Ohio Life and Health Practice Exam
Questions and Guide Answers
100% Verified Graded A+
1. An insured has a stop-loss limit of $5,000, a deductible of $500, and an 80/20
coinsurance. The insured incurs $25,000 of covered losses. How much will the
insured have to pay?
$500
$5,000
$5,400
$5,600
Answer: $5,000
2. Which of these is NOT subject to income taxation under Modified Endow-
ment Contract (MEC)
,Loan against the cash value
Policy withdrawal
Policy Dividend
Death Benefit
Answer: Death benefit
3. An indemnity plan
Pays both the insured and health care provider
Provides the insured a specific dollar amount for services
Pays the health care provider directly for services rendered
Is typically issued as a group plan
Answer: provides the insured a specific dollar amount for services
4. Chris is an insured bricklayer who severed his left hand in an automobile
accident. Although his primary duty cannot be performed, Chris is also a
substitute high school teacher. He collects a full disability income check every
month. How does his policy define total disability?
Recurrent
,Any occupation
Own occupation
Presumptive
Answer: Own occupation
5. A policyowner can receive an immediate payment before the insured dies by
using a(n)
viatical settlement contract
buy-sell arrangement
adhesion agreement
spendthrift plan
Answer: viatical settlement contract
6. Signatures for an insurance application MUST be obtained by the producer
from all of the following sources EXCEPT
The producer
The insured
The policyowner
The beneficiary
, Answer: The beneficiary
7. All of the following are considered appropriate uses of life insurance for
business purposes EXCEPT
Attracting quality employees by offering a group life plan
Funding an entity buy-sell agreement
Protecting the business by covering key employees with life insurance
Protecting the business by covering entry level employees with life insurance-
Answer: Protecting the business by covering entry level employees with life insurance
8. Elizabeth is the beneficiary of a life insurance policy. She is receiving the
death benefit in payments of $10,000 per month until the principal and
interest has been paid out. Which option was chosen?
Fixed period
Fixed amount
Life income
Interest only
Answer: Fixed amount
Questions and Guide Answers
100% Verified Graded A+
1. An insured has a stop-loss limit of $5,000, a deductible of $500, and an 80/20
coinsurance. The insured incurs $25,000 of covered losses. How much will the
insured have to pay?
$500
$5,000
$5,400
$5,600
Answer: $5,000
2. Which of these is NOT subject to income taxation under Modified Endow-
ment Contract (MEC)
,Loan against the cash value
Policy withdrawal
Policy Dividend
Death Benefit
Answer: Death benefit
3. An indemnity plan
Pays both the insured and health care provider
Provides the insured a specific dollar amount for services
Pays the health care provider directly for services rendered
Is typically issued as a group plan
Answer: provides the insured a specific dollar amount for services
4. Chris is an insured bricklayer who severed his left hand in an automobile
accident. Although his primary duty cannot be performed, Chris is also a
substitute high school teacher. He collects a full disability income check every
month. How does his policy define total disability?
Recurrent
,Any occupation
Own occupation
Presumptive
Answer: Own occupation
5. A policyowner can receive an immediate payment before the insured dies by
using a(n)
viatical settlement contract
buy-sell arrangement
adhesion agreement
spendthrift plan
Answer: viatical settlement contract
6. Signatures for an insurance application MUST be obtained by the producer
from all of the following sources EXCEPT
The producer
The insured
The policyowner
The beneficiary
, Answer: The beneficiary
7. All of the following are considered appropriate uses of life insurance for
business purposes EXCEPT
Attracting quality employees by offering a group life plan
Funding an entity buy-sell agreement
Protecting the business by covering key employees with life insurance
Protecting the business by covering entry level employees with life insurance-
Answer: Protecting the business by covering entry level employees with life insurance
8. Elizabeth is the beneficiary of a life insurance policy. She is receiving the
death benefit in payments of $10,000 per month until the principal and
interest has been paid out. Which option was chosen?
Fixed period
Fixed amount
Life income
Interest only
Answer: Fixed amount
