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Insurance Licensing Hawaii-Life-Producer Exam Syllabus Topics:

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

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

                                                                                                                                                                                              Question 1

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


                                                                                                                                                                                              Question 2

                                                                                                                                                                                              Under Social Security, which of the following determines the amount of a worker's Disability Income benefit?

                                                                                                                                                                                              A. State of residence average monthly wage
                                                                                                                                                                                              B. Minimum taxable wage base
                                                                                                                                                                                              C. Primary Insurance Amount (PIA)
                                                                                                                                                                                              D. National average monthly wage


                                                                                                                                                                                              Question 3

                                                                                                                                                                                              An employee's coverage under a Hawaii group life insurance policy terminates when the employee leaves employment. To exercise the statutory conversion privilege, the employee is entitled to obtain an individual life policy:

                                                                                                                                                                                              A. only after providing new evidence of insurability
                                                                                                                                                                                              B. only if the former employer pays the first premium
                                                                                                                                                                                              C. without evidence of insurability
                                                                                                                                                                                              D. only after completing a new medical examination


                                                                                                                                                                                              Question 4

                                                                                                                                                                                              Which of the following statements is CORRECT about the renewability features of a Term policy?

                                                                                                                                                                                              A. The insurance company requires evidence of insurability.
                                                                                                                                                                                              B. The premium rate increases.
                                                                                                                                                                                              C. The face amount increases.
                                                                                                                                                                                              D. The policy may be changed to Whole Life.


                                                                                                                                                                                              Question 5

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

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


                                                                                                                                                                                              Solutions:

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

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