Life Insurance: Ohio Laws
An agent must submit notification of a change of business address within a MAXIMUM of how many days after the change?
30
After a request has been received for verification from a viatical settlement provider, an insurance company authorized to do business shall respond within
30 calendar days
Suitability is
obtaining information from the applicant to determine whether an insurance or annuity product is appropriate
What is the purpose of the Ohio Life and Health Insurance Guaranty Association Act?
to protect the insured from company insolvency
An agent may share commission in which one of the following scenarios?
with another licensed but unappointed agent
A temporary agent license can be issued in any of the following circumstances EXCEPT
a prospective agent who is enrolled in an insurance pre-license class
The Ohio insurance superintendent is appointed to office and has all of the following powers and duties EXCEPT
enact legislation dealing with insurance
The superintendent is NOT responsible for
endorsing insurers
The superintendent is empowered to
enforce state laws relating to insurance
When an agent is replacing an existing ordinary life insurance policy, the agent must take all of the following actions EXCEPT
obtain the beneficiary's signature on a summary of all policies to be replaced
How long must a life insurance policy be in effect before the policyowner may use the nonforfeiture provision?
3 years
The superintendent is REQUIRED to examine domestic insurers AT LEAST every
3 years
To receive proceeds from a death benefit, a minor
must have an appointed guardian
With the majority of companies, within how many days does the free-look provision allow the insured the right to return the life insurance policy for full premium?
10 days
When can a policy no longer be cancelled for nonfraudulent misstatements after its date of issue?
2 years
In conjunction with an Ohio insurance license renewal, which one of the following is the continuing education REQUIREMENT?
24 hours every 2 years
A licensee who is required to take continuing education must include how many ethics coursework hours?
3
In Ohio, a life insurance policy can be backdated before the application date for up to
3 months
A life insurance policy loan shall bear interest at a specified rate, NOT in excess of
8%
Which of the following is a characteristic of a non-admitted insurer?
A non-admitted insurer is not afforded protection by the guaranty fund
Which of the following represents an insurer?
Agent
Which of the following is NOT considered advertising?
An AM Best company rating
Which of the following statements is TRUE about an insurer's right to screen applicants for HIV?
An insurer can require a blood test for HIV
Which of the following acts by an insurer, if committed without just cause and performed with such frequency as to indicate standard operating procedures, constitutes an unfair claims settlement practice?
Failing to adopt and implement reasonable standards for the prompt investigations of claims
In Ohio, an agent may have his/her license revoked for which of the following acts?
Failure to pay state income tax
When determining whether an annuity is suitable for a client, the agent should ask about which of the following?
Financial objectives
Which of the following statements is CORRECT about a Buyer's Guide?
It's content must be approved by the superintendent
What MUST the company do prior to conducting an HIV related test?
Obtain a written authorization from the proposed insured
What is the renewal date of a resident insurance agent's license?
On or before the last day of the licensee's birth month
All of the following may be an unfair claims practice EXCEPT
Refusing to pay persons bringing false or fraudulent claims
What information is NOT required to be included in advertising material for a life policy?
The agent's compensation
Which of the following statements regarding an examination of an insurer's books and records by the superintendent is true?
The insurer must not impede an examination and is required to assist in the examination procedures
What is a certificate of authority?
The license required for an insurer to conduct business in the state
Which of the following statements about the contestability of a life insurance policy is true?
The policy can be contested by the insurer only during the first two years of the contract
A life insurance illustration showing future premiums being paid out of nonguaranteed values must disclose that
The policyowner may need to resume premium payments depending on actual results
Under US Code 1033, crimes by or affecting persons engaged in the business of insurance which affect interstate commerce are prosecuted by the
US Attorney General
A licensed agent who lives in another state and transacts insurance in Ohio is called
a nonresident agent
Proceeds payable under a life insurance contract to a policyowner in anticipation of death or upon the occurrence of specified life-threatening conditions as defined by the policy are best described as:
accelerated benefits
Before a licensed agent is eligible to transact insurance sales, they must be
appointed by an insurance company
All of the following may be considered forms of advertisement for life insurance EXCEPT
buyers guide
An Ohio insurance agent solicits a life insurance policy. In the event of a controversy between the insured and the company, the agent is considered to represent the
company
An agent license is renewed by paying the applicable renewal fee and completing
continuing education
If an agent gives a prospect literature indicating that an Ohio insurer can transact business for which they are NOT approved, the agent is committing which of the following?
false advertising
A deliberate lie by an insured to the insurer to obtain a lower premium is an example of
fraud
Which of the following is the specified period when the insured may still make payment for the continuance of the policy after the premium payment due date?
grace period
No insurer, agent, broker, solicitor, or person, in connection with an insurance transaction shall offer or promise to buy, sell, give, or allow the prospective insured employment, stock or special favors. This is the definition of
inducement
When an insurance appointment with an agent is terminated, the party that must notify the agent of the termination is the
insurer
Who may terminate an agent's appointment?
insurer
When the superintendent believes an agent is causing substantial and material harm, the superintendent has the authority to
issue a cease and desist order against the agent
An insurance agent who convinces a prospective insured to purchase a policy by exaggerating the benefits of the policy may be found guilty of
misrepresentation
A cease and desist order issued by the superintendent against an agent
prohibits a specific practice listed in the order
An insurance agent agrees to pay the first monthly premium for an insurance applicant. This is called a(n)
rebate
Insurance agent Kelly offers insured a $500 shopping card if they purchase an insurance product through her. What is this an example of?
rebating, which is an unfair trade practice
What is the term used when exchanging a new policy for one already in force?
replacement
If a licensee is suspended for non-renewal, the licensee may apply for reinstatement within
the 12 month period following the date when the license should have been renewed
No existing agent's license will be revoked until
the agent has been afforded a right to a hearing on the charges
When an agent's license is suspended or revoked because the licensee is found to be in violation of a state law
the licensee may be assessed the administrative costs incurred by the Department
