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| Section | Weight | Objectives |
|---|---|---|
| Life Insurance Basics | 18% | - Determining coverage amounts - Personal and business uses of life insurance - Viatical settlements and specialized plans - Underwriting and policy issue |
| General Insurance Concepts | 12% | - Types of insurers and market conduct - Risk management and insurable interest - Agent authority and responsibilities - Elements of insurance contracts |
| Types of Life Insurance Policies | 12% | - Term life insurance - Universal and indexed universal life - Group and credit life insurance - Whole life and permanent life |
| Annuities | 12% | - Annuity principles and types - Payment options and uses - Immediate vs deferred annuities - Fixed and specialty annuities |
| Policy Provisions, Options & Riders | 22% | - Dividends, loans and withdrawals - Nonforfeiture and settlement options - Standard policy provisions - Common policy riders - Beneficiary designations |
| Federal Tax Considerations | 12% | - 1035 Exchanges and rollovers - Modified Endowment Contracts (MECs) - Taxation of life insurance proceeds - Tax treatment of annuities |
| Insurance Regulation | 12% | - Disciplinary actions and penalties - Continuing education requirements - State and federal insurance laws - Licensing requirements and maintenance - Resident and non-resident rules |
1. Loans may generally be obtained against the cash value of a personal life Insurance policy and policy loan
proceeds
A) accelerate the benefits under the policy.
B) are not treated as taxable income.
C) generate nontaxable interest income.
D) are subject to Federal estate tax.
2. A policyowner may not pay premiums with which frequency?
A) Semi-annually
B) Monthly
C) Bi-weekly
D) Quarterly
3. The most common use of a group life insurance policy is to insure
A) members of a family.
B) association members.
C) retirees.
D) company employees.
4. An agent qualified to sell variable products in Ohio must report each of the following to the superintendent of
Insurance EXCEPT
A) the revocation of an insurance license held in another state.
B) a felony criminal conviction.
C) a suspension from the National Association of Securities Dealers.
D) the sharing of commissions with another qualified agent.
5. A policyowner may choose to have his/her life insurance policy dividends do all of the following EXCEPT
A) reduce the policy premium.
B) accumulate without interest.
C) purchase additional insurance protection.
D) be paid to the policyowner in cash.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: B |
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