Life and Health Insurance - Ohio
Licensing Exam 2026 Questions and
Answers
Absolute Assignment - Correct answer-The assignment by the policy owner of all
control and rights to a third party. This differs from collateral assignment, which
allows all the rights and control to revert to the owner once a loan is paid off
Accident - Correct answer-A fortuitous event; unforeseen and unintended
Accidental Death Insurance - Correct answer-A form of health insurance that
provides payment if death of the insured results from accident. Accidental death
insurance is often combined with dismemberment insurance in a form called
accidental death and dismemberment (AD&D)
Accident and Sickness - Correct answer-Insurance against bodily injury, disability,
or death by accident or accidental means, or expense thereof, or against disability
or expense resulting from sickness and the insurance relating thereto
Accident means - Correct answer-The unexpected cause of an accidental bodily
injury. Under an accidental means definition, the mishap itself must be accidental.
©COPYRIGHT 2025, ALL RIGHTS RESERVE 1
,If a person does something to contribute to the accident, the claim would not be
paid under this restrictive definition
Accelerated benefit - Correct answer-Available only if the benefits are available
during the insured's lifetime, benefit amounts are fixed when accelerated, and the
benefits, when paid, reduces the death benefit
Accumulation at interest option - Correct answer-A dividend option under which
the policy owner allows dividends to accumulate at interest with the company.
Only the interest on the dividends is taxable as income (participating policies
only).
Actuary - Correct answer-Once concerned with the application of probability and
statistical theory to insurance. This person sets expenses, and interest assumptions.
ADB - Correct answer-Accidental death benefit, also known as double indemnity.
There is another variation called triple indemnity.
AD&D - Correct answer-Accidental death and dismemberment insurance.
Administrator - Correct answer-The person appointed by a court to settle a
deceased's estate, sometimes called and executor.
Adverse selection - Correct answer-Selection against the insurance company. The
tendency of poorer risks to want insurance more often than standard risks.
©COPYRIGHT 2025, ALL RIGHTS RESERVE 2
,Agent - Correct answer-The individual appointed by an insurance company to
solicit, negotiate, effect, or countersign insurance contracts on its behalf.
Aleatory - Correct answer-Something that depends upon chance or is random. It is
derived from the Latin idea of "rolling the dice."
Aleatory contract - Correct answer-A contract in which both parties know that one
or the other may receive more than paid in. This payment is dependent upon a
fortuitous event. For example. a person pays the premium for a term policy for
many years and does not die, thus, a claim is never filed.
Alien company - Correct answer-An insured organized and domiciled in a country
other than the United States
Annuitant - Correct answer-The one receiving the Annuity and on whose life
expectancy the rates are figured.
Annuity - Correct answer-1. An amount of money, payable monthly or yearly,
which liquidates a financial asset. 2. An agreement by an insurer to make periodic
payments that continue during the survival of the annuitant(s) or for a specified
period. Annuities are also accumulations vehicles that function much like savings
accounts.
©COPYRIGHT 2025, ALL RIGHTS RESERVE 3
, Applicant - Correct answer-The party making application to the insurance
company for the policy
Application - Correct answer-A form on which the prospective insured states facts
requested by the insurer and on the basis of which the insurer decides whether to
accept the risk, modify the coverage offered, or decline the risk.
Assignee - Correct answer-The person to whom policy rights are assigned in whole
or in part by the policy owner.
Assignment - Correct answer-The transfer of rights in a policy to someone other
than the policy owner.
Attained age - Correct answer-The present age of the insured. This is a factor when
a person converts term insurance to whole life insurance or buys added disability
under a GIR provision
Attorney-in-fact - Correct answer-A person to whom authorization is given by an
individual to exchange insurance with other persons. Always present in a
reciprocal insurance company.
