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Insurance Licensing Hawaii-Life-Producer Exam Syllabus Topics:

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

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

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

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


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


                                                                                                                                                                                              3. Which life insurance product combines flexible premium characteristics with investment performance based on separate accounts selected by the policyowner?

                                                                                                                                                                                              A) Credit Life
                                                                                                                                                                                              B) Variable Universal Life
                                                                                                                                                                                              C) Ordinary Whole Life
                                                                                                                                                                                              D) Decreasing Term Life


                                                                                                                                                                                              4. How many years are producers required to keep records for Continuing Education?

                                                                                                                                                                                              A) 2
                                                                                                                                                                                              B) 4
                                                                                                                                                                                              C) 3
                                                                                                                                                                                              D) 1


                                                                                                                                                                                              5. A Hawaii insurance producer is the subject of an administrative action in another state. The matter reaches final disposition on March 1. The producer must generally report the action to the Hawaii Insurance Commissioner within:

                                                                                                                                                                                              A) 60 days
                                                                                                                                                                                              B) 30 days
                                                                                                                                                                                              C) 10 days
                                                                                                                                                                                              D) 15 days


                                                                                                                                                                                              Solutions:

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

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