OHIO LIFE INSURANCE 2026 TEST PAPER QUESTIONS AND
SOLUTIONS RATED A+
.
✔✔Survivorship life: - ✔✔The same as joint life except that the death benefit pays on
the last death rather than the first death. This policy is often used to offset the liability of
the estate tax upon the death of the last insured.
✔✔Juvenile Life: - ✔✔Any life insurance written on the life of a minor. The face amount
usually increases at a predetermined age but the premiums remain the same.
✔✔Group life: - ✔✔It is issued to the sponsor organization, usually written for
employee-employer groups. The insured participant under the group plan is issued a
certificate of insurance. The master policy/contract is issued to the sponsor of the group
which is often the employer.
✔✔Characteristics of the group plans: (4) - ✔✔*Purpose of the group*- The group must
be created for a purpose other than to obtain group insurance.
*Size of the group*- The larger the number of people in the group, the more accurate
the projections of future loss experience will be.
*Turnover of the group*- From the underwriting perspective, a group should have a
steady turnover: younger, lower-risk employees enter the group, and older, higher-risk
employees leave.
*Financial strength of the group*- Because group insurance is costly to administer, the
underwriter should consider whether or not the group has the financial resources to pay
the policy premiums, and whether or not it will be able to renew coverage.
✔✔Conversion to individual policy: - ✔✔A member of the group policy can terminate
their membership and convert to individual policy without proving insurability. The face
amount of the new policy will be equal to the old policy but the premiums will be higher.
The employee has a period of 31 days after terminating from the group to exercise this
option. When converted the insurer will determine that type of coverage, usually
permanent.
✔✔Credit Insurance: - ✔✔A special type of coverage written to insure the life of the
debtor and pay off the balance of a loan in the event of the death of the debtor. The
creditor is the owner and the beneficiary of the policy although the premiums are
generally paid by the borrower.
✔✔Re-entry: - ✔✔Some policies contain a re-entry option where the insured, upon the
end of a term policy with guaranteed renewable option, may answer medical questions
to prove insurability and qualify for a discounted premium rate.
✔✔Life Insurance Policy Provisions, Options & Riders - ✔✔.....
, ✔✔Provisions: - ✔✔Stipulate the rights and obligations of an insurance contract and are
fairly universal from one policy to the next.
✔✔Riders: - ✔✔Modify provisions that already exist and are used to increase or
decrease policy benefits and premiums.
✔✔Options: - ✔✔Offer insurers and insureds ways to invest or distribute a sum of
money available in a life policy.
✔✔The entire contract provision stipulates..: - ✔✔That the policy and a copy of the
application, along with any riders or amendments, constitute the entire contract.
✔✔Right to exam (free look period): - ✔✔This period starts when the policyowner
receives the policy, not when the insurer issues the policy. This allows the policyowner
a specified number of days from receipt to look over the policy and if dissatisfied for any
reason, return it for a full refund of premium.
✔✔Payment of Premiums Provision: - ✔✔The policy stipulates when the premiums are
due, how often they are to be paid and to whom.
✔✔Reinstatement Provision: - ✔✔Allows a lapsed policy to be put back in force. Max
time limit is usually 3 years.
✔✔Grace period: - ✔✔The period of time after the premium due date that the
policyowner has to pay the premium before the policy lapses (usually 30 or 31 days).
✔✔Incontestability: - ✔✔This clause prevents an insurer from denying a claim due to
statements in the application after the policy has been in force for 2 years, even if there
has been a material misstatement of facts or concealment of a material fact.
✔✔Misstatement of age: - ✔✔...
✔✔Modifications: - ✔✔At the request of the policyowner, a life insurance policy may be
altered or modified after the effective date of the policy.
✔✔Payments of Claims: - ✔✔Upon receipt of a written proof of loss, the insurer must
pay death claims immediately.
✔✔Exclusions: - ✔✔Types of risks the policy will not cover.
✔✔Aviation: - ✔✔Most life insurance will cover an insured as a fare-paying passenger
or a pilot on regularly scheduled airline, but will exclude coverage for noncommercial
pilots, or require an additional premium for the coverage.