Authorized company - Correct answer-An insurer permitted to sell insurance
within a state, evidenced by a certificate of authority from the insurance
commissioner, also called ADMITTED
©COPYRIGHT 2025, ALL RIGHTS RESERVE 4
Licensing Exam 2026 Questions and
Answers
Absolute Assignment - Correct answer-The assignment by the policy owner of all
control and rights to a third party. This differs from collateral assignment, which
allows all the rights and control to revert to the owner once a loan is paid off
Accident - Correct answer-A fortuitous event; unforeseen and unintended
Accidental Death Insurance - Correct answer-A form of health insurance that
provides payment if death of the insured results from accident. Accidental death
insurance is often combined with dismemberment insurance in a form called
accidental death and dismemberment (AD&D)
Accident and Sickness - Correct answer-Insurance against bodily injury, disability,
or death by accident or accidental means, or expense thereof, or against disability
or expense resulting from sickness and the insurance relating thereto
Accident means - Correct answer-The unexpected cause of an accidental bodily
injury. Under an accidental means definition, the mishap itself must be accidental.
©COPYRIGHT 2025, ALL RIGHTS RESERVE 1
,If a person does something to contribute to the accident, the claim would not be
paid under this restrictive definition
Accelerated benefit - Correct answer-Available only if the benefits are available
during the insured's lifetime, benefit amounts are fixed when accelerated, and the
benefits, when paid, reduces the death benefit
Accumulation at interest option - Correct answer-A dividend option under which
the policy owner allows dividends to accumulate at interest with the company.
Only the interest on the dividends is taxable as income (participating policies
only).
Actuary - Correct answer-Once concerned with the application of probability and
statistical theory to insurance. This person sets expenses, and interest assumptions.
ADB - Correct answer-Accidental death benefit, also known as double indemnity.
There is another variation called triple indemnity.
AD&D - Correct answer-Accidental death and dismemberment insurance.
Administrator - Correct answer-The person appointed by a court to settle a
deceased's estate, sometimes called and executor.
Adverse selection - Correct answer-Selection against the insurance company. The
tendency of poorer risks to want insurance more often than standard risks.
©COPYRIGHT 2025, ALL RIGHTS RESERVE 2
,Agent - Correct answer-The individual appointed by an insurance company to
solicit, negotiate, effect, or countersign insurance contracts on its behalf.
Aleatory - Correct answer-Something that depends upon chance or is random. It is
derived from the Latin idea of "rolling the dice."
Aleatory contract - Correct answer-A contract in which both parties know that one
or the other may receive more than paid in. This payment is dependent upon a
fortuitous event. For example. a person pays the premium for a term policy for
many years and does not die, thus, a claim is never filed.
Alien company - Correct answer-An insured organized and domiciled in a country
other than the United States
Annuitant - Correct answer-The one receiving the Annuity and on whose life
expectancy the rates are figured.
Annuity - Correct answer-1. An amount of money, payable monthly or yearly,
which liquidates a financial asset. 2. An agreement by an insurer to make periodic
payments that continue during the survival of the annuitant(s) or for a specified
period. Annuities are also accumulations vehicles that function much like savings
accounts.
©COPYRIGHT 2025, ALL RIGHTS RESERVE 3
, Applicant - Correct answer-The party making application to the insurance
company for the policy
Application - Correct answer-A form on which the prospective insured states facts
requested by the insurer and on the basis of which the insurer decides whether to
accept the risk, modify the coverage offered, or decline the risk.
Assignee - Correct answer-The person to whom policy rights are assigned in whole
or in part by the policy owner.
Assignment - Correct answer-The transfer of rights in a policy to someone other
than the policy owner.
Attained age - Correct answer-The present age of the insured. This is a factor when
a person converts term insurance to whole life insurance or buys added disability
under a GIR provision
Attorney-in-fact - Correct answer-A person to whom authorization is given by an
individual to exchange insurance with other persons. Always present in a
reciprocal insurance company.
Authorized company - Correct answer-An insurer permitted to sell insurance
within a state, evidenced by a certificate of authority from the insurance
commissioner, also called ADMITTED
©COPYRIGHT 2025, ALL RIGHTS RESERVE 4
