Ohio Life and Health Insurance Exam
questions and answers
According to the law of large numbers, how would losses be affected if the
number of similar insured units increases? - ANSWER>>Predictability of losses will
be improved
Which of the following can be defined as "the potential for loss"? -
ANSWER>>Risk
An insurer has a contractual agreement which transfers a portion of its risk
exposure to another insurer. What type of contractual arrangement is this? -
ANSWER>>Reinsurance contract
Which of these statements regarding insurance is false? - ANSWER>>As the
number of insured units increases, the number of losses decreases
The powers directly given to an agent in an agency contract are called -
ANSWER>>express
Which of these is true regarding the exchange of consideration among parties
involved in an insurance contract? - ANSWER>>Can be unequal
What is the reason that insurance companies require a minimum number of
employees participating in a group insurance plan? - ANSWER>>Adverse selection
is minimized
What type of policy can group term life insurance normally be converted to? -
ANSWER>>An individual permanent life insurance policy
,Any employee insured under a group life insurance plan is normally -
ANSWER>>protected by term life insurance
Which of these is NOT relevant when determining the amount of personal life
insurance needed? - ANSWER>>Local unemployment rates
What is considered a valid reason for small businesses to insure the lives of its
major shareholders? - ANSWER>>Fund a buy-sell agreement
Employers often purchase life insurance on a key employee in order to -
ANSWER>>help offset the cost of finding and training a replacement if the
employee dies
Which of the following is NOT considered to be an expense for surviving family
members of a deceased wage earner? - ANSWER>>Unemployment tax expenses
An insurance policy may be issued with a preferred insurance premium in all of
these situations EXCEPT - ANSWER>>living in a rural area
The initial premium for a life insurance policy is typically paid in what way? -
ANSWER>>It is typically obtained by the producer and forwarded to the insurer
The Medical Information Bureau consists of members from which group? -
ANSWER>>Insurance companies
When does the agent give a premium receipt for a life insurance application? -
ANSWER>>When the initial premium has been collected with the application
Which of these is NOT an underwriting responsibility of a life insurance agent? -
ANSWER>>Determining the final rate classification
, After an applicant reads and signs an insurance application, he/she should be
conscious of the fact that - ANSWER>>a false statement could lead to loss of
coverage
The time limit an individual has to "rollover" funds from an IRA or qualified plan is
- ANSWER>>60 days
Contributions made by an employee to a qualified retirement plan are required to
be - ANSWER>>subject to a vesting schedule
An employee welfare plan exempt from ERISA regulations would be -
ANSWER>>church plans
How are qualified Roth IRA distributions normally treated for tax purposes? -
ANSWER>>Received income tax-free
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older
who do not take the required minimum distributions from their qualified
retirement plan? - ANSWER>>50%
What does a 401(k) plan generally provide its participants? - ANSWER>>Salary-
deferral option
How long do most states allow an insurance company to delay the payment of a
cash surrender under the Delayed Payment provision? - ANSWER>>6 months
A contingent beneficiary is described as the - ANSWER>>person who receives the
death benefits if the primary beneficiary dies before the insured
Life insurance premiums are based on what three factors? - ANSWER>>Mortality,
interest, expenses
questions and answers
According to the law of large numbers, how would losses be affected if the
number of similar insured units increases? - ANSWER>>Predictability of losses will
be improved
Which of the following can be defined as "the potential for loss"? -
ANSWER>>Risk
An insurer has a contractual agreement which transfers a portion of its risk
exposure to another insurer. What type of contractual arrangement is this? -
ANSWER>>Reinsurance contract
Which of these statements regarding insurance is false? - ANSWER>>As the
number of insured units increases, the number of losses decreases
The powers directly given to an agent in an agency contract are called -
ANSWER>>express
Which of these is true regarding the exchange of consideration among parties
involved in an insurance contract? - ANSWER>>Can be unequal
What is the reason that insurance companies require a minimum number of
employees participating in a group insurance plan? - ANSWER>>Adverse selection
is minimized
What type of policy can group term life insurance normally be converted to? -
ANSWER>>An individual permanent life insurance policy
,Any employee insured under a group life insurance plan is normally -
ANSWER>>protected by term life insurance
Which of these is NOT relevant when determining the amount of personal life
insurance needed? - ANSWER>>Local unemployment rates
What is considered a valid reason for small businesses to insure the lives of its
major shareholders? - ANSWER>>Fund a buy-sell agreement
Employers often purchase life insurance on a key employee in order to -
ANSWER>>help offset the cost of finding and training a replacement if the
employee dies
Which of the following is NOT considered to be an expense for surviving family
members of a deceased wage earner? - ANSWER>>Unemployment tax expenses
An insurance policy may be issued with a preferred insurance premium in all of
these situations EXCEPT - ANSWER>>living in a rural area
The initial premium for a life insurance policy is typically paid in what way? -
ANSWER>>It is typically obtained by the producer and forwarded to the insurer
The Medical Information Bureau consists of members from which group? -
ANSWER>>Insurance companies
When does the agent give a premium receipt for a life insurance application? -
ANSWER>>When the initial premium has been collected with the application
Which of these is NOT an underwriting responsibility of a life insurance agent? -
ANSWER>>Determining the final rate classification
, After an applicant reads and signs an insurance application, he/she should be
conscious of the fact that - ANSWER>>a false statement could lead to loss of
coverage
The time limit an individual has to "rollover" funds from an IRA or qualified plan is
- ANSWER>>60 days
Contributions made by an employee to a qualified retirement plan are required to
be - ANSWER>>subject to a vesting schedule
An employee welfare plan exempt from ERISA regulations would be -
ANSWER>>church plans
How are qualified Roth IRA distributions normally treated for tax purposes? -
ANSWER>>Received income tax-free
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older
who do not take the required minimum distributions from their qualified
retirement plan? - ANSWER>>50%
What does a 401(k) plan generally provide its participants? - ANSWER>>Salary-
deferral option
How long do most states allow an insurance company to delay the payment of a
cash surrender under the Delayed Payment provision? - ANSWER>>6 months
A contingent beneficiary is described as the - ANSWER>>person who receives the
death benefits if the primary beneficiary dies before the insured
Life insurance premiums are based on what three factors? - ANSWER>>Mortality,
interest, expenses
