Evergreen Insurance Prep

Maryland Life & Health Insurance License, Practice Exams

Maryland Life and Health producer licensing (Prometric). General insurance knowledge plus Maryland insurance law (Maryland Insurance Article), authored from public-domain statutes.
Content last updated 17 July 2026

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Each module is scored separately here so you know exactly where you stand. To pass the real Maryland exam you need 70%.

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The free sample gives you about 20 questions per module. The full bank contains every question — general insurance plus state law — with written, statute-cited explanations. $49, one time, lifetime access on up to 3 devices — every state and line we add later included.

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Frequently asked questions

How is the Maryland producer licensing exam structured?

Maryland licenses Life and Health producers through Prometric. Each exam combines general insurance knowledge with a Maryland state-law section, and you need 70% to pass. This bank covers the general insurance material and the Maryland law (the Insurance Article and COMAR) for both lines.

What score do I need to pass?

You need 70%. Revise each module to that level in Revision Mode, then run the full exam simulation in Exam Mode before your test date.

Are these real exam questions?

No vendor publishes the live exam. Every question here is original, written to the official content outline and grounded in public-domain sources — including the Maryland Insurance Article for the state-law questions, with the statute section cited in each explanation.

How many practice questions are included?

The full Maryland bank contains 907 questions (general insurance plus Maryland law), with written, source-cited explanations. The free sample gives you about 20 questions per module.

What does access cost?

$49, one time, for lifetime access — and it includes every state and line we add later, at no extra charge. No subscription.

Can I use it on more than one device?

Yes. One purchase works on up to 3 of your devices, for example your laptop, phone and tablet, so you can practise wherever you are. Your progress is saved on each device.

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No. The practice tests run in your browser with no signup. Your score history is saved on your own device.

Sample Maryland Life & Health Insurance License practice questions

A selection of free questions with answers and explanations. Use the interactive modules above for timed, scored drills.

Under MD Ins. § 15-403, an insurer offering family coverage must, on request, make dependent benefits available to a grandchild who is unmarried, dependent, resides with the insured, and is:

  1. At least 18 years of age
  2. Covered by no other health plan
  3. In the insured's court-ordered custody ✓
  4. A full-time student in the State

Why: Insurance Article § 15-403(b) requires the same benefits available to any dependent for a grandchild who is unmarried, in the insured's court-ordered custody, resides with the insured, is a dependent, and has not attained the limiting age.

Under MD Ins. § 10-115, a renewed producer license expires on what date?

  1. The last day of the month in which the license was first issued
  2. December 31 of the second calendar year
  3. The last day of the month in which the holder was born ✓
  4. The one-year anniversary of the original issue date

Why: Insurance Article § 10-115(d) sets the expiration of a renewed license as the last day of the holder's birth month — therefore that date.

Under MD Ins. § 2-213, hearings held by the Commissioner are generally:

  1. Open to the public ✓
  2. Closed to the public
  3. Open only to licensed producers
  4. Conducted entirely in writing

Why: Insurance Article § 2-213(a) provides that hearings are generally open to the public — therefore open to the public.

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Under MD Ins. § 10-130, a commission for selling, soliciting, or negotiating insurance generally may be paid only to:

  1. Any employee of the insurer
  2. A licensed insurance producer ✓
  3. Any resident of the State
  4. A licensed Maryland attorney

Why: Insurance Article § 10-130(a) bars paying commissions for selling, soliciting, or negotiating insurance to anyone other than a licensed producer — therefore a licensed producer.

An insurer provides the Commissioner the required termination notice on May 2. Under MD Ins. § 10-118, within how long, and by what date, must it mail a copy of that notice to the producer?

  1. 15 days, by May 17 ✓
  2. 30 days, by June 1
  3. 10 days, by May 12
  4. 20 days, by May 22

Why: § 10-118(g)(1) requires mailing the copy within 15 days after notifying the Commissioner; 15 days after May 2 is May 17 — therefore 15 days, by May 17.

A retiree with limited income and assets needs nursing-home care Medicare won't cover long term. The program that may help is:

  1. Medicaid (after meeting its means test) ✓
  2. Medicare Part B
  3. A Medicare Supplement policy
  4. Social Security disability

Why: Medicaid covers long-term custodial care for those who meet its income/asset limits, sometimes after a spend-down.

