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Last Updated: Jul 21, 2026
No. of Questions: 107 Questions & Answers with Testing Engine
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: General Insurance Concepts | 12% | - Elements of insurance contracts - Risk management and insurable interest - Agent authority and responsibilities - Types of insurers and market conduct |
| Topic 2: Insurance Regulation | 12% | - Continuing education requirements - Disciplinary actions and penalties - Licensing requirements and maintenance - Resident and non-resident rules - State and federal insurance laws |
| Topic 3: Life Insurance Basics | 18% | - Underwriting and policy issue - Personal and business uses of life insurance - Viatical settlements and specialized plans - Determining coverage amounts |
| Topic 4: Federal Tax Considerations | 12% | - Taxation of life insurance proceeds - Modified Endowment Contracts (MECs) - 1035 Exchanges and rollovers - Tax treatment of annuities |
| Topic 5: Policy Provisions, Options & Riders | 22% | - Dividends, loans and withdrawals - Common policy riders - Nonforfeiture and settlement options - Standard policy provisions - Beneficiary designations |
| Topic 6: Types of Life Insurance Policies | 12% | - Group and credit life insurance - Term life insurance - Whole life and permanent life - Universal and indexed universal life |
| Topic 7: Annuities | 12% | - Fixed and specialty annuities - Payment options and uses - Immediate vs deferred annuities - Annuity principles and types |
1. A policyowner may not pay premiums with which frequency?
A) Monthly
B) Semi-annually
C) Bi-weekly
D) Quarterly
2. The only beneficiary named in a life insurance policy died before the Insured. The policyowner did not name a
new beneficiary. When a claim is filed, the death benefit would be paid to the
A) beneficiary's estate.
B) policyowner.
C) Insured's next of kin.
D) insured's estate.
3. An annuitant dies during the accumulation period. What happens to the cash value in the annuity?
A) The cash value is paid to the beneficiary.
B) The cash value is paid into the estate.
C) The cash value is paid to the IRS.
D) The company keeps the cash value.
4. The premium mode defines the
A) premium limit.
B) method of premium payment.
C) frequency of the premium payment.
D) premium amount.
5. The most common use of a group life insurance policy is to insure
A) company employees.
B) members of a family.
C) retirees.
D) association members.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: A |
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