Maine Life & Health Insurance Exam — All Questions

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

• a.The Maine Division of Financial Regulation
• b.The Maine Insurance Commission
• c.The Maine Bureau of Insurance✓
• d.The Maine Department of Insurance

The Maine Bureau of Insurance regulates the business of insurance in Maine and licenses producers. It is led by the Superintendent of Insurance, 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 Maine resident who wants to sell both life insurance and health (accident and sickness) insurance typically obtains:

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

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

• a.The producer must post a surety bond with the state treasurer
• b.The insurer must appoint the producer and file that appointment with the Maine Bureau of Insurance✓
• c.The producer must reside in the insurer's home state
• 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 Maine Bureau of Insurance. 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 Maine, a producer generally must:

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

Maine 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 Maine Bureau of Insurance and can change.