MD LIFE AND HEALTH FINAL EXAM PRACTICE
QUESTIONS AND CORRECT ANSWERS
CURRENTLY TESTED AND APPROVED NEW
MODIFIED GRADED A+ 2026 NEW
Which of these is affected by the frequency of an insurance policy's premium
payments?
1.Settlement options
2.Cash value
3.Death benefit
4. Cost --CORRECT ANSWER--4. Cost
Which type of life insurance is normally associated with a Payor Benefit rider?
1.Juvenile insurance
2.Family income insurance
3. Spouse insurance
4. Term rider --CORRECT ANSWER--1. Juvenile insurance
*A Payor Benefit rider waives the premium ONLY in connection with juvenile
insurance.
Under a group life policy, the insurer will issue an individual _____ to the
policyowner for delivery to each person insured.
Page 1 of 98
,1.policy
2. certificate
3. application
4. rider --CORRECT ANSWER--2. certificate
Term insurance is appropriate for someone who
1.seeks living benefits for themselves
2.seeks a policy that builds cash value
3. seeks temporary protection and lower premiums
4.seeks permanent protection and higher premiums --CORRECT ANSWER--3.
seeks temporary protection and lower premiums
Which type of life insurance offers flexible premiums, a flexible death benefit,
and the choice of how the cash value will be invested?
1. Adjustable life policy
2.Variable universal policy
3. Universal policy
Page 2 of 98
,4. Modified whole life policy --CORRECT ANSWER--2.Variable universal
policy
*A variable universal life policy has three key elements- flexible premium,
death benefit, and the choice of how the cash value will be invested.
A person who, for a fee, gives advice or recommendations on benefits provided
by an insurance contract is called
1.a broker
2.a producer
3.an advisor
4.a navigator --CORRECT ANSWER--3.an advisor
*An insurance adviser is any person who, for a fee, offers to examine any policy
for the purpose of giving advice or recommendations with respect to the
benefits provided by the contract. An adviser must be licensed in the State of
Maryland.
If an insured's age on a life insurance policy has been misstated, what is the
insurer's liability if the insured dies?
Page 3 of 98
, 1.No death benefit is owed because of the misstatement of age
2. The full original death benefit listed on the policy
3. A prorated death benefit based on the amount of insurance the insured's
premiums would have been if purchased at the correct age
4. The original death benefit listed on the policy minus any outstanding loans
and interest --CORRECT ANSWER--3. A prorated death benefit based on the
amount of insurance the insured's premiums would have been if purchased at
the correct age
How long must an individual be unable to engage in any gainful activity due to
physical or mental disability in order to qualify for Social Security Total
Disability?
1. 3 months
2. 6 months
3. 12 months
4. 18 months --CORRECT ANSWER--3. 12 months
All of the following actions are considered rebating EXCEPT
1. sharing commissions with other licensed and appointed agents
Page 4 of 98
QUESTIONS AND CORRECT ANSWERS
CURRENTLY TESTED AND APPROVED NEW
MODIFIED GRADED A+ 2026 NEW
Which of these is affected by the frequency of an insurance policy's premium
payments?
1.Settlement options
2.Cash value
3.Death benefit
4. Cost --CORRECT ANSWER--4. Cost
Which type of life insurance is normally associated with a Payor Benefit rider?
1.Juvenile insurance
2.Family income insurance
3. Spouse insurance
4. Term rider --CORRECT ANSWER--1. Juvenile insurance
*A Payor Benefit rider waives the premium ONLY in connection with juvenile
insurance.
Under a group life policy, the insurer will issue an individual _____ to the
policyowner for delivery to each person insured.
Page 1 of 98
,1.policy
2. certificate
3. application
4. rider --CORRECT ANSWER--2. certificate
Term insurance is appropriate for someone who
1.seeks living benefits for themselves
2.seeks a policy that builds cash value
3. seeks temporary protection and lower premiums
4.seeks permanent protection and higher premiums --CORRECT ANSWER--3.
seeks temporary protection and lower premiums
Which type of life insurance offers flexible premiums, a flexible death benefit,
and the choice of how the cash value will be invested?
1. Adjustable life policy
2.Variable universal policy
3. Universal policy
Page 2 of 98
,4. Modified whole life policy --CORRECT ANSWER--2.Variable universal
policy
*A variable universal life policy has three key elements- flexible premium,
death benefit, and the choice of how the cash value will be invested.
A person who, for a fee, gives advice or recommendations on benefits provided
by an insurance contract is called
1.a broker
2.a producer
3.an advisor
4.a navigator --CORRECT ANSWER--3.an advisor
*An insurance adviser is any person who, for a fee, offers to examine any policy
for the purpose of giving advice or recommendations with respect to the
benefits provided by the contract. An adviser must be licensed in the State of
Maryland.
If an insured's age on a life insurance policy has been misstated, what is the
insurer's liability if the insured dies?
Page 3 of 98
, 1.No death benefit is owed because of the misstatement of age
2. The full original death benefit listed on the policy
3. A prorated death benefit based on the amount of insurance the insured's
premiums would have been if purchased at the correct age
4. The original death benefit listed on the policy minus any outstanding loans
and interest --CORRECT ANSWER--3. A prorated death benefit based on the
amount of insurance the insured's premiums would have been if purchased at
the correct age
How long must an individual be unable to engage in any gainful activity due to
physical or mental disability in order to qualify for Social Security Total
Disability?
1. 3 months
2. 6 months
3. 12 months
4. 18 months --CORRECT ANSWER--3. 12 months
All of the following actions are considered rebating EXCEPT
1. sharing commissions with other licensed and appointed agents
Page 4 of 98
