Ohio Life Insurance Exam!! Questions and Answers (Verified Answers)
||ACTUAL EXAM 2025 TEST!! Graded A+ | 2025|2026 EXAM UPDATE
Insurance - (ANSWER)A contract that indemnifies another against loss, damage, or liability
Indemnify - (ANSWER)To make one whole by restoring them to the same financial position that existed
before the loss
Pure risk - (ANSWER)There is only a chance of loss and there is no possibility for gain (insurable)
Speculative risk - (ANSWER)Uncertainty of loss or gain: these risks are undertaken voluntarily (ex: stock
market)
Peril - (ANSWER)The immediate specific event causing loss
Moral hazard - (ANSWER)Arise from peoples habits and values (ex: filing a false claim)
Morale hazard - (ANSWER)Arise from human carelessness (ex: failing to take safety precautions)
STARR - (ANSWER)Methods for dealing with risk: Sharing, Transfer, Avoidance, Reduction, Retention
Insurable interest - (ANSWER)An individual must have a legitimate interest in the preservation of the life
of the property insured
Subrogation - (ANSWER)A clause in the insurance policy that gives the insurer the right to sue the party
responsible for the loss (not used in life insurance)
Face amount - (ANSWER)Maximum amount of liability of the insurer
Elimination period - (ANSWER)The "deductible" for disability insurance; the number of days a person
must be disabled before benefits become payable
,Ohio Life Insurance Exam!! Questions and Answers (Verified Answers)
||ACTUAL EXAM 2025 TEST!! Graded A+ | 2025|2026 EXAM UPDATE
Coinsurance - (ANSWER)The insurer and insured share allowable expenses
Life insurance - (ANSWER)Insurance coverage on human lives including endowments and annuities. May
also include benefits for accidental death, dismemberment, or diability
Variable products - (ANSWER)These carry investment risk- the insured may lose money because of a
decrease in the price of securities underlying the product. The SEC and state insurance departments
regulate variable contracts
Credit - (ANSWER)A limited line of insurance protecting the insured against financial consequences
should a debtor be unable to pay due to illness/ death
Stock insurance company - (ANSWER)Non- participating company because its policyholders do not
participate in dividends
Mutual insurers - (ANSWER)Participating company because ownership rests with the policyholders who
are paid policy dividends of funds not paid out in claims and operating costs
Reciprocal insurers - (ANSWER)Unincorporated groups of people that provide insurance for one another
through indemnity agreements. Each individual is known as a subscriber and accounts are overseen by
an attorney-in-fact
Fraternal benefit societies - (ANSWER)Life insurance carriers that exist as social organizations. They have
open contracts, which allow for additional, unscheduled premium charges in times of financial difficulty
Lloyds of London - (ANSWER)A meeting place for members who transact insurance and are individually
liable for contracts they enter
, Ohio Life Insurance Exam!! Questions and Answers (Verified Answers)
||ACTUAL EXAM 2025 TEST!! Graded A+ | 2025|2026 EXAM UPDATE
Reinsurers - (ANSWER)Insurers for insurers. The company that is transferring the risk is called the ceding
company
Faculative reinsurer - (ANSWER)Negotiate on an individual risk basis. The reinsurer can accept or reject
each risk
Treaty reinsurer - (ANSWER)Automatic sharing of risks by the ceding company
Excess and surplus lines - (ANSWER)Risks that are difficult to insure in the normal marketplace are
attempted to be places in unauthorized carriers
Risk retention groups - (ANSWER)Spread liability among its members (only liability insurance)
Self- insurance - (ANSWER)Set aside reserve funds to cover loss and purchase excess insurance to cover
large losses above a given level
Insurers domicile - (ANSWER)Classification: domestic, foreign, alien
General agents / MGA's - (ANSWER)Hire, train and supervise agents within a specific geographic area.
They are compensated with commission they earn as well as an overriding commission on the business
produced by agents they manage
Direct writing companies - (ANSWER)Pay salaries to people to sell insurance (usually not paid
commission). The company owns all business produced
Direct response marketing - (ANSWER)TV, mail, magazines,...
