Life-Producer Exam Dumps : Maryland Life Producer Exam (Series 20-27)

Comprehensive and Detailed Step by Step Explanation:Universal life insurance policies offer flexibility and adaptability, but they also have specific rules:

Minimum cash value vs. death benefit (A):Correct. IRS rules require a minimum difference to maintain tax-advantaged status.

Level or increasing death benefits (B):Correct. Policyholders can choose based on their needs.

Cash value withdrawals (C):Correct. Withdrawals are allowed but may incur surrender charges.

Automatic lapse (D):Incorrect. Universal life does not immediately lapse due to missed payments; instead, costs are deducted from the cash value, and the policy remains in force until the cash value is depleted.

References:Maryland Insurance Administration Policy Lapse Guidelines, IRS Tax Code §7702, and COMAR 31.09.13.

Comprehensive and Detailed Step by Step Explanation:Aflexible premium fixed annuityallows policyholders to make varying contributions while offering tax-deferred growth and a guaranteed minimum interest rate.

Flexible premium fixed annuity (C):Correct. Combines flexible payments with guaranteed returns and death proceeds equal to cash value.

Adjustable whole life (A):Involves fixed payments and lacks tax-deferred features.

Available deferred annuity (B):Vague and not specifically tied to these features.

Universal life (D):Provides death benefits but lacks guaranteed minimum interest rates.

References:Maryland Annuity Regulations, COMAR 31.09.08, and Fixed Annuity Product Guidelines.

Comprehensive and Detailed Step by Step Explanation:Premature distributions from an IRA (withdrawals before age 59½) are subject to a10% penalty tax (B)unless certain exceptions apply (e.g., disability, qualified education expenses, or first-time homebuyer withdrawals).

5% (A):Does not apply to IRS penalties.

10% (B):Correct. This is the standard penalty for early withdrawals.

20% (C):Represents mandatory withholding for certain distributions, not the penalty.

50% (D):Applies only to Required Minimum Distribution (RMD) failures, not premature distributions.

References:IRS Publication 590-B, Maryland IRA Penalty Exceptions Guidelines, COMAR 31.09.11.