MARYLAND PROPERTY & CASUALTY
INSURANCE PRACTICE | 80 QUESTIONS
WITH 100% CORRECT AN SWERS |
VERIFIED | LATEST UPDATE
Question :An agent just received his Maryland Life\Health
insurance license. His specialty is selling long-term care policies. In order to satisfy his continuing education requirement, he must do which of the following?
Correct answer:Complete 24 hours of continuing education,
including 2 hours of long-term care education, and 3 hours of ethics, every two years.
Question :All of the following are true regarding rebates
EXCEPT
Correct answer:Rebates are allowed if it's in the best interest
of the client.
Question :Which of the following is an example of a
producer's fiduciary responsibilities?
Correct answer:A producer promptly forwarding premiums
to the insurance company
Question :All of the following would be considered an
insurance transaction EXCEPT
Correct answer:Obtaining an insurance license.
Question :Which of the following would be considered false
advertising?
Correct answer:Implying that the agent is the insurer
Question :Before a producer can receive authority to place
business with MAIF, the producer must comply with the following actions, EXCEPT
Correct answer:Pay a $500 initiation fee
Question :Which of the following would NOT be considered
a flood?
Correct answer:Sewer backup
Question :Binders cease at the earliest of
Correct answer:Any of the above.
Question :A business entity must meet all of the following
qualifications EXCEPT
Correct answer:Have a board of directors.
Question :In Maryland, binders are issued for a short period
of time. A binder will cease to exist in each of the following situations EXCEPT
Correct answer:60 days following the issue date of the
binder.
Question :Which of the following authorities can legally
suspend a license?
Correct answer:The Insurance Commissioner
Question :If an individual is unable to purchase auto liability
insurance from private insurers, which of the following may provide coverage?
Correct answer:The Maryland Auto Insurance Fund (MAIF)
Question :A repair facility used after-market parts in the
repair of a customer's automobile, and did not notify the customer of this. Which of the following is true?
Correct answer:The repair facility has engaged in an unfair
trade practice.
Question :Kristin wishes to become an insurance producer in
Maryland. In order to do so, she must do all of the following
EXCEPT
Correct answer:Have a college education.
Question :Employers Liability limits are split limits. The first
limit shown is the most the insurer will pay for all claims for
Correct answer:Injury by accident.
Question :An insurer in Maryland is going to begin using
new rates for the largest corporation in Maryland. Which of the following statements apply to this situation?
Correct answer:Any of the above can be true.
Question :Which of the following is true regarding a
cancellation notice for a workers' compensation policy?
Correct answer:It must include the effective date of
cancellation.
Question :The Department of Insurance requires a license for
anyone engaged in insurance transactions so they can have control over
Correct answer:Those selling insurance or advising the
public.
Question :Which of the following would be covered by the
Property and Casualty Insurance Guaranty Corporation?
Correct answer:An individual claim for $100,000
Question :Which of the following would authorize the
commingling of premiums with the agent's personal funds?