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Last Updated: Aug 18, 2026
No. of Questions: 107 Questions & Answers with Testing Engine
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| Section | Weight | Objectives |
|---|---|---|
| Federal Tax Considerations | 12% | - Tax treatment of annuities - 1035 Exchanges and rollovers - Modified Endowment Contracts (MECs) - Taxation of life insurance proceeds |
| Life Insurance Basics | 18% | - Determining coverage amounts - Viatical settlements and specialized plans - Personal and business uses of life insurance - Underwriting and policy issue |
| General Insurance Concepts | 12% | - Risk management and insurable interest - Agent authority and responsibilities - Elements of insurance contracts - Types of insurers and market conduct |
| Policy Provisions, Options & Riders | 22% | - Nonforfeiture and settlement options - Common policy riders - Standard policy provisions - Beneficiary designations - Dividends, loans and withdrawals |
| Insurance Regulation | 12% | - Disciplinary actions and penalties - Resident and non-resident rules - Continuing education requirements - State and federal insurance laws - Licensing requirements and maintenance |
| Types of Life Insurance Policies | 12% | - Group and credit life insurance - Term life insurance - Universal and indexed universal life - Whole life and permanent life |
| Annuities | 12% | - Immediate vs deferred annuities - Fixed and specialty annuities - Annuity principles and types - Payment options and uses |
1. Survivorship life insurance policies are useful in estate planning because they
A) accumulate a sum of money for retirement.
B) can provide money to pay taxes on assets.
C) provide funeral insurance and pre-need burial insurance.
D) redistribute the premium obligation during the early years of the policy.
2. An Insurer would consider which of the following In determining whether to accept a group life plan?
A) Dependents
B) Beneficiary
C) Average age
D) Grace period
3. Which of the following is a life insurance contract written on the life of an individual?
A) Single-Life Insurance.
B) Survivorship Policy.
C) Joint Life Contract.
D) Insurance.
4. Bettie has a $200,000 whole life policy with a $50,000 cash value. She wishes to borrow $30,000 for the
purchase of a new van. Which of the following Is TRUE In this situation?
A) Loans can only be taken for hardship situations.
B) This type of loan is interest free.
C) There is no requirement that she pay back the loan.
D) Whole life policies do not have any loan provisions.
5. The accumulated cash value of a whole life insurance policy becomes the
A) funds used to offset policy administration and conversion expenses.
B) amount used to purchase paid up additions to the insured's policy.
C) face amount payable upon the insured's death.
D) policy loan value upon which the insured may borrow.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: D |
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