Expert Answers to Insurance Licensing Exam Life-Producer Questions

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Maryland Insurance Maryland Life Producer Exam (Series 20-27)

Maryland Life Producer Exam (Series 20-27)

Last Update May 6, 2026
Total Questions : 90

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Questions 2

The penalty tax incurred for premature distributions from an IRA is:

Options:

10%

20%

50%

Discussion 0

Questions 3

An applicant for life insurance must be informed that testing for Human Immunodeficiency Virus (HIV) infection is used to help determine:

Options:

The type of policy that will be issued

The effective date and term of coverage

Whether an insurable interest exists

The insurability of the proposed insured

Discussion 0

Questions 4

A business often buys life insurance on a key employee to:

Options:

Take a tax deduction

Pay estate taxes for the key employee

Pay the remaining balance of the key employee’s mortgage

Pay for finding and training a replacement if the key employee dies prematurely

Discussion 0

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Questions 5

Taking out a loan under a life insurance policy:

Options:

Results in a distribution of taxable income to the policyowner