Maryland Life & Health Insurance Exam — All Questions

Which state agency issues resident life and health insurance producer licenses in Maryland?

• a.The Maryland Bureau of Financial Regulation
• b.The Maryland Insurance Administration✓
• c.The Maryland Insurance Commission
• d.The Maryland Department of Insurance

The Maryland Insurance Administration regulates the business of insurance in Maryland and licenses producers. It is led by the Insurance Commissioner, who has authority to issue, deny, suspend, and revoke licenses and to enforce the state insurance code. No separate financial-services department or insurance 'commission' handles producer licensing here.

A Maryland resident who wants to sell both life insurance and health (accident and sickness) insurance typically obtains:

• a.Two separate licenses issued by two different state agencies
• b.A surplus lines broker license
• c.A property and casualty producer license
• d.A resident producer license with life and accident & health lines of authority✓

Maryland follows the producer-licensing model in which one resident insurance producer license carries the specific lines of authority the applicant qualifies for, such as life and accident & health. Property/casualty and surplus lines are different lines for different products.

Before a licensed Maryland producer may transact insurance on behalf of a particular insurer, what must generally occur?

• a.The producer must reside in the insurer's home state
• b.The insurer must appoint the producer and file that appointment with the Maryland Insurance Administration✓
• c.The producer must post a surety bond with the state treasurer
• d.Nothing beyond holding a valid license is ever required

Holding a license lets a person act as a producer, but to represent a specific company the insurer must appoint the producer, notifying the Maryland Insurance Administration. A producer may hold appointments from several insurers at once; ending the relationship terminates the appointment.

To keep a resident life and health producer license active in Maryland, a producer generally must:

• a.Retake the full licensing examination every single year
• b.Do nothing further once the license is first issued
• c.Obtain a brand-new license for each insurer represented
• d.Complete the required continuing education each renewal period and pay the renewal fee✓

Maryland issues licenses for a set term and requires continuing education (including ethics content) each renewal cycle, plus payment of the renewal fee. Letting CE lapse or missing renewal can cause the license to expire, after which reinstatement rules and penalties may apply. Exact hours and fees are set by the Maryland Insurance Administration and can change.