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Maryland Insurance Administration Life-Producer Exam Syllabus Topics:
| Section | Objectives |
| Topic 1: Insurance Fundamentals | - Insurance concepts
- 1. Utmost good faith
- 2. Insurable interest
- Risk management principles
- 1. Pure vs speculative risk
- 2. Methods of handling risk (avoidance, retention, transfer)
|
| Topic 2: Policy Provisions and Riders | - Common riders
- 1. Accidental death benefit
- 2. Waiver of premium
- 3. Living benefits riders
- Life insurance policy clauses
- 1. Grace period
- 2. Incontestability clause
- 3. Suicide clause
|
| Topic 3: State Regulation (Maryland Insurance Law) | - Producer licensing requirements
- 1. License application process
- 2. Pre-licensing education requirements
- Ethics and conduct
- 1. Misrepresentation rules
- 2. Unfair trade practices
|
| Topic 4: Life Insurance Products | - Annuities
- 1. Fixed and variable annuities
- 2. Immediate and deferred annuities
- Term life insurance
- 1. Level term, decreasing term
- Permanent life insurance
- 1. Whole life
- 2. Universal life
- 3. Variable life
|
Maryland Insurance Administration Maryland Life Producer Exam (Series 20-27) Sample Questions:
1. Which contract offers flexible deposits, deferred taxation, a guaranteed minimum interest rate, and death proceeds equal to the cash value?
A) An available deferred annuity
B) An adjustable whole life insurance policy
C) A universal life insurance policy
D) A flexible premium fixed annuity
2. An insurable interest in each other's lives may exist in the absence of an economic interest when the individuals are:
A) Traveling companions
B) Competitors
C) Business associates
D) Marriage partners
3. Which amount may be deposited into a rollover individual retirement account (IRA) for the purpose of deferring income taxes?
A) The value of an IRA established by the beneficiary's deceased parent
B) The proceeds of a life insurance policy paid to a beneficiary under age 70-1/2
C) The amount paid to the spouse of a deceased annuitant under a tax-sheltered annuity
D) The refund received by the beneficiary under a refund life annuity
4. An insurable interest in each other's lives may exist in the absence of an economic interest when the individuals are:
A) Traveling companions
B) Competitors
C) Business associates
D) Marriage partners
5. The annual addition to an employee's account in a qualified retirement plan:
A) Can be any amount as determined by the employer from year to year
B) Cannot exceed maximum limits set by the Internal Revenue Service
C) Must be the same dollar amount for every full-time employee
D) Usually reflects the employee's individual work performance each year
Solutions:
Question # 1 Answer: D | Question # 2 Answer: D | Question # 3 Answer: C | Question # 4 Answer: D | Question # 5 Answer: B |