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Insurance Licensing Hawaii-Life-Producer Exam Syllabus Topics:

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

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

                                                                                                                                                                                              1. Which of the following life insurance policies provides a 25-year-old with the most rapid growth of cash value?

                                                                                                                                                                                              A) 20-Pay Life
                                                                                                                                                                                              B) Straight Life
                                                                                                                                                                                              C) Renewable Term to age 65
                                                                                                                                                                                              D) Life Paid-Up at Age 65


                                                                                                                                                                                              2. A person was licensed for Life insurance in another state but recently cancelled that resident license while in good standing. To qualify for Hawaii's examination exemption for the same line of authority, the person's applicable resident producer application generally must be received within:

                                                                                                                                                                                              A) 30 days
                                                                                                                                                                                              B) 60 days
                                                                                                                                                                                              C) 180 days
                                                                                                                                                                                              D) 90 days


                                                                                                                                                                                              3. A Life insurance policy is issued with an exclusion rider for a past health condition. Which of the following actions MUST a producer take when the policy is delivered?

                                                                                                                                                                                              A) Explain the rider and the specific exclusions.
                                                                                                                                                                                              B) Deliver the contract without the signature of the applicant.
                                                                                                                                                                                              C) Mail the policy with a return receipt requested.
                                                                                                                                                                                              D) Change any inaccurate statements on the application.


                                                                                                                                                                                              4. Unless its cash surrender value has already been paid, an individual annuity subject to Hawaii's standard provisions may generally be reinstated within how long after default in stipulated payments?

                                                                                                                                                                                              A) 6 months
                                                                                                                                                                                              B) 2 years
                                                                                                                                                                                              C) 3 years
                                                                                                                                                                                              D) 1 year


                                                                                                                                                                                              5. Making maliciously critical or false statements about the financial condition of an insurance company is an unfair method of competition known as:

                                                                                                                                                                                              A) defamation
                                                                                                                                                                                              B) coercion
                                                                                                                                                                                              C) intimidation
                                                                                                                                                                                              D) discrimination


                                                                                                                                                                                              Solutions:

                                                                                                                                                                                              Question # 1
                                                                                                                                                                                              Answer: A
                                                                                                                                                                                              Question # 2
                                                                                                                                                                                              Answer: D
                                                                                                                                                                                              Question # 3
                                                                                                                                                                                              Answer: A
                                                                                                                                                                                              Question # 4
                                                                                                                                                                                              Answer: D
                                                                                                                                                                                              Question # 5
                                                                                                                                                                                              Answer: A

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