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Insurance Licensing Hawaii-Life-Producer Exam Syllabus Topics:

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

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

                                                                                                                                                                                              Question 1

                                                                                                                                                                                              A life insurance contract will generally be classified as a Modified Endowment Contract (MEC) if it:

                                                                                                                                                                                              A. allows the policyowner to borrow against cash value
                                                                                                                                                                                              B. accumulates any cash value during the first policy year
                                                                                                                                                                                              C. has a death benefit exceeding $50,000
                                                                                                                                                                                              D. fails the federal seven-pay test


                                                                                                                                                                                              Question 2

                                                                                                                                                                                              A Hawaii labor union group life insurance policy requires insured members to contribute part of the premium.
                                                                                                                                                                                              What percentage of eligible members, excluding those whose individual insurability is unsatisfactory, must elect to make the required contributions?

                                                                                                                                                                                              A. 50%
                                                                                                                                                                                              B. 75%
                                                                                                                                                                                              C. 100%
                                                                                                                                                                                              D. 60%


                                                                                                                                                                                              Question 3

                                                                                                                                                                                              A Life insurance policy is issued with an exclusion rider for a past health condition. Which of the following actions MUST a producer take when the policy is delivered?

                                                                                                                                                                                              A. Deliver the contract without the signature of the applicant.
                                                                                                                                                                                              B. Explain the rider and the specific exclusions.
                                                                                                                                                                                              C. Mail the policy with a return receipt requested.
                                                                                                                                                                                              D. Change any inaccurate statements on the application.


                                                                                                                                                                                              Question 4

                                                                                                                                                                                              After receiving a notice that an insurer has appointed a producer, the Hawaii Insurance Commissioner must verify the producer's eligibility within a reasonable time not exceeding:

                                                                                                                                                                                              A. 15 days
                                                                                                                                                                                              B. 60 days
                                                                                                                                                                                              C. 10 days
                                                                                                                                                                                              D. 30 days


                                                                                                                                                                                              Question 5

                                                                                                                                                                                              A Hawaii group life insurance policyholder fails to pay a premium when due. Except for the first premium, the group policy must generally provide a grace period of at least:

                                                                                                                                                                                              A. 15 days
                                                                                                                                                                                              B. 60 days
                                                                                                                                                                                              C. 10 days
                                                                                                                                                                                              D. 30 days


                                                                                                                                                                                              Solutions:

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

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