Ohio Life and Health Insurance Test| 150 Questions| accurate 100%(RATED A+)

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 be