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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Insurance Regulation | 12% | - Renewal and nonrenewal - Reporting convictions and disciplinary actions - Change of address and contact information - Continuing education requirements - Assumed business names - Temporary licenses - Resident and nonresident rules - Licensing requirements |
| Topic 2: Life Insurance Product Knowledge | - Policy provisions and types - Cash value, dividends, policy loans and surrenders - Modified Endowment Contracts and taxation - Section 1035 exchanges and rollover rules - Settlement options and beneficiary provisions |
1. An exposure Is a condition or situation that presents the possibility of
A) indemnity.
B) hazard.
C) loss.
D) peril.
2. A modified endowment contract (MEC) receives different tax treatment on pre-death distributions than other
life Insurance policies because the modified endowment policy
A) does not provide for loans to the policyowner.
B) has a larger cash surrender value.
C) generally pays dividends to the policyowner.
D) tends to be an investment vehicle.
3. All of the following statements regarding a group annuity are correct, EXCEPT
A) considered a defined-benefit plan.
B) purchased as part of a structured corporate pension plan.
C) each employee signs and receives an individual contract.
D) participation is limited to eligible employees.
4. 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) Notify the insurance department when claims are paid.
B) Help the insured file and follow up on claims.
C) Pay the insured's premiums if they are unable to do so.
D) Work with rating bureaus to establish insurer ratings.
5. The proposed insured's statements on a life insurance application are considered to be
A) absolute statements.
B) representations.
C) warranties.
D) misrepresentations.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: B |
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