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Maryland Insurance Administration Life-Producer Exam Syllabus Topics:

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

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

                                      1. Which contract offers flexible deposits, deferred taxation, a guaranteed minimum interest rate, and death proceeds equal to the cash value?

                                      A) An adjustable whole life insurance policy
                                      B) A flexible premium fixed annuity
                                      C) Available deferred annuity
                                      D) A universal life insurance policy


                                      2. Publishing a derogatory article about the financial condition of an insurer that is false and calculated to injure the insurer is an example of:

                                      A) Intimidation
                                      B) Extortion
                                      C) Defamation
                                      D) Coercion


                                      3. What does the annuitant usually receive during the liquidation phase of an annuity?

                                      A) A lump sum
                                      B) Benefit payments at regular intervals
                                      C) Nothing
                                      D) Cash withdrawals upon request


                                      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. A policyholder uses a Section 1035 exchange to replace an existing life insurance policy. If the new policy is later surrendered, the gain realized on termination is taxed as:

                                      A) A capital gain
                                      B) Ordinary income plus a 10% surcharge
                                      C) A deferred capital gain
                                      D) Ordinary income


                                      Solutions:

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

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