OHIO Life Insurance Exam Questions and Correct
Answers | Latest Updated 2026/2027 | Graded A+ |
100% Guaranteed Pass.
Insurance: - ANSWER>>A contract in which the insurance company agrees to
indemnify the insured party against loss, damage or liability arising from an
unknown event.
Insurance Transfers: - ANSWER>>The risk of loss from an individual or business
entity to an insurance company, which in turn spreads costs of unexpected losses
to many individuals.
Homogenous: - ANSWER>>A large number of units having the same or similar
exposure to loss.
Hazards: (3 types) - ANSWER>>Conditions or situations that increase the
probability of an insured loss occurring.
Physical hazards:
-Individual characteristics that increase the chances of the cause of loss. Ex: past
medical history, condition at birth (blindness).
Moral Hazards:
-Tendencies towards increased risk. Involves evaluating the character and
reputation of a proposed insured. Ex: When an applicant lies on the application
for insurance.
Morale Hazards:
,-Arise from a state of mind that causes indifference to loss, such as carelessness.
Ex: Not spending money on a flu shot because if you get the flu your insurance
company will pay for it.
Direct response marketing: - ANSWER>>A direct response marketing system
effectively bypasses the insurance agent. Business is conducted over the phone,
through the mail, or online. This is a perfectly legal approach to selling insurance.
It is not mandatory in all situations for the insured to physically sign any
documents in order for coverage to go into effect.
Insurance Transaction: (4) - ANSWER>>Solicitation, Negotiations, Sale
(effectuation of a contract of insurance, and Advising an individual concerning
coverage of claims.
Perils: - ANSWER>>The causes of loss insured against in an insurance policy.
-Life insurance
-Health insurance
-Property insurance
-Casualty insurance
,Thank you for Purchasing this exam Study
Guide. We provide high-quality academic
materials to help students excel in exams.
Our other Services include but not limited
to: academic research, University & College
assignments writing, essay writing, Online
Classes, and research projects. Our services
are reliable, affordable, and plagiarism-
free. All the Best in your Exam. For more
information; Contact us at:
or
0R +254
741484450
Loss: - ANSWER>>The reduction, decrease, or disappearance of the value of the
person or property insured in a policy, caused by a named peril.
Look at transfer stuff pg 7
Risk: (Two Types) - ANSWER>>The uncertainty or chance of a loss occurring.
, Pure Risk:
-Situations that can only result in a loss or no change. There is no opportunity for
financial gain. This is the only type that insurance companies will accept.
Speculative Risk:
-Involves the opportunity for either loss or gain. Ex: Risk of gambling. These are
not insurable risks.
Risk Retention: (Method of handling risk) - ANSWER>>The planned assumption of
risk by an insured through the use of deductibles, copayments, or self-insurance.
Reduction: (Method of handling risk) - ANSWER>>Includes actions such as
installing smoke detectors in our homes, having an annual physical to detect
health problems early, or perhaps making a change in our lifestyles.
Transfer: - ANSWER>>The most effective way to handle risk. Transfer it to another
party.
Reinsurance: - ANSWER>>Is a contract which one insurance company indemnifies
another insurance company for part or all of its liabilities.
Nonparticipating policies: - ANSWER>>Does not pay dividends to policyowners,
but taxable dividends are paid to stock holders. Usually issued by stock companies
Participating policies: - ANSWER>>Pay dividends to policy owners based upon
actual mortality cost, interest earned and costs.
Risk Retention Group: - ANSWER>>A liability insurance company owned by its
members.
Lloyd's Association: - ANSWER>>Provides support facilities for underwriters or
groups of individuals that accept insurance risk.
Answers | Latest Updated 2026/2027 | Graded A+ |
100% Guaranteed Pass.
Insurance: - ANSWER>>A contract in which the insurance company agrees to
indemnify the insured party against loss, damage or liability arising from an
unknown event.
Insurance Transfers: - ANSWER>>The risk of loss from an individual or business
entity to an insurance company, which in turn spreads costs of unexpected losses
to many individuals.
Homogenous: - ANSWER>>A large number of units having the same or similar
exposure to loss.
Hazards: (3 types) - ANSWER>>Conditions or situations that increase the
probability of an insured loss occurring.
Physical hazards:
-Individual characteristics that increase the chances of the cause of loss. Ex: past
medical history, condition at birth (blindness).
Moral Hazards:
-Tendencies towards increased risk. Involves evaluating the character and
reputation of a proposed insured. Ex: When an applicant lies on the application
for insurance.
Morale Hazards:
,-Arise from a state of mind that causes indifference to loss, such as carelessness.
Ex: Not spending money on a flu shot because if you get the flu your insurance
company will pay for it.
Direct response marketing: - ANSWER>>A direct response marketing system
effectively bypasses the insurance agent. Business is conducted over the phone,
through the mail, or online. This is a perfectly legal approach to selling insurance.
It is not mandatory in all situations for the insured to physically sign any
documents in order for coverage to go into effect.
Insurance Transaction: (4) - ANSWER>>Solicitation, Negotiations, Sale
(effectuation of a contract of insurance, and Advising an individual concerning
coverage of claims.
Perils: - ANSWER>>The causes of loss insured against in an insurance policy.
-Life insurance
-Health insurance
-Property insurance
-Casualty insurance
,Thank you for Purchasing this exam Study
Guide. We provide high-quality academic
materials to help students excel in exams.
Our other Services include but not limited
to: academic research, University & College
assignments writing, essay writing, Online
Classes, and research projects. Our services
are reliable, affordable, and plagiarism-
free. All the Best in your Exam. For more
information; Contact us at:
or
0R +254
741484450
Loss: - ANSWER>>The reduction, decrease, or disappearance of the value of the
person or property insured in a policy, caused by a named peril.
Look at transfer stuff pg 7
Risk: (Two Types) - ANSWER>>The uncertainty or chance of a loss occurring.
, Pure Risk:
-Situations that can only result in a loss or no change. There is no opportunity for
financial gain. This is the only type that insurance companies will accept.
Speculative Risk:
-Involves the opportunity for either loss or gain. Ex: Risk of gambling. These are
not insurable risks.
Risk Retention: (Method of handling risk) - ANSWER>>The planned assumption of
risk by an insured through the use of deductibles, copayments, or self-insurance.
Reduction: (Method of handling risk) - ANSWER>>Includes actions such as
installing smoke detectors in our homes, having an annual physical to detect
health problems early, or perhaps making a change in our lifestyles.
Transfer: - ANSWER>>The most effective way to handle risk. Transfer it to another
party.
Reinsurance: - ANSWER>>Is a contract which one insurance company indemnifies
another insurance company for part or all of its liabilities.
Nonparticipating policies: - ANSWER>>Does not pay dividends to policyowners,
but taxable dividends are paid to stock holders. Usually issued by stock companies
Participating policies: - ANSWER>>Pay dividends to policy owners based upon
actual mortality cost, interest earned and costs.
Risk Retention Group: - ANSWER>>A liability insurance company owned by its
members.
Lloyd's Association: - ANSWER>>Provides support facilities for underwriters or
groups of individuals that accept insurance risk.
