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Last Updated: Jul 18, 2026
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| Section | Weight | Objectives |
|---|---|---|
| Insurance Regulation | 12% | - Assumed business names - Renewal and nonrenewal - Change of address and contact information - Reporting convictions and disciplinary actions - Licensing requirements - Temporary licenses - Resident and nonresident rules - Continuing education requirements |
| Life Insurance Product Knowledge | - Section 1035 exchanges and rollover rules - Settlement options and beneficiary provisions - Policy provisions and types - Cash value, dividends, policy loans and surrenders - Modified Endowment Contracts and taxation |
1. To avoid tax consequences, a rollover from a Traditional IRA to another IRA MUST be done within
A) 30 days.
B) 60 days.
C) 90 days.
D) 45 days.
2. An agent's underwriting duties Include which of the following?
A) Declining or accepting an application.
B) Setting premium amounts.
C) Issuing the policy.
D) Completing all applications and collecting initial premiums.
3. Extended term Insurance can be selected under which whole life policy provision?
A) settlement
B) cash value
C) nonforfeiture
D) interest-only
4. An insured wants to purchase a policy with three key elements: flexible premium, death benefit, and the choice
of mutual funds where the cash value will be Invested In a separate account. The Insured should purchase
A) adjustable life.
B) variable universal life.
C) universal life.
D) graded premium whole life.
5. 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) There is no requirement that she pay back the loan.
B) Whole life policies do not have any loan provisions.
C) Loans can only be taken for hardship situations.
D) This type of loan is interest free.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: C | Question # 4 Answer: B | Question # 5 Answer: A |
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