Ohio Life Ch.2 Life Insurance Basics Quiz
An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?
The date of medical exam
Which of the following would NOT fall into the category of costs associated with death?
The expense of a vacation for surviving family members
Which of the following is the best reason to purchase life insurance rather than an annuity?
To create an estate
What is the name for the owner of a life insurance policy who enters into a viatical settlement contract?
Viator
Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process?
Buyers' Guide
How are state Insurance Guaranty Associations funded?
By their members - authorized insurers
How long must insurers keep a copy of a basic life policy illustration on file?
3 years after the policy terminated
What does "liquidity" refer to in a life insurance policy?
Cash values can be borrowed at any time
The Medical information bureau (MIB) was created to protect
Insurance companies from adverse selection by high risk persons
Which part of an insurance application would contain information regarding the cause of death of the applicant's deceased relatives?
Medical Information
Which of the following best describes gross annual premium?
Net premium plus expenses
Which of the following will be included in a policy summary?
Premium amounts and surrender values
Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?
Replacement rule
Upon policy delivery, the producer may be required to obtain any of the following except?
Signed waiver of premium
A viatical settlement is arranged between a viatical company and a/an
Terminally ill insured
