OHIO LIFE INSURANCE LICENSE PRACTICE EXAM MISSED

PDF Download

OHIO LIFE INSURANCE LICENSE PRACTICE EXAM MISSED

QUESTIONS AND ANSWERS EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -50 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Stranger-originated life insurance policies are in direct opposition to the principle of a)Insurable interest.b)Law of large numbers.c)Good faith.d)Indemnity.

Answer:

a) Insurable interest

Question 2: Which of the following statements is correct about a standard risk classification in the same age group and with similar lifestyles?a)Standard risk requires extra rating.b)Standard risk is also known as high exposure risk.c)Standard risk is representative of the majority of people.d)Standard risk pays a higher premium than a substandard risk.

Answer:

c) Standard risk is representative of the majority of people

Question 3: In a fixed annuity, which of the following is true regarding the guaranteed interest rate on the investment?a)The annuitant will receive the lower of either the guaranteed minimum rate or current rate.b)The annuitant will only receive the guaranteed minimum specified in the contract.c)The annuitant will receive the higher of either the guaranteed minimum rate or current rate.d)The annuitant will always receive the current interest rate.

Answer:

c) The annuitant will receive the higher of either the guaranteed minimum rate or current rate

Question 4: Traditional IRA contributions are tax deductible based on which of the following?a)Owner's age b)IRA limit c)Owner's income d)How long the plan has been in force

Answer:

c) Owner's income

Question 5: An insurance company receives an application with some information missing and issues the policy anyway. What is this called?a)Subrogation b)Aleatory c)Waiver d)Estoppel

Answer:

c) Waiver

Question 6: An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?a)The date of medical exam b)The date of policy delivery c)The date of issue d)The date of application

Answer:

a) The date of medical exam

Question 7: If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back?a)The policy beneficiary receives the full death benefit.b)The policy beneficiary takes over the loan payments.c)The policy is rendered null and void.d)The balance of the loan will be taken out of the death benefit.

Answer:

d) The balance of the loan will be taken out of the death benefit

Question 8: How are state Insurance Guaranty Associations funded?

a)By the Department of Insurance b)By NAIC c)By the Government d)By their members - authorized insurers

Answer:

d) By their members - authorized insurers

Question 9: The hearing for a cease and desist order must occur within how many days of the order date?a)15 b)30 c)45 d)60

Answer:

• 15

Question 10: In an Adjustable Life policy all of the following can be changed by the policy owner

EXCEPT

a)The length of coverage.b)The premium.c)The amount of insurance.d)The type of investment.

Answer:

d) The type of investment

Question 11: An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?a)Term life b)Limited pay c)Universal life d)Adjustable life

Answer:

c) Universal Life

Question 12: Which of the following terms is used to name the nontaxed return of unused premiums?a)Dividend b)Premium return c)Interest d)Surrender

Answer:

a) Dividend

Question 13: Who is a person, other than a viator, that enters into a viatical settlement contract?a)Purchaser b)Effectuator c)Broker d)Provider

Answer:

d) Provider

Question 14: If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a a)Settlement option.b)Nontaxable exchange c)Nonforfeiture option d)Rollover.

Answer:

• settlement option

Question 15: What is the maximum allowed value of a promotional item a producer can offer a customer without violating inducement regulations?a)$25 b)$50 c)$100 d)$200

Answer:

• $50

Question 16: An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?a)The insured may choose to convert to term or permanent individual coverage.b)The insured would not need to prove insurability for a conversion policy.c)The insured may convert coverage to an individual policy within 31 days.d)The premium for individual coverage will be based upon the insured's attained age.