Last Updated: Aug 22, 2026
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: General Insurance Concepts | 12% | - Elements of insurance contracts - Agent authority and responsibilities - Risk management and insurable interest - Types of insurers and market conduct |
| Topic 2: Life Insurance Basics | 18% | - Viatical settlements and specialized plans - Determining coverage amounts - Underwriting and policy issue - Personal and business uses of life insurance |
| Topic 3: Insurance Regulation | 12% | - Disciplinary actions and penalties - State and federal insurance laws - Continuing education requirements - Resident and non-resident rules - Licensing requirements and maintenance |
| Topic 4: Policy Provisions, Options & Riders | 22% | - Nonforfeiture and settlement options - Standard policy provisions - Dividends, loans and withdrawals - Common policy riders - Beneficiary designations |
| Topic 5: Annuities | 12% | - Payment options and uses - Fixed and specialty annuities - Annuity principles and types - Immediate vs deferred annuities |
| Topic 6: Federal Tax Considerations | 12% | - 1035 Exchanges and rollovers - Modified Endowment Contracts (MECs) - Tax treatment of annuities - Taxation of life insurance proceeds |
| Topic 7: Types of Life Insurance Policies | 12% | - Term life insurance - Group and credit life insurance - Whole life and permanent life - Universal and indexed universal life |
1. A single premium Immediate annuity Is MOST often used for
A) vacation expenses.
B) retirement income.
C) children's college expenses.
D) mortgage payments.
2. Which of the following is a characteristic of a non-admitted Insurer?
A) A non-admitted insurer is required to submit rates for approval.
B) A non-admitted insurer is also known as a domestic insurer.
C) A non-admitted insurer is required to submit forms to the Department of Insurance.
D) A non-admitted insurer is not afforded protection by the guaranty fund.
3. Who can surrender an annuity during the accumulation period?
A) The annuitant.
B) The policyowner.
C) The beneficiary.
D) The company.
4. Under the children's term rider, what occurs when a child reaches the specified age? He or she
A) may Increase the term coverage of the rider.
B) automatically becomes the beneficiary of the life insurance policy.
C) is eliminated from coverage.
D) must show evidence of insurability to remain covered.
5. The Group Life Underwriting risk selection process helps protect Insurers from
A) medical underwriting.
B) risk underwriting.
C) risk selection.
D) adverse selection.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: D |
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