Life-Producer Insurance Licensing Maryland Life Producer Exam (Series 20-27) Free Practice Exam Questions (2025 Updated)

Comprehensive and Detailed Step by Step Explanation:

Maryland law requires that the results of medical examinations used to determine insurability:

Be disclosed to thephysician of the applicant’s choice (B), but only if the applicant requests it.

This ensures privacy and confidentiality while giving the applicant access to critical information.

Beneficiaries (A)andunderwriters (C)do not receive this information.

Physicians furnishing information (D)already have access to their own submissions.

Comprehensive and Detailed Step by Step Explanation:

The Maryland Insurance Administration enforces disciplinary measures:

Fraudulent practices (A), mishandling premiums (B), and violating regulations (D) are grounds for suspension or revocation.

Sharing commissions (C) with agents of the same license type is permitted under Maryland law if done legally and transparently.

Comprehensive and Detailed Step by Step Explanation:

The principle ofestoppelprevents a party from asserting rights or enforcing terms if their prior actions contradicted such enforcement.

Estoppel (C):If the insurer knowingly disregards a policy provision (e.g., a late premium payment), they may be barred from enforcing it later if the policyholder relied on the prior inaction.

Adhesion (A):Refers to contracts where terms are dictated by one party (e.g., the insurer), not applicable here.

Waiver (B):Occurs when an insurer voluntarily relinquishes a known right but does not necessarily create future obligations like estoppel does.

Subrogation (D):Involves transferring the insured’s claim rights to the insurer after a loss, unrelated to this scenario.

Comprehensive and Detailed Step by Step Explanation:

Family life insurance policies provide comprehensive coverage for families, including automatic coverage for certain dependents.

Option A:Correct. A significant portion of the premium funds whole life insurance for the primary insured (typically the head of household).

Option B:Correct. Dependent children born after the policy is issued are automatically covered, often without additional cost or underwriting.

Option C:Incorrect. Family life insurance policies are not restricted to individuals under 30; this criterion does not exist in standard policy guidelines.

Option D:Correct. Coverage for dependents can often be converted to whole life insurance at specific ages or policy milestones without medical underwriting.

Comprehensive and Detailed Step by Step Explanation:

Insurance licensees in Maryland are required to report certain changes to the Maryland Insurance Administration (MIA):

Change of name (A):Must be reported promptly to ensure accurate licensure records.

Change of residence address (B):Also required for communication and compliance purposes.

Felony convictions (D):Mandatory disclosure to maintain transparency and evaluate fitness for licensure.

Change in financial status (C):Not required unless it directly affects the licensee’s ability to meet financial obligations tied to the license (e.g., bonding requirements).

Comprehensive and Detailed Step by Step Explanation:

HIV testing is used by insurers to evaluate the health risks associated with the applicant anddetermine insurability.

The insurability of the proposed insured (D):Correct. HIV status can impact underwriting decisions, subject to Maryland’s anti-discrimination laws.

The type of policy issued (A):Irrelevant, as this is determined by the applicant’s preferences and eligibility.

Effective date and term of coverage (B):Determined separately from medical testing.

Whether an insurable interest exists (C):Based on the relationship between the policyholder and insured, not medical testing.