A child is covered under both parents' health plans. Under the 'birthday rule,' the primary plan is the one belonging to the parent whose:

  1. Birthday falls earlier in the calendar year ✓
  2. Plan has been in force for the longer time
  3. Income is higher among the two parents
  4. Coverage was purchased most recently

Why: The birthday rule makes primary the plan of the parent whose birthday (month and day) comes first in the calendar year.

A policy was funded faster than the 7-pay limit, making it a MEC. A subsequent policy loan is:

  1. Taxed on a gains-first (LIFO) basis, with a possible penalty ✓
  2. Completely free of any income tax
  3. Deductible by the owner as interest expense
  4. Considered a tax-free return of the premiums the owner originally paid into the policy

Why: In a MEC, living distributions and loans are taxed gains-first (LIFO) and may carry a 10% penalty before age 59½.

Money left in a typical health flexible spending account (FSA) at year-end is:

  1. Generally forfeited under the use-it-or-lose-it rule ✓
  2. Always rolled over indefinitely with no limit
  3. Paid out to the employee as taxable cash
  4. Transferred automatically into the employee's HSA

Why: FSAs are generally use-it-or-lose-it, though plans may allow a limited carryover or grace period.

Under MD Ins. § 9-405, the Maryland Life and Health Insurance Guaranty Corporation is best described as a:

  1. State agency within the MIA
  2. private, nonprofit, nonstock corporation ✓
  3. publicly traded stock insurer
  4. a federally chartered guaranty association

Why: Insurance Article § 9-405(a)(2) and (g) state the Corporation is a private, nonprofit, nonstock corporation and is not a State agency — therefore a private, nonprofit, nonstock corporation.

Under MD Ins. § 27-305, the penalty for each violation of the first-party good-faith requirement of § 27-303(9) may not exceed:

  1. $25,000
  2. $50,000
  3. $100,000
  4. $125,000 ✓

Why: Insurance Article § 27-305(a)(2) sets a penalty not exceeding $125,000 for each violation of § 27-303(9) — therefore $125,000.

Insurance contracts are 'unilateral' because:

  1. Only the insurer makes a legally enforceable promise ✓
  2. Both parties are equally bound to perform specific duties
  3. The insured alone is obligated to pay all future claims
  4. Either party may cancel the agreement without any notice

Why: Only the insurer makes an enforceable promise (to pay covered claims); the insured is not legally compelled to continue paying premiums.

Transfers of property to a surviving spouse at death generally escape federal estate tax because of the:

  1. Unlimited marital deduction ✓
  2. Annual gift tax exclusion
  3. Three-year incidents-of-ownership rule
  4. Transfer-for-value rule

Why: The unlimited marital deduction lets a decedent pass any amount to a surviving (citizen) spouse free of federal estate tax.

A client exchanges one deferred annuity directly for another deferred annuity with better features. Under Section 1035, this is:

  1. A tax-free exchange ✓
  2. A fully taxable distribution
  3. Taxed only on the earnings
  4. Subject to a 10% penalty

Why: Annuity-to-annuity exchanges qualify for tax-free treatment under Section 1035.

Increasing term insurance is characterized by a death benefit that:

  1. Rises over the policy term ✓
  2. Stays exactly level for the whole duration of the contract
  3. Falls steadily until it reaches zero at the end of the term
  4. Is determined each year by the performance of a market index

Why: Increasing term's face amount grows over time (often used with return-of-premium or to track inflation); decreasing term does the opposite.

Under MD Ins. § 27-216, a person who improperly collects a premium or charge with regard to a bail bond is subject to a penalty per violation not exceeding:

  1. $1,000
  2. $5,000 ✓
  3. $2,500
  4. $10,000

Why: Insurance Article § 27-216(f) sets a penalty not exceeding $5,000 for each bail-bond premium violation — therefore $5,000.

Up to what portion of Social Security benefits may be subject to federal income tax for higher-income recipients?

  1. Up to 85% ✓
  2. Exactly 50% always
  3. 0%, benefits are never taxed
  4. 100% in all cases

Why: Depending on combined income, up to 85% of Social Security benefits may be taxable.

A multiple employer welfare arrangement (MEWA) allows:

  1. Several small employers to pool together to provide group benefits ✓
  2. One large corporation to self-insure all of its own employees alone
  3. An individual to buy coverage directly from a reinsurance company
  4. Insurers to avoid all state regulation of their group products

Why: A MEWA lets small employers band together to offer health and welfare benefits, gaining some advantages of a larger group.

Under MD Ins. § 16-205, an insurer may not exercise its option to void an outside-age-limit policy more than how long after the correct age is established?

