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Insurance Licensing Hawaii-Life-Producer Exam Syllabus Topics:

SectionWeightObjectives
Completing the Application, Underwriting, and Delivering the Policies12%- Completing the application
  • 1. Replacement
    • 2. USA PATRIOT Act and anti-money laundering
      • 3. Gramm-Leach-Bliley Act privacy
        • 4. Disclosures at point of sale
          • 5. Required signatures
            • 6. Changes in the application
              • 7. Warranties and representations
                • 8. Consequences of incomplete applications
                  • 9. Collecting the initial premium and issuing the receipt
                    - Underwriting
                    • 1. Fair Credit Reporting Act
                      • 2. Medical information and consumer reports
                        • 3. Stranger/investor-owned life insurance
                          • 4. Risk classification
                            • 5. Insurable interest
                              - Contract law
                              • 1. Elements of a contract
                                • 2. Unique aspects of the insurance contract
                                  - Delivering the policy
                                  • 1. When coverage begins
                                    • 2. Explaining the policy, provisions, riders, exclusions, and ratings to the client
                                      Hawaii Laws and Rules Common to Life, Accident and Health, Property, Casualty and Personal Lines Insurance23%- Marketing practices
                                      • 1. Required records and record retention
                                        • 2. Unfair and deceptive practices
                                          • 3. Reporting and accounting for premiums
                                            • 4. Sharing commissions
                                              • 5. Controlled business
                                                • 6. Premiums
                                                  - Licensing
                                                  • 1. Persons required to be licensed
                                                    • 2. Denial, suspension, and revocation of licenses
                                                      • 3. Renewal of license and continuing education
                                                        • 4. General qualifications for licensing
                                                          - Definitions
                                                          • 1. Domestic, foreign, and alien
                                                            • 2. Certificate of authority
                                                              • 3. Stock, reciprocal, and mutual
                                                                • 4. Insurance
                                                                  • 5. Authorized and unauthorized
                                                                    - Insurance Commissioner
                                                                    • 1. Notice of hearings
                                                                      • 2. Examination of records
                                                                        • 3. General powers and duties
                                                                          • 4. Penalties
                                                                            - Guaranty associations
                                                                            Hawaii Laws and Rules Pertinent to Life Insurance Only12%- Credit life
                                                                            - Group life
                                                                            • 1. Conversion
                                                                              • 2. Group requirements
                                                                                • 3. Assignment of proceeds
                                                                                  - Policy clauses and provisions
                                                                                  • 1. Protection of beneficiaries from creditors
                                                                                    • 2. Policy loan interest rate
                                                                                      • 3. Spouse's rights
                                                                                        - Marketing methods and practices
                                                                                        • 1. Annuities
                                                                                          • Disclosure
                                                                                          • Suitability
                                                                                        • 2. Replacement
                                                                                          • Definition
                                                                                          • Duties of producers
                                                                                          • Duties of insurers that use producers
                                                                                          • Duties of replacing insurers that use producers
                                                                                          • Duties of the existing insurer
                                                                                        - Variable contracts
                                                                                        - Participation in surplus
                                                                                        Types of Policies15%- Term life
                                                                                        • 1. Types
                                                                                          • Level
                                                                                          • Decreasing
                                                                                          • Return of premium
                                                                                          • Annually renewable
                                                                                        • 2. Special features
                                                                                          • Renewable
                                                                                          • Convertible
                                                                                        - Combination plans and variations
                                                                                        • 1. Survivorship life
                                                                                          • 2. Joint life
                                                                                            - Traditional whole life products
                                                                                            • 1. Ordinary whole life
                                                                                              • 2. Limited-pay and single-premium life
                                                                                                - Interest/market-sensitive/adjustable life products
                                                                                                • 1. Variable universal life
                                                                                                  • 2. Universal life
                                                                                                    • 3. Indexed life
                                                                                                      • 4. Interest-sensitive whole life
                                                                                                        • 5. Variable whole life
                                                                                                          - Annuities
                                                                                                          • 1. Single and flexible premium
                                                                                                            • 2. Fixed and variable
                                                                                                              • 3. Indexed
                                                                                                                • 4. Payout options
                                                                                                                  • 5. Accumulation and annuity periods
                                                                                                                    • 6. Immediate and deferred
                                                                                                                      Life Provisions, Riders, Options, and Exclusions15%- Policy exclusions
                                                                                                                      • 1. Aviation
                                                                                                                        • 2. War
                                                                                                                          • 3. Dangerous occupation
                                                                                                                            - Policy riders
                                                                                                                            • 1. Cost of Living
                                                                                                                              • 2. Guaranteed insurability
                                                                                                                                • 3. Other insureds
                                                                                                                                  • 4. Disability
                                                                                                                                    • 5. Return of premium
                                                                                                                                      • 6. Term riders
                                                                                                                                        • 7. Waiver of premium and waiver of monthly deduction
                                                                                                                                          • 8. Long term care
                                                                                                                                            • 9. Accidental death and/or accidental death and dismemberment
                                                                                                                                              • 10. Payor benefit
                                                                                                                                                - Policy provisions and options
                                                                                                                                                • 1. Policy loans, withdrawals, and partial surrenders
                                                                                                                                                  • 2. Premium payment
                                                                                                                                                    • 3. Entire contract
                                                                                                                                                      • 4. Owner's rights
                                                                                                                                                        • 5. Non-forfeiture options
                                                                                                                                                          • 6. Settlement options
                                                                                                                                                            • 7. Accelerated death benefits
                                                                                                                                                              • 8. Insuring clause
                                                                                                                                                                • 9. Assignments
                                                                                                                                                                  • 10. Reinstatement
                                                                                                                                                                    • 11. Misstatement of age and gender
                                                                                                                                                                      • 12. Incontestability
                                                                                                                                                                        • 13. Beneficiary designations
                                                                                                                                                                          • 14. Free look
                                                                                                                                                                            • 15. Dividends and dividend options
                                                                                                                                                                              • 16. Suicide
                                                                                                                                                                                • 17. Consideration
                                                                                                                                                                                  Retirement and Other Life Insurance Concepts8%- Social Security benefits
                                                                                                                                                                                  - Life insurance needs analysis and suitability
                                                                                                                                                                                  • 1. Business insurance needs
                                                                                                                                                                                    • 2. Personal insurance needs
                                                                                                                                                                                      - Third-party ownership
                                                                                                                                                                                      - Group life insurance
                                                                                                                                                                                      • 1. Conversion privilege
                                                                                                                                                                                        • 2. Contributory vs. noncontributory
                                                                                                                                                                                          - Retirement plans
                                                                                                                                                                                          • 1. Nonqualified plans
                                                                                                                                                                                            • 2. Qualified plans
                                                                                                                                                                                              - Life settlements
                                                                                                                                                                                              - Tax treatment of insurance premiums, proceeds, and dividends

