Life and Health Insurance - Ohio
Licensing Exam Questions With Correct
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.
Annuity |- |CORRECT |ANSWER✔✔-1. |An |amount |of |money, |payable |monthly |or |yearly, |which |
liquidates |a |financial |asset. |2. |An |agreement |by |an |insurer |to |make |periodic |payments |that |
continue |during |the |survival |of |the |annuitant(s) |or |for |a |specified |period. |Annuities |are |also |
accumulations |vehicles |that |function |much |like |savings |accounts.
Applicant |- |CORRECT |ANSWER✔✔-The |party |making |application |to |the |insurance |company |for
|the |policy
Application |- |CORRECT |ANSWER✔✔-A |form |on |which |the |prospective |insured |states |facts |
requested |by |the |insurer |and |on |the |basis |of |which |the |insurer |decides |whether |to |accept |the
|risk, |modify |the |coverage |offered, |or |decline |the |risk.
Assignee |- |CORRECT |ANSWER✔✔-The |person |to |whom |policy |rights |are |assigned |in |whole |or |
in |part |by |the |policy |owner.
Assignment |- |CORRECT |ANSWER✔✔-The |transfer |of |rights |in |a |policy |to |someone |other |than |
the |policy |owner.
Attained |age |- |CORRECT |ANSWER✔✔-The |present |age |of |the |insured. |This |is |a |factor |when |a |
person |converts |term |insurance |to |whole |life |insurance |or |buys |added |disability |under |a |GIR |
provision
Attorney-in-fact |- |CORRECT |ANSWER✔✔-A |person |to |whom |authorization |is |given |by |an |
individual |to |exchange |insurance |with |other |persons. |Always |present |in |a |reciprocal |insurance |
company.
, Authorized |company |- |CORRECT |ANSWER✔✔-An |insurer |permitted |to |sell |insurance |within |a |
state, |evidenced |by |a |certificate |of |authority |from |the |insurance |commissioner, |also |called |
ADMITTED
Automatic |premium |loan |- |CORRECT |ANSWER✔✔-A |provision |in |a |life |policy |authorizing |the |
insurance |company |to |use |the |loan |value |to |pay |premiums |not |paid |by |the |end |of |the |grace |
period. |May |be |present |in |whole |life |or |other |traditional |cash |value |policies |only, |but |never |in |
term |policies
Aviation |clause |- |CORRECT |ANSWER✔✔-Limits |or |excludes |coverage |when |the |insured |is |
participating |in |specified |types |of |air |travel, |cush |as |private |planes. |Coverage |is |usually |fully |in |
force |for |people |on |regularly |scheduled |commercial |flights. |The |limit |or |exclusion |often |applies
|to |student |pilots
Beneficiary |- |CORRECT |ANSWER✔✔-A |person |who |may |become |eligible |to |receive, |or |is |
receiving, |benefits |under |an |insurance |plan, |other |than |as |a |participant.
Blanket |Insurance |Contract |- |CORRECT |ANSWER✔✔-A |contract |of |Health |Insurance |that |covers
|all |of |a |class |of |persons |not |individually |identified. |No |certificates |are |issued |and |people |
covered |may |not |be |aware |that |the |coverage |is |in |place.
Blue |Plan |- |CORRECT |ANSWER✔✔-The |generic |term |for |those |insurers |(usually |on |a |service |
rather |than |a |reimbursement |bases) |who |are |authorized |to |use |the |designation |Blue |Cross |or |
Blue |Shield |and |the |insignia |of |either.
Broker |- |CORRECT |ANSWER✔✔-One |who |represents |an |insured |in |the |solicitation, |negotiation,
|or |procurement |of |contracts |of |insurance, |functions. |This |person |is |also |called |an |independent
|agent.
Licensing Exam Questions With Correct
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.
Annuity |- |CORRECT |ANSWER✔✔-1. |An |amount |of |money, |payable |monthly |or |yearly, |which |
liquidates |a |financial |asset. |2. |An |agreement |by |an |insurer |to |make |periodic |payments |that |
continue |during |the |survival |of |the |annuitant(s) |or |for |a |specified |period. |Annuities |are |also |
accumulations |vehicles |that |function |much |like |savings |accounts.
Applicant |- |CORRECT |ANSWER✔✔-The |party |making |application |to |the |insurance |company |for
|the |policy
Application |- |CORRECT |ANSWER✔✔-A |form |on |which |the |prospective |insured |states |facts |
requested |by |the |insurer |and |on |the |basis |of |which |the |insurer |decides |whether |to |accept |the
|risk, |modify |the |coverage |offered, |or |decline |the |risk.
Assignee |- |CORRECT |ANSWER✔✔-The |person |to |whom |policy |rights |are |assigned |in |whole |or |
in |part |by |the |policy |owner.
Assignment |- |CORRECT |ANSWER✔✔-The |transfer |of |rights |in |a |policy |to |someone |other |than |
the |policy |owner.
Attained |age |- |CORRECT |ANSWER✔✔-The |present |age |of |the |insured. |This |is |a |factor |when |a |
person |converts |term |insurance |to |whole |life |insurance |or |buys |added |disability |under |a |GIR |
provision
Attorney-in-fact |- |CORRECT |ANSWER✔✔-A |person |to |whom |authorization |is |given |by |an |
individual |to |exchange |insurance |with |other |persons. |Always |present |in |a |reciprocal |insurance |
company.
, Authorized |company |- |CORRECT |ANSWER✔✔-An |insurer |permitted |to |sell |insurance |within |a |
state, |evidenced |by |a |certificate |of |authority |from |the |insurance |commissioner, |also |called |
ADMITTED
Automatic |premium |loan |- |CORRECT |ANSWER✔✔-A |provision |in |a |life |policy |authorizing |the |
insurance |company |to |use |the |loan |value |to |pay |premiums |not |paid |by |the |end |of |the |grace |
period. |May |be |present |in |whole |life |or |other |traditional |cash |value |policies |only, |but |never |in |
term |policies
Aviation |clause |- |CORRECT |ANSWER✔✔-Limits |or |excludes |coverage |when |the |insured |is |
participating |in |specified |types |of |air |travel, |cush |as |private |planes. |Coverage |is |usually |fully |in |
force |for |people |on |regularly |scheduled |commercial |flights. |The |limit |or |exclusion |often |applies
|to |student |pilots
Beneficiary |- |CORRECT |ANSWER✔✔-A |person |who |may |become |eligible |to |receive, |or |is |
receiving, |benefits |under |an |insurance |plan, |other |than |as |a |participant.
Blanket |Insurance |Contract |- |CORRECT |ANSWER✔✔-A |contract |of |Health |Insurance |that |covers
|all |of |a |class |of |persons |not |individually |identified. |No |certificates |are |issued |and |people |
covered |may |not |be |aware |that |the |coverage |is |in |place.
Blue |Plan |- |CORRECT |ANSWER✔✔-The |generic |term |for |those |insurers |(usually |on |a |service |
rather |than |a |reimbursement |bases) |who |are |authorized |to |use |the |designation |Blue |Cross |or |
Blue |Shield |and |the |insignia |of |either.
Broker |- |CORRECT |ANSWER✔✔-One |who |represents |an |insured |in |the |solicitation, |negotiation,
|or |procurement |of |contracts |of |insurance, |functions. |This |person |is |also |called |an |independent
|agent.
