WITH SOLUTIONS AND GRADING BREAKDOWN
▶ What is the purpose of the Ohio Life and Health Insurance Guaranty
Association Act? Answer: to protect the insured from company insolvency
▶ Under US Code 1033, crimes by or affecting persons engaged in the
business of insurance which affect interstate commerce are prosecuted by
the Answer: US Attorney General
▶ 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 Answer: company
▶ The superintendent is REQUIRED to examine domestic insurers AT
LEAST every Answer: 3 years
▶ A life insurance policy loan shall bear interest at a specified rate, NOT in
excess of Answer: 8%
▶A licensee who is required to take continuing education must include how
many ethics coursework hours? Answer: 3
▶ When determining whether an annuity is suitable for a client, the agent
should ask about which of the following? Answer: Financial objectives
▶ What MUST the company do prior to conducting an HIV related test?
Answer: Obtain a written authorization from the proposed insured
▶ The Ohio insurance superintendent is appointed to office and has all of
the following powers and duties EXCEPT Answer: enact legislation dealing
with insurance
▶ In Ohio, a life insurance policy can be backdated before the application
date for up to Answer: 3 months
, ▶ How long must a life insurance policy be in effect before the policyowner
may use the nonforfeiture provision? Answer: 3 years
▶ 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 Answer: inducement
▶ When can a policy no longer be cancelled for nonfraudulent
misstatements after its date of issue? Answer: 2 years
▶ 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: Answer:
accelerated benefits
▶ What information is NOT required to be included in advertising material
for a life policy? Answer: The agent's compensation
▶ Which of the following is NOT considered advertising? Answer: An AM
Best company rating
▶ After a request has been received for verification from a viatical
settlement provider, an insurance company authorized to do business shall
respond within Answer: 30 calendar days
▶ Which of the following statements is TRUE about an insurer's right to
screen applicants for HIV? Answer: An insurer can require a blood test for
HIV
▶ What is the renewal date of a resident insurance agent's license?
Answer: On or before the last day of the licensee's birth month
▶ An agent may share commission in which one of the following
scenarios? Answer: with another licensed but unappointed 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
Answer: misrepresentation