Course of Study Content Requirements

Time Distribution Requirements

I.

Types of policies and coverages

32%

A.

Endowment

B.

Term

1.

Level term

2.

Decreasing term

C.

Whole Life

D.

Limited Pay policies

E.

Combination plan

F.

Other types of policies:

1.

Modified life

2.

Family plans

3.

Deposit term

4.

Universal life

G.

Annuity

H.

Accidental death and dismemberment

I.

Uses for term insurance

J.

Uses for whole life insurance

K.

Group life

L.

Industrial insurance

II.

Policy provisions, options and benefits

40%

A.

Entire contract

B.

Insuring clause

C.

Free look

D.

Consideration clause

E.

Owner's rights

F.

Primary and contingent beneficiaries

G.

Change of beneficiary

H.

Grace period

I.

Automatic premium loan

J.

Reinstatement

K.

Policy loan

L.

Nonforfeiture options

M.

Dividends and dividends options

N.

Guaranteed insurability options

O.

Incontestability

P.

Assignment

Q.

Suicide

R.

Misstatement of age

S.

Settlement options

T.

Waiver of premiums

U.

Accidental death benefit

V.

Term riders

W.

Exclusions

X.

Conversion Options (individual and group)

III.

Completing the application and delivering the policy

16%

A.

Completing the application and obtaining necessary signatures

B.

Warranties and Representations

C.

Complying with provision of Fair Credit Reporting Act and Illinois Insurance Privacy Act

D.

Explaining the effect of the application with money

E.

Explaining the effect of the application without money

F.

The underwriting process

G.

Delivery and explanation of the policy

IV.

Taxes, retirement and other insurance concepts

12%

A.

Insurable interest

B.

Third party ownership

C.

Individual tax shelter plans, IRA, Keogh and TSA

D.

Social Security benefits and taxes

E.

Tax treatment of premiums and proceeds of insurance contracts

F.

Determination of premiums

1.

Mortality

2.

Interest

3.

Mortality

G.

Policy reserves