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Insurance Licensing Hawaii-Life-Producer Exam Syllabus Topics:

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

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

                                                                                                                                                                                              Question 1

                                                                                                                                                                                              Before an insurance company may deliver variable life insurance or variable annuity contracts in Hawaii, the company must be licensed or organized to conduct:

                                                                                                                                                                                              A. Title insurance business
                                                                                                                                                                                              B. Life insurance or annuity business
                                                                                                                                                                                              C. Property insurance business
                                                                                                                                                                                              D. Casualty insurance business


                                                                                                                                                                                              Question 2

                                                                                                                                                                                              The replacing producer MUST submit the replacement notice to which of the following?

                                                                                                                                                                                              A. The replacing producer's company
                                                                                                                                                                                              B. The client's existing insurance producer
                                                                                                                                                                                              C. The Insurance Commissioner
                                                                                                                                                                                              D. The insured's beneficiary


                                                                                                                                                                                              Question 3

                                                                                                                                                                                              When recommending an annuity to a consumer in Hawaii, a producer must:

                                                                                                                                                                                              A. recommend the annuity with the longest surrender period
                                                                                                                                                                                              B. act in the consumer's best interest without placing the producer's or insurer's financial interest ahead of the consumer's
                                                                                                                                                                                              C. recommend only variable annuities to consumers under age 65
                                                                                                                                                                                              D. place the insurer's financial interest ahead of the consumer's when the insurer pays the highest commission


                                                                                                                                                                                              Question 4

                                                                                                                                                                                              An insurance agency that runs a radio commercial stating that a producer is an expert in a particular field of insurance, when, in fact, the producer does not hold a license in that field, is guilty of:

                                                                                                                                                                                              A. misrepresentation of coverage
                                                                                                                                                                                              B. false advertising
                                                                                                                                                                                              C. twisting
                                                                                                                                                                                              D. defamation


                                                                                                                                                                                              Question 5

                                                                                                                                                                                              At the date of issue, a Hawaii labor union group life insurance policy must generally cover at least:

                                                                                                                                                                                              A. 15 members
                                                                                                                                                                                              B. 25 members
                                                                                                                                                                                              C. 10 members
                                                                                                                                                                                              D. 20 members


                                                                                                                                                                                              Solutions:

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

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