Ohio Life And Health Insurance Exam
An insured individual and the policy's beneficiary die from the same accident. The common disaster
provision states the insurer will continue as if ANS: the insured outlived the beneficiary
Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. What is this called?
ANS: Estate conservation
Legal purpose is a term used in contract law meaning ANS: there must be legal reasons for entering into
a contract
A whole life insurance policy accumulates cash value that becomes ANS: the policy loan value which the
insured may borrow against
Which of the following statements is CORRECT regarding an individual applying for life or health
insurance ANS: The applicants medical history may be analyzed
Which type of clause describes the following statement: "We have issued the policy in consideration of
the representations in your applications and payment of the first-term premium".
A. Premium Clause
B. Consideration Clause
C. Adhesion Clause
D. Contestability clause ANS: B. Consideration Clause
The term which describes the fact that both parties of a contract may NOT receive the same value is
referred to as:
A. Estoppel
B. Unilateral
C. Aleatory
,D. Apparent ANS: C. Aleatory
Simon has purchased a fixed immediate annuity. His payment amount will be dependent upon principal,
interest, and the contract's:
A. Surrender charge
B. Death benefit
C. Cash refund
D. Income period ANS: D. Income period
Insurance companies determine risk exposure by which of the following:
A. Insurable interest
B. Insurance exchanges
C. Law of large numbers and risk pooling
D. Population table data ANS: C. Law of large numbers and risk pooling
Which type of multiple protection policy pays on the death of the last person?:
A. Joint life policy
B. Survivorship life policy
C. Dual life policy
D. Multiple life policy ANS: B. Survivorship life policy
Which of these is a method of determining the level of funds required for ongoing support in the event
of the breadwinners death?:
A. Financial loss value
B. Human life value
C. Assessment value
, D. Replacement value ANS: B. Human life value
How are annuities given favorable tax treatment?:
A. Gains are tax deductible
B. Gains are tax exempt at distribution
C. Gains are taxed at distribution
D. Gains are converted to tax credits ANS: C. Gains are taxed at distribution
Naming a contingent beneficiary as "all surviving children" is described by which term?:
A. Contingent designation
B. Primary Designation
C. Class designation
D. Tertiary designation ANS: C. Class designation
Which market index is normally associated with an indexed annuity's rate of return? ANS: S&P 500 (you
should know this easy)
Who is required to notify the agent in the event of appointment termination?:
A. Insurer
B. Superintendent
C. Governor
D. Attorney General ANS: A. Insurer
Under a life insurance policy, what does the insuring clause state?:
A. The agents obligation to provide the proper amount of coverage
B. The insurers obligation to return all premiums upon approved death claim
An insured individual and the policy's beneficiary die from the same accident. The common disaster
provision states the insurer will continue as if ANS: the insured outlived the beneficiary
Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. What is this called?
ANS: Estate conservation
Legal purpose is a term used in contract law meaning ANS: there must be legal reasons for entering into
a contract
A whole life insurance policy accumulates cash value that becomes ANS: the policy loan value which the
insured may borrow against
Which of the following statements is CORRECT regarding an individual applying for life or health
insurance ANS: The applicants medical history may be analyzed
Which type of clause describes the following statement: "We have issued the policy in consideration of
the representations in your applications and payment of the first-term premium".
A. Premium Clause
B. Consideration Clause
C. Adhesion Clause
D. Contestability clause ANS: B. Consideration Clause
The term which describes the fact that both parties of a contract may NOT receive the same value is
referred to as:
A. Estoppel
B. Unilateral
C. Aleatory
,D. Apparent ANS: C. Aleatory
Simon has purchased a fixed immediate annuity. His payment amount will be dependent upon principal,
interest, and the contract's:
A. Surrender charge
B. Death benefit
C. Cash refund
D. Income period ANS: D. Income period
Insurance companies determine risk exposure by which of the following:
A. Insurable interest
B. Insurance exchanges
C. Law of large numbers and risk pooling
D. Population table data ANS: C. Law of large numbers and risk pooling
Which type of multiple protection policy pays on the death of the last person?:
A. Joint life policy
B. Survivorship life policy
C. Dual life policy
D. Multiple life policy ANS: B. Survivorship life policy
Which of these is a method of determining the level of funds required for ongoing support in the event
of the breadwinners death?:
A. Financial loss value
B. Human life value
C. Assessment value
, D. Replacement value ANS: B. Human life value
How are annuities given favorable tax treatment?:
A. Gains are tax deductible
B. Gains are tax exempt at distribution
C. Gains are taxed at distribution
D. Gains are converted to tax credits ANS: C. Gains are taxed at distribution
Naming a contingent beneficiary as "all surviving children" is described by which term?:
A. Contingent designation
B. Primary Designation
C. Class designation
D. Tertiary designation ANS: C. Class designation
Which market index is normally associated with an indexed annuity's rate of return? ANS: S&P 500 (you
should know this easy)
Who is required to notify the agent in the event of appointment termination?:
A. Insurer
B. Superintendent
C. Governor
D. Attorney General ANS: A. Insurer
Under a life insurance policy, what does the insuring clause state?:
A. The agents obligation to provide the proper amount of coverage
B. The insurers obligation to return all premiums upon approved death claim
