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Updated: Jul 15, 2026
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1. An individual purchased a flexible premium deferred annuity. When must the interest income be reported for federal income tax purposes?
A) Upon receiving distributions or income benefits from the contract
B) Never at any time because an annuity has tax-exempt status
C) At least annually throughout the period of the contract
D) After first recovering the principal invested in the contract
2. When an individual replaces a life insurance policy, the form entitled " Important Notice Replacement of Life Insurance or Annuities " is REQUIRED to be signed by:
A) Both the applicant and the insurance producer
B) An officer of the insurer
C) The applicant only
D) The insurance producer only
3. An insurance producer or advisor in the State of Maryland can be disciplined by the MarylandInsurance Administration for all of the following EXCEPT:
A) Making a misleading statement about the financial condition of an insurer
B) Making false or misleading statements about dividends previously paid on similar policies
C) Using inappropriate description of a policy to hide the true nature of the policy
D) Filing a complaint on behalf of the consumer with the Maryland Insurance Administration
4. Which type of coverage bases benefit eligibility on the capacity to perform activities of daily living?
A) Long-term care insurance
B) Major medical expense
C) Medicare supplement
D) Long-term disability
5. Which medical care benefits are emphasized in HMO plans?
A) Emergency care
B) Home health care
C) Alternative medicine
D) Preventive care
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: D |
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