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

Exam Code: Life-Producer

Exam Name: Maryland Life Producer Exam (Series 20-27)

Updated: Aug 22, 2026

Q & A: 85 Questions and Answers

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Maryland Insurance Administration Life-Producer Exam Syllabus Topics:

SectionObjectives
Policy Provisions and Riders- Life insurance policy clauses
  • 1. Grace period
    • 2. Incontestability clause
      • 3. Suicide clause
        - Common riders
        • 1. Living benefits riders
          • 2. Waiver of premium
            • 3. Accidental death benefit
              Life Insurance Products- Annuities
              • 1. Immediate and deferred annuities
                • 2. Fixed and variable annuities
                  - Permanent life insurance
                  • 1. Whole life
                    • 2. Variable life
                      • 3. Universal life
                        - Term life insurance
                        • 1. Level term, decreasing term
                          Insurance Fundamentals- Risk management principles
                          • 1. Pure vs speculative risk
                            • 2. Methods of handling risk (avoidance, retention, transfer)
                              - Insurance concepts
                              • 1. Utmost good faith
                                • 2. Insurable interest
                                  State Regulation (Maryland Insurance Law)- Ethics and conduct
                                  • 1. Unfair trade practices
                                    • 2. Misrepresentation rules
                                      - Producer licensing requirements
                                      • 1. Pre-licensing education requirements
                                        • 2. License application process

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

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

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


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


                                          3. The purpose of the Life and Health Insurance Guaranty Corporation is to guarantee:

                                          A) Benefits if the insurer is unable to pay benefits due to impairment or insolvency.
                                          B) The issuance of life insurance and health insurance policies.
                                          C) That an insurance company will never fail.
                                          D) The issuance of life insurance policies.


                                          4. A refusal to do business with a particular individual or business is known as:

                                          A) An injunction
                                          B) An estoppel
                                          C) A boycott
                                          D) A binder


                                          5. The purpose of licensing insurance agents is to:

                                          A) Demonstrate that the agent is qualified to act on behalf of insurers in Maryland
                                          B) Regulate rates to prevent unfair discrimination among insureds
                                          C) Limit the number of agents who do business within Maryland
                                          D) Monitor insurance sales activity in Maryland


                                          Solutions:

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

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