Maryland Life Insurance Exam
Preparation UPDATED Study Guide
QUESTIONS AND CORRECT ANSWERS
insurance producer - CORRECT ANSWERS An insurance producer
sells, solicits, or negotiates insurance contracts for compensation.
reinsurance - CORRECT ANSWERS ABC Insurance Company transfers
part of their risk to XYZ Insurance Company.
rebate - CORRECT ANSWERS An insurance producer agrees to pay the
first monthly premium for an insurance applicant.
misrepresentation - CORRECT ANSWERS An insurance producer who
convinces a prospective insured to purchase a policy by exaggerating the
benefits of the policy may be found guilty of.
twisting - CORRECT ANSWERS An insurance producer who replaces
an existing policy by making false written or oral statements is committing the
act of.
accelerated benefits - CORRECT ANSWERS Proceeds payable under a
life insurance contract to a policyowner in anticipation of death or upon the
occurrence of specified life-threatening conditions as defined by the policy are
best described as.
Policy Summary and Buyer's Guide - CORRECT ANSWERS A producer
who sells an individual life insurance policy in Maryland MUST deliver to the
policyowner a(n).
,dependent child - CORRECT ANSWERS Child over the age of 18 years
who attends an educational institution and relies on the insured employee for
financial support.
Maryland Insurance Commissioner - CORRECT ANSWERS Counsels
and advises the Governor on all matters assigned to the Maryland Insurance
Administration.
grace period - CORRECT ANSWERS The standard grace period for a
life insurance policy sold in Maryland is 30 days.
nonforfeiture provision - CORRECT ANSWERS A life insurance policy
must be in effect for 3 years before the policyowner may use the nonforfeiture
provision.
temporary insurance license - CORRECT ANSWERS In order for the
producer's insurance business to continue, the Commissioner may issue to the
producer's spouse a(n).
Buyer's Guide - CORRECT ANSWERS A Buyer's Guide MUST have its
content approved by the Commissioner.
cancellation for nonfraudulent misstatements - CORRECT ANSWERS A
life insurance policy sold in Maryland can be cancelled for nonfraudulent
misstatements for up to 2 years.
Group deferred annuity - CORRECT ANSWERS A large corporation
pension plan purchased an accumulation annuity contract where all of the
participating employees received certificates of participation.
, 100% - CORRECT ANSWERS What minimum percentage of all eligible
employees must participate in a group life insurance plan if the premiums are
completely paid for by the employer?
variable life annuity - CORRECT ANSWERS Benefit payments fluctuate
over time in a variable life annuity and reflect changes in the market value of
assets in a separate account.
independent agent - CORRECT ANSWERS A(n) independent agent may
represent several insurers.
nonforfeiture options - CORRECT ANSWERS The contractual rights
which allow the owner of a deferred annuity to surrender the cash value several
years before the annuity date are called.
immediate annuity - CORRECT ANSWERS When a large sum of money
is used to structure monthly payments, which product is typically used?
Security and Exchange Commission - CORRECT ANSWERS Security
laws passed by Congress are enforced by which Federal agency?
30 days - CORRECT ANSWERS Interest on death benefits are NOT
required to be paid by an insurance company as long as proceeds are paid within
___ after the date of the death of the insured.
30 - CORRECT ANSWERS Within how many days must a producer
report to the Commissioner any administrative actions made against him/her?
24 - CORRECT ANSWERS Producers must complete a total of ___
Continuing Education hours for each two-year licensing period.
Preparation UPDATED Study Guide
QUESTIONS AND CORRECT ANSWERS
insurance producer - CORRECT ANSWERS An insurance producer
sells, solicits, or negotiates insurance contracts for compensation.
reinsurance - CORRECT ANSWERS ABC Insurance Company transfers
part of their risk to XYZ Insurance Company.
rebate - CORRECT ANSWERS An insurance producer agrees to pay the
first monthly premium for an insurance applicant.
misrepresentation - CORRECT ANSWERS An insurance producer who
convinces a prospective insured to purchase a policy by exaggerating the
benefits of the policy may be found guilty of.
twisting - CORRECT ANSWERS An insurance producer who replaces
an existing policy by making false written or oral statements is committing the
act of.
accelerated benefits - CORRECT ANSWERS Proceeds payable under a
life insurance contract to a policyowner in anticipation of death or upon the
occurrence of specified life-threatening conditions as defined by the policy are
best described as.
Policy Summary and Buyer's Guide - CORRECT ANSWERS A producer
who sells an individual life insurance policy in Maryland MUST deliver to the
policyowner a(n).
,dependent child - CORRECT ANSWERS Child over the age of 18 years
who attends an educational institution and relies on the insured employee for
financial support.
Maryland Insurance Commissioner - CORRECT ANSWERS Counsels
and advises the Governor on all matters assigned to the Maryland Insurance
Administration.
grace period - CORRECT ANSWERS The standard grace period for a
life insurance policy sold in Maryland is 30 days.
nonforfeiture provision - CORRECT ANSWERS A life insurance policy
must be in effect for 3 years before the policyowner may use the nonforfeiture
provision.
temporary insurance license - CORRECT ANSWERS In order for the
producer's insurance business to continue, the Commissioner may issue to the
producer's spouse a(n).
Buyer's Guide - CORRECT ANSWERS A Buyer's Guide MUST have its
content approved by the Commissioner.
cancellation for nonfraudulent misstatements - CORRECT ANSWERS A
life insurance policy sold in Maryland can be cancelled for nonfraudulent
misstatements for up to 2 years.
Group deferred annuity - CORRECT ANSWERS A large corporation
pension plan purchased an accumulation annuity contract where all of the
participating employees received certificates of participation.
, 100% - CORRECT ANSWERS What minimum percentage of all eligible
employees must participate in a group life insurance plan if the premiums are
completely paid for by the employer?
variable life annuity - CORRECT ANSWERS Benefit payments fluctuate
over time in a variable life annuity and reflect changes in the market value of
assets in a separate account.
independent agent - CORRECT ANSWERS A(n) independent agent may
represent several insurers.
nonforfeiture options - CORRECT ANSWERS The contractual rights
which allow the owner of a deferred annuity to surrender the cash value several
years before the annuity date are called.
immediate annuity - CORRECT ANSWERS When a large sum of money
is used to structure monthly payments, which product is typically used?
Security and Exchange Commission - CORRECT ANSWERS Security
laws passed by Congress are enforced by which Federal agency?
30 days - CORRECT ANSWERS Interest on death benefits are NOT
required to be paid by an insurance company as long as proceeds are paid within
___ after the date of the death of the insured.
30 - CORRECT ANSWERS Within how many days must a producer
report to the Commissioner any administrative actions made against him/her?
24 - CORRECT ANSWERS Producers must complete a total of ___
Continuing Education hours for each two-year licensing period.