                                                                                                                                                                                              Insurance Licensing Hawaii Life Producer Exam (InsHI_Life01 OPLife01) Sample Questions:

                                                                                                                                                                                              Question 1

                                                                                                                                                                                              Producers may engage in all of the following activities EXCEPT:

                                                                                                                                                                                              A. soliciting insurance applications for insurance
                                                                                                                                                                                              B. selling insurance
                                                                                                                                                                                              C. countersigning contracts
                                                                                                                                                                                              D. negotiating insurance


                                                                                                                                                                                              Question 2

                                                                                                                                                                                              Except for nonpayment of premiums and certain excluded supplemental benefits, a Hawaii individual life insurance policy becomes incontestable after it has been in force during the insured's lifetime for:

                                                                                                                                                                                              A. 1 year
                                                                                                                                                                                              B. 5 years
                                                                                                                                                                                              C. 2 years
                                                                                                                                                                                              D. 3 years


                                                                                                                                                                                              Question 3

                                                                                                                                                                                              The purpose of regulating Credit Life insurance is to:

                                                                                                                                                                                              A. prohibit unreasonable competition
                                                                                                                                                                                              B. limit the interpretations of provisions in the law involving Credit Life insurance
                                                                                                                                                                                              C. enhance the insured's ability to obtain credit from the Hawaiian banks
                                                                                                                                                                                              D. protect consumer interest


                                                                                                                                                                                              Question 4

                                                                                                                                                                                              A convicted felon may receive a life or health license only if a felony waiver is approved by:

                                                                                                                                                                                              A. the local police department
                                                                                                                                                                                              B. a court order
                                                                                                                                                                                              C. the Insurance Commissioner
                                                                                                                                                                                              D. the appointing general agent


                                                                                                                                                                                              Question 5

                                                                                                                                                                                              Which of the following life insurance policies provides a 25-year-old with the most rapid growth of cash value?

                                                                                                                                                                                              A. Life Paid-Up at Age 65
                                                                                                                                                                                              B. Straight Life
                                                                                                                                                                                              C. 20-Pay Life
                                                                                                                                                                                              D. Renewable Term to age 65


                                                                                                                                                                                              Solutions:

                                                                                                                                                                                              Question 1
                                                                                                                                                                                              Answer: C
                                                                                                                                                                                              Question 2
                                                                                                                                                                                              Answer: C
                                                                                                                                                                                              Question 3
                                                                                                                                                                                              Answer: D
                                                                                                                                                                                              Question 4
                                                                                                                                                                                              Answer: C
                                                                                                                                                                                              Question 5
                                                                                                                                                                                              Answer: C

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