  1. 15 days
  2. 60 days
  3. 90 days
  4. 30 days ✓

Why: Insurance Article § 16-205(b)(3) bars voiding more than 30 days after the correct age is established — therefore 30 days.

Before recommending an annuity, a producer learns the client needs the money within a year for living expenses. The producer should:

  1. Conclude the annuity is likely unsuitable and not recommend it ✓
  2. Recommend the annuity with the highest surrender charges
  3. Sell the annuity anyway to meet a monthly sales quota
  4. Recommend it only if the client signs a liability waiver

Why: Suitability rules require matching the product to the client's situation; an annuity (with surrender charges and a long horizon) is unsuitable for funds needed immediately.

Unlike a conditional receipt, a binding (temporary) receipt provides:

  1. Immediate coverage for a set time even if the applicant is uninsurable ✓
  2. Coverage only once the insurer has formally approved the entire application
  3. No coverage whatsoever until the policy is physically delivered to the owner
  4. Coverage that is contingent on the applicant later passing a paramedical exam

Why: A binding receipt gives immediate temporary coverage for a stated period regardless of insurability; a conditional receipt requires the applicant to prove insurable.

Under MD Ins. § 17-309, the individual policy available on conversion from group life may be any form customarily issued EXCEPT:

  1. whole life
  2. endowment
  3. term insurance ✓
  4. universal life

Why: Insurance Article § 17-309(a)(2) allows any form except term insurance — therefore term insurance.

Under MD Ins. § 16-402, an annuity or pure endowment contract must allow a grace period for stipulated payments due after the first of not less than:

  1. 30 days ✓
  2. 10 days
  3. 20 days
  4. 15 days

Why: Insurance Article § 16-402(a) requires a grace period of not less than 30 days — therefore 30 days.

A typical annuity 'free withdrawal' provision allows the owner to withdraw, each year without a surrender charge, up to:

  1. About 10% of the contract value ✓
  2. The entire accumulated account value
  3. Only the interest credited that month
  4. Nothing until the contract is annuitized

Why: Many deferred annuities permit penalty-free withdrawals of roughly 10% of the value per year during the surrender-charge period.

Concealment in the context of an insurance application is best described as:

  1. A statement guaranteed by the applicant to be literally true
  2. The deliberate withholding of a known material fact ✓
  3. An honest answer that later turns out to be incorrect
  4. A clause that voids coverage after two years in force

Why: Concealment is the intentional failure to disclose a known material fact that would affect underwriting.

Under COMAR 31.09.12, before selling annuities a producer must complete a one-time training course of at least:

  1. 2 credits
  2. 4 credits ✓
  3. 6 credits
  4. 8 credits

Why: COMAR 31.09.12.08C(1) requires a one-time four-credit annuity training course approved by the Maryland Insurance Administration — therefore 4 credits.

Under MD Ins. § 15-812, the minimum inpatient hospital stay coverage after an uncomplicated vaginal delivery for a mother and newborn is:

  1. 24 hours
  2. 72 hours
  3. 48 hours ✓
  4. 96 hours

Why: Insurance Article § 15-812(c) requires coverage for at least 48 hours of inpatient care after an uncomplicated vaginal delivery.

Backdating a life insurance policy is sometimes done to:

  1. Obtain a lower premium based on a younger age ✓
  2. Extend the contestable period well beyond the legal limit
  3. Avoid the need for any medical underwriting of the applicant
  4. Guarantee that the policy can never lapse for non-payment

Why: Backdating dates the policy to an earlier date so the insured qualifies at a younger age (and lower premium); states typically limit it to about six months.

Under MD Ins. § 2-109, the toll-free telephone number the Commissioner must establish is intended to help consumers with:

  1. the purchase of private passenger automobile insurance ✓
  2. filing claims against a producer's surety bond only
  3. the purchase of commercial property coverage lines
  4. the renewal of an insurer's certificate of authority

Why: § 2-109(c)(1) directs a toll-free line to help consumers buy private passenger automobile insurance — therefore that purpose.

A Maryland producer takes an application that will replace an applicant's existing policy. Under COMAR 31.09.05, no later than the time of taking the application the producer must:

  1. wait for insurer approval
  2. present and read the replacement notice ✓
  3. cancel and surrender the old policy first
  4. waive the free-look period

Why: COMAR 31.09.05.04C(1) requires the producer to present and, unless declined, read the replacement notice not later than the time of taking the application — therefore present and read the replacement notice.