Ohio Life and Health Practice Exam| Complete Questions & Answers (SCORED A+)

Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? - ANSWER Life income Someone needing custodial care at home would require which type of coverage? - ANSWER Long term care coverage Which of these is not considered a supplemental health insuring corporation (HIC) service? - ANSWER Outpatient medical services An employer may qualify for health care tax credits through SHOP Marketplace if that employer has fewer than how many employees? - ANSWER 25 Justin is receiving disability income benefits from a group policy paid for by his employer. How are these benefits treated for tax purposes? - ANSWER Taxable income The typical long-term care insurance policy is designed to provide a minimum of __ year(s) of coverage. - ANSWER 1 Which situation would qualify an individual for receiving benefits from a qualified long-term care policy? - ANSWER Becoming cognitively impaired (mentally ill) Which of the following would be considered a possible applicant and contract policyholder for group health benefits? - ANSWER Employer The focus of major medical insurance is providing coverage for - ANSWER Medical and hospitalization expenses Which of these factors help determine an insured's life insurance premium? - ANSWER Avocation (hobby) A life insurance policyowner is allowed ______ days upon policy delivery to return the policy for a full premium refund. - ANSWER 10 A guaranteed issue insurance policy has no - ANSWER medical underwriting Which settlement option involves having the proceeds remain with the insurer and earnings paid on a monthly bases to the beneficiary? - ANSWER Interest only Bill requires some nursing care and supervision but NOT full-time care. Which of these nursing home options would best serve him? - ANSWER Assisted living All of these are valid options for an Adjustable Life Policy EXCEPT - ANSWER A nonforfeiture option can be used to increase the death benefit Which dividend option would an insurer invest the policy owner's money and add any interest earnings as the dividends accrue? - ANSWER Accumulation at Interest Option The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is - ANSWER The shorter the payment period, the higher the premium All of these are standard exclusions found in a life insurance policy EXCEPT - ANSWER Disability Ohio requires that a licensee complete ____ hours of continuing education on the subject of ethics every reporting period. - ANSWER 3 What is the primary feature of a viatical settlement? - ANSWER Reduced death benefit prepayment Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. She would like to borrow $15,000 against the cash value. Which of the following statements is TRUE? - ANSWER Net death benefit will be reduced if the loan is not repaid Bryce purchased a disability income policy with a rider that guarantees him the option of purchasing additional amounts of coverage at predetermined times without requiring to provide evidence of insurability. What kind of rider is this? - ANSWER Guaranteed insurability rider "Maximum benefits" refers to the - ANSWER upper limit of the total lifetime benefits the insurance company will pay Coverage for newborns under an accident and health plan MUST include coverage for - ANSWER birth abnormalities Which of the following actions may an insurance company NOT do in a health policy that contains a guaranteed renewable premium benefit? - ANSWER Increase the premiums on an individual basis The superintendent determines an examination of an insurer's books and records is necessary. After receiving the notification, the insurer - ANSWER must not impede the examination Fixed annuities provide each of the following EXCEPT - ANSWER Hedge against inflation All of the following are core benefits of Medicare Supplement Plan A EXCEPT - ANSWER Deductible payments for the first 60 days of hospitalization under Medicare hospitalization An individual can enroll in a Part C Medicare Advantage Plan at what time? - ANSWER When becoming eligible for Medicare When calculating the amount of life insurance needed for an income earner, what has to be determined when using the Needs Approach? - ANSWER The family's financial objectives if the income earner were to die or become disabled Which situation accurately describes a reduced paid-up nonforfeiture option? - ANSWER Policy has a decreased face amount A type of insurer that is owned by its policyowners is called - ANSWER Mutual An insured has a stop-loss limit of $5,000, a deductible of $500, and an 80/20 coinsurance. The insured incurs $25,000 of covered losses. How much will the insured have to pay? - AN