Ohio Life Exam 11-44
Which of the following would be sufficient violation to warrant rejection, revocation, or suspension of
an insurance agent's license?
1) a moving violation ticket
2) a denied license in another state
3) acting as a fiduciary
4) an unintentional misrepresentation of the terms of a contract ANS: 2) a denied license in another
state
What method do insurers use to protect themselves against catastrophic losses?
1) pro rata liability
2) risk management
3) reinsurance
4) indemnity ANS: 3) reinsurance
All of the following are true about variable products EXCEPT:
1) the cash value is not guaranteed
2) policy owners bear the investment risk
3) the premiums are invested in the insurer's general account
4) the minimum death benefit is guaranteed ANS: 3) the premiums are invested in the insurer's general
account
All of the following are characteristics of a group life insurance plan EXCEPT:
1) the participants receive a Certificate of Insurance as their proof of insurance
2) a minimum number of participants is required in order to underwrite the plan
3) the cost of the plan is determined by the average age of the group
,4) there is a requirement to prove insurability on the part of the participants ANS: 4) there is a
requirement to prove insurability on the part of the participants
Which of the following allows the insurer to relieve a minor insured from premium payments if the
minor's parents have died or become disabled?
1) waiver of premium
2) payor benefit
3) humping juvenile
4) juvenile premium provision ANS: 2) payor benefit
Which of the following will be included in a policy summary?
1) copies of illustrations and application
2) comparisons with similar policies
3) primary and secondary beneficiary designations
4) premium amounts and surrender values ANS: 4) premium amounts and surrender values
A viatical settlement is arranged between a viatical company and a/an:
1) terminally ill insured
2) insurance producer
3) beneficiary
4) lender ANS: 1) terminally ill insured
An insured owns a term policy with a guaranteed renewable option. When the end of the policy draws
near, the insured answers medical questions in order to prove insurability and qualifies for a discounted
premium rate. Which option best describes this scenario?
1) preferred premium reduction
2) contract review
, 3) revision of consideration
4) re-entry ANS: 4) re-entry
If a settlement option is not chosen by the policyowner or the beneficiary, which option will be used?
1) life income
2) fixed period
3) fixed amount
4) lump sum ANS: 4) lump sum
When çalculating the amount a policyowner may borrow from a variable life policy, what must be
subtracted from the policy's cash value?
1) outstanding loans and interest
2) the face amount
3) mortality costs
4) the cash surrender amount ANS: 1) outstanding loans and interest
The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is
disabled is called:
1) waiver of cost of insurance
2) payor benefit
3) waiver of premium
4) guaranteed insurability ANS: 3) waiver of premium
if a life policy allows the policyowner to make periodic additions to the face amount at standard
rates, without proving insurability, the policy includes a:
1) cost of living provision
Which of the following would be sufficient violation to warrant rejection, revocation, or suspension of
an insurance agent's license?
1) a moving violation ticket
2) a denied license in another state
3) acting as a fiduciary
4) an unintentional misrepresentation of the terms of a contract ANS: 2) a denied license in another
state
What method do insurers use to protect themselves against catastrophic losses?
1) pro rata liability
2) risk management
3) reinsurance
4) indemnity ANS: 3) reinsurance
All of the following are true about variable products EXCEPT:
1) the cash value is not guaranteed
2) policy owners bear the investment risk
3) the premiums are invested in the insurer's general account
4) the minimum death benefit is guaranteed ANS: 3) the premiums are invested in the insurer's general
account
All of the following are characteristics of a group life insurance plan EXCEPT:
1) the participants receive a Certificate of Insurance as their proof of insurance
2) a minimum number of participants is required in order to underwrite the plan
3) the cost of the plan is determined by the average age of the group
,4) there is a requirement to prove insurability on the part of the participants ANS: 4) there is a
requirement to prove insurability on the part of the participants
Which of the following allows the insurer to relieve a minor insured from premium payments if the
minor's parents have died or become disabled?
1) waiver of premium
2) payor benefit
3) humping juvenile
4) juvenile premium provision ANS: 2) payor benefit
Which of the following will be included in a policy summary?
1) copies of illustrations and application
2) comparisons with similar policies
3) primary and secondary beneficiary designations
4) premium amounts and surrender values ANS: 4) premium amounts and surrender values
A viatical settlement is arranged between a viatical company and a/an:
1) terminally ill insured
2) insurance producer
3) beneficiary
4) lender ANS: 1) terminally ill insured
An insured owns a term policy with a guaranteed renewable option. When the end of the policy draws
near, the insured answers medical questions in order to prove insurability and qualifies for a discounted
premium rate. Which option best describes this scenario?
1) preferred premium reduction
2) contract review
, 3) revision of consideration
4) re-entry ANS: 4) re-entry
If a settlement option is not chosen by the policyowner or the beneficiary, which option will be used?
1) life income
2) fixed period
3) fixed amount
4) lump sum ANS: 4) lump sum
When çalculating the amount a policyowner may borrow from a variable life policy, what must be
subtracted from the policy's cash value?
1) outstanding loans and interest
2) the face amount
3) mortality costs
4) the cash surrender amount ANS: 1) outstanding loans and interest
The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is
disabled is called:
1) waiver of cost of insurance
2) payor benefit
3) waiver of premium
4) guaranteed insurability ANS: 3) waiver of premium
if a life policy allows the policyowner to make periodic additions to the face amount at standard
rates, without proving insurability, the policy includes a:
1) cost of living provision
