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Life and Health Insurance Producer Exam

Replacement (MD): practice questions

Our Life & Health Insurance bank has 3 questions on this topic. Here are 3 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1 · Maryland

In a replacement, what right must the replacing insurer give the owner of a new fixed (non-variable) life policy?

  1. Rescind it within 1 year if the old policy can't be restored
  2. Exchange it back for the old policy at any time within 2 years
  3. Return it within 10 days of delivery for a pro rata premium refund
  4. Return it within 30 days of delivery for a full premium refund
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D. Return it within 30 days of delivery for a full premium refund — COMAR 31.09.05.06A(5)(a).

Question 2 · Maryland

Within what period must a replacing insurer notify the existing insurer of a proposed replacement?

  1. 10 business days after the owner's free-look period has ended
  2. 30 calendar days after the new policy is delivered to the owner
  3. 5 business days after the completed application is received
  4. Before the applicant signs the application for the new policy
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C. 5 business days after the completed application is received — COMAR 31.09.05.06A(2).

Question 3 · Maryland

When a Maryland applicant has an existing life policy or annuity, what must the producer do with the replacement notice?

  1. Keep it in the producer's file, since the applicant need not sign it
  2. Present and read it aloud unless declined, both sign it, and leave it
  3. Send it only to the existing insurer, which then contacts the owner
  4. Mail it to the applicant within 10 days after the policy is issued
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B. Present and read it aloud unless declined, both sign it, and leave it — COMAR 31.09.05.04C(1), (3).

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