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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Federal Tax Considerations | 12% | - Modified Endowment Contracts (MECs) - Taxation of life insurance proceeds - 1035 Exchanges and rollovers - Tax treatment of annuities |
| Topic 2: Insurance Regulation | 12% | - Resident and non-resident rules - Licensing requirements and maintenance - State and federal insurance laws - Continuing education requirements - Disciplinary actions and penalties |
| Topic 3: General Insurance Concepts | 12% | - Agent authority and responsibilities - Risk management and insurable interest - Types of insurers and market conduct - Elements of insurance contracts |
| Topic 4: Life Insurance Basics | 18% | - Viatical settlements and specialized plans - Determining coverage amounts - Underwriting and policy issue - Personal and business uses of life insurance |
| Topic 5: Annuities | 12% | - Payment options and uses - Immediate vs deferred annuities - Annuity principles and types - Fixed and specialty annuities |
| Topic 6: Policy Provisions, Options & Riders | 22% | - Beneficiary designations - Nonforfeiture and settlement options - Dividends, loans and withdrawals - Common policy riders - Standard policy provisions |
| Topic 7: Types of Life Insurance Policies | 12% | - Universal and indexed universal life - Group and credit life insurance - Term life insurance - Whole life and permanent life |
1. Falsifying the terms, benefits, advantages, or conditions of an insurance policy Is an example of which of the
following?
A) Forgery
B) Misrepresentation
C) Concealment
D) Coercion
2. Which of the following statements BEST describes a single premium cash value policy?
A) It provides for only one premium to be paid without evidence of insurability.
B) It requires only one payment to make the policy paid up.
C) It waives one future premium if the owner becomes disabled.
D) It requires the policyowner to pay one premium annually.
3. An agent qualified to sell variable products in Ohio must report each of the following to the superintendent of
Insurance EXCEPT
A) a felony criminal conviction.
B) a suspension from the National Association of Securities Dealers.
C) the sharing of commissions with another qualified agent.
D) the revocation of an insurance license held in another state.
4. An agent's underwriting duties Include which of the following?
A) Setting premium amounts.
B) Issuing the policy.
C) Completing all applications and collecting initial premiums.
D) Declining or accepting an application.
5. If an agent does NOT send a refund to a policyholder within an expectable time frame, the agent may
A) be barred from seeking an appeal.
B) have his or her license suspended or revoked.
C) be charged interest on the refund amount.
D) receive a deduction in commissions.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: B |
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