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Producer - Life

Provider
Pearson Professional Assessments
Format
In-person computer-based multiple-choice examination; English and Spanish delivery are offered.
Exam questions
80 scored questions and 10 unscored pretest questions: general knowledge 50 scored plus 5 pretest; Massachusetts specific 30 scored plus 5 pretest. Published section allocations are 15, 15, 12, 8, 15, and 15 scored questions respectively.
Passing score
70 on the equated scaled-score scale; not a raw percentage.
Exam fee
$37
Examination outline
  • General Knowledge — I. TYPES OF POLICIES
    • A. Traditional whole life products
    • A. Traditional whole life products / 1. Ordinary whole life
    • A. Traditional whole life products / 2. Limited-pay and single-premium life
    • B. Interest/market-sensitive/adjustable life products
    • B. Interest/market-sensitive/adjustable life products / 1. Universal life
    • B. Interest/market-sensitive/adjustable life products / 2. Variable whole life
    • B. Interest/market-sensitive/adjustable life products / 3. Variable universal life
    • B. Interest/market-sensitive/adjustable life products / 4. Interest-sensitive whole life
    • B. Interest/market-sensitive/adjustable life products / 5. Indexed life
    • C. Term life
    • C. Term life / 1. Types
    • C. Term life / 1.a. Level
    • C. Term life / 1.b. Decreasing
    • C. Term life / 1.c. Return of premium
    • C. Term life / 1.d. Annually renewable
    • C. Term life / 2. Special features
    • C. Term life / 2.a. Renewable
    • C. Term life / 2.b. Convertible
    • D. Annuities
    • D. Annuities / 1. Single and flexible premium
    • D. Annuities / 2. Immediate and deferred
    • D. Annuities / 3. Fixed and variable
    • D. Annuities / 4. Indexed
    • D. Annuities / 5. Accumulation and Annuity Periods
    • D. Annuities / 6. Payout options
    • E. Combination plans and variations
    • E. Combination plans and variations / 1. Joint life (first to die)
    • E. Combination plans and variations / 2. Survivorship life (second to die)
  • General Knowledge — II. POLICY RIDERS, PROVISIONS, OPTIONS, AND EXCLUSIONS
    • A. Policy riders
    • A. Policy riders / 1. Waiver of premium and waiver of monthly deduction
    • A. Policy riders / 2. Guaranteed insurability
    • A. Policy riders / 3. Payor benefit
    • A. Policy riders / 4. Accidental death and/or accidental death and dismemberment
    • A. Policy riders / 5. Term riders
    • A. Policy riders / 6. Other insureds
    • A. Policy riders / 7. Long term care
    • A. Policy riders / 8. Return of premium
    • A. Policy riders / 9. Disability
    • A. Policy riders / 10. Cost of Living
    • B. Policy provisions and options
    • B. Policy provisions and options / 1. Entire contract
    • B. Policy provisions and options / 2. Insuring clause
    • B. Policy provisions and options / 3. Free look
    • B. Policy provisions and options / 4. Consideration
    • B. Policy provisions and options / 5. Owner’s rights
    • B. Policy provisions and options / 6. Beneficiary designations
    • B. Policy provisions and options / 6.a. Primary and contingent
    • B. Policy provisions and options / 6.b. Revocable and irrevocable
    • B. Policy provisions and options / 6.c. Common disaster
    • B. Policy provisions and options / 6.d. Minor beneficiaries
    • B. Policy provisions and options / 6.e. Designation by class
    • B. Policy provisions and options / 7. Premium Payment
    • B. Policy provisions and options / 7.a. Modes
    • B. Policy provisions and options / 7.b. Grace period
    • B. Policy provisions and options / 7.c. Automatic premium loan
    • B. Policy provisions and options / 7.d. Level or flexible
