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Ohio Department of Insurance OH-Life-Agent-Series-11-44 OHIO Life Insurance Agent Series 11-44 Exam Practice Test

OHIO Life Insurance Agent Series 11-44 Questions and Answers

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Question 1

Risks are generally NOT Insurable if

Options:

A.

there are many individuals who may also experience a similar loss.

B.

the policyholder has a policy from another insurer.

C.

deductibles would be required.

D.

the loss is expected.

Question 2

An exposure Is a condition or situation that presents the possibility of

Options:

A.

hazard.

B.

peril.

C.

indemnity.

D.

loss.

Question 3

An annuitant dies during the accumulation period. What happens to the cash value in the annuity?

Options:

A.

The cash value is paid to the beneficiary.

B.

The cash value is paid into the estate.

C.

The cash value is paid to the IRS.

D.

The company keeps the cash value.

Question 4

An Insurer would consider which of the following In determining whether to accept a group life plan?

Options:

A.

Grace period

B.

Beneficiary

C.

Average age

D.

Dependents

Question 5

An agent's actions or deeds demonstrate what kind of authority?

Options:

A.

apparent

B.

delegated

C.

express

D.

inherent

Question 6

Which activity does NOT require an Insurance agent's license?

Options:

A.

negotiating

B.

selling

C.

soliciting

D.

underwriting

Question 7

Making a statement that is false and maliciously critical of the financial condition of an insurer is known as

Options:

A.

coercion.

B.

defamation.

C.

intimidation.

D.

misrepresentation.

Question 8

The most common use of a group life insurance policy is to insure

Options:

A.

retirees.

B.

company employees.

C.

members of a family.

D.

association members.

Question 9

Generally, If a life application Is NOT prepaid, the effective date of coverage begins on the date the

Options:

A.

application is signed.

B.

policy is delivered and accepted.

C.

company underwriter approves the risk.

D.

application is postmarked and mailed to the insurer.

Question 10

Which of the following represents a syndicate of underwriters that specialize in Insuring specific types of risk?

Options:

A.

reciprocal insurer

B.

Lloyd's association

C.

risk retention group

D.

fraternal benefit society

Question 11

The proposed insured's statements on a life insurance application are considered to be

Options:

A.

absolute statements.

B.

misrepresentations.

C.

representations.

D.

warranties.

Question 12

Which of the following plans will provide a death benefit to the policy's beneficiary Income tax free?

Options:

A.

Annuity.

B.

Whole Life.

C.

Qualified Retirement.

D.

Tax Sheltered Annuity.

Question 13

An Individual buys an annuity that will pay her spouse an income for 20 years. If the spouse dies within that time, the Income will be paid to their children for the remainder of the period. What kind of annuity did the Insured buy?

Options:

A.

Life annuity with period certain

B.

Joint life and survivorship annuity

C.

Joint life annuity

D.

Temporary annuity certain

Question 14

All the following policies qualify for a 1035 Exchange EXCEPT

Options:

A.

a whole life policy to another whole life policy.

B.

a whole life policy to an annuity.

C.

an annuity to another annuity.

D.

an annuity to a whole life policy.

Question 15

After a request has been received for verification of coverage from a viatical settlement provider, an insurance company authorized to do business shall respond within:

Options:

A.

30 calendar days

B.

45 calendar days

C.

60 calendar days

D.

90 calendar days

Question 16

As a form of level premium permanent Insurance, ordinary life Insurance accumulates a reserve that eventually

Options:

A.

equals the face amount of the policy.

B.

results In a dividend payment to the policyowner.

C.

ceases to earn interest or grow in a positive earnings direction.

D.

requires mandatory cash value distributions.

Question 17

In reference to life Insurance in contract law, a person MOST likely will have an insurable interest in insuring a person's life If

Options:

A.

the interest exists at the time of death.

B.

the interest exists at the time of application.

