LIFE AND HEALTH INSURANCE - OHIO LICENSING EXAM

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LIFE AND HEALTH INSURANCE - OHIO LICENSING EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Death Benefit

Answer:

The policy proceeds to be paid on the death of the insured.

Question 2: Contingent Beneficiary

Answer:

The person or persons named to receive benefits if the primary beneficiary is not alive.

Question 3: Alien company

Answer:

An insured organized and domiciled in a country other than the United States

Question 4: Deferred annuity

Answer:

An annuity on which payments to the annuitant are delayed until a specified future date.

Question 5: Aviation clause

Answer:

Limits or excludes coverage when the insured is participating in specified types of air travel, cush as private planes. Coverage is usually fully in force for people on regularly scheduled commercial flights.The limit or exclusion often applies to student pilots

Question 6: Automatic premium loan

Answer:

A provision in a life policy authorizing the insurance company to use the loan value to pay premiums not paid by the end of the grace period. May be present in whole life or other traditional cash value policies only, but never in term policies

Question 7: Comprehensive Health or Major Medical Insurance

Answer:

A form of Health insurance that combines the coverage of major medical and basic medical exspenses crontracts into one broad contract that provides coverage for almost all types of medical expense with few internal limits. Usually subject to a corridor deductible for expenses after the first dollar base plan limits are exceeded, and to a co-insurance clause applicable to all or some of the remaining covered expenses.

Question 8: Foreign company

Answer:

An insurer organized under laws of a state other than the state in which the insurance is written.

Question 9: General Agent

Answer:

An individual appointed by an insurer to administer its business in a given territory.

Question 10: Extended term option

Answer:

A life insurance non-forfeiture option, under which the insured uses the policy's cash value accumulation to purchase single-premium term insurance in an amount equal to the original policy face amount

Question 11: Experience

Answer:

The loss record of an insured, a class of coverage, or an insurance company.

Question 12: Common Disaster Provision

Answer:

A provision that can be included in a Life contrat that pvoides that the primary beneficiary must outlive the insured by a specified period of time in order to receive the proceeds. If not, the contingent beneficiary receives that proceeds. The provision is designed to protect the rights of the contingent beneficiary in the event of simultaneous death of the insured and the primary beneficiary. The time limit is up to 90 days, depending on state law.

Question 13: Annuity

Answer:

• An amount of money, payable monthly or yearly, which liquidates a financial asset.
• An agreement by an insurer to make periodic payments that continue during the survival of the

annuitant(s) or for a specified period. Annuities are also accumulations vehicles that function much like savings accounts.

Question 14: Accelerated benefit

Answer:

Available only if the benefits are available during the insured's lifetime, benefit amounts are fixed when accelerated, and the benefits, when paid, reduces the death benefit

Question 15: Deductible

Answer:

Dollars or percentage of expense that will not be reimbursed by the insurer.

Question 16: Blue Plan

Answer:

The generic term for those insurers (usually on a service rather than a reimbursement bases) who are authorized to use the designation Blue Cross or Blue Shield and the insignia of either.

Question 17: Application

Answer:

A form on which the prospective insured states facts requested by the insurer and on the basis of which the insurer decides whether to accept the risk, modify the coverage offered, or decline the risk.

Question 18: Co-Insurance

Answer:

In Health Insurance, a provision that the insured and insurance company will share covered losses in agreed proportion.

Question 19: Grace period

Answer:

A period of time after the premium due date during which a policy remains in force without penalty, even though the premium due has not been paid.

Question 20: Credit Insurance

Answer:

Insurance on a debtor in favor of a lender, intended to pay off a loan or the balance due if the insured dies or is disabled.

Question 21: Accident and Sickness

Answer:

Insurance against bodily injury, disability, or death by accident or accidental means, or expense thereof, or against disability or expense resulting from sickness and the insurance relating thereto

Question 22: Health insurance association

Answer:

A state fund that provides health insurance to residents who have been denied coverage, and the fund is maintained by assessments of the authorized health insurers in the state.

Question 23: Accumulation at interest option

Answer:

A dividend option under which the policy owner allows dividends to accumulate at interest with the company. Only the interest on the dividends is taxable as income (participating policies only).

Question 24: Claim

Answer:

A demand for payment under the insurance policy.

Question 25: Group Contract

Answer:

A contract of insurance made with an employer or other entity that covers a group of people identified as individuals by reference to their relationship to the entity. A group contract may be life insurance, health insurance, or an annuity.

Question 26: Conditionally Renewable

Answer:

A contract of Health Insurance that provides that the insured may renew the contract to a stated date or an advanced age, subject to the right of the insurer to decline renewal only under conditions defined in the contract.