P&C MD State

Surplus lines brokers are required to post a surety bond with the Commissioner of insurance in an amount of at least (Choose from the following options) 1. $10,000. 2. $15,000. 3. $20,000. 4. $5,000.

1. $10,000.

Mr. F is acting as a public adjuster without first obtaining his license. What penalties might Mr. F incur as a result of his actions? 1. $500 fine or 6 months in prison for each violation 2. $1500 fine or 3 months in prison maximum 3. $1200 fine or 1 month in prison for each violation 4. $500 fine or 2 years in prison for each violation

1. $500 fine or 6 months in prison for each violation

Which of the following is TRUE regarding the Maryland Workers Compensation Program? 1. It is a mandatory coverage. 2. It is a limited medical benefit. 3. It is an elective insurance option. 4. It is a monopolistic state fund.

1. It is a mandatory coverage.

When an insurer wants to cancel or non-renew a property insurance policy, it should give the insured advanced written notice of at least (Choose from the following options) 1. 60 days. 2. 90 days. 3. 120 days. 4. 45 days.

4. 45 days

Which of the following is paid to make recommendations about changes in coverage and limits? 1. Brokers 2. Underwriters 3. Producers 4. Advisers

4. Advisers

How is the Commissioner selected for the office? (Choose from the following options) 1. Appointment by the Department of Insurance 2. Election by authorized insurers 3. Public election 4. Appointment by the Governor

4. Appointment by the Governor

Which of the following is NOT required to be appointed by an insurer? 1. Agent 2. Nonresident producer 3. Producer who sells only life insurance 4. Broker

4. Broker

When handling premium funds in the conduct of their business, insurance producers are acting in a 1. Crediting capacity. 2. Financial capacity. 3. Special capacity. 4. Fiduciary capacity.

4. Fiduciary capacity.

"IWIF" stands for (Choose from the following options) 1. Individual Workers Insurance Foundation. 2. Industrialized Workers Insurance Fund. 3. Incorporated Workers Insured Fully. 4. Injured Workers Insurance Fund.

4. Injured Workers Insurance Fund.

An agent is behind on his paperwork, so he asks a client to sign a blank application, assuring her he'll finish it within the next two weeks. 1. This is legal if the client has other policies with the agent. 2. This is legal if the policy the client is applying for is a short-term policy. 3. This is illegal under Maryland Insurance law. 4. This is illegal. It would need to be finished within 5 working days.

3. This is illegal under Maryland Insurance law

Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another? 1. False advertising 2. Rebating 3. Twisting 4. Switching

3. Twisting

It is an unfair claim settlement practice and a violation of the Insurance Code for an insurer or nonprofit health service plan to do the following EXCEPT (Choose from the following options) 1. Refuse to pay a claim for an arbitrary or capricious reason based on all available information. 2. Fail to promptly provide, on request, a reasonable explanation of the basis for a denial of a claim. 3. Pay a lower, adjusted, claim due to the accidental misrepresentation of the proposed insured's date of birth by the agent. 4. Misrepresent pertinent facts or policy provisions that relate to the claim or coverage at issue.

1. Refuse to pay a claim for an arbitrary or capricious reason based on all available information.

The minimum medical, hospital, and disability benefit, for medical expenses incurred within 3 years of the date of the accident, provided by a vehicle liability insurance policy is (Choose from the following options) 1. $2,000. 2. $2,500. 3. $5,000. 4. $1,000

2. $2,500.

An insurance producer is required to notify the Commissioner of any felony convictions within how many days of the conviction? (Choose from the following options) 1. 10 days. 2. 30 days. 3. 45 days. 4. 90 days.

2. 30 days.

. An insured received a property insurance binder 15 days ago. The binder will be effective for 1. 5 more days. 2. 30 more days. 3. 45 more days. 4. 75 more days.

2. 30 more days

Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance? (Choose from the following options) 1. Slandering 2. Defamation 3. Undercutting 4. Twisting

2. Defamation

PIP (personal injury protection) provides coverage for injury to the named insured, resident relatives and 1. A resident of Virginia struck by a Maryland vehicle while the Maryland vehicle is being operated on a Virginia highway. 2. Pedestrians struck by the insured vehicle. 3. The insured while a passenger on a motorcycle. 4. Occupants of a vehicle the insured rear ended at an intersection.

