Page | 1
MARYLAND PROPERTY & CASUALTY
INSURANCE PRACTICE BRAND NEW
OFFICIAL QUESTIONS WITH ANSWERS.
If an insurer decides to nonrenew a policy, the insured must be
notified by mail at least - correct answer -45 days in advance.
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.
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.
If a licensee intentionally violates the Insurance Code, what is the
maximum monetary penalty that he or she
would be required to pay? - correct answer -$100,000
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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 -$1,000
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 -$250
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
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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
MARYLAND PROPERTY & CASUALTY
INSURANCE PRACTICE BRAND NEW
OFFICIAL QUESTIONS WITH ANSWERS.
If an insurer decides to nonrenew a policy, the insured must be
notified by mail at least - correct answer -45 days in advance.
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.
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.
If a licensee intentionally violates the Insurance Code, what is the
maximum monetary penalty that he or she
would be required to pay? - correct answer -$100,000
, Page | 2
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 -$1,000
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 -$250
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
, Page | 3
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
