©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Oklahoma Life, Health and Accident
Insurance License Exam (ONLY LIFE)
Study Guide.
Replacement - Answers✔Transaction where a new policy will cause an existing policy to be
cancelled or lapsed.
In life insurance, insurable interest must exist only at time of __________________? -
Answers✔Application
3 factors used in determining the amount of life insurance: - Answers✔Amount of current life
insurance, household income, and number of dependents
Human Life Value - Answers✔Focuses on an individual's economic value
Needs Approach - Answers✔Focuses on types of financial needs
Cash needs: - Answers✔pay funeral expenses, pay off deb, and final medical expenses
Income Needs - Answers✔pay for ongoing living expense such as food, clothing and utilities
Social Security Income Benefits - Answers✔a surviving spouse is eligible for monthly income
benefits provided by social security during the following periods: when caring for a child who is
under the age of 16; if age 60 or over.
Blackout Period - Answers✔the period of time between the youngest child reaching age 16 and
the surviving spouse reaching age 60
The most common use of life insurance: - Answers✔Survivor protection
Individual Uses of Individual Life Insurance - Answers✔Survivor protection, pay final expenses,
pay off deb, pay taxes, and cash accumulation
Business Uses of Individual Life Insurance - Answers✔Key Person, Executive Bonus, Fund a
buy/sell
1
, ©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Key Person: - Answers✔provides for the financial loss to the employer created by the death of a
key employee
Executive Bonus - Answers✔Provides for the financial loss to the executive's family created by
the death of an executive of a business.
Fund a buy/sell - Answers✔provides money for a business continuation plan. Each partner or
stockholder buys a life insurance policy on the other partner to provide cash for the purchase of
the deceased partner's share of the business.
Consumer Credit Insurance - Answers✔transfers the financial risk of installment loan debt and
credit card debt
Credit Life - Answers✔Designed to pay off the debt if the debtor dies. Pays the loan in full in a
lump sum.
Credit Disability (A&H) - Answers✔Designed to cover the loan payments if the debtor is
disabled and unable to work. Pays loan payments monthly while the debtor is totally disabled, in
hopes the debtor is able to pay loan again.
Four mandatory parts of Individual Life Insurance - Answers✔Policy Face, Insuring Agreement,
Conditions, Exclusions; May include Riders and Definitions
Specific Term insurance - Answers✔amount of life insurance is provided for a definite and
limited time period, ie: 1 yr, 5 yrs, 10 yrs, 30 yrs. If the insured dies during the policy period, the
policy pays a death benefit. If the insured does not die during the policy period, the policy
expires.
Initial Low Premium Outlay - Answers✔Premium will increase each renewal period because of
insured's attained age
NO Cash Value - Answers✔the face amount is payable only if the insured dies during the
specified term of policy. Policy expires without value if insured lives beyond policy expiration
date.
Renewability - Answers✔The option to renew the policy upon expiration with the same insurer
for an additional term without providing evidence of insurability regardless of health, occupation
or avocation. No need to requalify to renew the coverage.
Convertibility - Answers✔The option to change from term insurance to permanent insurance
with the same insurer without providing evidence of insurability regardless of health, occupation,
or avocation. No need to requalify to convert the coverage. It is not necessary to wait until the
end of the term policy period to convert. The premium on the new policy is based on attained age
at the time of conversion.
2
ALL RIGHTS RESERVED.
Oklahoma Life, Health and Accident
Insurance License Exam (ONLY LIFE)
Study Guide.
Replacement - Answers✔Transaction where a new policy will cause an existing policy to be
cancelled or lapsed.
In life insurance, insurable interest must exist only at time of __________________? -
Answers✔Application
3 factors used in determining the amount of life insurance: - Answers✔Amount of current life
insurance, household income, and number of dependents
Human Life Value - Answers✔Focuses on an individual's economic value
Needs Approach - Answers✔Focuses on types of financial needs
Cash needs: - Answers✔pay funeral expenses, pay off deb, and final medical expenses
Income Needs - Answers✔pay for ongoing living expense such as food, clothing and utilities
Social Security Income Benefits - Answers✔a surviving spouse is eligible for monthly income
benefits provided by social security during the following periods: when caring for a child who is
under the age of 16; if age 60 or over.
Blackout Period - Answers✔the period of time between the youngest child reaching age 16 and
the surviving spouse reaching age 60
The most common use of life insurance: - Answers✔Survivor protection
Individual Uses of Individual Life Insurance - Answers✔Survivor protection, pay final expenses,
pay off deb, pay taxes, and cash accumulation
Business Uses of Individual Life Insurance - Answers✔Key Person, Executive Bonus, Fund a
buy/sell
1
, ©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Key Person: - Answers✔provides for the financial loss to the employer created by the death of a
key employee
Executive Bonus - Answers✔Provides for the financial loss to the executive's family created by
the death of an executive of a business.
Fund a buy/sell - Answers✔provides money for a business continuation plan. Each partner or
stockholder buys a life insurance policy on the other partner to provide cash for the purchase of
the deceased partner's share of the business.
Consumer Credit Insurance - Answers✔transfers the financial risk of installment loan debt and
credit card debt
Credit Life - Answers✔Designed to pay off the debt if the debtor dies. Pays the loan in full in a
lump sum.
Credit Disability (A&H) - Answers✔Designed to cover the loan payments if the debtor is
disabled and unable to work. Pays loan payments monthly while the debtor is totally disabled, in
hopes the debtor is able to pay loan again.
Four mandatory parts of Individual Life Insurance - Answers✔Policy Face, Insuring Agreement,
Conditions, Exclusions; May include Riders and Definitions
Specific Term insurance - Answers✔amount of life insurance is provided for a definite and
limited time period, ie: 1 yr, 5 yrs, 10 yrs, 30 yrs. If the insured dies during the policy period, the
policy pays a death benefit. If the insured does not die during the policy period, the policy
expires.
Initial Low Premium Outlay - Answers✔Premium will increase each renewal period because of
insured's attained age
NO Cash Value - Answers✔the face amount is payable only if the insured dies during the
specified term of policy. Policy expires without value if insured lives beyond policy expiration
date.
Renewability - Answers✔The option to renew the policy upon expiration with the same insurer
for an additional term without providing evidence of insurability regardless of health, occupation
or avocation. No need to requalify to renew the coverage.
Convertibility - Answers✔The option to change from term insurance to permanent insurance
with the same insurer without providing evidence of insurability regardless of health, occupation,
or avocation. No need to requalify to convert the coverage. It is not necessary to wait until the
end of the term policy period to convert. The premium on the new policy is based on attained age
at the time of conversion.
2
