Ohio Life/Health Insurance Study Guide with Complete Solutions

Which statement best describes the tax responsibilities under a Business Overhead policy? - ANSWER-Premiums are deductible, benefits are taxed In which type of insurance company may stockholders share in the profits and losses of the insurer? - ANSWER-Stock In which company may policy owners receive policy dividends when there is a profit? - ANSWER-mutual The law of large numbers states that - ANSWER-Predictions become more accurate as the number of units being considered increases Premiums paid by sole proprietors for Individual Health Insurance coverage are - ANSWER-Fully deductible In Group Health Insurance, the contract is between the - ANSWER-Employer and the insurance company An agent is a representative of the - ANSWER-Insurance company What statement is TRUE regarding an agent sharing commissions? - ANSWER-An agent may share commissions with another agent who is licensed for that line of insurance Ohio Small Group policies may cover a maximum of ______ people? - ANSWER-50 Which term means that an insurance contract has unequal consideration between the policy owner and the company? - ANSWER-Aleatory The free look when replacing Long-Term Care insurance is ______ days? - ANSWER-30 Insurance is a means of ______ risk. - ANSWER-Transferring 1. The federal government enacted USC 1033 to do all of the following EXCEPT: a. Allow the federal Department of Insurance to indict individuals in violation of USC 1033 b. Allow the state Superintendent to refuse to issue or renew any license c. Prohibit convicted individuals from engaging in insurance business d. Prohibit embezzlement and/or false reporting of information in company books - ANSWER-a. Allow the federal Department of Insurance to indict individuals in violation of USC 1033 Which is a true statement about Long-Term Care Insurance? - ANSWER-Long-Term Care Insurance does not cover acute care in the hospital HIV exams - ANSWER-Require prior informed written consent from the applicant A Health Insurance policy providing family coverage must cover newborns - ANSWER-From the moment of birth The Disability policy probationary period - ANSWER-Applies only to sickness An insurance agent license in Ohio must be renewed every _____ year(s) - ANSWER-2 For how long may a temporary insurance agent license be issued? - ANSWER-Up to 180 days A customer who wants coverage for medical bills for a broken leg should buy - ANSWER-Medical Expense Regarding Disability Income benefits under Social Security, - ANSWER-The claimant must not be able to perform any substantial, gainful work Ohio Small Group policies may cover a minimum of _____ people. - ANSWER-2 A Medicare Part A claim begins on the date of - ANSWER-Hospitalization Under the Legal Actions provision, the insured cannot sue for non-payment of a valid claim until after 60 days, in order to - ANSWER-Give the insurer time to investigate the claim Premiums paid for Individual Disability Income policies are - ANSWER-Not tax deductible Key Employee Disability Income Insurance - ANSWER-Is a form of 3rd party ownership Regarding continuation of Health Insurance after termination of employment at a company with more than 20 employees, - ANSWER-It is also referred to as the COBRA regulation The reinstatement provision - ANSWER-Requires the policy owner to pay all premiums in arrears for the policy to be reinstated.