Insurance Licensing Maryland Life Producer Exam (Series 20-27) Life-Producer Exam Dumps: Updated Questions & Answers (October 2025)

Comprehensive and Detailed Step by Step Explanation:Thefree-look periodis a consumer protection feature allowing policyholders to cancel a policy within a specified period for a full refund.

10 days (A):Maryland requires a minimum free-look period of 10 days for most individual life insurance policies. This provides enough time for policy review.

31 days (B), 45 days (C), and 60 days (D):These periods exceed Maryland's legal minimum and are typically not required unless specified by the insurer.

References:Maryland Free-Look Provisions, COMAR 31.09.09, and Maryland Consumer Protection Insurance Guidelines.

Comprehensive and Detailed Step by Step Explanation:Qualified retirement plans, such as 401(k) and pension plans, offer significant tax advantages for employers:

Tax-deductible contributions (B):Employer contributions to qualified plans are deductible as business expenses, reducing taxable income.

Exclusive benefit for key employees (A):Not allowed under IRS rules, as qualified plans must follow non-discrimination requirements.

Funds available for business needs (C):Incorrect, as plan funds are held in trust and cannot be used for business operations.

Rewarding selected employees (D):Qualified plans must comply with anti-discrimination rules, so rewards must benefit all eligible employees.

References:IRS Publication 560, Maryland Retirement Plan Standards, and COMAR 31.09.11.

Comprehensive and Detailed Step by Step Explanation:

The Life and Health Insurance Guaranty Corporation provides financial protection to policyholders:

Guarantees benefits in case of insurer insolvency (C), ensuring policyholders do not lose coverage.

It does not guarantee the issuance of policies (A and B), as policy issuance depends on underwriting.

It cannot ensure an insurer will never fail (D) but mitigates the impact of failure.

References: Maryland Life and Health Guaranty Corporation Act, Maryland Insurance Code.

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.

References:Maryland Insurance Code §27-208, HIV Testing Disclosure Guidelines, and Maryland Human Rights Act.

Comprehensive and Detailed Step by Step Explanation:Producers are integral to facilitating insurance transactions but do not have underwriting authority:

Approving policies for issue (C)is the responsibility of the insurer’s underwriting team.

Producers are required todeliver policies (A),notify insurers about replacements (B), andcollect initial premiums (D).

References: Maryland Producer Duties and Regulatory Framework.

Comprehensive and Detailed Step by Step Explanation:The life insurance buyer’s guide is designed to help potential policyholders make informed decisions about life insurance by:

Explaininghow to decide how much life insurance to buy (C), ensuring individuals purchase adequate coverage for their needs.

Providing details tocompare life insurance policy requirements (D)to evaluate and choose the best policy.

Showing how tocompare rates (A)for different policies to find cost-effective options.

However, it doesnot include instructions for taking civil action against an insurer (B). Such legal matters fall outside the scope of the guide and are addressed in regulatory and legal channels.

References: Maryland Insurance Buyer’s Guide Guidelines and State Insurance Regulations.

Comprehensive and Detailed Step by Step Explanation:In an annuity, theannuitant (D)is the individual entitled to receive benefits during the liquidation phase.

Theowner (A)controls the contract but may not be the recipient.

Thebeneficiary (B)receives funds only after the annuitant’s death.

Nominator (C)is not a term used in annuities.

References: Maryland Annuity and Retirement Income Provisions.

Comprehensive and Detailed Step by Step Explanation:An agent’s license can be revoked for serious infractions that violate Maryland’s insurance laws:

Rebating (B):Prohibited under Maryland’s Unfair Trade Practices Act.

Felony conviction (C):Grounds for revocation as it questions the agent’s moral character.

Violating insurance statutes or regulations (D):Includes infractions such as fraud, misrepresentation, or failure to meet ethical standards.

Having no insurer appointment for ten days (A):Incorrect. A lack of appointment does not constitute a violation; it only affects the ability to conduct business temporarily.

References:Maryland Insurance Article §10-126, COMAR 31.03.02, and Licensing Enforcement Guidelines.

Comprehensive and Detailed Step by Step Explanation:The Medical Information Bureau (MIB) collects and shares medical information among member insurance companies to assess risk:

Member insurance companies (B)are the only entities authorized to access MIB data, ensuring confidentiality and appropriate use.

Employment agencies (A)andemployers (C)cannot access MIB data.

Physicians (D)are also excluded, as MIB serves the insurance underwriting process exclusively.

References: Maryland Insurance Privacy Regulations and MIB Operational Guidelines.

Comprehensive and Detailed Step by Step Explanation:Insurance producers must uphold ethical and legal practices when conducting business.

Allowing an applicant to sign a blank or incomplete application (B):This is strictly prohibited, as it creates opportunities for fraud, disputes, and incorrect information being submitted to insurers.

Selling insurance to family members (A):Permissible under Maryland law as long as transactions comply with standard regulations.

Countersigning a policy (C):Required in some cases for validating contracts sold in Maryland.

Splitting commissions with a licensed nonresident producer (D):Permissible if both parties are licensed and participate in the sale.

References:Maryland Producer Code of Conduct, COMAR 31.03.13, and Maryland InsuranceEthics Guidelines.