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SD Life Producer — Information & Free Practice

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SD Life Producer

Provider
Pearson VUE
Format
Computer-delivered examination at a test center
Exam questions
Handbook: 90 total; outline: 50 general scored plus 5 pretest and 25 state scoreable plus 5 pretest
Time limit
120 minutes
Passing score
70 (scaled score)
Exam fee
$85
Examination outline
  • 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. Types / a. Level
    • C. Term life / 1. Types / b. Decreasing
    • C. Term life / 1. Types / c. Return of premium
    • C. Term life / 1. Types / d. Annually renewable
    • C. Term life / 2. Special features
    • C. Term life / 2. Special features / a. Renewable
    • C. Term life / 2. Special features / 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)
  • II. LIFE PROVISIONS,RIDER, 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. Beneficiary designations / a. Primary and contingent
    • B. Policy provisions and options / 6. Beneficiary designations / b. Revocable and irrevocable
    • B. Policy provisions and options / 6. Beneficiary designations / c. Common disaster
    • B. Policy provisions and options / 6. Beneficiary designations / d. Minor beneficiaries
    • B. Policy provisions and options / 6. Beneficiary designations / c. Designation by class
    • B. Policy provisions and options / 7. Premium Payment
    • B. Policy provisions and options / 7. Premium Payment / a. Modes
    • B. Policy provisions and options / 7. Premium Payment / b. Grace period
    • B. Policy provisions and options / 7. Premium Payment / c. Automatic premium loan
    • B. Policy provisions and options / 7. Premium Payment / 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
  • III. COMPLETING THE APPLICATION, UNDERWRITING, AND DELIVERING THE POLICES
    • 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. Elements of a contract / a. Consideration
    • D. Contract law / 1. Elements of a contract / b. Offer and Acceptance
    • D. Contract law / 1. Elements of a contract / c. Competent parties
    • D. Contract law / 1. Elements of a contract / d. Legal purpose
    • D. Contract law / 2. Unique aspects of the insurance contract
    • D. Contract law / 2. Unique aspects of the insurance contract / a. Conditional
    • D. Contract law / 2. Unique aspects of the insurance contract / b. Unilateral
    • D. Contract law / 2. Unique aspects of the insurance contract / c. Adhesion
    • D. Contract law / 2. Unique aspects of the insurance contract / d. Aleatory
  • 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. Business insurance needs / a. Key person
    • E. Life insurance needs analysis/suitability / 2. Business insurance needs / 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)
  • I. SD STATUTES, RULES, AND REGULATIONS COMMON TO LIFE, ACCIDENT AND HEALTH, PROPERTY, AND CASUALTY INSURANCE
    • A. Director of Insurance
    • A. Director of Insurance / 1. Duties and powers
    • A. Director of Insurance / 2. Examination of records
    • A. Director of Insurance / 3. Hearings/notice of hearings
    • A. Director of Insurance / 4. Penalties (and fines)
    • A. Director of Insurance / 5. Cease and desist orders
    • B. Insurance Definitions
    • B. Insurance Definitions / 1. Acts constituting an insurance transaction
    • B. Insurance Definitions / 2. Domestic, foreign and alien company
    • B. Insurance Definitions / 3. Fraternals
    • B. Insurance Definitions / 4. Authorized and unauthorized companies
    • B. Insurance Definitions / 5. Stock and mutual companies
    • B. Insurance Definitions / 6. Certificate of authority
    • C. Licensing
    • C. Licensing / 1. Types of licenses
    • C. Licensing / 1. Types of licenses / a. Producer
    • C. Licensing / 1. Types of licenses / b. Resident/Nonresident
    • C. Licensing / 1. Types of licenses / c. Temporary license
    • C. Licensing / 1. Types of licenses / d. Business entity
    • C. Licensing / 2. Qualifications for obtaining a license
    • C. Licensing / 2. Qualifications for obtaining a license / a. Exemptions/Exceptions
    • C. Licensing / 2. Qualifications for obtaining a license / b. License denial
    • C. Licensing / 3. Maintaining a license