    • B. Policy provisions and options / 8. Reinstatement
    • B. Policy provisions and options / 9. Policy loans, withdrawals, partial surrenders
    • B. Policy provisions and options / 10. Non-forfeiture options
    • B. Policy provisions and options / 11. Dividends and dividend options (e.g. participating, non-participating)
    • B. Policy provisions and options / 12. Incontestability
    • B. Policy provisions and options / 13. Assignments
    • B. Policy provisions and options / 14. Suicide
    • B. Policy provisions and options / 15. Misstatement of age and gender
    • B. Policy provisions and options / 16. Settlement options
    • B. Policy provisions and options / 17. Accelerated death benefits
    • C. Policy exclusions
    • C. Policy exclusions / 1. War
    • C. Policy exclusions / 2. Aviation
    • C. Policy exclusions / 3. Dangerous Occupation
  • General Knowledge — III. COMPLETING THE APPLICATION, UNDERWRITING, AND DELIVERING THE POLICY
    • A. Completing the application
    • A. Completing the application / 1. Required signatures
    • A. Completing the application / 2. Changes in the application
    • A. Completing the application / 3. Consequences of incomplete applications
    • A. Completing the application / 4. Warranties and representations
    • A. Completing the application / 5. Collecting the initial premium and issuing the receipt
    • A. Completing the application / 6. Replacement
    • A. Completing the application / 7. Disclosures at point of sale (e.g., HIPAA, HIV consent)
    • A. Completing the application / 8. USA PATRIOT Act/anti-money laundering
    • A. Completing the application / 9. Gramm-Leach-Bliley Act (GLBA) Privacy
    • B. Underwriting
    • B. Underwriting / 1. Insurable interest
    • B. Underwriting / 2. Medical information and consumer reports
    • B. Underwriting / 3. Fair Credit Reporting Act
    • B. Underwriting / 4. Risk classification
    • B. Underwriting / 5. Stranger/Investor-owned life insurance (STOLI/IOLI)
    • C. Delivering the policy
    • C. Delivering the policy / 1. When coverage begins
    • C. Delivering the policy / 2. Explaining the policy and its provisions, riders, exclusions, and ratings to the client
    • D. Contract law
    • D. Contract law / 1. Elements of a contract
    • D. Contract law / 1.a. Consideration
    • D. Contract law / 1.b. Offer and Acceptance
    • D. Contract law / 1.c. Competent parties
    • D. Contract law / 1.d. Legal purpose
    • D. Contract law / 2. Unique aspects of the insurance contract
    • D. Contract law / 2.a. Conditional
    • D. Contract law / 2.b. Unilateral
    • D. Contract law / 2.c. Adhesion
    • D. Contract law / 2.d. Aleatory
  • General Knowledge — IV. RETIREMENT AND OTHER INSURANCE CONCEPTS
    • A. Third-party ownership
    • B. Life Settlements
    • C. Group life insurance
    • C. Group life insurance / 1. Conversion privilege
    • C. Group life insurance / 2. Contributory vs. noncontributory
    • D. Retirement plans
    • D. Retirement plans / 1. Qualified plans
    • D. Retirement plans / 2. Nonqualified plans
    • E. Life insurance needs analysis/suitability
    • E. Life insurance needs analysis/suitability / 1. Personal insurance needs
    • E. Life insurance needs analysis/suitability / 2. Business insurance needs
    • E. Life insurance needs analysis/suitability / 2.a. Key person
    • E. Life insurance needs analysis/suitability / 2.b. Buy sell
    • F. Social Security benefits
    • G. Tax treatment of insurance premiums, proceeds, and dividends
    • G. Tax treatment of insurance premiums, proceeds, and dividends / 1. Individual life
    • G. Tax treatment of insurance premiums, proceeds, and dividends / 2. Group life
