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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Annuities | 10-15% | - Taxation of annuities - Indexed annuities - Fixed and variable annuities - Annuitization options |
| Topic 2: Life Insurance | 30-35% | - Beneficiary designations - Settlement options - Types of life insurance policies
- Group life insurance - Policy provisions and riders |
| Topic 3: General Insurance Concepts | 10-15% | - Insurance contract law - Agent authority and responsibilities - Insurable interest - Risk and insurance principles |
| Topic 4: Accident and Health Insurance | 30-35% | - Accident insurance - Major medical policies - Policy provisions and exclusions - Health insurance basics - Disability income insurance - Medical expense plans - Group health insurance |
| Topic 5: Ethics and Professional Conduct | 10-15% | - Suitability standards - Privacy and confidentiality - Disclosure requirements - Fiduciary duties |
| Topic 6: Pennsylvania Insurance Laws and Regulations | 15-20% | - Consumer protection rules - Policy forms and approval - State licensing requirements - Unfair trade practices - Continuing education requirements |
1. An insured has a stop-loss limit of $10,000, a deductible of $500, and an 80%'20% coinsurance. The insured incurs $50,000 of covered losses in an accident. How much I will the insured have to pay?
A) $500
B) $10,000
C) $10,600
D) $10,400
2. A contract of indemnity is one in which
A) one party must adhere to the agreements written by the other party.
B) both parties are expected to act in complete honesty.
C) one party is obligated to assume the legal liability of another party.
D) one party is restored to the same financial position the party was in before the loss occurred.
3. In order to transact the business of insurance for an insurer, a producer needs to be able to carry out activities not stipulated in the agency contract. This type of | authority is referred to as
A) fiduciary.
B) applied.
C) expressed.
D) implied.
4. Statements made on an application that the insured guarantees to be true are
A) warranties.
B) estoppel.
C) material facts.
D) waivers.
5. An applicant purchases a life Insurance policy to avoid the forced sale of assets upon his death. What is this action called?
A) Capital liquidation.
B) Estate conservation.
C) Capital retention.
D) Buy-sell funding.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: B |
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