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| Section | Objectives |
|---|---|
| Topic 1: Annuities | - Annuity types and features - Accumulation and payout options |
| Topic 2: Insurance Fundamentals | - Basic insurance principles - Insurable interest and risk management concepts |
| Topic 3: Federal Regulations and Taxation | - Tax treatment of insurance products - Federal insurance-related regulations |
| Topic 4: Accident and Health Insurance | - Disability income and medical expense coverage - Health insurance plans and structures |
| Topic 5: Ethics and Professional Conduct | - Consumer protection standards - Ethical responsibilities of insurance producers |
| Topic 6: Life Insurance | - Types of life insurance policies
|
| Topic 7: Policy Provisions and Options | - Beneficiaries and policy ownership - Standard policy provisions |
| Topic 8: State Insurance Regulations | - Producer licensing requirements - Unfair trade practices and compliance |
1. In surrendering a life insurance contract for its cash value, the total of premiums paid less the total of any dividends received in cash or used to offset premiums is:
A) The cost basis
B) The cash value
C) The gross proceeds
D) The loan value
2. The needs approach in life insurance is most useful in determining:
A) Which companies offer the best array of life insurance products
B) The most appropriate method for prospecting new clients
C) The amount of life insurance to be recommended to a client
D) Which types of individuals the producer should attempt to meet
3. Which is true about the taxation of benefit payments under a non-qualified annuity?
A) Benefits must commence by age 70½ to avoid a tax penalty
B) Benefits received before age 59½ may be subject to a tax penalty
C) Benefits received after age 59½ are normally tax exempt
D) Benefits are fully taxable at all times
4. An employee with $50,000 group life insurance coverage terminates employment and submits an application WITHOUT the initial premium for a $50,000 conversion policy. If the employee dies 15 days later, the insurer would pay:
A) $50,000 under the group plan
B) Nothing at all
C) $50,000 under the new policy, less the initial premium amount due
D) $50,000 under the new policy
5. An insurance producer provided several examples to the applicant, persuasively demonstrating that the insurance coverage offered under the producer's company policy was superior to a competitor's product. The insurance producer knew he was misrepresenting or stretching the truth in order to induce the applicant to forfeit her current policy and purchase a similar but inferior insurance policy from him. The insurance producer is involved in which one of the following unfair trade practices?
A) Discrimination
B) Fraud
C) Twisting
D) Rebating
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: A | Question # 5 Answer: C |
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