Page 1 of 187
LIFE AND HEALTH INSURANCE LICENSING
EXAM ACTUAL TEST 2026/2027 COMPLETE
ACCURATE QUESTIONS AND CORRECT
DETAILED ANSWERS (CORRECT VERIFIED
ANSWERS) A NEW UPDATED VERSION
|GUARANTEED PASS A+
1. Which of the following best defines the legal concept of
"insurable interest" in a life insurance policy?
A. The policyowner must be a family member of the insured.
B. The policyowner must expect to receive a financial benefit
from the insured's death.
C. The policyowner must suffer an economic loss if the insured
,Page 2 of 187
dies.
D. The insured must consent in writing every year.
Correct Answer: C
Rationale: Insurable interest requires that the policyowner
would experience a financial or emotional loss upon the
insured's death. Ohio law follows this principle to prevent
gambling on human life.
2. In Ohio, an insurance producer must report any
administrative action taken against them in another jurisdiction
within how many days?
A. 10 days
B. 15 days
C. 30 days
D. 45 days
,Page 3 of 187
Correct Answer: C
Rationale: Ohio Revised Code §3905.44 requires producers
to report disciplinary actions from other states within 30 days.
3. Which type of risk is insurable?
A. Pure risk
B. Speculative risk
C. Systematic risk
D. Operational risk
Correct Answer: A
Rationale: Only pure risk (chance of loss or no loss, no gain) is
insurable. Speculative risk involves possibility of gain, which
insurance does not cover.
4. Scenario: Tom owns a $250,000 term life policy. He stops
paying premiums but does not request cancellation. The policy
lapses after the grace period. What happens?
, Page 4 of 187
A. The policy automatically converts to whole life.
B. The insurer must refund all premiums paid.
C. The policy terminates with no value.
D. The policy remains in force for one year.
Correct Answer: C
Rationale: Term life has no cash value; lapse ends coverage.
Ohio law does not require refund of premiums.
5. The Law of Large Numbers enables insurers to:
A. Predict individual losses exactly.
B. Eliminate all risk.
C. Predict future losses for a group with reasonable accuracy.
D. Guarantee investment returns.
Correct Answer: C
Rationale: Law of large numbers allows actuaries to predict
aggregate losses, not individual outcomes.
LIFE AND HEALTH INSURANCE LICENSING
EXAM ACTUAL TEST 2026/2027 COMPLETE
ACCURATE QUESTIONS AND CORRECT
DETAILED ANSWERS (CORRECT VERIFIED
ANSWERS) A NEW UPDATED VERSION
|GUARANTEED PASS A+
1. Which of the following best defines the legal concept of
"insurable interest" in a life insurance policy?
A. The policyowner must be a family member of the insured.
B. The policyowner must expect to receive a financial benefit
from the insured's death.
C. The policyowner must suffer an economic loss if the insured
,Page 2 of 187
dies.
D. The insured must consent in writing every year.
Correct Answer: C
Rationale: Insurable interest requires that the policyowner
would experience a financial or emotional loss upon the
insured's death. Ohio law follows this principle to prevent
gambling on human life.
2. In Ohio, an insurance producer must report any
administrative action taken against them in another jurisdiction
within how many days?
A. 10 days
B. 15 days
C. 30 days
D. 45 days
,Page 3 of 187
Correct Answer: C
Rationale: Ohio Revised Code §3905.44 requires producers
to report disciplinary actions from other states within 30 days.
3. Which type of risk is insurable?
A. Pure risk
B. Speculative risk
C. Systematic risk
D. Operational risk
Correct Answer: A
Rationale: Only pure risk (chance of loss or no loss, no gain) is
insurable. Speculative risk involves possibility of gain, which
insurance does not cover.
4. Scenario: Tom owns a $250,000 term life policy. He stops
paying premiums but does not request cancellation. The policy
lapses after the grace period. What happens?
, Page 4 of 187
A. The policy automatically converts to whole life.
B. The insurer must refund all premiums paid.
C. The policy terminates with no value.
D. The policy remains in force for one year.
Correct Answer: C
Rationale: Term life has no cash value; lapse ends coverage.
Ohio law does not require refund of premiums.
5. The Law of Large Numbers enables insurers to:
A. Predict individual losses exactly.
B. Eliminate all risk.
C. Predict future losses for a group with reasonable accuracy.
D. Guarantee investment returns.
Correct Answer: C
Rationale: Law of large numbers allows actuaries to predict
aggregate losses, not individual outcomes.
