Evergreen Insurance Prep

Maryland Property & Casualty Insurance License, Practice Exams

Maryland Property and Casualty producer licensing (Prometric). National P&C insurance knowledge plus Maryland law (30/60/15 auto minimum with PIP and uninsured/underinsured motorist coverage, the Maryland Automobile Insurance Fund, the guaranty corporation, cancellation/nonrenewal and workers compensation), authored from public-domain statutes.
Content last updated 17 July 2026

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Each module is scored separately here so you know exactly where you stand. To pass the real Maryland exam you need 70%.

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The free sample gives you about 20 questions per module. The full bank contains every question — general insurance plus state law — with written, statute-cited explanations. $49, one time, lifetime access on up to 3 devices — every state and line we add later included.

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Frequently asked questions

How is the Maryland producer licensing exam structured?

Maryland licenses Property and Casualty producers through Prometric (a 120-question exam, 150 minutes, 70% to pass). This bank covers the national property & casualty material plus Maryland law - the 30/60/15 compulsory auto minimum limits with PIP and uninsured/underinsured motorist coverage, the Maryland Automobile Insurance Fund (MAIF), the guaranty corporation, cancellation and nonrenewal, and workers compensation.

What score do I need to pass?

You need 70%. Revise each module to that level in Revision Mode, then run the full exam simulation in Exam Mode before your test date.

Are these real exam questions?

No vendor publishes the live exam. Every question here is original, written to the official content outline and grounded in public-domain sources — including the Maryland Insurance, Transportation and Labor & Employment Articles for the state-law questions, with the statute section cited in each explanation.

How many practice questions are included?

The full Maryland bank contains 1012 questions (general insurance plus Maryland law), with written, source-cited explanations. The free sample gives you about 20 questions per module.

What does access cost?

$49, one time, for lifetime access — and it includes every state and line we add later, at no extra charge. No subscription.

Can I use it on more than one device?

Yes. One purchase works on up to 3 of your devices, for example your laptop, phone and tablet, so you can practise wherever you are. Your progress is saved on each device.

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No. The practice tests run in your browser with no signup. Your score history is saved on your own device.

Sample Maryland Property & Casualty Insurance License practice questions

A selection of free questions with answers and explanations. Use the interactive modules above for timed, scored drills.

Under MD Ins. § 2-205, which entity must the Commissioner examine when it applies for an original certificate of authority?

  1. each newly licensed insurance producer
  2. each insurer applying to do business ✓
  3. each policyholder filing a complaint
  4. each appointed claims adjuster

Why: Insurance Article § 2-205(c) requires examination of each insurer applying for an original certificate of authority — therefore that option.

Under the law of agency, the acts of the producer (agent) are generally considered to be the acts of the:

  1. Reinsurer
  2. Insured
  3. State insurance department
  4. Insurer ✓

Why: An agent represents the insurer; under the law of agency, the agent's actions within authority are treated as those of the insurer (principal).

An insurer settles a claim using an application it altered without telling the insured. Under MD Ins. § 27-303, this is:

  1. An unfair claim settlement practice ✓
  2. Allowed if the alteration favored the insured
  3. Permitted as an internal underwriting correction
  4. A billing adjustment outside the subtitle

Why: Section 27-303(3) makes it a violation to attempt to settle a claim based on an application altered without notice to, or the knowledge or consent of, the insured — therefore the keyed answer.

Show more sample questions with answers & explanations

An agent circulates a rumor that a competing insurer is about to become insolvent, hoping to move its book. Under MD Ins. § 27-204, the agent has:

  1. Acted lawfully because it was spoken, not written
  2. Engaged in permitted comparative advertising
  3. Committed only a licensing paperwork violation
  4. Made a prohibited false statement about an insurer ✓

Why: Section 27-204 bars making or circulating false statements derogatory to an insurer's financial condition that are calculated to injure the insurance business — therefore a prohibited false statement.

The Commissioner finds three separate violations by a P&C producer, each assessed at the statutory maximum. Under MD Ins. § 10-126 the maximum is $5,000 per violation, so the maximum aggregate penalty is...?

  1. $5,000
  2. $10,000
  3. $15,000 ✓
  4. $20,000

Why: Insurance Article § 10-126(c) caps a penalty at $5,000 per violation, so 3 × $5,000 = $15,000 — therefore that option.

Under MD Ins. § 10-116, which producer is exempt from the continuing education requirement?

  1. one holding only a limited line credit license ✓
  2. one holding a P&C license selling flood coverage
  3. one holding both life and health licenses
  4. one holding a personal lines P&C license

Why: Insurance Article § 10-116(b) exempts an individual holding only a limited lines license for limited line credit insurance — therefore that option.

