Maryland Property & Casualty Insurance License Exam — All Questions
3 questions
Which agency licenses resident property and casualty insurance producers in Maryland?
- a.Maryland Insurance Administration✓
- b.Maryland Motor Vehicle Administration
- c.Maryland Department of Labor
- d.Maryland Office of the Comptroller
Maryland regulates insurance and licenses producers through the Maryland Insurance Administration (MIA), headed by the Insurance Commissioner. The Motor Vehicle Administration enforces vehicle registration and proof of insurance but does not license producers.
A Maryland producer offers part of his commission to a client as an inducement to buy a homeowners policy. This is:
- a.Permitted if disclosed to the insurer
- b.Permitted for new customers only
- c.Prohibited rebating under Maryland's unfair trade practices law✓
- d.Required to be reported but otherwise lawful
Rebating, giving any part of the premium or commission or other valuable consideration as an inducement to buy, is a prohibited unfair trade practice in Maryland and can bring fines and license action by the Maryland Insurance Administration.
After a Maryland personal auto or homeowners policy is in force beyond its initial underwriting period, mid-term cancellation by the insurer is generally allowed only:
- a.For specific statutory reasons such as nonpayment of premium, fraud, or a substantial change in the risk, with required advance written notice✓
- b.For any reason, with no notice to the insured
- c.Only during the first week after issuance
- d.Never under any circumstances
Maryland limits mid-term cancellation of seasoned personal-lines policies to defined grounds such as nonpayment, fraud, or a material increase in hazard, and requires advance written notice so the insured can replace coverage. The exact notice day-counts are set by statute; verify current figures with the Maryland Insurance Administration.