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 17, 2026

Q & A: 85 Questions and Answers

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About Maryland Insurance Administration Life-Producer Exam

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Maryland Insurance Administration Life-Producer Exam Syllabus Topics:

SectionObjectives
Topic 1: Life Insurance Products- Permanent life insurance
  • 1. Variable life
    • 2. Universal life
      • 3. Whole life
        - Annuities
        • 1. Immediate and deferred annuities
          • 2. Fixed and variable annuities
            - Term life insurance
            • 1. Level term, decreasing term
              Topic 2: State Regulation (Maryland Insurance Law)- Producer licensing requirements
              • 1. Pre-licensing education requirements
                • 2. License application process
                  - Ethics and conduct
                  • 1. Misrepresentation rules
                    • 2. Unfair trade practices
                      Topic 3: Policy Provisions and Riders- Common riders
                      • 1. Waiver of premium
                        • 2. Living benefits riders
                          • 3. Accidental death benefit
                            - Life insurance policy clauses
                            • 1. Suicide clause
                              • 2. Grace period
                                • 3. Incontestability clause
                                  Topic 4: Insurance Fundamentals- Insurance concepts
                                  • 1. Utmost good faith
                                    • 2. Insurable interest
                                      - Risk management principles
                                      • 1. Pure vs speculative risk
                                        • 2. Methods of handling risk (avoidance, retention, transfer)

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

                                          1. 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 loan value
                                          D) The cost basis


                                          2. The free-look period provided in a life insurance policy is usually:

                                          A) 31 days
                                          B) 10 days
                                          C) 60 days
                                          D) 45 days


                                          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) Automobile accidents resulting from the insured's negligence
                                          B) War or acts of war
                                          C) Illness or disease
                                          D) Intentionally self-inflicted injuries


                                          4. All of the following statements about universal life insurance are true EXCEPT:

                                          A) It may be written with either a level death benefit or an increasing death benefit
                                          B) The Internal Revenue Code places a minimum limitation on the difference between the cash value and the death benefit
                                          C) Failure to pay the renewal premium automatically causes the policy to lapse
                                          D) Withdrawals of the policy cash value are permitted and sometimes subject to a surrender charge


                                          5. The needs approach to personal life insurance planning includes the creation of an emergency reserve fund.
                                          This fund is designed primarily to:

                                          A) Pay off an existing mortgage
                                          B) Pay for college tuition and books
                                          C) Provide retirement income
                                          D) Cover the cost of unexpected expenses


                                          Solutions:

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

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