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| Section | Weight | Objectives |
|---|---|---|
| Insurance Regulation | 12% | - Licensing requirements and maintenance - Continuing education requirements - Disciplinary actions and penalties - Resident and non-resident rules - State and federal insurance laws |
| Policy Provisions, Options & Riders | 22% | - Standard policy provisions - Common policy riders - Nonforfeiture and settlement options - Beneficiary designations - Dividends, loans and withdrawals |
| General Insurance Concepts | 12% | - Risk management and insurable interest - Types of insurers and market conduct - Elements of insurance contracts - Agent authority and responsibilities |
| Types of Life Insurance Policies | 12% | - Universal and indexed universal life - Term life insurance - Whole life and permanent life - Group and credit life insurance |
| Federal Tax Considerations | 12% | - 1035 Exchanges and rollovers - Taxation of life insurance proceeds - Modified Endowment Contracts (MECs) - Tax treatment of annuities |
| Annuities | 12% | - Payment options and uses - Fixed and specialty annuities - Annuity principles and types - Immediate vs deferred annuities |
| Life Insurance Basics | 18% | - Personal and business uses of life insurance - Viatical settlements and specialized plans - Underwriting and policy issue - Determining coverage amounts |
1. An insured wants to purchase a policy with three key elements: flexible premium, death benefit, and the choice
of mutual funds where the cash value will be Invested In a separate account. The Insured should purchase
A) graded premium whole life.
B) variable universal life.
C) adjustable life.
D) universal life.
2. The only beneficiary named in a life insurance policy died before the Insured. The policyowner did not name a
new beneficiary. When a claim is filed, the death benefit would be paid to the
A) policyowner.
B) Insured's next of kin.
C) beneficiary's estate.
D) insured's estate.
3. In reference to life Insurance in contract law, a person MOST likely will have an insurable interest in insuring
a person's life If
A) any type of distant family relationship exists with the insured party.
B) the interest exists at the time of death.
C) any type of business relationship exists between the insured party and the beneficiary.
D) the interest exists at the time of application.
4. Falsifying the terms, benefits, advantages, or conditions of an insurance policy Is an example of which of the
following?
A) Misrepresentation
B) Concealment
C) Coercion
D) Forgery
5. Which activity does NOT require an Insurance agent's license?
A) selling
B) soliciting
C) underwriting
D) negotiating
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: C |
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