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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Life Insurance Underwriting and Premiums | 15% | - Risk assessment and pricing
|
| Topic 2: Insurance Regulation | 15% | - State insurance laws and administration
|
| Topic 3: Life Insurance Policies | 25% | - Policy types and provisions
|
| Topic 4: General Insurance Concepts | 15% | - Fundamental principles
|
| Topic 5: Annuities and Retirement Products | 15% | - Types and features
|
| Topic 6: Federal and State Tax Considerations | 10% | - Tax treatment of policies and benefits
|
1. A policyholder uses a Section 1035 exchange to replace an existing life insurance policy. If the new policy is later surrendered, the gain realized on termination is taxed as:
A) A capital gain
B) Ordinary income plus a 10% surcharge
C) Ordinary income
D) A deferred capital gain
2. How many days does a former employee have to convert a group term policy to an individual policy after employment is terminated?
A) 10
B) 20
C) 31
D) 30
3. A group policy may be issued to a labor union. The members eligible for insurance under the policy shall be:
A) Only members of the union who are under the age of 65
B) Healthy members of the union
C) Members of any union
D) All of the members of the union
4. When an individual replaces a life insurance policy, the form entitled "Important Notice Replacement of Life Insurance or Annuities" is REQUIRED to be signed by:
A) The applicant only
B) Both the applicant and the insurance producer
C) An officer of the insurer
D) The insurance producer only
5. Who normally receives dividends in a stock insurance company?
A) Beneficiaries
B) Only members of the board of directors
C) Producers
D) Shareholders
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: D |
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