Ohio Life, Accident & Health
Insurance Exam Questions
And Correct Answers
(Verified Answers) Plus
Rationales 2026/2027 Q&A |
Instant Download Pdf
1. Which of the following is the primary purpose of
insurance?
A. To eliminate risk
B. To transfer risk from individual to insurer
C. To increase financial loss
D. To guarantee profit
Answer: B
Rationale: Insurance does not eliminate risk; it transfers the
financial consequences of risk from the insured to the
insurer.
2. What is the consideration in an insurance contract?
A. Only the insurer’s promise to pay claims
B. Only the insured’s premium payment
C. The exchange of value between insurer and insured
D. The policy’s face value
,Answer: C
Rationale: Consideration refers to the exchange of value—
premium from insured and promise to pay benefits from
insurer.
3. Which feature makes insurance contracts unique?
A. They are always negotiable
B. They are unilateral
C. They are informal agreements
D. They are always oral
Answer: B
Rationale: Insurance contracts are unilateral because only
the insurer makes a legally enforceable promise.
4. What is the definition of insurable interest?
A. A chance of winning a lottery
B. A financial interest in the life or property insured
C. A broker’s commission
D. The insurer’s investment portfolio
Answer: B
Rationale: Insurable interest exists when the policy owner
would suffer financial loss from the insured event.
5. When must insurable interest exist in life insurance?
A. At the time of claim
B. At the time of application
,C. At policy renewal
D. At the time of death only
Answer: B
Rationale: In life insurance, insurable interest must exist at
the time the policy is purchased.
6. What does a waiver of premium rider do?
A. Waives all policy benefits
B. Waives premium payments during disability
C. Waives underwriting requirements
D. Increases death benefit automatically
Answer: B
Rationale: It allows premiums to be waived if the insured
becomes disabled.
7. Which policy feature allows the insured to increase
coverage without proof of insurability?
A. Accelerated benefit rider
B. Guaranteed insurability rider
C. Accidental death benefit rider
D. Cost-of-living rider
Answer: B
Rationale: Guaranteed insurability allows future increases
without medical underwriting.
, 8. What is the grace period in a life insurance policy?
A. Time to reinstate a policy after lapse
B. Time between application and approval
C. Extra time to pay premiums after due date
D. Waiting period for benefits
Answer: C
Rationale: The grace period allows late premium payment
without policy lapse.
9. Which clause prevents the insurer from rescinding a
policy after it has been in force for a certain time?
A. Suicide clause
B. Incontestability clause
C. Entire contract clause
D. Free-look clause
Answer: B
Rationale: After typically two years, the insurer cannot
contest the policy except for nonpayment.
10. What does the suicide clause typically limit?
A. Accidental death claims
B. Death within the first 2 years due to suicide
C. Disability claims
D. Policy loans
Answer: B
Rationale: Suicide within the first two years usually limits
payout to premiums paid.
Insurance Exam Questions
And Correct Answers
(Verified Answers) Plus
Rationales 2026/2027 Q&A |
Instant Download Pdf
1. Which of the following is the primary purpose of
insurance?
A. To eliminate risk
B. To transfer risk from individual to insurer
C. To increase financial loss
D. To guarantee profit
Answer: B
Rationale: Insurance does not eliminate risk; it transfers the
financial consequences of risk from the insured to the
insurer.
2. What is the consideration in an insurance contract?
A. Only the insurer’s promise to pay claims
B. Only the insured’s premium payment
C. The exchange of value between insurer and insured
D. The policy’s face value
,Answer: C
Rationale: Consideration refers to the exchange of value—
premium from insured and promise to pay benefits from
insurer.
3. Which feature makes insurance contracts unique?
A. They are always negotiable
B. They are unilateral
C. They are informal agreements
D. They are always oral
Answer: B
Rationale: Insurance contracts are unilateral because only
the insurer makes a legally enforceable promise.
4. What is the definition of insurable interest?
A. A chance of winning a lottery
B. A financial interest in the life or property insured
C. A broker’s commission
D. The insurer’s investment portfolio
Answer: B
Rationale: Insurable interest exists when the policy owner
would suffer financial loss from the insured event.
5. When must insurable interest exist in life insurance?
A. At the time of claim
B. At the time of application
,C. At policy renewal
D. At the time of death only
Answer: B
Rationale: In life insurance, insurable interest must exist at
the time the policy is purchased.
6. What does a waiver of premium rider do?
A. Waives all policy benefits
B. Waives premium payments during disability
C. Waives underwriting requirements
D. Increases death benefit automatically
Answer: B
Rationale: It allows premiums to be waived if the insured
becomes disabled.
7. Which policy feature allows the insured to increase
coverage without proof of insurability?
A. Accelerated benefit rider
B. Guaranteed insurability rider
C. Accidental death benefit rider
D. Cost-of-living rider
Answer: B
Rationale: Guaranteed insurability allows future increases
without medical underwriting.
, 8. What is the grace period in a life insurance policy?
A. Time to reinstate a policy after lapse
B. Time between application and approval
C. Extra time to pay premiums after due date
D. Waiting period for benefits
Answer: C
Rationale: The grace period allows late premium payment
without policy lapse.
9. Which clause prevents the insurer from rescinding a
policy after it has been in force for a certain time?
A. Suicide clause
B. Incontestability clause
C. Entire contract clause
D. Free-look clause
Answer: B
Rationale: After typically two years, the insurer cannot
contest the policy except for nonpayment.
10. What does the suicide clause typically limit?
A. Accidental death claims
B. Death within the first 2 years due to suicide
C. Disability claims
D. Policy loans
Answer: B
Rationale: Suicide within the first two years usually limits
payout to premiums paid.
