MD LIFE EXAM 2025/2026 QUESTIONS WITH ANSWERS
GRADED A+
✔✔Under a group life policy, the insurer will issue an individual _____ to the
policyowner for delivery to each person insured.
1.policy
2. certificate
3. application
4. rider - ✔✔2. certificate
✔✔Term insurance is appropriate for someone who
1.seeks living benefits for themselves
2.seeks a policy that builds cash value
3. seeks temporary protection and lower premiums
4.seeks permanent protection and higher premiums - ✔✔3. seeks temporary protection
and lower premiums
✔✔Which type of life insurance offers flexible premiums, a flexible death benefit, and
the choice of how the cash value will be invested?
1. Adjustable life policy
2.Variable universal policy
3. Universal policy
4. Modified whole life policy - ✔✔2.Variable universal policy
*A variable universal life policy has three key elements- flexible premium, death benefit,
and the choice of how the cash value will be invested.
✔✔A person who, for a fee, gives advice or recommendations on benefits provided by
an insurance contract is called
1.a broker
2.a producer
3.an advisor
4.a navigator - ✔✔3.an advisor
,*An insurance adviser is any person who, for a fee, offers to examine any policy for the
purpose of giving advice or recommendations with respect to the benefits provided by
the contract. An adviser must be licensed in the State of Maryland.
✔✔If an insured's age on a life insurance policy has been misstated, what is the
insurer's liability if the insured dies?
1.No death benefit is owed because of the misstatement of age
2. The full original death benefit listed on the policy
3. A prorated death benefit based on the amount of insurance the insured's premiums
would have been if purchased at the correct age
4. The original death benefit listed on the policy minus any outstanding loans and
interest - ✔✔3. A prorated death benefit based on the amount of insurance the insured's
premiums would have been if purchased at the correct age
✔✔How long must an individual be unable to engage in any gainful activity due to
physical or mental disability in order to qualify for Social Security Total Disability?
1. 3 months
2. 6 months
3. 12 months
4. 18 months - ✔✔3. 12 months
✔✔All of these are considered sources of information that can assist an underwriter in
determining whether or not to accept a risk EXCEPT
1.Agent's report
2. Medical Information Bureau (MIB)
3. Inspection reports
4. National Association of Insurance Underwriters - ✔✔4. National Association of
Insurance Underwriters
✔✔Any advertisement that mentions a dollar amount, period of time for which any
benefit is payable, cost of policy, policy benefit, or the loss for which the benefit is
payable MUST disclose
1.the date in which the advertisement was approved
2. the exceptions, reductions, and limitations affecting the 3.basic provisions of the
policy
4. how much the advertisement cost to publish
, the person who wrote the advertisement - ✔✔2. the exceptions, reductions, and
limitations affecting the
✔✔Converting a group plan to permanent life insurance requires
1. submitting proof of insurability
2. paying a lower premium
3. converting to term life insurance
4. the conversion being applied for within 31 days of termination - ✔✔4. the conversion
being applied for within 31 days of termination
✔✔Life insurance policies will normally pay for losses arising from
1.commercial aviation
2. war
3. suicide
4. hazardous jobs - ✔✔1.commercial aviation
✔✔A single premium cash value policy can be described as
1.a policy that is paid up after only one payment
2. a policy that only requires an annual payment
3. a policy that is guaranteed issue
4. a policy that covers two or more lives - ✔✔1.a policy that is paid up after only one
payment
✔✔Maria would like an annuity that provides a guaranteed accumulation or payout. The
type of annuity she is seeking is called
1. variable payout
2. fixed accumulation
3. interest guaranteed
4. annuity certain - ✔✔4. annuity certain
✔✔What is the name of the provision which states that a copy of the application must
be attached to the policy when issued?
1.Policy Summary
2. Buyer's Guide
3. Entire Contract
GRADED A+
✔✔Under a group life policy, the insurer will issue an individual _____ to the
policyowner for delivery to each person insured.
1.policy
2. certificate
3. application
4. rider - ✔✔2. certificate
✔✔Term insurance is appropriate for someone who
1.seeks living benefits for themselves
2.seeks a policy that builds cash value
3. seeks temporary protection and lower premiums
4.seeks permanent protection and higher premiums - ✔✔3. seeks temporary protection
and lower premiums
✔✔Which type of life insurance offers flexible premiums, a flexible death benefit, and
the choice of how the cash value will be invested?
1. Adjustable life policy
2.Variable universal policy
3. Universal policy
4. Modified whole life policy - ✔✔2.Variable universal policy
*A variable universal life policy has three key elements- flexible premium, death benefit,
and the choice of how the cash value will be invested.
✔✔A person who, for a fee, gives advice or recommendations on benefits provided by
an insurance contract is called
1.a broker
2.a producer
3.an advisor
4.a navigator - ✔✔3.an advisor
,*An insurance adviser is any person who, for a fee, offers to examine any policy for the
purpose of giving advice or recommendations with respect to the benefits provided by
the contract. An adviser must be licensed in the State of Maryland.
✔✔If an insured's age on a life insurance policy has been misstated, what is the
insurer's liability if the insured dies?
1.No death benefit is owed because of the misstatement of age
2. The full original death benefit listed on the policy
3. A prorated death benefit based on the amount of insurance the insured's premiums
would have been if purchased at the correct age
4. The original death benefit listed on the policy minus any outstanding loans and
interest - ✔✔3. A prorated death benefit based on the amount of insurance the insured's
premiums would have been if purchased at the correct age
✔✔How long must an individual be unable to engage in any gainful activity due to
physical or mental disability in order to qualify for Social Security Total Disability?
1. 3 months
2. 6 months
3. 12 months
4. 18 months - ✔✔3. 12 months
✔✔All of these are considered sources of information that can assist an underwriter in
determining whether or not to accept a risk EXCEPT
1.Agent's report
2. Medical Information Bureau (MIB)
3. Inspection reports
4. National Association of Insurance Underwriters - ✔✔4. National Association of
Insurance Underwriters
✔✔Any advertisement that mentions a dollar amount, period of time for which any
benefit is payable, cost of policy, policy benefit, or the loss for which the benefit is
payable MUST disclose
1.the date in which the advertisement was approved
2. the exceptions, reductions, and limitations affecting the 3.basic provisions of the
policy
4. how much the advertisement cost to publish
, the person who wrote the advertisement - ✔✔2. the exceptions, reductions, and
limitations affecting the
✔✔Converting a group plan to permanent life insurance requires
1. submitting proof of insurability
2. paying a lower premium
3. converting to term life insurance
4. the conversion being applied for within 31 days of termination - ✔✔4. the conversion
being applied for within 31 days of termination
✔✔Life insurance policies will normally pay for losses arising from
1.commercial aviation
2. war
3. suicide
4. hazardous jobs - ✔✔1.commercial aviation
✔✔A single premium cash value policy can be described as
1.a policy that is paid up after only one payment
2. a policy that only requires an annual payment
3. a policy that is guaranteed issue
4. a policy that covers two or more lives - ✔✔1.a policy that is paid up after only one
payment
✔✔Maria would like an annuity that provides a guaranteed accumulation or payout. The
type of annuity she is seeking is called
1. variable payout
2. fixed accumulation
3. interest guaranteed
4. annuity certain - ✔✔4. annuity certain
✔✔What is the name of the provision which states that a copy of the application must
be attached to the policy when issued?
1.Policy Summary
2. Buyer's Guide
3. Entire Contract
