Free Maryland Life Insurance Practice Exam Online

Correct answer: A. A license issued by the Maryland Insurance Administration in the applicable kind of insurance

Correct. Insurance Article § 10-103 requires a person to hold a producer license before acting as, or accepting compensation for acting as, an insurance producer in Maryland.

• B: Maryland does not condition producer licensure on filing a bond with a county clerk; licensing is administered at the state level by the Maryland Insurance Administration.
• C: Appointment by an insurer is a separate, later step under § 10-118; it does not substitute for the underlying producer license.
• D: Trade association membership is voluntary and has no bearing on the statutory licensing requirement.

Correct answer: A. The applicant must successfully complete a program of study approved by the Commissioner or meet an experience exemption

Correct. § 10-105 requires an applicant for a life, health, or annuity line to complete a Commissioner-approved program of studies (prelicensing education) unless an experience-based exemption applies.

• B: Holding an out-of-state property and casualty license is not a prerequisite for a Maryland life line of authority.
• C: Maryland licenses both resident and nonresident producers; a five-year residency requirement does not exist for licensure.
• D: Attorney sponsorship is not part of the statutory qualification scheme for producer applicants.

Correct answer: A. Be of good character and trustworthy, and at least 18 years of age

Correct. Maryland's qualification statutes require applicants to be of good character, trustworthy, and at least 18 years old before a license may issue.

• B: No degree requirement exists for producer licensure in Maryland; prelicensing education, not a college degree, is the relevant path.
• C: Prior agency employment is one possible route to satisfy training/experience requirements but is not itself a universal mandatory qualification.
• D: Maryland does not require a credit check as part of the individual licensing qualifications.

Correct answer: A. 2 years

Correct. Insurance Article § 10-115 provides that a Maryland producer license may be renewed for an additional 2-year term upon completion of continuing education.

• B: A 1-year term does not match Maryland's statutory renewal cycle for producer licenses.
• C: Maryland's cycle is 2 years, not 3, distinguishing it from some other states' triennial cycles.
• D: A 5-year term is not used for Maryland producer license renewal.

Correct answer: A. 24 hours

Correct. Under § 10-116 and COMAR 31.03.02, the Commissioner may not require more than, and generally requires, 24 hours of continuing education per renewal period.

• B: 12 hours understates Maryland's standard CE requirement for producers.
• C: 40 hours exceeds what Maryland requires; the statutory cap for most producers is 24 hours.
• D: 8 hours is the reduced requirement reserved for producers who have held a license continuously for 25 or more years as of October 1, 2008, not the general standard.