OhiO Life, Accident & heALth insurAnce
finAL eXAM studY Guide 2026 cOMPLete
QuestiOns With cOrrect detAiLed
AnsWers || 100% GuArAnteed PAss
<recent VersiOn>
1. Which statement BEST describes the tax responsibilities under a Business
Overhead policy?
a. Premiums are deductible, benefits are deductible.
b. Premiums are deductible, benefits are taxed.
c. Premiums are not deductible, expenses are deductible.
d. Premiums are not deductible, benefits are taxed. - ANSWER ✔
Premiums are deductible, benefits are taxed
2. The Group Insurance provision that prevents two insurers from paying more
than the actual loss is called the...
a. Coordination of Benefits.
b. Over Insurance clause.
c. Over-insurance clause.
d. Pro rata liability. - ANSWER ✔ Coordination of Benefits (COD) -
they could have a primary and secondary insurance but they won't pay
out more than the total loss.
3. In which type of insurance company may stockholders share in the profits
and losses of the insurer?
a. assessment
b. mutual
c. service
d. stock - ANSWER ✔ Stock.
Whenever the insurance company has an increase in profits, the Board of
Directors may increase the dividend payment from the prior year so the
stockholders share in the increased profits.
,4. In which company may policy owners receive policy dividends when there
is a profit?
a. assessment
b. mutual
c. service
d. stock - ANSWER ✔ Mutual company.
Dividends, if paid, are not taxable and are never guaranteed
5. And agent who circulates false or misleading information for the purpose of
inducing a prospect to lapse or cancel an existing policy to purchase a new
one is guilty of the unfair trade practice of...
a. discrimination
b. rebating.
c. twisting.
d. none of the above - ANSWER ✔ Twisting
6. If the policy owner has not heard from the insurer, an Individual Health
policy is considered reinstated ______ days following the request:
a. 10
b. 15
c. 30
d. 45 - ANSWER ✔ 45 days.
7. When a creditor has a temporary interest in a Life Insurance policy, it is
known as a(n)
a. absolute assignment
b collateral assignment
c. lien
d. ownership provision - ANSWER ✔ Collateral assignment
8. What type of policy is typically issued without proof of insurability from the
insured? - ANSWER ✔ Group policy
9. A whole life policy that requires that the Policyowner only pays premiums
for a specified number of years is known as what type of policy? -
ANSWER ✔ Limited-pay whole life
,10.Who is entitled to the cash values in an insurance policy? - ANSWER ✔ The
Policyowner
11.An insured receives a monthly summary for his life insurance policy. He
notices that the cash value of the policy is significantly lower this month
than it was last month. What type of policy does the insured have? -
ANSWER ✔ Variable
12.What happens to the premium in an annually renewable term life policy? -
ANSWER ✔ Premium increases with each renewal
13.In a joint life policy, when is the death benefit paid? - ANSWER ✔ Upon the
first death
14.In term policies, what happens to the premium throughout the policy? -
ANSWER ✔ It remains level
15.In variable universal life insurance, to which policy component does the
term variable refer? - ANSWER ✔ Cash value and death benefit
16.When the amount of insurance is increased in an adjustable life policy, what
will the insurer require from the insured? - ANSWER ✔ Evidence of
insurability
17.In what type of life insurance policies can the Policyowner skip premium
payments without lapsing? - ANSWER ✔ Universal life
18.A policy states that the insurer will pay a specified face amount if the
insured dies within the 20-year premium paying period and nothing if he
dies after. What type of policy is this? - ANSWER ✔ 20-year level term
19.What does "level" refer to in level term insurance? - ANSWER ✔ Face
amount
20.Between adjustable life and universal life policies, which one provides more
flexibility to the policyowner? - ANSWER ✔ Universal life
, 21.What type of life insurance policy offers pure death protection? - ANSWER
✔ Term
22.What type of policy issues certificates of insurance to the insureds? -
ANSWER ✔ Group policy
23.What type of life insurance policy provides permanent protection? -
ANSWER ✔ Whole life
24.What type of whole life policy generates immediate cash value? - ANSWER
✔ Single premium whole life
25.What elements of an adjustable life policy can be changed by the
pokicyowners? - ANSWER ✔ The amount and payment period of the
premium, the face amount, and the period for protection
26.What is the purpose of establishing the target premium for a universal whole
life policy? - ANSWER ✔ to prevent the policy from lapsing
27.What type of whole life insurance policies only requires a payment of
premium at its inception, and in addition to providing insurance protection
for the life of the insured, endows at the insured's age 100? - ANSWER ✔
Single premium whole life
28.What are the characteristics of the group that underwriters will consider
before issuing a group life policy? - ANSWER ✔ Group's purpose, size,
financial strength, and turnover
29.Universal life policies have two different types of interest rates. What are
they? - ANSWER ✔ Guaranteed and current
30.Who is insured under a juvenile life policy? - ANSWER ✔ A minor
31.If an insured terminates membership in group life insurance, to what type of
insurance can the insured convert the coverage? - ANSWER ✔ Whole life
32.What universal life option has a gradually increasing cash value and a level
death benefit? - ANSWER ✔ Option A
finAL eXAM studY Guide 2026 cOMPLete
QuestiOns With cOrrect detAiLed
AnsWers || 100% GuArAnteed PAss
<recent VersiOn>
1. Which statement BEST describes the tax responsibilities under a Business
Overhead policy?
