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Life-Producer Practice Questions

Maryland Life Producer Exam (Series 20-27)

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Total Questions : 90

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Question # 11

Which contract offers flexible deposits, deferred taxation, a guaranteed minimum interest rate, and death proceeds equal to the cash value?

Options:

A.  

An adjustable whole life insurance policy

B.  

An available deferred annuity

C.  

A flexible premium fixed annuity

D.  

A universal life insurance policy

Discussion 0
Question # 12

The Maryland Insurance Administration is an agency of the:

Options:

A.  

Federal government

B.  

State government

C.  

National Association of Insurance Commissioners

D.  

Maryland General Assembly

Discussion 0
Question # 13

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

Options:

A.  

Can be any amount as determined by the employer from year to year

B.  

Must be the same dollar amount for every full-time employee

C.  

Cannot exceed maximum limits set by the Internal Revenue Service

D.  

Usually reflects the employee's individual work performance each year

Discussion 0
Question # 14

An individual life insurance policy may include coverage for all of the following EXCEPT:

Options:

A.  

Disability

B.  

Long-term care

C.  

Workers' compensation

D.  

Burial

Discussion 0
Question # 15

Which one of the following life insurance settlement options pays a predetermined monthly benefit until principal and interest are exhausted?

Options:

A.  

The fixed amount installment option

B.  

The accelerated endowment option

C.  

The interest-only option

D.  

The fixed period installment option

Discussion 0
Question # 16

The purpose of the Life and Health Insurance Guaranty Corporation is to guarantee:

Options:

A.  

The issuance of life insurance policies.

B.  

The issuance of life insurance and health insurance policies.

C.  

Benefits if the insurer is unable to pay benefits due to impairment or insolvency.

D.  

That an insurance company will never fail.

Discussion 0
Question # 17

A policyholder uses a Section 1035 exchange to replace an existing life insurance policy. If the new policy is later surrendered, the gain realized on termination is taxed as:

Options:

A.  

Ordinary income

B.  

A capital gain

C.  

Ordinary income plus a 10% surcharge

D.  

A deferred capital gain

Discussion 0
Question # 18

How long will income benefit payments continue under a life annuity with ten years certain?

Options:

A.  

Until the annuitant dies, or for ten years, whichever is longer

B.  

Until the annuitant dies, and for an additional ten years

C.  

Only until the annuitant dies, regardless of when death occurs

D.  

Only for ten years, regardless of how long the annuitant lives

Discussion 0
Question # 19

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:

Options:

A.  

Adhesion

B.  

Waiver

C.  

Estoppel

D.  

Subrogation

Discussion 0
Question # 20

Which one of the following causes of death typically would be included under an accidental death rider attached to a life insurance policy?

Options:

A.  

Intentionally self-inflicted injuries

B.  

Illness or disease

C.  

War or acts of war

D.  

Automobile accidents resulting from the insured's negligence

Discussion 0
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