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Insurance Licensing Hawaii-Life-Producer Exam Syllabus Topics:

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

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

                                                                                                                                                                                              Question 1

                                                                                                                                                                                              Under Hawaii Group Life Insurance law, a dependent is defined as a child of the insured who is:

                                                                                                                                                                                              A. at least 15
                                                                                                                                                                                              B. under the age of 18
                                                                                                                                                                                              C. under the age of 21
                                                                                                                                                                                              D. under the age of 26


                                                                                                                                                                                              Question 2

                                                                                                                                                                                              Mr. and Mrs. X have a one-month-old infant. They would like a $250,000 life insurance policy on Mr. X with the lowest premium for the next 20 years. The suitable policy recommendation would be a:

                                                                                                                                                                                              A. 20-Pay Life
                                                                                                                                                                                              B. 20-year Level Term
                                                                                                                                                                                              C. Variable Life funded for 20 years
                                                                                                                                                                                              D. 20-year Increasing Term


                                                                                                                                                                                              Question 3

                                                                                                                                                                                              The Hawaii Insurance Commissioner may suspend an insurance license if the licensee:

                                                                                                                                                                                              A. applies for a license with another state within ninety days
                                                                                                                                                                                              B. terminates the contract with the licensee's former insurance company and requests a transfer to another insurance company
                                                                                                                                                                                              C. materially misrepresents the terms of an insurance contract
                                                                                                                                                                                              D. does not sell at least two policies in a given year


                                                                                                                                                                                              Question 4

                                                                                                                                                                                              Which of the following features makes Universal Life different from other forms of Whole Life insurance?

                                                                                                                                                                                              A. Settlement options
                                                                                                                                                                                              B. Beneficiary provisions
                                                                                                                                                                                              C. Free Look period
                                                                                                                                                                                              D. Premium schedules


                                                                                                                                                                                              Question 5

                                                                                                                                                                                              A lapsed Hawaii individual life insurance policy is being reinstated. Interest charged on overdue premiums and qualifying policy indebtedness under the statutory reinstatement provision may NOT exceed:

                                                                                                                                                                                              A. 10% per year
                                                                                                                                                                                              B. 4% per year
                                                                                                                                                                                              C. 8% per year compounded monthly
                                                                                                                                                                                              D. 6% per year compounded annually


                                                                                                                                                                                              Solutions:

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

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