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Maryland Insurance Administration Maryland Life Producer Exam (Series 20-27) Sample Questions:
1. All of the following statements about the life insurance protection provided by a family life insurance policy are true EXCEPT:
A) Most of the premium amount purchases whole life insurance for the head of the household
B) Life insurance coverage is provided automatically to children born during the policy period
C) Coverage is available only to heads of households who are 30 years old or younger
D) Coverage for dependents can be converted to whole life insurance without evidence of insurability
2. Who normally receives dividends in a stock insurance company?
A) Shareholders
B) Only members of the board of directors
C) Producers
D) Beneficiaries
3. 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) Must be the same dollar amount for every full-time employee
D) Cannot exceed maximum limits set by the Internal Revenue Service
4. A life insurance policy beneficiary's life expectancy has a direct bearing upon:
A) The taxable portion of each benefit payment under a life income settlement option
B) The total amount payable under the policy as a result of the insured's death
C) The policy value that will be includable in the insured's estate
D) The premium rate for each $1,000 of face amount
5. The beneficiary of a life insurance policy is the:
A) Owner of the cash value fund
B) Person or entity who has ownership interest in the policy
C) Person or entity designated in the policy to receive the death proceeds
D) Insurer that issues the policy
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: C |






