OHIO LIFE AND HEALTH INSURANCE
PRACTICE FINAL EXAM QUESTIONS
WITH COMPLETE ANSWERS
Hospital care under a typical health insuring corporation (HIC) plan includes all of the
following EXCEPT - ANSWER-Private duty nursing
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? - ANSWER-$5,000
Which of these is NOT considered to be a purpose of an annuity? - ANSWER-
Annuities are intended to create an estate
Continued coverage under COBRA would be provided to a(n) - ANSWER-terminated
employee
Falsifying the terms, benefits, advantages, or conditions of an insurance policy is an
example of which of the following? - ANSWER-Misrepresentation
How do insurers predict the increase of individual risks? - ANSWER-Law of large
numbers
What is implied authority defined as? - ANSWER-Authority that is not specifically
given to an agent in the agency contract, but that an agent can reasonably assume
to carry out his/her duties
Under a Modified Endowment Contract, what are the likely tax consequences? -
ANSWER-Pre-death distributions will become taxable
All of these statements concerning whole life insurance are false EXCEPT -
ANSWER-When a whole life policy is surrendered, income taxes may be owed
Which of the following is a requirement for ANY change in an insurance application?
- ANSWER-Change must be initialed by the applicant
Which of the following signatures is not required on an individual insurance
application? - ANSWER-Insured
Kristi purchases an annuity that will pay her husband an income for 15 years. If he
dies, this income will become payable to their children for the remainder of the
period. Kristi has what kind of annuity? - ANSWER-Temporary annuity certain
A provision in a whole life policy that allows a policyowner to terminate the policy in
return for a reduced paid-up policy of the same type is called a(n) - ANSWER-
nonforfeiture provision
, Who is the individual paid on a fee-for-service basis? - ANSWER-Provider
What is the contract called that is issued to an employer for a Group Medical
Insurance plan? - ANSWER-Master policy
Which type of multiple protection policy pays on the death of the last person? -
ANSWER-Survivorship life policy
What is the purpose of a Disability Income Benefit? - ANSWER-Provide money for
living expenses
How are annuities given favorable tax treatment? - ANSWER-Gains are taxed at
distribution
What is known as the immediate specific event causing loss and giving rise to risk? -
ANSWER-Peril
The open enrollment period for Medicare Supplements begins at age - ANSWER-65
All of the following are considered appropriate uses of life insurance for business
purposes EXCEPT - ANSWER-Protecting the business by covering key employees
with life insurance
Which type of life insurance policy pays the face amount at the end of the specified
period if the insured is still alive? - ANSWER-Endowment policy
A licensed agent who lives in another state and transacts insurance in Ohio is called
- ANSWER-a nonresident agent
The IRS states that a taxpayer's medical expenses that exceed 7.5% of their
adjusted gross income is tax deductible. Which of the following may be considered a
medical expense under this rule? - ANSWER-Long Term Care Insurance premiums
What is the primary factor that determines the benefits paid under a disability income
policy? - ANSWER-Wages
A licensee who is required to take continuing education must include how many
ethics coursework hours? - ANSWER-3
Julie has a $100,000 30-year mortgage on her new home. What type of life
insurance could she purchase that is designed to pay off the loan balance if she dies
within the 30-year period? - ANSWER-Decreasing term insurance
Which approach predicts a person's earning potential and determines how much of
that amount would be devoted to dependents? - ANSWER-Human life value
approach
The premium for a Modified whole life policy is - ANSWER-lower than the typical
whole life policy during the first few years and then higher than typical for the
remainder
PRACTICE FINAL EXAM QUESTIONS
WITH COMPLETE ANSWERS
Hospital care under a typical health insuring corporation (HIC) plan includes all of the
following EXCEPT - ANSWER-Private duty nursing
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? - ANSWER-$5,000
Which of these is NOT considered to be a purpose of an annuity? - ANSWER-
Annuities are intended to create an estate
Continued coverage under COBRA would be provided to a(n) - ANSWER-terminated
employee
Falsifying the terms, benefits, advantages, or conditions of an insurance policy is an
example of which of the following? - ANSWER-Misrepresentation
How do insurers predict the increase of individual risks? - ANSWER-Law of large
numbers
What is implied authority defined as? - ANSWER-Authority that is not specifically
given to an agent in the agency contract, but that an agent can reasonably assume
to carry out his/her duties
Under a Modified Endowment Contract, what are the likely tax consequences? -
ANSWER-Pre-death distributions will become taxable
All of these statements concerning whole life insurance are false EXCEPT -
ANSWER-When a whole life policy is surrendered, income taxes may be owed
Which of the following is a requirement for ANY change in an insurance application?
- ANSWER-Change must be initialed by the applicant
Which of the following signatures is not required on an individual insurance
application? - ANSWER-Insured
Kristi purchases an annuity that will pay her husband an income for 15 years. If he
dies, this income will become payable to their children for the remainder of the
period. Kristi has what kind of annuity? - ANSWER-Temporary annuity certain
A provision in a whole life policy that allows a policyowner to terminate the policy in
return for a reduced paid-up policy of the same type is called a(n) - ANSWER-
nonforfeiture provision
, Who is the individual paid on a fee-for-service basis? - ANSWER-Provider
What is the contract called that is issued to an employer for a Group Medical
Insurance plan? - ANSWER-Master policy
Which type of multiple protection policy pays on the death of the last person? -
ANSWER-Survivorship life policy
What is the purpose of a Disability Income Benefit? - ANSWER-Provide money for
living expenses
How are annuities given favorable tax treatment? - ANSWER-Gains are taxed at
distribution
What is known as the immediate specific event causing loss and giving rise to risk? -
ANSWER-Peril
The open enrollment period for Medicare Supplements begins at age - ANSWER-65
All of the following are considered appropriate uses of life insurance for business
purposes EXCEPT - ANSWER-Protecting the business by covering key employees
with life insurance
Which type of life insurance policy pays the face amount at the end of the specified
period if the insured is still alive? - ANSWER-Endowment policy
A licensed agent who lives in another state and transacts insurance in Ohio is called
- ANSWER-a nonresident agent
The IRS states that a taxpayer's medical expenses that exceed 7.5% of their
adjusted gross income is tax deductible. Which of the following may be considered a
medical expense under this rule? - ANSWER-Long Term Care Insurance premiums
What is the primary factor that determines the benefits paid under a disability income
policy? - ANSWER-Wages
A licensee who is required to take continuing education must include how many
ethics coursework hours? - ANSWER-3
Julie has a $100,000 30-year mortgage on her new home. What type of life
insurance could she purchase that is designed to pay off the loan balance if she dies
within the 30-year period? - ANSWER-Decreasing term insurance
Which approach predicts a person's earning potential and determines how much of
that amount would be devoted to dependents? - ANSWER-Human life value
approach
The premium for a Modified whole life policy is - ANSWER-lower than the typical
whole life policy during the first few years and then higher than typical for the
remainder
