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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: General Insurance Concepts | 12% | - Risk management and insurable interest - Elements of insurance contracts - Agent authority and responsibilities - Types of insurers and market conduct |
| Topic 2: Annuities | 12% | - Immediate vs deferred annuities - Annuity principles and types - Payment options and uses - Fixed and specialty annuities |
| Topic 3: Policy Provisions, Options & Riders | 22% | - Dividends, loans and withdrawals - Beneficiary designations - Standard policy provisions - Nonforfeiture and settlement options - Common policy riders |
| Topic 4: Insurance Regulation | 12% | - Disciplinary actions and penalties - Continuing education requirements - Resident and non-resident rules - State and federal insurance laws - Licensing requirements and maintenance |
| Topic 5: Types of Life Insurance Policies | 12% | - Whole life and permanent life - Group and credit life insurance - Universal and indexed universal life - Term life insurance |
| Topic 6: Federal Tax Considerations | 12% | - Tax treatment of annuities - Modified Endowment Contracts (MECs) - 1035 Exchanges and rollovers - Taxation of life insurance proceeds |
| Topic 7: Life Insurance Basics | 18% | - Determining coverage amounts - Underwriting and policy issue - Personal and business uses of life insurance - Viatical settlements and specialized plans |
1. Which Is the name of the policy that combines a universal life policy with investment choices?
A) Variable universal life policy.
B) Interest-sensitive universal life policy.
C) Straight universal life policy.
D) Flexible universal life policy.
2. An Insurer would consider which of the following In determining whether to accept a group life plan?
A) Grace period
B) Average age
C) Dependents
D) Beneficiary
3. Rob, Joe, and Mike are brothers who have a $60,000 "first-to-die" Joint life policy covering all three of their
lives. If Joe dies first, the policy proceeds
A) will not provide further insurance protection.
B) must be awarded to Joe's estate.
C) must be shared equally by Rob and Joe's wife.
D) will accumulate with interest until another brother dies and then be awarded to the surviving brother.
4. When a beneficiary Inherits a traditional IRA, which of the following Is TRUE about taxation when the money
is withdrawn? The beneficiary pays
A) an estate tax.
B) income tax.
C) capital gains tax.
D) no tax.
5. At what age can an Individual begin to receive distributions from an IRA without a tax penalty?
A) 59 1/2 years.
B) 63 1/2 years.
C) 65 1/2 years.
D) 55 1/2 years.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: A |
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