2. Pedestrians struck by the insured vehicle.

According to financial responsibility laws in this state, the minimum limits of liability provided in a vehicle liability insurance policy is 1. $15,000/$30,000/$10,000 2. $20,000/$40,000/$20,000 3. $30,000/$60,000/$15,000 4. $10,000/$20,000/$5,000

3. $30,000/$60,000/$15,000

A manufacturing company had five of its employees claim lung disease from a compound used in the manufacture of their products. Each employee sued the company for $200,000. What is the maximum the Employers Liability policy will pay for all claims? 1. $100,000 2. $250,000 3. $500,000 4. Unlimited

3. $500,000

In Maryland, how long is the Commissioner's term in office? 1. 2 years 2. 3 years 3. 4 years 4. Indefinitely

3. 4 years

In Maryland, binders are issued for a short period of time. A binder will cease to exist in each of the following situations EXCEPT 1. Issuance of the policy. 2. Rejection of the application by underwriting. 3. 60 days following the issue date of the binder. 4. 45 days following the issue date of the binder

3. 60 days following the issue date of the binder.

The subject of a fraud is valued at $500. The person who committed that fraud is guilty of 1. A minor violation. 2. A crime. 3. A felony. 4. A misdemeanor

3. A felony.

Which of the following is NOT a step an insurer must take when cancelling or nonrenewing lead liability insurance coverage? 1. Provide an opportunity to comply within 30 days after the notice is mailed 2. Within 45 days after the notice was mailed, send notice to the Secretary of the Environment 3. Contract with an approved lead paint remediation specialist to remove the exposure 4. Mail written notice of their intent to cancel or non-renew the coverage

3. Contract with an approved lead paint remediation specialist to remove the exposure

When a surety insurer terminates the appointment of a surety agent, it must notify the Commissioner and the Chief Clerk of the District Court of Maryland of the termination (Choose from the following options) 1. Within 15 days. 2. Within 30 days. 3. Immediately. 4. Within 5 business days.

3. Immediately.

Which of the following is NOT required for license reinstatement? 1. Reinstatement fee 2. Proof of continuing education completion 3. Licensing examination results 4. License renewal fee

3. Licensing examination results

Collision coverage extends to rented passenger vehicles that have been rented for 1. No more than 10 days. 2. Fewer than 15 days. 3. No more than 30 days. 4. Any amount of time.

3. No more than 30 days.

Workers Compensation laws provide all of the following types of benefits EXCEPT (Choose from the following options) 1. Rehabilitation benefits. 2. Death benefits. 3. Pain and Suffering compensation. 4. Medical benefits.

3. Pain and Suffering compensation.

Mr. G wants to become a bail bondsman in Maryland. What are the requirements in order for Mr. G to become a licensed bail bondsman? There are no licensing requirements 2. Be appointed by the Insurance Commissioner and post a security bond of $50,000 3. To become a bail bondsman, the requirements are the same as if Mr. G were to become a property or casualty producer. 4. Post a bond of $50,000 in a separate bail bond account

3. To become a bail bondsman, the requirements are the same as if Mr. G were to become a property or casualty producer.

Mr. E wants to become an insurance advisor. His hiring manager informs him that he must post a single security bond to quality. How much money must Mr. E post? 1. $500 2. $750 3. $1,000 4. $10,000

4. $10,000

Surplus lines brokers must submit affidavits that they have tried and failed to place the coverage with a Maryland insurer. The affidavit must be filed with the Commissioner within how many days of the end of the month in which the surplus lines was placed? 1. 60 days 2. 90 days 3. 30 days 4. 45 days

4. 45 days

In Maryland an insurer may not refuse to issue, cancel or non-renew a property and casualty insurance policy based solely on the geographic location of the property unless the insurer (Choose from the following options) 1. Notifies the Commissioner and the client at least 45 days in advance of the geographic location in question. 2. Notifies the client at least 60 days in advance of the geographic location. 3. Notifies the Commissioner at least 30 days in advance of the geographic location in question. 4. Notifies the Commissioner at least 60 days in advance of the geographic location in question.

4. Notifies the Commissioner at least 60 days in advance of the geographic location in question.

ABC Insurance Company wishes to begin transacting business in Maryland. Before it can do so, it must do which of the following? 1. Receive permission from the Governor of Maryland 2. Receive a letter of clearance from ABC's home state 3. Obtain approval of each of its corporate officers and executives 4. Obtain a certificate of authority

4. Obtain a certificate of authority

A producer in another state wants to become a producer in Maryland. The other state gives the same privileges to Maryland producers wanting to be licensed in that state as it does its own producers. Maryland therefore extends the privileges of its producers to the prospective producer of the other state. What is this called? 1. Fair exchange 2. Equality 3. Equal privilege 4. Reciprocity

4. Reciprocity

What official is in charge of penalizing producers who violate insurance law? 1. The Governor 2. The State Police 3. The executive of the producer's insurance company 4. The Commissioner

4. The Commissioner