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Practice Questions & Answers 2025
A broker requests a hearing with the Commissioner. Within how many days of the request must the hearing be held? - CORRECT ANSWER ✔✔ 30 Collision coverage extends to rented passenger vehicles that have been rented for - CORRECT ANSWER ✔✔No more than 30 days. Every vehicle insurance policy issued and delivered in Maryland must provide coverage for medical, hospital and disability benefits, unless - CORRECT ANSWER ✔✔Waived by the first named insured. When an insurer desires to cancel or non-renew a property insurance policy, they must give advance written notice of - CORRECT ANSWER ✔✔45 days. What is the maximum amount of a deductible on collision coverage for a damage to the insured auto in an auto insurance policy? - CORRECT ANSWER ✔✔$ 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,
Practice Questions & Answers 2025
including 2 hours of long-term care education, and 3 hours of ethics, every two years. All of the following are true regarding rebates EXCEPT - CORRECT ANSWER ✔✔Rebates are allowed if it's in the best interest of the client. An insurance producer is required to notify the Commissioner of any felony convictions within how many days of the conviction? - CORRECT ANSWER ✔✔30 days. Public adjusters represent - CORRECT ANSWER ✔✔Insureds PIP (personal injury protection) provides coverage for injury to the named insured, resident relatives and - CORRECT ANSWER ✔✔Pedestrians struck by the insured vehicle. The Property and Casualty Guaranty Corporation is obligated to pay the full amount of any claim between $100 and $300,000 if the claim occurs within what period of time? - CORRECT ANSWER ✔✔30 days after an insurer has been declared insolvent and before the insurance policy has expired
Practice Questions & Answers 2025
accident. The insurer will be settling the claim based on the corrected form. This is - CORRECT ANSWER ✔✔A violation of the Insurance Code. Your property policy will be due for renewal soon. When should you expect to receive notice of renewal premium from your insurer? - CORRECT ANSWER ✔✔ 45 Which of the following would NOT be considered a flood? - CORRECT ANSWER ✔✔Sewer backup Binders cease at the earliest of - CORRECT ANSWER ✔✔Any of the above. A business entity must meet all of the following qualifications EXCEPT - CORRECT ANSWER ✔✔Have a board of directors. 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.
Practice Questions & Answers 2025
Public adjusters are compensated by - CORRECT ANSWER ✔✔Insureds During a sales presentation a producer intentionally makes a statement which may mislead the insurance applicant. This describes - CORRECT ANSWER ✔✔Misrepresentation Which of the following authorities can legally suspend a license? - CORRECT ANSWER ✔✔The Insurance Commissioner 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) Insurance companies in Maryland must submit forms to the Insurance Commissioner in duplicate. What is the one exception to this rule? - CORRECT ANSWER ✔✔If the forms are filed electronically 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.
Practice Questions & Answers 2025
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. 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. Surplus lines brokers are required to post a surety bond with the Commissioner of insurance in an amount of at least - CORRECT ANSWER ✔✔$10,000. 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. 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. Surety agents must maintain records of all bail bonds executed. These records must be made available for inspection by the Commissioner for
Practice Questions & Answers 2025
at least - CORRECT ANSWER ✔✔1 year after termination of the surety liability. Which of the following would be covered by the Property and Casualty Insurance Guaranty Corporation? - CORRECT ANSWER ✔✔An individual claim for $100, How many continuing education requirements must be met with a two- year period? - CORRECT ANSWER ✔✔ 24 What program must a property and casualty insurer be engaged in to be able to sell flood insurance in Maryland? - CORRECT ANSWER ✔✔WYO How often must the Commissioner examine domestic insurers? - CORRECT ANSWER ✔✔Once every 5 years Which of the following would authorize the commingling of premiums with the agent's personal funds? - CORRECT ANSWER ✔✔A letter of consent from the principal
Practice Questions & Answers 2025
how many days before the nonrenewal? - CORRECT ANSWER ✔✔ 60 days Which of the following is an example of a producer being involved in an unfair trade practice of rebating? - CORRECT ANSWER ✔✔The Insurance Guaranty Corporation. What is the license renewal period in this state? - CORRECT ANSWER ✔✔2 years All of the following are EXCLUDED by PIP coverage EXCEPT - CORRECT ANSWER ✔✔The insured is injured after being rear ended while sitting at a red light. Who must approve rate changes for non-competitive types of insurance? - CORRECT ANSWER ✔✔The Commissioner Which of the following best describes the unfair trade practice of defamation? - CORRECT ANSWER ✔✔Making derogatory oral statements about another insurer's financial condition
Practice Questions & Answers 2025
Binders can be issued for a period not to exceed - CORRECT ANSWER ✔✔45 days. J is applying for his producer license. He took his written examination on March 1st, but failed it. When is the earliest J will be able to take the examination again? - CORRECT ANSWER ✔✔March 15th All of the following are true of the insurers' obligations to the insured regarding renewal premium EXCEPT - CORRECT ANSWER ✔✔The insurer must provide notice of renewal premium due at least 10 days prior to the due date. State law specifically prohibits using illegal inducements in the marketing of insurance. All of the following would be considered illegal inducements EXCEPT - CORRECT ANSWER ✔✔Inviting prospective clients to the grand opening of the company's new office. A manufacturing company had five of its employees claim lung disease from a compound used in the manufacture of their products. Each employee sued the company for $200,000. What is the maximum the Employers Liability policy will pay for all claims? - CORRECT ANSWER ✔✔$500,
Practice Questions & Answers 2025
Mr. E wants to become an insurance advisor. His hiring manager informs him that he must post a single security bond to quality. How much money must Mr. E post? - CORRECT ANSWER ✔✔$1, An employer may satisfy the requirement of providing workers compensation insurance on their employees by all of the following methods, EXCEPT - CORRECT ANSWER ✔✔The Monopolistic State Fund. A repair facility used after-market parts in the repair of a customer's automobile, and did not notify the customer of this. Which of the following is true? - CORRECT ANSWER ✔✔The repair facility has engaged in an unfair trade practice. What is the maximum amount of a deductible on collision coverage for a damage to the insured auto in an auto insurance policy? - CORRECT ANSWER ✔✔$ Which of the following people would receive a commission from the sale of a policy? - CORRECT ANSWER ✔✔The agent who took the client's application
Practice Questions & Answers 2025
Paul is a producer in Vermont and wants to become a producer in Maryland. The Department will waive certain examination requirements, provided that Vermont would waive these same requirements if a Maryland producer sought licensure in Vermont. What term is used to describe this phenomenon? - CORRECT ANSWER ✔✔Reciprocity Which of the following is NOT a step an insurer must take when cancelling or nonrenewing lead liability insurance coverage? - CORRECT ANSWER ✔✔Contract with an approved lead paint remediation specialist to remove the exposure Circulating deceptive sales material to the public is what type of Unfair Trade Practice? - CORRECT ANSWER ✔✔False advertising Randy has taken 5 more continuing education credit hours than he will need for this reporting period. How many of these hours can be transferred to the next reporting period? - CORRECT ANSWER ✔✔ 0
