Life-Producer Exam Dumps : Maryland Life Producer Exam (Series 20-27)

Comprehensive and Detailed Step by Step Explanation:Thefixed amount installment optionprovides for a predetermined monthly benefit to the policy beneficiary. Payments continue until the principal (death benefit) and accumulated interest are fully paid out.

Fixed amount installment option (A):Ensures consistent payment amounts until the death benefit and interest are exhausted. This option is often used when beneficiaries want a steady income.

Accelerated endowment option (B):Not relevant as it refers to early payouts for policies reaching maturity.

Interest-only option (C):Only pays interest earned on the death benefit, leaving the principal untouched.

Fixed period installment option (D):Guarantees payments for a specific period, regardless of whether the principal or interest is depleted.

References: Maryland Life Insurance Policy Payout Regulations and Settlement Options Guidelines.

Comprehensive and Detailed Step by Step Explanation:Aflexible premium fixed annuityallows policyholders to make varying contributions while offering tax-deferred growth and a guaranteed minimum interest rate.

Flexible premium fixed annuity (C):Correct. Combines flexible payments with guaranteed returns and death proceeds equal to cash value.

Adjustable whole life (A):Involves fixed payments and lacks tax-deferred features.

Available deferred annuity (B):Vague and not specifically tied to these features.

Universal life (D):Provides death benefits but lacks guaranteed minimum interest rates.

References:Maryland Annuity Regulations, COMAR 31.09.08, and Fixed Annuity Product Guidelines.

Comprehensive and Detailed Step by Step Explanation:The licensing of insurance agents ensures professional competency and ethical conduct:

Licensuredemonstrates qualifications (B)required to represent insurers and serve clients.

Maryland does not impose limits on the number of licensed agents, invalidating (A).

Monitoring sales activity (C) and rate regulation (D) are distinct regulatory functions.

References: Maryland Insurance Administration Licensing Requirements.