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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Annuities and Retirement Products | 15% | - Types and features
|
| Topic 2: Federal and State Tax Considerations | 10% | - Tax treatment of policies and benefits
|
| Topic 3: Insurance Regulation | 15% | - State insurance laws and administration
|
| Topic 4: General Insurance Concepts | 15% | - Fundamental principles
|
| Topic 5: Life Insurance Policies | 25% | - Policy types and provisions
|
| Topic 6: Life Insurance Underwriting and Premiums | 15% | - Risk assessment and pricing
|
1. All of the following statements about universal life insurance are true EXCEPT:
A) Failure to pay the renewal premium automatically causes the policy to lapse
B) It may be written with either a level death benefit or an increasing death benefit
C) The Internal Revenue Code places a minimum limitation on the difference between the cash value and the death benefit
D) Withdrawals of the policy cash value are permitted and sometimes subject to a surrender charge
2. A producer may be guilty of misrepresentation if the producer:
A) Required timely written notice of loss for all claims
B) Failed to disclose exclusions of the policy
C) Denied a claim for failure of the policyholder to prove damages
D) Issued a full settlement check expressly releasing the insurer
3. Which one of the following statements about participating life insurance is true?
A) Policyowners may be entitled to receive dividends.
B) The insurer must be a stock company.
C) Policyowners are assessed monthly for losses.
D) The insured must be the policyowner.
4. A refusal to do business with a particular individual or business is known as:
A) An estoppel
B) An injunction
C) A boycott
D) A binder
5. Which one of the following life insurance settlement options pays a predetermined monthly benefit until principal and interest are exhausted?
A) The fixed amount installment option
B) The accelerated endowment option
C) The fixed period installment option
D) The interest-only option
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: C | Question # 5 Answer: A |
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