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Last Updated: Aug 07, 2026
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Accident and Health / Sickness Insurance | 20% | - HMO, PPO, group vs individual coverage - Disability income, medical expense, and long-term care - Health insurance basics and policy provisions - Mandatory benefits and state-specific health rules |
| Topic 2: Insurance Regulation | 30% | - Ethics, unfair trade practices, and consumer protection - State insurance laws and Maryland regulations - Policy delivery, replacement rules, and disclosure - Licensing requirements and procedures |
| Topic 3: General Insurance Concepts | 15% | - Underwriting, premium calculation, and taxation - Contract law and principles - Insurable interest and risk management |
| Topic 4: Annuities and Retirement Products | 10% | - Fixed, indexed, and variable annuities - Tax treatment and suitability standards |
| Topic 5: Life Insurance Basics and Policies | 25% | - Policy provisions, riders, and options - Beneficiaries, claims, and settlement options - Types of life insurance: term, whole, universal, variable |
1. Under what circumstances will a contingent beneficiary be entitled to proceeds from a life insurance policy?
A) After all outstanding debts of the insured have been settled
B) If the primary beneficiary has predeceased the insured
C) After proceeds are paid to the primary beneficiary
D) If the contingent beneficiary is a child of the insured
2. All of the following are true about loans under personally owned life insurance policies EXCEPT:
A) They are secured by the policy's cash value
B) The interest rate is controlled by the contract
C) They reduce the amount of the death proceeds received
D) The policyowner's interest payments are deductible
3. Which employers can offer 403(b) tax-sheltered annuities (TSAs)?
A) Regular business corporations and professional corporations
B) States, municipalities, and rural electric cooperatives
C) Subchapter S corporations, partnerships, and sole proprietorships
D) School districts and certain non-profit organizations
4. At the request of a small group medical plan policyholder, the insurer must disclose all of the following EXCEPT:
A) The insurer's right to increase premium rates
B) All available benefits
C) The insurer's expenses
D) The renewability provisions
5. Splitting the commission with the buyer on a sale of insurance is an unfair trade practice known as:
A) Soliciting
B) Rebating
C) Binding
D) Twisting
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: B |
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