Ohio Life and Health Practice Exam Questions and
Answers.
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?
$500
$5,000
$5,400
$5,600 - ANS $5,000
Which of these is NOT subject to income taxation under Modified Endowment
Contract (MEC)
Loan against the cash value
Policy withdrawal
Policy Dividend
Death Benefit - ANS Death benefit
An indemnity plan
Pays both the insured and health care provider
Provides the insured a specific dollar amount for services
Pays the health care provider directly for services rendered
Is typically issued as a group plan - ANS provides the insured a specific dollar
amount for services
Chris is an insured bricklayer who severed his left hand in an automobile accident.
Although his primary duty cannot be performed, Chris is also a substitute high school
teacher. He collects a full disability income check every month. How does his policy
define total disability?
Recurrent
Any occupation
Own occupation
Presumptive - ANS Own occupation
A policy owner can receive an immediate payment before the insured dies by using a
(n)
Vertical settlement contract
Buy-sell arrangement
Adhesion agreement
,Spendthrift plan - ANS vertical settlement contract
Signatures for an insurance application MUST be obtained by the producer from all
of the following sources ACCEPT
The producer
The insured
The policy owner
The beneficiary - ANS The beneficiary
All of the following are considered appropriate uses of life insurance for business
purposes EXCEPT
Attracting quality employees by offering a group life plan
Funding an entity buy-sell agreement
Protecting the business by covering key employees with life insurance
Protecting the business by covering entry level employees with life insurance - ANS
Protecting the business by covering entry level employees with life insurance
Elizabeth is the beneficiary of a life insurance policy. She is receiving the death
benefit in payments of $10,000 per month until the principal and interest has been
paid out. Which option was chosen?
Fixed period
Fixed amount
Life income
Interest only - ANS Fixed amount
Term insurance is appropriate for someone who
Seeks living benefits for themselves
Seeks a policy that builds cash value
Seeks temporary protection and lower premiums
Seeks permanent protection and higher premiums - ANS Seeks temporary
protection and lower premiums
Sole proprietors are permitted tax deductions for health cost paid from their earnings
in the amount of
Cost that exceed 7 1/2 % of AGI
Cost that exceed 10% of AGI
100% of cost
No deduction permitted - ANS 100 % of cost
If an agent is believed to be causing considerable harm, the superintendent
May incarcerate the agent
May suspend the agent's license without a hearing
May issue a cease and desist order against the agent
, May take away the agent's appointment - ANS may issue a cease and desist order
against the agent
A medical provider that accepts Medicare assignment must - ANS accept payment
based upon a defined Medicare schedule as payment in full
Under group health insurance, a certificate of coverage is issued to the
A) employer
B) Employee
C) Producer
D) Sponsor - ANS employee
A spouse and child can be added to the primary insured's coverage as what kind of
rider?
Dependent term
Guaranteed insurability
Primary term
Family term - ANS Family term
When a decreasing term policy is purchased, it contains a decreasing death benefit
and
Increasing premiums
Level premiums
Decreasing premiums
Variable premiums - ANS level premiums
A minor may receive a life insurance policy's death benefit ONLY - ANS if the minor
has an appointed guardian
A partial surrender is allowed in which of the following life policies?
Adjustable whole life
Universal life
Decreasing term life
Limited whole life - ANS universal life
Which of the following statements is NOT true regarding Critical Illness Plan - ANS
Coverage is limited to a single devastating disease
Matt is applying for life insurance and requests a double indemnity rider. A double
indemnity benefit will be payable to Matt's beneficiary if Matt - ANS dies instantly
from a car accident
A form of medical health insurance covering the treatment and care of gum disease
is called - ANS Dental expense insurance
A beneficiary change can occur - ANS normally at any time during the policy term
Answers.
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?
$500
$5,000
$5,400
$5,600 - ANS $5,000
Which of these is NOT subject to income taxation under Modified Endowment
Contract (MEC)
Loan against the cash value
Policy withdrawal
Policy Dividend
Death Benefit - ANS Death benefit
An indemnity plan
Pays both the insured and health care provider
Provides the insured a specific dollar amount for services
Pays the health care provider directly for services rendered
Is typically issued as a group plan - ANS provides the insured a specific dollar
amount for services
Chris is an insured bricklayer who severed his left hand in an automobile accident.
Although his primary duty cannot be performed, Chris is also a substitute high school
teacher. He collects a full disability income check every month. How does his policy
define total disability?
Recurrent
Any occupation
Own occupation
Presumptive - ANS Own occupation
A policy owner can receive an immediate payment before the insured dies by using a
(n)
Vertical settlement contract
Buy-sell arrangement
Adhesion agreement
,Spendthrift plan - ANS vertical settlement contract
Signatures for an insurance application MUST be obtained by the producer from all
of the following sources ACCEPT
The producer
The insured
The policy owner
The beneficiary - ANS The beneficiary
All of the following are considered appropriate uses of life insurance for business
purposes EXCEPT
Attracting quality employees by offering a group life plan
Funding an entity buy-sell agreement
Protecting the business by covering key employees with life insurance
Protecting the business by covering entry level employees with life insurance - ANS
Protecting the business by covering entry level employees with life insurance
Elizabeth is the beneficiary of a life insurance policy. She is receiving the death
benefit in payments of $10,000 per month until the principal and interest has been
paid out. Which option was chosen?
Fixed period
Fixed amount
Life income
Interest only - ANS Fixed amount
Term insurance is appropriate for someone who
Seeks living benefits for themselves
Seeks a policy that builds cash value
Seeks temporary protection and lower premiums
Seeks permanent protection and higher premiums - ANS Seeks temporary
protection and lower premiums
Sole proprietors are permitted tax deductions for health cost paid from their earnings
in the amount of
Cost that exceed 7 1/2 % of AGI
Cost that exceed 10% of AGI
100% of cost
No deduction permitted - ANS 100 % of cost
If an agent is believed to be causing considerable harm, the superintendent
May incarcerate the agent
May suspend the agent's license without a hearing
May issue a cease and desist order against the agent
, May take away the agent's appointment - ANS may issue a cease and desist order
against the agent
A medical provider that accepts Medicare assignment must - ANS accept payment
based upon a defined Medicare schedule as payment in full
Under group health insurance, a certificate of coverage is issued to the
A) employer
B) Employee
C) Producer
D) Sponsor - ANS employee
A spouse and child can be added to the primary insured's coverage as what kind of
rider?
Dependent term
Guaranteed insurability
Primary term
Family term - ANS Family term
When a decreasing term policy is purchased, it contains a decreasing death benefit
and
Increasing premiums
Level premiums
Decreasing premiums
Variable premiums - ANS level premiums
A minor may receive a life insurance policy's death benefit ONLY - ANS if the minor
has an appointed guardian
A partial surrender is allowed in which of the following life policies?
Adjustable whole life
Universal life
Decreasing term life
Limited whole life - ANS universal life
Which of the following statements is NOT true regarding Critical Illness Plan - ANS
Coverage is limited to a single devastating disease
Matt is applying for life insurance and requests a double indemnity rider. A double
indemnity benefit will be payable to Matt's beneficiary if Matt - ANS dies instantly
from a car accident
A form of medical health insurance covering the treatment and care of gum disease
is called - ANS Dental expense insurance
A beneficiary change can occur - ANS normally at any time during the policy term
