Insurance Licensing Hawaii-Life-Producer Valid Q&A - in .pdf

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  • Exam Name: Hawaii Life Producer Exam (InsHI_Life01 OPLife01)
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  • Exam Code: Hawaii-Life-Producer
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Insurance Licensing Hawaii-Life-Producer Exam Syllabus Topics:

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

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

                                                                                                                                                                                              1. Which of the following Annuities has benefits that reflect the investment experience of a separate account?

                                                                                                                                                                                              A) Variable
                                                                                                                                                                                              B) Immediate
                                                                                                                                                                                              C) Fixed
                                                                                                                                                                                              D) Retirement


                                                                                                                                                                                              2. Policy loan interest rates for policies issued after June 22, 1982, may be set at:

                                                                                                                                                                                              A) a 10% maximum
                                                                                                                                                                                              B) a 5% maximum or an adjustable rate permitted by law
                                                                                                                                                                                              C) an 18% maximum
                                                                                                                                                                                              D) an 8% maximum or an adjustable rate permitted by law


                                                                                                                                                                                              3. A producer tells a prospective client, "You should buy this policy because the Hawaii Life and Disability Insurance Guaranty Association will protect you if the insurer fails." Using the Guaranty Association in this manner is:

                                                                                                                                                                                              A) permitted if the statement is accurate
                                                                                                                                                                                              B) permitted only for participating policies
                                                                                                                                                                                              C) required when selling life insurance
                                                                                                                                                                                              D) prohibited as a sales inducement


                                                                                                                                                                                              4. A producer who reimburses a portion of the premium as an inducement to purchase insurance is guilty of:

                                                                                                                                                                                              A) experience or schedule rating
                                                                                                                                                                                              B) premium discounting
                                                                                                                                                                                              C) rebating
                                                                                                                                                                                              D) premium deviation


                                                                                                                                                                                              5. An insurance company formed under the laws of Canada would be known in Hawaii as:

                                                                                                                                                                                              A) a foreign company
                                                                                                                                                                                              B) a mutual company
                                                                                                                                                                                              C) a domestic company
                                                                                                                                                                                              D) an alien company


                                                                                                                                                                                              Solutions:

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

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