Maryland Insurance Administration Life-Producer Exam With Confidence Using Practice Dumps

Comprehensive and Detailed Step by Step Explanation:Underwriting involves evaluating risk factors that could influence the likelihood of claims and ensuring compliance with anti-discrimination laws.

Ethnic heritage (A):Incorrect. Using ethnic heritage as an underwriting factor violates anti-discrimination laws, including Maryland Insurance Article §27-501.

Amount of insurance applied for (B):Correct. Insurers consider coverage amounts to assess risk and pricing.

Driving record (C):Correct. Poor driving history, particularly DUI incidents, increases risk.

Family health history (D):Correct. Inherited conditions and family medical history help predict potential health risks.

References:Maryland Insurance Anti-Discrimination Laws, Life Insurance Underwriting Standards, and COMAR 31.08.07.

Comprehensive and Detailed Step by Step Explanation:The licensing of insurance agents ensures professional competency and ethical conduct:

Licensuredemonstrates qualifications (B)required to represent insurers and serve clients.

Maryland does not impose limits on the number of licensed agents, invalidating (A).

Monitoring sales activity (C) and rate regulation (D) are distinct regulatory functions.

References: Maryland Insurance Administration Licensing Requirements.

Comprehensive and Detailed Step by Step Explanation:

The Maryland Insurance Administration enforces disciplinary measures:

Fraudulent practices (A), mishandling premiums (B), and violating regulations (D) are grounds for suspension or revocation.

Sharing commissions (C) with agents of the same license type is permitted under Maryland law if done legally and transparently.

References: Maryland Insurance Administration Regulatory Code and Enforcement Procedures.