Question 1

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

Options :

A : 5%

B : 10%

C : 20%

D : 50%

Answer: B

Question 2

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 3

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

Question 4

All of the following statements about the life insurance protection provided by a family life insurance policy are true EXCEPT:

Options :

A : Most of the premium amount purchases whole life insurance for the head of the household

B : Life insurance coverage is provided automatically to children born during the policy period

C : Coverage is available only to heads of households who are 30 years old or younger

D : Coverage for dependents can be converted to whole life insurance without evidence of insurability

Answer: C

Question 5

An insurance producer's license may be suspended or revoked by:

Options :

A : The appointing insurer

B : The continuing education course provider

C : The Maryland Insurance Administration

D : The Attorney General

Answer: C

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