ohio life insurance exam missed questions and answers part 10

What is the waiting period on a Waiver of Premium rider in life insurance policies? a) 30 days b) 3 months c) 5 months d) 6 months

d) 6 months

What method do insurers use to protect themselves against catastrophic losses? a) Indemnity b) Pro rata liability c) Risk management d) Reinsurance

d) Reinsurance

An applicant knowingly fails to communicate information that would help an underwriter make a sound decision regarding coverage. This is an example of a) Concealment. b) Waiver. c) Fraud. d) Breach of warranty.

a) Concealment.

What provision in an insurance policy extends coverage beyond the premium due date? a) Grace period b) Free look c) Automatic premium loan d) Waiver of premium

a) Grace period

The death benefit under the Universal Life Option B a) Gradually increases each year by the amount that the cash value increases. b) Decreases by the amount that the cash value increases. c) Increases for the first few years of the policy, and then levels off. d) Remains level.

a) Gradually increases each year by the amount that the cash value increases.

All of the following are TRUE statements regarding the accumulation at interest option EXCEPT a) The policyholder has the right to withdraw the accumulations at any time. b) The interest is not taxable since it remains inside the insurance policy. c) The annual dividend is retained by the company. d) The interest is credited at a rate specified by the policy.

b) The interest is not taxable since it remains inside the insurance policy.

What must happen when an individual policy or annuity has been personally delivered to the policyowner? a) A notary public must witness the exchange. b) The policyowner must sign a delivery receipt. c) The policyowner must pay the annual premium in full. d) The producer must go over the policy with the policyowner.

b) The policyowner must sign a delivery receipt.

An insured had a $10,000 term life policy. The annual premium of $200 was due on February 1; however, the insured failed to pay the premium. He died on February 28. How much would the beneficiary receive from the policy? a) $0 b) $200 c) $9,800 d) $10,000

c) $9,800

An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe? a) Adhesion b) Conditional c) Aleatory d) Good health

c) Aleatory

The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called a) Decreasing whole life. b) Multiple Protection insurance. c) Credit life. d) Credit health.

c) Credit life.

When a life insurance policy stipulates that the beneficiary will receive payments in specified installments or for a specified number of years, what provision prevents the beneficiary from changing or borrowing from the planned installments? a) Accelerated benefit provision b) Loan provision c) Spendthrift provision d) Settlement option

c) Spendthrift provision

All of the following would be considered rebating EXCEPT a) An agent misrepresents policy benefits to convince a policyowner to replace policies. b) An agent offers the use of his lake house to a client as an inducement to buy an insurance policy from him. c) An agent offers to share his commission with a policyholder. d) An agent offers tickets to a baseball game as an inducement to buy insurance.

a) An agent misrepresents policy benefits to convince a policyowner to replace policies.

Which of the following is true regarding taxation of dividends in participating policies? a) Dividends are taxable only after a certain amount is accumulated annually. b) Dividends are taxable in some life insurance policies and nontaxable in others. c) Dividends are considered income for tax purposes. d) Dividends are not taxable.

d) Dividends are not taxable.

A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will a) Pay the policy proceeds only if it would have issued the policy. b) Pay the policy proceeds up to an established limit. c) Not pay the policy proceeds under any circumstances. d) Automatically pay the policy proceeds.

a) Pay the policy proceeds only if it would have issued the policy.

Which of the following is TRUE regarding the insurance amount in a credit life policy? a) Allowable amount of coverage is determined by the State Insurance Commissioner. b) The amount of coverage can be greater than the amount owed. c) The creditor can only insure the debtor for the amount owed. d) The creditor may insure the debtor for an unlimited amount of coverage.

c) The creditor can only insure the debtor for the amount owed.

Which of the following is NOT true regarding Equity Indexed Annuities? a) They have guaranteed minimum interest rates. b) They are less risky than variable annuities. c) They earn lower interest rates than fixed annuities. d) The insurance company keeps a percentage of the returns.

c) They earn lower interest rates than fixed annuities.

Which of the following would NOT be included in a policy summary? a) The underwriting office's name and address b) The generic name of the policy c) The date the summary was prepared d) An evaluation of the applicant's medical records

d) An evaluation of the applicant's medical records

Who might receive dividends from a mutual insurer? a) Subscribers b) Stockholders c) Agents d) Policyholders

d) Policyholders

An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen? a) The insurer will pay nothing because the employee has terminated his group insurance and hasn't started the individual one. b) The insurer will pay the full death benefit from the group policy to the beneficiary. c) The insurer will pay a reduced death benefit to the beneficiary. d) The insurer will pay the death benefit minus one month's premium.

b) The insurer will pay the full death benefit from the group policy to the beneficiary.