a. Premiums are deductible, benefits are deductible.
b. Premiums are deductible, benefits are taxed.
c. Premiums are not deductible, expenses are deductible.
d. Premiums are not deductible, benefits are taxed. - ANSWER ✔
Premiums are deductible, benefits are taxed
2. The Group Insurance provision that prevents two insurers from paying more
than the actual loss is called the...
a. Coordination of Benefits.
b. Over Insurance clause.
c. Over-insurance clause.
d. Pro rata liability. - ANSWER ✔ Coordination of Benefits (COD) -
they could have a primary and secondary insurance but they won't pay
out more than the total loss.
3. In which type of insurance company may stockholders share in the profits
and losses of the insurer?
a. assessment
b. mutual
c. service
d. stock - ANSWER ✔ Stock.
Whenever the insurance company has an increase in profits, the Board of
Directors may increase the dividend payment from the prior year so the
stockholders share in the increased profits.
,4. In which company may policy owners receive policy dividends when there
is a profit?
a. assessment
b. mutual
c. service
d. stock - ANSWER ✔ Mutual company.
Dividends, if paid, are not taxable and are never guaranteed
5. And agent who circulates false or misleading information for the purpose of
inducing a prospect to lapse or cancel an existing policy to purchase a new
one is guilty of the unfair trade practice of...
a. discrimination
b. rebating.
c. twisting.
d. none of the above - ANSWER ✔ Twisting
6. If the policy owner has not heard from the insurer, an Individual Health
policy is considered reinstated ______ days following the request:
a. 10
b. 15
c. 30
d. 45 - ANSWER ✔ 45 days.
7. When a creditor has a temporary interest in a Life Insurance policy, it is
known as a(n)
a. absolute assignment
b collateral assignment
c. lien
d. ownership provision - ANSWER ✔ Collateral assignment
8. What type of policy is typically issued without proof of insurability from the
insured? - ANSWER ✔ Group policy
9. A whole life policy that requires that the Policyowner only pays premiums
for a specified number of years is known as what type of policy? -
ANSWER ✔ Limited-pay whole life
,10.Who is entitled to the cash values in an insurance policy? - ANSWER ✔ The
Policyowner
11.An insured receives a monthly summary for his life insurance policy. He
notices that the cash value of the policy is significantly lower this month
than it was last month. What type of policy does the insured have? -
ANSWER ✔ Variable
12.What happens to the premium in an annually renewable term life policy? -
ANSWER ✔ Premium increases with each renewal
13.In a joint life policy, when is the death benefit paid? - ANSWER ✔ Upon the
first death
14.In term policies, what happens to the premium throughout the policy? -
ANSWER ✔ It remains level
15.In variable universal life insurance, to which policy component does the
term variable refer? - ANSWER ✔ Cash value and death benefit
16.When the amount of insurance is increased in an adjustable life policy, what
will the insurer require from the insured? - ANSWER ✔ Evidence of
insurability
17.In what type of life insurance policies can the Policyowner skip premium
payments without lapsing? - ANSWER ✔ Universal life
18.A policy states that the insurer will pay a specified face amount if the
insured dies within the 20-year premium paying period and nothing if he
dies after. What type of policy is this? - ANSWER ✔ 20-year level term
19.What does "level" refer to in level term insurance? - ANSWER ✔ Face
amount
20.Between adjustable life and universal life policies, which one provides more
flexibility to the policyowner? - ANSWER ✔ Universal life
, 21.What type of life insurance policy offers pure death protection? - ANSWER
✔ Term
22.What type of policy issues certificates of insurance to the insureds? -
ANSWER ✔ Group policy
23.What type of life insurance policy provides permanent protection? -
ANSWER ✔ Whole life
24.What type of whole life policy generates immediate cash value? - ANSWER
✔ Single premium whole life
25.What elements of an adjustable life policy can be changed by the
pokicyowners? - ANSWER ✔ The amount and payment period of the
premium, the face amount, and the period for protection
26.What is the purpose of establishing the target premium for a universal whole
life policy? - ANSWER ✔ to prevent the policy from lapsing
27.What type of whole life insurance policies only requires a payment of
premium at its inception, and in addition to providing insurance protection
for the life of the insured, endows at the insured's age 100? - ANSWER ✔
Single premium whole life
28.What are the characteristics of the group that underwriters will consider
before issuing a group life policy? - ANSWER ✔ Group's purpose, size,
financial strength, and turnover
29.Universal life policies have two different types of interest rates. What are
they? - ANSWER ✔ Guaranteed and current
30.Who is insured under a juvenile life policy? - ANSWER ✔ A minor
31.If an insured terminates membership in group life insurance, to what type of
insurance can the insured convert the coverage? - ANSWER ✔ Whole life
32.What universal life option has a gradually increasing cash value and a level
death benefit? - ANSWER ✔ Option A
