Purchase Maryland Insurance Administration : Life-Producer Exam Materials and then pass exam easily

Last Updated: Jun 20, 2026

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

1. The life insurance buyer's guide includes information about all of the following EXCEPT how to:

A) Decide how much life insurance to buy
B) Take civil action against an insurer
C) Compare life insurance policy rates
D) Compare life insurance policy requirements


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


3. The beneficiary of a life insurance policy is the:

A) Owner of the cash value fund
B) Insurer that issues the policy
C) Person or entity who has ownership interest in the policy
D) Person or entity designated in the policy to receive the death proceeds


4. If an insurer knowingly fails to enforce a policy provision on one occasion, the insurer may be prevented from enforcing it on a subsequent occasion by the principle of:

A) Waiver
B) Estoppel
C) Adhesion
D) Subrogation


5. 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 interest-only option
C) The accelerated endowment option
D) The fixed period installment option


Solutions:

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

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