Free Life-Producer Maryland Insurance Administration Updates

Comprehensive and Detailed Step by Step Explanation:Maryland law requires that the results of medical examinations used to determine insurability:

Be disclosed to thephysician of the applicant’s choice (B), but only if the applicant requests it.

This ensures privacy and confidentiality while giving the applicant access to critical information.

Beneficiaries (A)andunderwriters (C)do not receive this information.

Physicians furnishing information (D)already have access to their own submissions.

References: Maryland Insurance Code on Privacy and Disclosure of Medical Information.

Comprehensive and Detailed Step by Step Explanation:Insurance producers using an assumed or fictitious name for their business must file the name with the Maryland Insurance Administration (MIA).

File the name with the Insurance Administration (A):This ensures transparency and compliance with regulatory standards.

Apply for an additional license (B):Not required; the existing license covers the producer.

Apply for an additional appointment (C):Applies when a producer represents multiple insurers, not for fictitious names.

Post a $10,000 bond (D):Irrelevant to this context.

References: Maryland Insurance Administration Guidelines on Producer Licensing and Business Names.

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:A “period certain” option ensures benefit payments are made for a set duration even if the annuitant dies before the end of the period.

Period certain (B)guarantees a minimum payment period to beneficiaries.

Cost recovery (A)andrefund options (C and D)relate to returning unused premiums or unpaid balances but do not ensure a minimum payout period.

References: Maryland Annuity Regulations and Contract Features.