. Current assumptive whole life
3.Credit life insurance
4. Equity index whole life - 🧠ANSWER ✔✔4."Equity index whole life". The
type of policy where 80% to 90% of the premium is invested in traditional
fixed income securities and the remainder of the premium is invested in
contracts tied to a stipulated stock index is equity index whole life.
A tax-free Section 1035 Exchange of a life insurance policy to a different
policy is permitted if it occurs
1. in the same state as the original transaction
2. within a 12 month period
3. from insurer to insurer and no cash is received by the policyowner
4. from agent to agent as long as the agents are licensed in the same line -
🧠ANSWER ✔✔3. from insurer to insurer and no cash is received by the
policyowner
2
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,*The Internal Revenue Code (IRC) enables a tax-free Section 1035
Exchange of a life insurance policy to a different policy if it occurs from
insurer to insurer and the policyowner does not receive any cash.
According to life insurance contract law, insurable interest exists
1.when any business relationship exists
2. at the time of application
3. at the time of death
4. only when determined by a judge - 🧠ANSWER ✔✔2.at the time of
application
*According to life insurance in contract law, a person most likely will have
an insurable interest in insuring a person's life if at the time of application
An example of replacement is
3
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, 1.canceling disability policy to buy a term life policy
2. canceling a term life policy to buy a whole life policy
3. canceling a long-term care policy to buy a whole life policy
4. canceling a whole life policy to buy a major medical policy - 🧠ANSWER
✔✔2.canceling a term life policy to buy a whole life policy
When must a claim on a life insurance policy be paid after proof of loss has
been received by the insurer?
1. Promptly
2.Within 10 days
3. Within 20 days
4. Within 30 days - 🧠ANSWER ✔✔1. Promptly
Variable life insurance and Universal life insurance are very similar. Which
of these features are held exclusively by variable universal life insurance?
4
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
