Life and Health Insurance - Ohio Licensing Exam 2024 with Verified Answers

Life and Health Insurance - Ohio Licensing Exam 2024 with Verified Answers Absolute Assignment - CORRECT ANSWER-The assignment by the policy owner of all control and rights to a third party. This differs from collateral assignment, which allows all the rights and control to revert to the owner once a loan is paid off Accident - CORRECT ANSWER-A fortuitous event; unforeseen and unintended Accidental Death Insurance - CORRECT ANSWER-A form of health insurance that provides payment if death of the insured results from accident. Accidental death insurance is often combined with dismemberment insurance in a form called accidental death and dismemberment (AD&D) Accident and Sickness - CORRECT ANSWER-Insurance against bodily injury, disability, or death by accident or accidental means, or expense thereof, or against disability or expense resulting from sickness and the insurance relating thereto Accident means - CORRECT ANSWER-The unexpected cause of an accidental bodily injury. Under an accidental means definition, the mishap itself must be accidental. If a person does something to contribute to the accident, the claim would not be paid under this restrictive definition Accelerated benefit - CORRECT ANSWER-Available only if the benefits are available during the insured's lifetime, benefit amounts are fixed when accelerated, and the benefits, when paid, reduces the death benefit Accumulation at interest option - CORRECT ANSWER-A dividend option under which the policy owner allows dividends to accumulate at interest with the company. Only the interest on the dividends is taxable as income (participating policies only). Actuary - CORRECT ANSWER-Once concerned with the application of probability and statistical theory to insurance. This person sets expenses, and interest assumptions. ADB - CORRECT ANSWER-Accidental death benefit, also known as double indemnity. There is another variation called triple indemnity. AD&D - CORRECT ANSWER-Accidental death and dismemberment insurance. Administrator - CORRECT ANSWER-The person appointed by a court to settle a deceased's estate, sometimes called and executor. Adverse selection - CORRECT ANSWER-Selection against the insurance company. The tendency of poorer risks to want insurance more often than standard risks. Agent - CORRECT ANSWER-The individual appointed by an insurance company to solicit, negotiate, effect, or countersign insurance contracts on its behalf. Aleatory - CORRECT ANSWER-Something that depends upon chance or is random. It is derived from the Latin idea of "rolling the dice." Aleatory contract - CORRECT ANSWER-A contract in which both parties know that one or the other may receive more than paid in. This payment is dependent upon a fortuitous event. For example. a person pays the premium for a term policy for many years and does not die, thus, a claim is never filed. Alien company - CORRECT ANSWER-An insured organized and domiciled in a country other than the United States Annuitant - CORRECT ANSWER-The one receiving the Annuity and on whose life expectancy the rates are figured.