PRACTICE EXAM- OHIO LIFE ONLY

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PRACTICE EXAM- OHIO LIFE ONLY

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

-Format: Multiple-choice / Flashcard

Question 1: Andy the annuitant dies before the annuity start date. Which of the following is a TRUE statement?

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Premiums paid plus interest earned is returned to the beneficiary Question 2: a securities license is required for a life insurance producer to sell

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variable life insurance Question 3: When a qualified plan starts making payments to its recipient, which portion of the distributions is taxable?

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Gains

Question 4: Who assumes the investment risk with a fixed annuity contract?

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The insurer Question 5: Which of the following protects a policyowner from a misrepresentation caused by an innocent mistake?

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Incontestable clause

Question 6: An agent's license may only be suspended or revoked if the agent

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has been afforded a right to a hearing

Question 7: a policy that is paid up after only one payment

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Change must be initialed by the applicant Question 8: All of the following are exempt from the 10% tax penalty for early qualified plan withdrawals EXCEPT

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Stock purchase Question 9: A spouse and child can be added to the primary insured's coverage as what kind of rider?

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Family term

Question 10: All of the following may be an unfair claims practice EXCEPT

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Denying an insured's fraudulent claim Question 11: Which of the following is considered to be an act of misrepresentation?

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Falsifying the terms, benefits, advantages, or conditions of an insurance policy

Question 12: A non-admitted insurer

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is not afforded protection by the guaranty fund Question 13: Which of the following is considered to be an event or condition that increases the probability of an insured's loss?

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hazard

Question 14: A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that is higher than the guaranteed rate is called

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universal life Question 15: Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. If the consumer price index has gone up 4%, how much may Ron increase the face value of the policy?

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$4,000

Question 16: An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. The provision that allows this is called

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Partial Surrender Question 17: Dorian exercised a nonforfeiture option by using his life policy's cash value to purchase an extended term insurance option. When the term insurance expires,

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the protection ends Question 18: Which of these is NOT considered to be a risk factor in life insurance underwriting?

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Number of children Question 19: Which of these is considered to be a Living Benefit option in a life insurance policy?

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Accelerated death benefit Question 20: The superintendent determines an examination of an insurer's books and records is necessary. After receiving the notification, the insurer

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must not impede the examination

Question 21: What is an insurer required to do when faced with an error made under the Misstatement of Age provision?

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Pay age-corrected benefits Question 22: Lisa has recently bought a fixed annuity. Which of these is considered to be a disadvantage of owning this type of annuity?

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During periods of inflation, annuitants will experience a decrease in purchasing power of their payments Question 23: A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called

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A self-funded plan Question 24: Ownership of a life insurance policy may be temporarily transferred with a(n)

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collateral assignment Question 25: Which approach predicts a person's earning potential and determines how much of that amount would be devoted to dependents?

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Human life value approach

Question 26: The Fair Credit and Reporting Act's main purpose is to

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protect consumers with guidelines regarding credit reporting and distribution Question 27: Level premium permanent insurance accumulates a reserve that will eventually

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equal the face amount of the policy Question 28: What is known as the immediate specific event causing loss and giving rise to risk?

Answer:

peril