SOLUTIONS RATED A+
.
✔✔Survivorship life: - ✔✔The same as joint life except that the death benefit pays on
the last death rather than the first death. This policy is often used to offset the liability of
the estate tax upon the death of the last insured.
✔✔Juvenile Life: - ✔✔Any life insurance written on the life of a minor. The face amount
usually increases at a predetermined age but the premiums remain the same.
✔✔Group life: - ✔✔It is issued to the sponsor organization, usually written for
employee-employer groups. The insured participant under the group plan is issued a
certificate of insurance. The master policy/contract is issued to the sponsor of the group
which is often the employer.
✔✔Characteristics of the group plans: (4) - ✔✔*Purpose of the group*- The group must
be created for a purpose other than to obtain group insurance.
*Size of the group*- The larger the number of people in the group, the more accurate
the projections of future loss experience will be.
*Turnover of the group*- From the underwriting perspective, a group should have a
steady turnover: younger, lower-risk employees enter the group, and older, higher-risk
employees leave.
*Financial strength of the group*- Because group insurance is costly to administer, the
underwriter should consider whether or not the group has the financial resources to pay
the policy premiums, and whether or not it will be able to renew coverage.
✔✔Conversion to individual policy: - ✔✔A member of the group policy can terminate
their membership and convert to individual policy without proving insurability. The face
amount of the new policy will be equal to the old policy but the premiums will be higher.
The employee has a period of 31 days after terminating from the group to exercise this
option. When converted the insurer will determine that type of coverage, usually
permanent.
✔✔Credit Insurance: - ✔✔A special type of coverage written to insure the life of the
debtor and pay off the balance of a loan in the event of the death of the debtor. The
creditor is the owner and the beneficiary of the policy although the premiums are
generally paid by the borrower.
✔✔Re-entry: - ✔✔Some policies contain a re-entry option where the insured, upon the
end of a term policy with guaranteed renewable option, may answer medical questions
to prove insurability and qualify for a discounted premium rate.
✔✔Life Insurance Policy Provisions, Options & Riders - ✔✔.....
, ✔✔Provisions: - ✔✔Stipulate the rights and obligations of an insurance contract and are
fairly universal from one policy to the next.
✔✔Riders: - ✔✔Modify provisions that already exist and are used to increase or
decrease policy benefits and premiums.
✔✔Options: - ✔✔Offer insurers and insureds ways to invest or distribute a sum of
money available in a life policy.
✔✔The entire contract provision stipulates..: - ✔✔That the policy and a copy of the
application, along with any riders or amendments, constitute the entire contract.
✔✔Right to exam (free look period): - ✔✔This period starts when the policyowner
receives the policy, not when the insurer issues the policy. This allows the policyowner
a specified number of days from receipt to look over the policy and if dissatisfied for any
reason, return it for a full refund of premium.
✔✔Payment of Premiums Provision: - ✔✔The policy stipulates when the premiums are
due, how often they are to be paid and to whom.
✔✔Reinstatement Provision: - ✔✔Allows a lapsed policy to be put back in force. Max
time limit is usually 3 years.
✔✔Grace period: - ✔✔The period of time after the premium due date that the
policyowner has to pay the premium before the policy lapses (usually 30 or 31 days).
✔✔Incontestability: - ✔✔This clause prevents an insurer from denying a claim due to
statements in the application after the policy has been in force for 2 years, even if there
has been a material misstatement of facts or concealment of a material fact.
✔✔Misstatement of age: - ✔✔...
✔✔Modifications: - ✔✔At the request of the policyowner, a life insurance policy may be
altered or modified after the effective date of the policy.
✔✔Payments of Claims: - ✔✔Upon receipt of a written proof of loss, the insurer must
pay death claims immediately.
✔✔Exclusions: - ✔✔Types of risks the policy will not cover.
✔✔Aviation: - ✔✔Most life insurance will cover an insured as a fare-paying passenger
or a pilot on regularly scheduled airline, but will exclude coverage for noncommercial
pilots, or require an additional premium for the coverage.
