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| Section | Objectives |
|---|---|
| Insurance Fundamentals | - Risk management principles
|
| Policy Provisions and Riders | - Life insurance policy clauses
|
| Life Insurance Products | - Annuities
|
| State Regulation (Maryland Insurance Law) | - Producer licensing requirements
|
1. The Medical Information Bureau may release information in the proposed insured's file to:
A) The insured's employer
B) Any physician
C) Employment agencies
D) Member insurance companies
2. The penalty tax incurred for premature distributions from an IRA is:
A) 10%
B) 20%
C) 5%
D) 50%
3. 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
4. A universal life insurance policy can be described most accurately as a combination of:
A) A flexible premium deposit fund and a monthly renewable term insurance policy
B) An endowment policy and an interest-sensitive deposit fund
C) A mutual fund and a whole life insurance policy
D) A term insurance policy and an annuity
5. A producer may be guilty of misrepresentation if the producer:
A) Required timely written notice of loss for all claims
B) Failed to disclose exclusions of the policy
C) Issued a full settlement check expressly releasing the insurer
D) Denied a claim for failure of the policyholder to prove damages
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: B |
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