A Fund policyholder completes 3 continuous years with a clean record. Under MD Ins. § 20-508, the policyholder is entitled to:

  1. Rates reasonably comparable to standard insurers ✓
  2. A full refund of past premiums
  3. Automatic transfer to a private insurer
  4. A guaranteed 50% premium discount

Why: Section 20-508(a) entitles the qualifying policyholder to continuation at rates reasonably comparable to those charged by standard insurers and approved by the Commissioner.

Loss of use (Coverage D) additional living expense is best triggered when:

  1. The mortgage is refinanced
  2. A covered loss makes the residence uninhabitable, forcing the insured to live elsewhere ✓
  3. A guest is injured
  4. The insured chooses to remodel voluntarily unless an exception clearly applies for the coverage that is in force

Why: Additional living expense under Coverage D applies when a covered peril renders the home uninhabitable and the insured incurs increased costs to maintain their normal standard of living elsewhere.

Under MD Ins. § 27-301, the unfair claim settlement practices subtitle provides:

  1. Administrative remedies only for a claimant ✓
  2. A private cause of action in every state
  3. Criminal penalties enforced by local courts
  4. An automatic treble-damages recovery

Why: Section 27-301 states the subtitle provides administrative remedies only and neither creates nor bars a private right of action — therefore the keyed answer.

Under MD Ins. § 27-501, an auto insurer may not cancel or refuse to renew based on a claim, violation, or accident that occurred more than:

  1. 1 year before the policy or renewal
  2. 2 years before the policy or renewal
  3. 5 years before the policy or renewal
  4. 3 years before the policy or renewal ✓

Why: Section 27-501(d)(1) bars terminating auto coverage because of a claim, traffic violation, or accident that occurred more than 3 years before the effective date of the policy or renewal — therefore 3 years.

Under MD Ins. § 10-104, an applicant for a limited lines license for limited line credit insurance is...?

  1. not required to pass the exam ✓
  2. required to post a fidelity bond
  3. required to serve on an advisory board
  4. barred from any other license line

Why: Insurance Article § 10-104(h) exempts a limited line credit insurance applicant from the examination requirement — therefore that option.

Under MD Ins. § 27-505, if the Commissioner finds a § 27-501 violation, the Commissioner may order the insurer to:

  1. Pay the insured triple damages
  2. Surrender its certificate of authority
  3. Accept the risk or accept the business ✓
  4. Refund all premiums for three years

Why: Section 27-505(a)(1) allows the Commissioner, on finding a § 27-501 violation, to order the insurer to accept the risk or accept the business, as appropriate — therefore the keyed answer.

A multi-driver auto policy has one teen driver with a poor record; the insurer wants to nonrenew the whole policy. Under MD Ins. § 27-609, the insurer must first:

  1. Nonrenew and refer the family to the auto fund
  2. Surcharge every driver on the policy
  3. Offer to renew with the teen driver excluded ✓
  4. Cancel the policy midterm without notice

Why: Section 27-609(b)(1) requires the private passenger auto insurer, instead of nonrenewal, to offer to continue coverage excluding the specifically named driver whose record justified the action — therefore the keyed answer.

Under MD Ins. § 10-104, to qualify for a P&C producer license an applicant generally must pass...?

  1. a federal insurance licensing exam
  2. a background polygraph and credit examination
  3. an examination given by the Commissioner ✓
  4. a national ethics certification test

Why: Insurance Article § 10-104(g) requires the applicant to pass an examination given by the Commissioner — therefore that option.

Under MD Ins. § 27-216, the Commissioner may approve a late-payment fee on a policy not to exceed:

  1. $10 ✓
  2. $5
  3. $15
  4. $25

Why: Section 27-216(b)(3) allows a Commissioner-approved late fee or installment fee not to exceed $10, and a policy may not be canceled for failing to pay a single such fee — therefore $10.

PAP Part A excludes liability coverage when the insured is:

  1. Carrying family members as passengers in that particular circumstance
  2. Driving to work
  3. Using a vehicle as a public or livery conveyance (e.g., taxi) ✓
  4. Driving in another state

Why: Liability is excluded for any insured using a vehicle as a public or livery conveyance, though share-the-expense carpools are not excluded.

Under MD Ins. § 2-204, an order of the Commissioner must state all of the following EXCEPT...?

  1. the home address of the affected licensee ✓
  2. its effective date
  3. the grounds on which it is based
  4. the article provisions under which action is taken

Why: Insurance Article § 2-204(b) requires effective date, purpose, grounds, and governing provisions — not the licensee's home address — therefore that option.