    • G. Tax treatment of insurance premiums, proceeds, and dividends / 3. Modified Endowment Contracts (MECs)
  • Massachusetts Specific — I. MASSACHUSETTS LAWS AND RULES PERTINENT TO ALL LINES OF INSURANCE
    • A. Licensing
    • A. Licensing / 1. Process
    • A. Licensing / 2. Types of licenses
    • A. Licensing / 2.a. Producers
    • A. Licensing / 2.b. Business entity producers
    • A. Licensing / 2.c. Nonresident producers
    • A. Licensing / 2.d. Temporary
    • A. Licensing / 2.e. Advisers
    • A. Licensing / 2.f. Reinsurance intermediaries
    • A. Licensing / 2.g. Life settlement broker
    • A. Licensing / 2.h. Exemptions
    • A. Licensing / 3. Maintenance and duration
    • A. Licensing / 3.a. Reinstatement and renewal
    • A. Licensing / 3.b. Address change
    • A. Licensing / 3.c. Reporting of actions
    • A. Licensing / 3.d. Assumed names
    • A. Licensing / 3.e. Continuing education requirements, exemptions and penalties
    • A. Licensing / 4. Disciplinary actions
    • A. Licensing / 4.a. Cease and desist order
    • A. Licensing / 4.b. Hearings
    • A. Licensing / 4.c. Probation, suspension, revocation, refusal to issue or renew
    • A. Licensing / 4.d. Penalties and fines
    • B. State Regulation
    • B. State Regulation / 1. Commissioner’s general duties and powers
    • B. State Regulation / 2. Company regulation
    • B. State Regulation / 2.a. Certificate of authority
    • B. State Regulation / 2.b. Solvency
    • B. State Regulation / 2.c. Rates
    • B. State Regulation / 2.d. Policy forms
    • B. State Regulation / 2.e. Examination of books and records
    • B. State Regulation / 2.f. Producer appointments
    • B. State Regulation / 2.g. Termination of producer appointment
    • B. State Regulation / 2.h. Payment of claims
    • B. State Regulation / 3. Producer regulation
    • B. State Regulation / 3.a. Impersonation
    • B. State Regulation / 3.b. Larceny
    • B. State Regulation / 3.c. Unlicensed persons compensation
    • B. State Regulation / 3.d. Commissions
    • B. State Regulation / 3.e. Records Retention
    • B. State Regulation / 3.f. Insurance transactions
    • B. State Regulation / 4. Unfair or deceptive practices
    • B. State Regulation / 4.a. Misrepresentation
    • B. State Regulation / 4.b. False advertising
    • B. State Regulation / 4.c. Defamation of insurer
    • B. State Regulation / 4.d. Boycott, coercion, intimidation
    • B. State Regulation / 4.e. False financial statements
    • B. State Regulation / 4.f. Failure to maintain a complaint record
    • B. State Regulation / 4.g. Unfair discrimination
    • B. State Regulation / 4.h. Unfair claims settlement practices
    • B. State Regulation / 4.i. Rebating
    • B. State Regulation / 5. Insurance fraud regulation
    • B. State Regulation / 6. Insurance Information and Privacy Protection
    • B. State Regulation / 7. Types of insurers
    • B. State Regulation / 7.a. Foreign, alien, domestic
    • B. State Regulation / 7.b. Authorized and unauthorized insurers
    • B. State Regulation / 7.c. Stock and mutual insurers
  • Massachusetts Specific — II. MASSACHUSETTS LAWS AND REGULATIONS PERTINENT TO LIFE INSURANCE
    • A. Life and Health Insurance Guaranty Association Law
    • B. Producer Responsibilities
    • B. Producer Responsibilities / 1. Solicitation and sales presentations
    • B. Producer Responsibilities / 1.a. Policy summary
    • B. Producer Responsibilities / 1.b. Buyer's guide
    • B. Producer Responsibilities / 1.c. Life insurance policy cost comparison methods
    • B. Producer Responsibilities / 1.d. Replacement
    • B. Producer Responsibilities / 1.e. Use and disclosure of insurance information
    • B. Producer Responsibilities / 2. Field Underwriting
