Life-Producer VCE Exam Download

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:Insurance licensees in Maryland are required to report certain changes to the Maryland Insurance Administration (MIA):

Change of name (A):Must be reported promptly to ensure accurate licensure records.

Change of residence address (B):Also required for communication and compliance purposes.

Felony convictions (D):Mandatory disclosure to maintain transparency and evaluate fitness for licensure.

Change in financial status (C):Not required unless it directly affects the licensee’s ability to meet financial obligations tied to the license (e.g., bonding requirements).

References:Maryland Insurance Code §10-118, COMAR 31.03.01.

Comprehensive and Detailed Step by Step Explanation:Allowing an applicant to sign a blank or incomplete application (B) violates ethical and legal standards, as it undermines transparency and could lead to disputes about coverage or claims.

Selling insurance to family members (A):Permitted as long as the transactions areconducted ethically and comply with Maryland laws.

Countersigning policies (C):Required in certain situations to validate contracts in Maryland.

Splitting commissions with nonresident producers (D):Permissible under Maryland law, provided both producers are licensed and involved in the transaction.

References:Maryland Insurance Administration Producer Conduct Rules, COMAR 31.03.13, and Ethical Standards for Insurance Producers.

Comprehensive and Detailed Step by Step Explanation:The Maryland Insurance Administration (MIA) is astate governmententity responsible for regulating the insurance industry in Maryland.

State government (B):MIA enforces insurance laws, reviews policy forms, licenses insurers and producers, and investigates consumer complaints.

Federal government (A):Oversees broader regulations, like ERISA, but does not directly manage state-level insurance matters.

National Association of Insurance Commissioners (C):A regulatory support organization, not a governing body.

Maryland General Assembly (D):Creates state laws, but enforcement falls under the MIA.

References: Maryland Insurance Administration Overview and State Regulatory Framework.