Ohio life and Health Insurance Practice
Final Correct 100%
Premiums paid that exceed 7 1/2% of an insured's Adjusted Gross Income (AGI) are
tax-deductible when paid for which of the following plans? - ANSWER Qualified Long-
Term Care plan
All _____ policies must be guaranteed renewable. - ANSWER long-term care
An attending physician's statement would be appropriate for which life insurance
purpose? - ANSWER At the request of the insurer to assist in the underwriting decision
Craig submits a $500 claim for medical expenses. With a past due premium of $100,
the insurer pays $400. Which of the Uniform Optional Provisions covers this situation? -
ANSWER Unpaid premium
Of the following dividend options, which of these is taxable? - ANSWER Accumulation
at interest
An endorsement found in an insurance plan which modifies the provisions of the policy
is called a(n) - ANSWER Rider
Which of the following statements is CORRECT regarding an individual applying for life
or health insurance? - ANSWER The applicant's medical history may be analyzed and
reported
Sole proprietors are permitted tax deductions for health costs paid from their earnings in
the amount of - ANSWER 100% of costs
Kate has a Major Medical Plan with a 75/25 coinsurance and a deductible of $25. How
much will she have to pay if she, not having met any of her deductible, visits the doctor
and receives a bill for $125? - ANSWER $50.00
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
A plan in which an employer pays insurance benefits from a fund derived from the
employer's current revenues is called - ANSWER A self-funded plan
If an insured's age on a life insurance policy has been misstated, what is the insurer's
liability if the insured dies? - ANSWER A prorated death benefit based on the amount of
insurance the insured's premiums would have been if purchased at the correct age
, Which of the following is permitted in an advertisement for an insurance policy? -
ANSWER The insurer's name
Which type of rider will waive the premium on a child's life insurance policy if the parent
paying the premium dies? - ANSWER Payor benefit
A type of insurer that is owned by its policyowners is called - ANSWER mutual
An annuitant dies during the distribution period. What kind of annuity will return to a
beneficiary the difference between the annuity value and the income payments already
made? - ANSWER Refund annuity
A form of medical health insurance covering the treatment and care of gum disease is
called - ANSWER Dental expense insurance
Under a life insurance policy, what does the insuring clause state? - ANSWER The
insurer's obligation to pay a death benefit upon an approved death claim
Coming from an insurance point of view, which of the following is the main risk
associated with disability? - ANSWER Loss of income
Amy has a group medical policy through her employer with a $500 deductible and a
90% coinsurance provision. She incurs $1,500 in covered health care services. How
much will her group insurance carrier pay? - ANSWER $900
In Ohio, a life insurance policy can be backdated before the application date for up to -
ANSWER 3 months
What is the term used when exchanging a new policy for one already in force? -
ANSWER Replacement
What is the tax liability for employer contributions in Health Savings Accounts (HSA's)? -
ANSWER No tax payment needed
Mark continues working after the age of 65 and is covered through his employer's group
health plan. Which of the following statements is TRUE? - ANSWER Medicare is the
secondary payer
What is known as the immediate specific event causing loss and giving rise to risk? -
ANSWER Peril
The open enrollment period for Medicare Supplements begins at age - ANSWER 65
All of the following are considered appropriate uses of life insurance for business
purposes EXCEPT - ANSWER Protecting the business by covering key employees with
life insurance
Final Correct 100%
Premiums paid that exceed 7 1/2% of an insured's Adjusted Gross Income (AGI) are
tax-deductible when paid for which of the following plans? - ANSWER Qualified Long-
Term Care plan
All _____ policies must be guaranteed renewable. - ANSWER long-term care
An attending physician's statement would be appropriate for which life insurance
purpose? - ANSWER At the request of the insurer to assist in the underwriting decision
Craig submits a $500 claim for medical expenses. With a past due premium of $100,
the insurer pays $400. Which of the Uniform Optional Provisions covers this situation? -
ANSWER Unpaid premium
Of the following dividend options, which of these is taxable? - ANSWER Accumulation
at interest
An endorsement found in an insurance plan which modifies the provisions of the policy
is called a(n) - ANSWER Rider
Which of the following statements is CORRECT regarding an individual applying for life
or health insurance? - ANSWER The applicant's medical history may be analyzed and
reported
Sole proprietors are permitted tax deductions for health costs paid from their earnings in
the amount of - ANSWER 100% of costs
Kate has a Major Medical Plan with a 75/25 coinsurance and a deductible of $25. How
much will she have to pay if she, not having met any of her deductible, visits the doctor
and receives a bill for $125? - ANSWER $50.00
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
A plan in which an employer pays insurance benefits from a fund derived from the
employer's current revenues is called - ANSWER A self-funded plan
If an insured's age on a life insurance policy has been misstated, what is the insurer's
liability if the insured dies? - ANSWER A prorated death benefit based on the amount of
insurance the insured's premiums would have been if purchased at the correct age
, Which of the following is permitted in an advertisement for an insurance policy? -
ANSWER The insurer's name
Which type of rider will waive the premium on a child's life insurance policy if the parent
paying the premium dies? - ANSWER Payor benefit
A type of insurer that is owned by its policyowners is called - ANSWER mutual
An annuitant dies during the distribution period. What kind of annuity will return to a
beneficiary the difference between the annuity value and the income payments already
made? - ANSWER Refund annuity
A form of medical health insurance covering the treatment and care of gum disease is
called - ANSWER Dental expense insurance
Under a life insurance policy, what does the insuring clause state? - ANSWER The
insurer's obligation to pay a death benefit upon an approved death claim
Coming from an insurance point of view, which of the following is the main risk
associated with disability? - ANSWER Loss of income
Amy has a group medical policy through her employer with a $500 deductible and a
90% coinsurance provision. She incurs $1,500 in covered health care services. How
much will her group insurance carrier pay? - ANSWER $900
In Ohio, a life insurance policy can be backdated before the application date for up to -
ANSWER 3 months
What is the term used when exchanging a new policy for one already in force? -
ANSWER Replacement
What is the tax liability for employer contributions in Health Savings Accounts (HSA's)? -
ANSWER No tax payment needed
Mark continues working after the age of 65 and is covered through his employer's group
health plan. Which of the following statements is TRUE? - ANSWER Medicare is the
secondary payer
What is known as the immediate specific event causing loss and giving rise to risk? -
ANSWER Peril
The open enrollment period for Medicare Supplements begins at age - ANSWER 65
All of the following are considered appropriate uses of life insurance for business
purposes EXCEPT - ANSWER Protecting the business by covering key employees with
life insurance