    • B. Producer Responsibilities / 2.a. Notice of information practices
    • B. Producer Responsibilities / 2.b. Application procedures including backdating
    • C. Individual underwriting by the insurer
    • C. Individual underwriting by the insurer / 1. Information sources and regulation
    • C. Individual underwriting by the insurer / 1.a. Investigative consumer (inspection) report
    • C. Individual underwriting by the insurer / 1.b. Medical examinations and lab tests including HIV
    • C. Individual underwriting by the insurer / 2. Selection criteria and unfair discrimination
    • D. Life Insurance Policy Provisions, Options, and Riders
    • D. Life Insurance Policy Provisions, Options, and Riders / 1. Standard Provision
    • D. Life Insurance Policy Provisions, Options, and Riders / 1.a. Ownership
    • D. Life Insurance Policy Provisions, Options, and Riders / 1.b. Assignability
    • D. Life Insurance Policy Provisions, Options, and Riders / 1.c. Entire contract
    • D. Life Insurance Policy Provisions, Options, and Riders / 1.d. Right to examine (free look)
    • D. Life Insurance Policy Provisions, Options, and Riders / 1.e. Grace period
    • D. Life Insurance Policy Provisions, Options, and Riders / 1.f. Reinstatement
    • D. Life Insurance Policy Provisions, Options, and Riders / 1.g. Incontestability
    • D. Life Insurance Policy Provisions, Options, and Riders / 1.h. Misstatement of age
    • D. Life Insurance Policy Provisions, Options, and Riders / 1.i. Interest on insurance proceeds
    • D. Life Insurance Policy Provisions, Options, and Riders / 2. Nonforfeiture options
    • D. Life Insurance Policy Provisions, Options, and Riders / 2.a. Cash surrender value
    • D. Life Insurance Policy Provisions, Options, and Riders / 3. Policy loan and withdrawal options
    • D. Life Insurance Policy Provisions, Options, and Riders / 3.a. Cash loans
    • D. Life Insurance Policy Provisions, Options, and Riders / 4. Disability riders
    • D. Life Insurance Policy Provisions, Options, and Riders / 4.a. Waiver of premium/waiver of stipulated premium (universal life)
    • D. Life Insurance Policy Provisions, Options, and Riders / 5. Living benefit provisions/riders
    • D. Life Insurance Policy Provisions, Options, and Riders / 5.a. Accelerated
    • D. Life Insurance Policy Provisions, Options, and Riders / 5.b. Minimum standards
    • D. Life Insurance Policy Provisions, Options, and Riders / 5.c. Long-term care riders
    • D. Life Insurance Policy Provisions, Options, and Riders / 5.d. Children's term rider
    • D. Life Insurance Policy Provisions, Options, and Riders / 5.e. Accidental death
    • D. Life Insurance Policy Provisions, Options, and Riders / 6. Group life insurance
    • D. Life Insurance Policy Provisions, Options, and Riders / 6.a. Conversion to individual policy
    • D. Life Insurance Policy Provisions, Options, and Riders / 7. Flexible Premium Policies
    • D. Life Insurance Policy Provisions, Options, and Riders / 7.a. Variable life
    • D. Life Insurance Policy Provisions, Options, and Riders / 8. Whole Life Insurance
    • D. Life Insurance Policy Provisions, Options, and Riders / 8.a. Equity index
    • E. Annuities
    • E. Annuities / 1. Deferred annuities
    • E. Annuities / 2. General account assets
    • E. Annuities / 3. Equity indexed annuities
    • E. Annuities / 4. Variable annuities
    • E. Annuities / 4.a. Regulation of variable products (SEC, FINRA and Massachusetts)
    • E. Life Settlement Act
    • E. Life Settlement Act / 1. Life settlement broker authority
    • E. Life Settlement Act / 2. Disclosure to customers
    • E. Life Settlement Act / 3. Fraudulent acts
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