Franchise marketing - (ANSWER)Coverage to employees of small firms (individualized policies)
||ACTUAL EXAM 2025 TEST!! Graded A+ | 2025|2026 EXAM UPDATE
Insurance - (ANSWER)A contract that indemnifies another against loss, damage, or liability
Indemnify - (ANSWER)To make one whole by restoring them to the same financial position that existed
before the loss
Pure risk - (ANSWER)There is only a chance of loss and there is no possibility for gain (insurable)
Speculative risk - (ANSWER)Uncertainty of loss or gain: these risks are undertaken voluntarily (ex: stock
market)
Peril - (ANSWER)The immediate specific event causing loss
Moral hazard - (ANSWER)Arise from peoples habits and values (ex: filing a false claim)
Morale hazard - (ANSWER)Arise from human carelessness (ex: failing to take safety precautions)
STARR - (ANSWER)Methods for dealing with risk: Sharing, Transfer, Avoidance, Reduction, Retention
Insurable interest - (ANSWER)An individual must have a legitimate interest in the preservation of the life
of the property insured
Subrogation - (ANSWER)A clause in the insurance policy that gives the insurer the right to sue the party
responsible for the loss (not used in life insurance)
Face amount - (ANSWER)Maximum amount of liability of the insurer
Elimination period - (ANSWER)The "deductible" for disability insurance; the number of days a person
must be disabled before benefits become payable
,Ohio Life Insurance Exam!! Questions and Answers (Verified Answers)
||ACTUAL EXAM 2025 TEST!! Graded A+ | 2025|2026 EXAM UPDATE
Coinsurance - (ANSWER)The insurer and insured share allowable expenses
Life insurance - (ANSWER)Insurance coverage on human lives including endowments and annuities. May
also include benefits for accidental death, dismemberment, or diability
Variable products - (ANSWER)These carry investment risk- the insured may lose money because of a
decrease in the price of securities underlying the product. The SEC and state insurance departments
regulate variable contracts
Credit - (ANSWER)A limited line of insurance protecting the insured against financial consequences
should a debtor be unable to pay due to illness/ death
Stock insurance company - (ANSWER)Non- participating company because its policyholders do not
participate in dividends
Mutual insurers - (ANSWER)Participating company because ownership rests with the policyholders who
are paid policy dividends of funds not paid out in claims and operating costs
Reciprocal insurers - (ANSWER)Unincorporated groups of people that provide insurance for one another
through indemnity agreements. Each individual is known as a subscriber and accounts are overseen by
an attorney-in-fact
Fraternal benefit societies - (ANSWER)Life insurance carriers that exist as social organizations. They have
open contracts, which allow for additional, unscheduled premium charges in times of financial difficulty
Lloyds of London - (ANSWER)A meeting place for members who transact insurance and are individually
liable for contracts they enter
, Ohio Life Insurance Exam!! Questions and Answers (Verified Answers)
||ACTUAL EXAM 2025 TEST!! Graded A+ | 2025|2026 EXAM UPDATE
Reinsurers - (ANSWER)Insurers for insurers. The company that is transferring the risk is called the ceding
company
Faculative reinsurer - (ANSWER)Negotiate on an individual risk basis. The reinsurer can accept or reject
each risk
Treaty reinsurer - (ANSWER)Automatic sharing of risks by the ceding company
Excess and surplus lines - (ANSWER)Risks that are difficult to insure in the normal marketplace are
attempted to be places in unauthorized carriers
Risk retention groups - (ANSWER)Spread liability among its members (only liability insurance)
Self- insurance - (ANSWER)Set aside reserve funds to cover loss and purchase excess insurance to cover
large losses above a given level
Insurers domicile - (ANSWER)Classification: domestic, foreign, alien
General agents / MGA's - (ANSWER)Hire, train and supervise agents within a specific geographic area.
They are compensated with commission they earn as well as an overriding commission on the business
produced by agents they manage
Direct writing companies - (ANSWER)Pay salaries to people to sell insurance (usually not paid
commission). The company owns all business produced
Direct response marketing - (ANSWER)TV, mail, magazines,...
Franchise marketing - (ANSWER)Coverage to employees of small firms (individualized policies)
