Insurance Licensing Hawaii Life Producer Exam (InsHI_Life01 OPLife01) : Hawaii-Life-Producer

  • Exam Code: Hawaii-Life-Producer
  • Exam Name: Hawaii Life Producer Exam (InsHI_Life01 OPLife01)
  • Q & A: 120 Questions and Answers

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

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

                                                                                                                                                                                              Question 1

                                                                                                                                                                                              An insurance company formed under the laws of Canada would be known in Hawaii as:

                                                                                                                                                                                              A. an alien company
                                                                                                                                                                                              B. a mutual company
                                                                                                                                                                                              C. a foreign company
                                                                                                                                                                                              D. a domestic company


                                                                                                                                                                                              Question 2

                                                                                                                                                                                              Which of the following is NOT considered insurance as defined by insurance law?

                                                                                                                                                                                              A. A legal service plan contract
                                                                                                                                                                                              B. An Ocean Marine policy
                                                                                                                                                                                              C. An Aircraft policy
                                                                                                                                                                                              D. A Surety Bond


                                                                                                                                                                                              Question 3

                                                                                                                                                                                              Which of the following policies accumulates the greatest amount of cash value per $1,000 of face amount?

                                                                                                                                                                                              A. Family Income
                                                                                                                                                                                              B. Yearly Renewable Term
                                                                                                                                                                                              C. Whole Life
                                                                                                                                                                                              D. Decreasing Term


                                                                                                                                                                                              Question 4

                                                                                                                                                                                              An insurance company will take which of the following actions if a producer submits an incomplete application for life insurance?

                                                                                                                                                                                              A. Offer to issue the policy with restricted Nonforfeiture Options.
                                                                                                                                                                                              B. Issue a rated policy.
                                                                                                                                                                                              C. Issue the policy with an extended Incontestable Period.
                                                                                                                                                                                              D. Return the application to the producer.


                                                                                                                                                                                              Question 5

                                                                                                                                                                                              A producer tells a prospective client, "You should buy this policy because the Hawaii Life and Disability Insurance Guaranty Association will protect you if the insurer fails." Using the Guaranty Association in this manner is:

                                                                                                                                                                                              A. permitted only for participating policies
                                                                                                                                                                                              B. prohibited as a sales inducement
                                                                                                                                                                                              C. required when selling life insurance
                                                                                                                                                                                              D. permitted if the statement is accurate


                                                                                                                                                                                              Solutions:

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

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