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Maryland Insurance Administration Life-Producer Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Insurance Regulation15%- State insurance laws and administration
  • 1. Regulation of agents and insurers
    • 2. Licensing requirements and authority
      • 3. Unfair trade practices
        Topic 2: Life Insurance Underwriting and Premiums15%- Risk assessment and pricing
        • 1. Premium calculation factors
          • 2. Classification of risks
            • 3. Underwriting process
              Topic 3: Life Insurance Policies25%- Policy types and provisions
              • 1. Term, whole life, universal life
                • 2. Beneficiary designations
                  • 3. Policy clauses and riders
                    Topic 4: Federal and State Tax Considerations10%- Tax treatment of policies and benefits
                    • 1. Tax-deferred growth
                      • 2. Estate tax aspects
                        • 3. Income tax implications
                          Topic 5: General Insurance Concepts15%- Fundamental principles
                          • 1. Insurable interest
                            • 2. Risk and hazard
                              • 3. Contract law basics
                                Topic 6: Annuities and Retirement Products15%- Types and features
                                • 1. Tax-qualified plans
                                  • 2. Fixed and variable annuities
                                    • 3. Distribution options

                                      Maryland Insurance Administration Maryland Life Producer Exam (Series 20-27) Sample Questions:

                                      1. The amount received for a life insurance policy in a viatical settlement is:

                                      A) Less than the death benefit
                                      B) Greater than the death benefit
                                      C) Equal to the death benefit
                                      D) Equal to the sum of all premiums paid


                                      2. All of the following statements about universal life insurance are true EXCEPT:

                                      A) The Internal Revenue Code places a minimum limitation on the difference between the cash value and the death benefit
                                      B) It may be written with either a level death benefit or an increasing death benefit
                                      C) Failure to pay the renewal premium automatically causes the policy to lapse
                                      D) Withdrawals of the policy cash value are permitted and sometimes subject to a surrender charge


                                      3. A life insurance policy beneficiary's life expectancy has a direct bearing upon:

                                      A) The policy value that will be includable in the insured's estate
                                      B) The total amount payable under the policy as a result of the insured's death
                                      C) The premium rate for each $1,000 of face amount
                                      D) The taxable portion of each benefit payment under a life income settlement option


                                      4. The annual addition to an employee's account in a qualified retirement plan:

                                      A) Usually reflects the employee's individual work performance each year
                                      B) Can be any amount as determined by the employer from year to year
                                      C) Cannot exceed maximum limits set by the Internal Revenue Service
                                      D) Must be the same dollar amount for every full-time employee


                                      5. If an insurer knowingly fails to enforce a policy provision on one occasion, the insurer may be prevented from enforcing it on a subsequent occasion by the principle of:

                                      A) Adhesion
                                      B) Estoppel
                                      C) Waiver
                                      D) Subrogation


                                      Solutions:

                                      Question # 1
                                      Answer: A
                                      Question # 2
                                      Answer: C
                                      Question # 3
                                      Answer: D
                                      Question # 4
                                      Answer: C
                                      Question # 5
                                      Answer: B

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