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Insurance Licensing Hawaii-Life-Producer Exam Syllabus Topics:

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

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

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

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


                                                                                                                                                                                              2. All of the following statements about a Guaranteed Insurability Option rider are true EXCEPT:

                                                                                                                                                                                              A) Costs for new coverages purchased under this rider are calculated on the basis of the insured's attained age.
                                                                                                                                                                                              B) It allows the insured to purchase additional coverage at marriage or the birth of a child.
                                                                                                                                                                                              C) It allows the insured to purchase additional coverage at specified ages.
                                                                                                                                                                                              D) It requires the insured to provide evidence of insurability when exercising the option.


                                                                                                                                                                                              3. A producer obtains a Hawaii Life line of authority after December 31, 2022 and intends to sell annuity products. Before soliciting an annuity sale, the producer must complete:

                                                                                                                                                                                              A) a two-credit ethics course only
                                                                                                                                                                                              B) a one-time four-credit annuity training course
                                                                                                                                                                                              C) no additional training until the first license renewal
                                                                                                                                                                                              D) ten hours of securities training only


                                                                                                                                                                                              4. After an owner executes a Hawaii life settlement contract, the life settlement provider must generally notify the insurer that issued the policy within:

                                                                                                                                                                                              A) 30 days
                                                                                                                                                                                              B) 5 days
                                                                                                                                                                                              C) 10 days
                                                                                                                                                                                              D) 20 days


                                                                                                                                                                                              5. Policy loan interest rates for policies issued after June 22, 1982, may be set at:

                                                                                                                                                                                              A) an 8% maximum or an adjustable rate permitted by law
                                                                                                                                                                                              B) an 18% maximum
                                                                                                                                                                                              C) a 5% maximum or an adjustable rate permitted by law
                                                                                                                                                                                              D) a 10% maximum


                                                                                                                                                                                              Solutions:

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

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