    • C. Licensing / 3. Maintaining a license / a. Continuing education
    • C. Licensing / 3. Maintaining a license / b. Change of address
    • C. Licensing / 3. Maintaining a license / c. Renewal/Nonrenewal
    • C. Licensing / 3. Maintaining a license / d. Record maintenance
    • C. Licensing / 3. Maintaining a license / e. License suspension/ revocation/ refusal to issue or renew
    • C. Licensing / 3. Maintaining a license / f. Reporting of actions
    • C. Licensing / 3. Maintaining a license / g. Assumed business name
    • C. Licensing / 3. Maintaining a license / h. Inactivity due to military service
    • C. Licensing / 3. Maintaining a license / i. Inactivity due to extenuating circumstances
    • C. Licensing / 3. Maintaining a license / j. Reinstatement, continuation, termination
    • C. Licensing / 4. Appointments
    • C. Licensing / 4. Appointments / a. Termination of appointment
    • D. Producer responsibilities
    • D. Producer responsibilities / 1. Fiduciary responsibilities
    • D. Producer responsibilities / 2. Commissions, compensation, fees
    • D. Producer responsibilities / 3. Reporting of felonies and crimes of moral turpitude
    • D. Producer responsibilities / 4. Influence of witnesses
    • D. Producer responsibilities / 5. Response to Division inquiries
    • E. Life and Health Insurance Guaranty Association
    • E. Life and Health Insurance Guaranty Association / 1. Purpose and disclaimer
    • E. Life and Health Insurance Guaranty Association / 2. Advertising
    • F. Marketing practices
    • F. Marketing practices / 1. Unfair practices
    • F. Marketing practices / 1. Unfair practices / a. Boycott, coercion, intimidation
    • F. Marketing practices / 1. Unfair practices / b. Commingling
    • F. Marketing practices / 1. Unfair practices / c. Controlled business
    • F. Marketing practices / 1. Unfair practices / d. Defamation
    • F. Marketing practices / 1. Unfair practices / e. False advertising
    • F. Marketing practices / 1. Unfair practices / f. Illegal inducement
    • F. Marketing practices / 1. Unfair practices / g. Misrepresentation
    • F. Marketing practices / 1. Unfair practices / h. Rebating
    • F. Marketing practices / 1. Unfair practices / i. Twisting
    • F. Marketing practices / 1. Unfair practices / j. Unfair discrimination
    • F. Marketing practices / 1. Unfair practices / k. Acting without a license
    • F. Marketing practices / 1. Unfair practices / l. Larceny
    • F. Marketing practices / 1. Unfair practices / m. Prohibited fees/ premiums/ extra charges
    • F. Marketing practices / 1. Unfair practices / n. Loans
    • F. Marketing practices / 1. Unfair practices / o. Notification of suspected fraud
    • F. Marketing practices / 2. Unfair claims settlement practices
    • G. Policy delivery and receipt
    • H. Insurance Fraud Regulation
  • II. SD STATUTES, RULES, AND REGULATIONS PERTINENT TO LIFE INSURANCE ONLY
    • A. Marketing practices
    • A. Marketing practices / 1. Advertising and sales
    • A. Marketing practices / 1. Advertising and sales / a. Advertising
    • A. Marketing practices / 1. Advertising and sales / b. Illustrations
    • A. Marketing practices / 1. Advertising and sales / c. Insurable Interest
    • A. Marketing practices / 1. Advertising and sales / d. Nonforfeiture Law
    • A. Marketing practices / 2. Military sales
    • B. Policy replacement
    • B. Policy replacement / 1. Purpose
    • B. Policy replacement / 2. Definitions
    • B. Policy replacement / 3. Exemptions
    • B. Policy replacement / 4. Duties of producer
    • B. Policy replacement / 5. Duties of replacing insurance company
    • C. Individual life and annuity
    • C. Individual life and annuity / 1. Free Look
    • C. Individual life and annuity / 2. Grace period
    • C. Individual life and annuity / 3. Policy Loans
    • C. Individual life and annuity / 4. Assignment
    • D. Group Life
    • D. Group Life / 1. Group underwriting requirements
    • D. Group Life / 2. Conversion to individual Policy
    • D. Group Life / 3. Dependent Coverage
    • D. Group Life / 4. Assignment
    • E. Annuities
    • E. Annuities / 1. Suitability and best interest
    • E. Annuities / 2. Consumer Protection
    • E. Annuities / 3. Regulation of variable products (SEC, FINRA and South Dakota)
Examination sources