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Last Updated: Aug 30, 2026
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| Section | Weight | Objectives |
|---|---|---|
| General Insurance Concepts | 15% | - Underwriting, premium calculation, and taxation - Insurable interest and risk management - Contract law and principles |
| Life Insurance Basics and Policies | 25% | - Policy provisions, riders, and options - Types of life insurance: term, whole, universal, variable - Beneficiaries, claims, and settlement options |
| Insurance Regulation | 30% | - Ethics, unfair trade practices, and consumer protection - State insurance laws and Maryland regulations - Policy delivery, replacement rules, and disclosure - Licensing requirements and procedures |
| Annuities and Retirement Products | 10% | - Tax treatment and suitability standards - Fixed, indexed, and variable annuities |
| Accident and Health / Sickness Insurance | 20% | - HMO, PPO, group vs individual coverage - Disability income, medical expense, and long-term care - Mandatory benefits and state-specific health rules - Health insurance basics and policy provisions |
Question 1
An employee with $50,000 group life insurance coverage terminates employment and submits an application WITHOUT the initial premium for a $50,000 conversion policy. If the employee dies 15 days later, the insurer would pay:
A. Nothing at all
B. $50,000 under the new policy
C. $50,000 under the new policy, less the initial premium amount due
D. $50,000 under the group plan
Question 2
(All of the following are advantages of whole life insurance EXCEPT:)
A. There is a cash value if the policy is terminated after a sufficient period of time.
B. The initial cost of coverage is lower than for an equivalent amount of term insurance.
C. Policy loans may be available.
D. Long-term protection is provided.
Question 3
Surrender and loan features are required in all of the following life insurance policies EXCEPT:
A. Five-year term life
B. Twenty payment life
C. Universal life
D. Endowment insurance
Question 4
The Maryland Insurance Administration may suspend an agent's license for all of the following reasons EXCEPT:
A. Violating a regulation or order of the Maryland Insurance Administration
B. Mishandling premium payments
C. Engaging in fraudulent or dishonest practices
D. Sharing commissions with agents holding the same license type
Question 5
Under what circumstances will a contingent beneficiary be entitled to proceeds from a life insurance policy?
A. If the primary beneficiary has predeceased the insured
B. If the contingent beneficiary is a child of the insured
C. After proceeds are paid to the primary beneficiary
D. After all outstanding debts of the insured have been settled
Solutions:
| Question 1 Answer: D | Question 2 Answer: B | Question 3 Answer: A | Question 4 Answer: D | Question 5 Answer: A |
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