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| Section | Weight | Objectives |
|---|---|---|
| General Insurance Concepts | 12% | - Agent authority and responsibilities - Risk management and insurable interest - Types of insurers and market conduct - Elements of insurance contracts |
| Annuities | 12% | - Fixed and specialty annuities - Payment options and uses - Annuity principles and types - Immediate vs deferred annuities |
| Types of Life Insurance Policies | 12% | - Whole life and permanent life - Group and credit life insurance - Term life insurance - Universal and indexed universal life |
| Policy Provisions, Options & Riders | 22% | - Standard policy provisions - Beneficiary designations - Dividends, loans and withdrawals - Nonforfeiture and settlement options - Common policy riders |
| Federal Tax Considerations | 12% | - Tax treatment of annuities - Taxation of life insurance proceeds - Modified Endowment Contracts (MECs) - 1035 Exchanges and rollovers |
| Insurance Regulation | 12% | - State and federal insurance laws - Licensing requirements and maintenance - Resident and non-resident rules - Continuing education requirements - Disciplinary actions and penalties |
| Life Insurance Basics | 18% | - Determining coverage amounts - Viatical settlements and specialized plans - Underwriting and policy issue - Personal and business uses of life insurance |
1. The PRIMARY reason for purchasing life Insurance Is to provide
A) safety of principal.
B) death benefits.
C) retirement Income.
D) college tuition.
2. Extended term Insurance can be selected under which whole life policy provision?
A) interest-only
B) settlement
C) nonforfeiture
D) cash value
3. Insurance agents have duties and responsibilities to the insured and the insurer. Which of the following
responsibilities does an agent owe the insured during the policy year?
A) Pay the insured's premiums if they are unable to do so.
B) Help the insured file and follow up on claims.
C) Notify the insurance department when claims are paid.
D) Work with rating bureaus to establish insurer ratings.
4. Reinsurers are a specialized branch of the insurance industry because they
A) keep premiums low.
B) provide insurance to otherwise uninsurable individuals.
C) provide alternative means.
D) Insure insurers.
5. Risks are generally NOT Insurable if
A) the loss is expected.
B) the policyholder has a policy from another insurer.
C) there are many individuals who may also experience a similar loss.
D) deductibles would be required.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: A |
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