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Last Updated: Jul 27, 2026
No. of Questions: 85 Questions & Answers with Testing Engine
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| Section | Objectives |
|---|---|
| Topic 1: Federal Tax Considerations | - Life Insurance Taxation
|
| Topic 2: Types of Policies | - Interest-Sensitive Life Products
|
| Topic 3: Annuities | - Annuity Principles
|
| Topic 4: Life Insurance Policy Riders and Provisions | - Policy Riders
|
| Topic 5: Maryland Insurance Laws and Regulations | - Licensing Requirements
|
1. 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
2. The income benefits distributed during the liquidation phase of an annuity contract are normally payable to:
A) The nominator
B) The owner
C) The annuitant
D) The beneficiary
3. A group policy may be issued to a labor union. The members eligible for insurance under the policy shall be:
A) Only members of the union who are under the age of 65
B) Healthy members of the union
C) All of the members of the union
D) Members of any union
4. What does the annuitant usually receive during the liquidation phase of an annuity?
A) A lump sum
B) Cash withdrawals upon request
C) Nothing
D) Benefit payments at regular intervals
5. An employee with $50,000 group life insurance coverage terminates employment and submits an application WITHOUT the initial premium for a $50,000 conversion policy. If the employee dies 15 days later, the insurer would pay:
A) $50,000 under the new policy, less the initial premium amount due
B) $50,000 under the new policy
C) $50,000 under the group plan
D) Nothing at all
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: D | Question # 5 Answer: C |
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