C.

any type of distant family relationship exists with the insured party.

D.

any type of business relationship exists between the insured party and the beneficiary.

Question 18

An Insured owns a whole life policy that has accumulated cash value. Which of the following statements Is true about the policy's cash value?

Options:

A.

The policy's cash value is viewed as investment growth and therefore subject to taxation for each calendar year.

B.

The growth of the policy's cash value Is not subject to income tax while the policy Is in force.

C.

It is subject to fluctuations of the company's overall performance.

D.

The cash value is not guaranteed.

Question 19

Insurance agents have duties and responsibilities to the insured and the insurer. Which of the following responsibilities does an agent owe the insured during the policy year?

Options:

A.

Help the insured file and follow up on claims.

B.

Notify the insurance department when claims are paid.

C.

Work with rating bureaus to establish insurer ratings.

D.

Pay the insured's premiums if they are unable to do so.

Question 20

A policyowner may choose to have his/her life insurance policy dividends do all of the following EXCEPT

Options:

A.

reduce the policy premium.

B.

accumulate without interest.

C.

be paid to the policyowner in cash.

D.

purchase additional insurance protection.

Question 21

The purpose of insurance Is to

Options:

A.

avoid risk.

B.

reduce risk.

C.

transfer risk.

D.

increase risk.

Question 22

Competency of an Individual to enter into an Insurance contract is determined based on

Options:

A.

legal age.

B.

legal purpose.

C.

ownership.

D.

payment of premium.

Question 23

Upon annuitization, which of the following will have the HIGHEST monthly payout?

Options:

A.

Straight life with guaranteed payments.

B.

Joint life.

C.

Straight life.

D.

Joint and survivor life.

Question 24

Insurers do business in Ohio only after a thorough financial review. Most insurance policies written in Ohio are protected by the Guaranty Association established to protect policy owners In the event an admitted company

Options:

A.

cannot meet it's capital surplus requirements.

B.

merges with a foreign insurer.

C.

becomes financially insolvent.

D.

depletes its loss reserves.

Question 25

Under Ohio insurance laws, what must a licensee do prior to operating under an assumed business name?

Options:

A.

notify the superintendent

B.

notify all prospective insureds

C.

obtain approval from the insurer

D.

notify the National Association of Insurance Commissioners

Question 26

Statements by an applicant concerning personal health history, family health history, occupation, and hobbies are referred to as

Options:

A.

depictions.

B.

certifications.

C.

representations.

D.

personal characteristics.

Question 27

Loans may generally be obtained against the cash value of a personal life Insurance policy and policy loan proceeds

Options:

A.

accelerate the benefits under the policy.

B.

are not treated as taxable income.

C.

are subject to Federal estate tax.

D.

generate nontaxable interest income.

Question 28

An insured has a 5-year Renewable Term Life Insurance Policy. Upon exercising the renewable privilege, the Insured MUST

Options:

A.

provide evidence of insurability.

B.

renew for at least 10 years.

C.

pay an annual premium that may be higher.

D.

convert to a whole life policy.

Question 29

Which of the following is a characteristic of a contract of adhesion?

Options:

A.

Each party is entitled to rely on others' representations.

B.

The Insurer agrees to pay a stated sum regardless of loss.

C.

The terms must be accepted or rejected in full.

D.

The insurer's obligations are dependent upon certain acts of the insured individual.

Question 30

What annuity payout option has no additional payouts regardless of when the annuitant dies?

Options:

A.

Life only.

B.

Cash refund.

C.

Life certain.

D.

Installment refund.

Question 31

Upon the divorce of an insured who designated their spouse as the beneficiary, which of the following actions will result?

Options:

A.

the insured must pay 50% of the premiums paid to the spouse named as the beneficiary

B.

the spouse designated as beneficiary will remain an irrevocable beneficiary

C.

the designation of the spouse as a beneficiary is revoked

D.

the policy will automatically be terminated