Maryland Personal Lines Insurance License Exam — All Questions

What are the minimum auto liability limits a personal auto policy must generally carry to satisfy Maryland's compulsory-insurance law?

• a.$50,000 per person / $100,000 per accident bodily injury and $25,000 property damage
• b.$15,000 per person / $30,000 per accident bodily injury and $10,000 property damage
• c.$30,000 per person / $60,000 per accident bodily injury and $15,000 property damage✓
• d.$25,000 per person / $50,000 per accident bodily injury and $25,000 property damage

Maryland's minimum auto liability limits are generally 30/60/15 — $30,000 per person / $60,000 per accident for bodily injury and $15,000 for property damage. Producers should quote at least these limits and offer higher coverage. Verify current figures with the Maryland Insurance Administration (https://insurance.maryland.gov/).

Which statement best describes Maryland's auto injury-coverage framework?

• a.Maryland is a pure tort state with no first-party medical benefit
• b.Maryland is an at-fault (tort) state that also requires an auto policy to offer personal injury protection (PIP) and uninsured/underinsured motorist coverage✓
• c.Maryland requires only property-damage coverage
• d.Maryland is a pure no-fault state that bars most injury lawsuits

Maryland uses an at-fault (tort) liability model but, unlike a pure tort state, also requires an auto policy to offer personal injury protection (PIP) — a first-party benefit paid regardless of fault — plus uninsured/underinsured motorist coverage. Insureds may waive PIP in writing above certain thresholds. Verify the current PIP and UM/UUIM rules with the Maryland Insurance Administration.

What is personal injury protection (PIP) as required on a Maryland auto policy?

• a.Coverage that repairs the insured's vehicle after a collision
• b.A discount for drivers with no prior claims
• c.A first-party medical and lost-wage benefit paid to the insured and passengers regardless of who caused the crash✓
• d.Liability coverage for damage the insured causes to others

PIP is a first-party benefit that pays the insured's and passengers' medical costs and a portion of lost wages regardless of fault. Maryland requires auto policies to offer PIP, though insureds may waive it in writing above certain thresholds. Confirm the current PIP amount and waiver rules with the Maryland Insurance Administration (https://insurance.maryland.gov/).

With respect to uninsured/underinsured motorist (UM/UUIM) coverage on a Maryland personal auto policy, which is generally true?

• a.Maryland requires auto policies to include UM/UUIM coverage to protect the insured against uninsured or underinsured at-fault drivers✓
• b.UM/UUIM automatically replaces liability coverage
• c.UM/UUIM is only available to commercial fleets
• d.UM/UUIM is prohibited in Maryland

Maryland requires auto policies to include uninsured/underinsured motorist (UM/UUIM) coverage, which protects the insured when the at-fault driver has no or insufficient coverage. Confirm the current required limits and any waiver rules with the Maryland Insurance Administration (https://insurance.maryland.gov/).

How are cancellation and nonrenewal of a personal auto or homeowners policy regulated in Maryland?

• a.Only the policyholder may ever cancel; insurers can never cancel mid-term
• b.There are no notice rules; cancellation is governed solely by the contract
• c.An insurer may cancel any personal policy at any time for any reason with no notice
• d.State law limits the reasons an insurer may cancel or nonrenew and requires advance written notice to the insured; confirm the exact notice period with the Maryland Insurance Administration✓

Maryland, like other states, restricts mid-term cancellation of personal auto and homeowners policies to specified reasons (such as nonpayment or material misrepresentation) and requires advance written notice of cancellation or nonrenewal. The exact number of days varies by reason and line — verify the current Maryland notice periods with the Maryland Insurance Administration.