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1. 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) Engaging in fraudulent or dishonest practices
C) Mishandling premium payments
D) Sharing commissions with agents holding the same license type
2. A producer is prohibited from:
A) Countersigning a policy sold in Maryland
B) Selling insurance to family members
C) Allowing an applicant to sign a blank or incomplete application
D) Splitting commissions with a licensed nonresident producer who has jointly sold a policy
3. Which one of the following causes of death typically would be included under an accidental death rider attached to a life insurance policy?
A) Intentionally self-inflicted injuries
B) Automobile accidents resulting from the insured's negligence
C) War or acts of war
D) Illness or disease
4. A transaction in which a new life insurance policy is purchased, and an existing life insurance policy is surrendered is called:
A) Nonforfeiture
B) Reinvestment
C) Replacement
D) Rollover
5. In surrendering a life insurance contract for its cash value, the total of premiums paid less the total of any dividends received in cash or used to offset premiums is:
A) The cash value
B) The gross proceeds
C) The cost basis
D) The loan value
Solutions:
Question # 1 Answer: D | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: C |
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