Under MD Ins. § 27-305, attorney's fees recovered from an insurer for a § 27-303(9) violation may not exceed:

  1. One-tenth of the actual damages recovered
  2. One-third of the actual damages recovered ✓
  3. One-fourth of the actual damages recovered
  4. One-half of the actual damages recovered

Why: Section 27-305(c)(4) caps attorney's fees recovered from an insurer at one-third of the actual damages recovered — therefore the keyed answer.

A risk retention group is an insurer formed to provide liability coverage for:

  1. Federal government employees only in that particular circumstance
  2. Members engaged in similar businesses with similar exposures ✓
  3. Individual homeowners only
  4. The general public statewide

Why: A risk retention group is a liability insurer owned by members with similar or related liability exposures who share that risk.

In a surety bond, the party who is required to provide the bond and perform the obligation is the:

  1. Obligee
  2. Beneficiary
  3. Principal ✓
  4. Surety

Why: The principal is the party who must perform the obligation and is required to furnish the bond.

Why does the CGL contain an Employer's Liability exclusion?

  1. Employee injuries are covered under Coverage B unless an exception clearly applies for the coverage that is in force according to the insurer's rules
  2. Bodily injury to employees in the course of employment is meant to be covered by Workers Compensation and Employers Liability ✓
  3. Employees are never insureds
  4. It duplicates the auto exclusion

Why: The CGL excludes injury to employees in the course of employment because that exposure belongs to the WC/Employers Liability policy.

An HR administrator forgets to enroll a new hire in the group health plan, and the employee incurs large medical bills. Which coverage responds?

  1. D&O
  2. Employee Benefits Liability ✓
  3. Workers Compensation
  4. CGL Coverage C

Why: A clerical error administering benefits is an EBL claim, not a CGL or WC matter.

Installing a sprinkler system and smoke alarms in a warehouse is an example of risk:

  1. Avoidance
  2. Transfer
  3. Sharing
  4. Reduction ✓

Why: Risk reduction lowers the frequency or severity of potential losses through measures like safety devices.

Under MD Ins. § 19-216, the Commissioner-adopted renewal notice must address 'areas of concern' that include which of the following?

  1. Producer commission rates
  2. The insurer's reinsurance program
  3. Flood and water backup through sewers and drains ✓
  4. The Guaranty Corporation's assessments

Why: Insurance Article § 19-216(a) lists areas of concern including flood and loss from water that backs up through sewers and drains.

Under MD Ins. § 27-207, which practice is prohibited as an inducement to insurance?

  1. Issuing capital stock or an advisory board contract promising profits ✓
  2. Delivering the policy form required to be given to the insured
  3. Paying a lawful commission to a licensed insurance producer
  4. Returning an unearned premium after a midterm cancellation

Why: Section 27-207 bars issuing or delivering company stock, benefit certificates, or advisory board contracts promising returns and profits as an inducement to insurance — therefore the keyed answer.

The CGL excludes bodily injury 'expected or intended from the standpoint of the insured.' This is the:

  1. Expected or intended injury exclusion ✓
  2. Pollution exclusion
  3. Contractual liability exclusion
  4. Employer's liability exclusion

Why: The expected or intended injury exclusion removes coverage for intentional harm, preserving the fortuity principle.

Under MD Ins. § 20-510, how must a fund producer handle premiums received?

  1. Commingle them with operating funds
  2. Remit them directly to claimants
  3. Hold them as personal income
  4. Deposit them as trust money into a premium account ✓

Why: Insurance Article § 20-510(b) requires the producer to deposit the money as trust money into an account for premiums to be paid over to the Fund.

A licensed P&C producer wants to market policies under a catchy business name not on file. Under MD Ins. § 10-113, the producer may use only...?

  1. the licensed name or a filed trade name ✓
  2. any business name the appointing insurer approves
  3. any name used in good faith
  4. a name the insured recognizes

Why: Insurance Article § 10-113(b) allows only the name the license is issued in or a trade name filed with the Commissioner — therefore that option.

Under MD Ins. § 20-509, cancellation of coverage on review of an application may occur not later than:

  1. 30 days after coverage is effective
  2. 90 days after coverage is effective
  3. 15 days after coverage is effective
  4. 60 days after coverage is effective ✓

Why: Section 20-509(e)(2) provides that cancellation may occur not later than 60 days after coverage is effective.

Under MD Ins. § 2-213, a full stenographic record of a hearing is made when a party requests it, and the cost is borne by...?

  1. the Insurance Administration
  2. the losing party at the hearing
  3. the State's general fund
  4. the party that requested it ✓

Why: Insurance Article § 2-213(e) provides the stenographic record is made at the expense of the requesting party — therefore that option.