Question 1

The annual addition to an employee's account in a qualified retirement plan:

Options :

A : Can be any amount as determined by the employer from year to year

B : Must be the same dollar amount for every full-time employee

C : Cannot exceed maximum limits set by the Internal Revenue Service

D : Usually reflects the employee-s individual work performance each year

Answer: C

Question 2

The purpose of licensing insurance agents is to:

Options :

A : Limit the number of agents who do business within Maryland

B : Demonstrate that the agent is qualified to act on behalf of insurers in Maryland

C : Monitor insurance sales activity in Maryland

D : Regulate rates to prevent unfair discrimination among insureds

Answer: B

Question 3

The penalty tax incurred for premature distributions from an IRA is:

Options :

A : 5%

B : 10%

C : 20%

D : 50%

Answer: B

Question 4

One factor in premium determination is the expenses of the:

Options :

A : Producer

B : Insurer

C : Policy beneficiary

D : Policy owner

Answer: B

Question 5

Who normally receives dividends in a stock insurance company?

Options :

A : Only members of the board of directors

B : Shareholders

C : Beneficiaries

D : Producers

Answer: B

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