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Maryland Insurance Administration Life-Producer Exam Syllabus Topics:

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

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

                                      1. 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 premium rate for each $1,000 of face amount
                                      C) The taxable portion of each benefit payment under a life income settlement option
                                      D) The total amount payable under the policy as a result of the insured's death


                                      2. How does the payment of an accelerated benefit affect a life insurance policy?

                                      A) It increases the cash value.
                                      B) It decreases the death benefit.
                                      C) It decreases the grace period.
                                      D) It increases the policy premium.


                                      3. Which advantage does an employer gain by providing a qualified retirement plan, as contrasted to a non- qualified plan?

                                      A) The plan funds are available for general business needs
                                      B) It is useful in rewarding selected employees for good work performance
                                      C) It can be designed for the exclusive benefit of several key employees
                                      D) The employer's contributions to the plan are tax deductible


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

                                      A) The fixed amount installment option
                                      B) The fixed period installment option
                                      C) The accelerated endowment option
                                      D) The interest-only option


                                      5. An applicant for life insurance must be informed that testing for Human Immunodeficiency Virus (HIV) infection is used to help determine:

                                      A) The insurability of the proposed insured
                                      B) The type of policy that will be issued
                                      C) Whether an insurable interest exists
                                      D) The effective date and term of coverage


                                      Solutions:

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

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