Free Maryland Insurance Administration Life-Producer Exam Dumps Questions & Answers

All of the following statements about the life insurance protection provided by a family life insurance policy are true EXCEPT:

• A.Coverage is available only to heads of households who are 30 years old or younger
• B.Life insurance coverage is provided automatically to children born during the policy period
• C.Coverage for dependents can be converted to whole life insurance without evidence of insurability
• D.Most of the premium amount purchases whole life insurance for the head of the household

An insurer may refuse to underwrite a particular insurance applicant for a reason based wholly on:

• A.Race
• B.Medical condition
• C.Gender
• D.Creed

If, after submitting an application, a producer becomes aware of a material fact that may affect the underwriting decision, the producer's ethical responsibility requires that the producer:

• A.Report the fact to the insurance company
• B.Advise the applicant to amend the application
• C.Acknowledge the fact only if asked by the insurance company
• D.Deny knowledge of the fact

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 gross proceeds
• B.The cost basis
• C.The cash value
• D.The loan value

A producer is prohibited from:

• A.Allowing an applicant to sign a blank or incomplete application
• B.Countersigning a policy sold in Maryland
• C.Selling insurance to family members
• D.Splitting commissions with a licensed nonresident producer who has jointly sold a policy