Ohio Life and Health Insurance 100%
Verified
According to the law of large numbers, how would losses be affected if the number of
similar insured units increases? - ANSWER Predictability of losses will be improved
Which of the following can be defined as "the potential for loss"? - ANSWER Risk
An insurer has a contractual agreement which transfers a portion of its risk exposure to
another insurer. What type of contractual arrangement is this? - ANSWER Reinsurance
contract
Which of these statements regarding insurance is false? - ANSWER As the number of
insured units increases, the number of losses decreases
The powers directly given to an agent in an agency contract are called - ANSWER
express
Which of these is true regarding the exchange of consideration among parties involved
in an insurance contract? - ANSWER Can be unequal
What is the reason that insurance companies require a minimum number of employees
participating in a group insurance plan? - ANSWER Adverse selection is minimized
What type of policy can group term life insurance normally be converted to? - ANSWER
An individual permanent life insurance policy
Any employee insured under a group life insurance plan is normally - ANSWER
protected by term life insurance
Which of these is NOT relevant when determining the amount of personal life insurance
needed? - ANSWER Local unemployment rates
What is considered a valid reason for small businesses to insure the lives of its major
shareholders? - ANSWER Fund a buy-sell agreement
Employers often purchase life insurance on a key employee in order to - ANSWER help
offset the cost of finding and training a replacement if the employee dies
Which of the following is NOT considered to be an expense for surviving family
members of a deceased wage earner? - ANSWER Unemployment tax expenses
An insurance policy may be issued with a preferred insurance premium in all of these
situations EXCEPT - ANSWER living in a rural area
, The initial premium for a life insurance policy is typically paid in what way? - ANSWER It
is typically obtained by the producer and forwarded to the insurer
The Medical Information Bureau consists of members from which group? - ANSWER
Insurance companies
When does the agent give a premium receipt for a life insurance application? -
ANSWER When the initial premium has been collected with the application
Which of these is NOT an underwriting responsibility of a life insurance agent? -
ANSWER Determining the final rate classification
After an applicant reads and signs an insurance application, he/she should be
conscious of the fact that - ANSWER a false statement could lead to loss of coverage
The time limit an individual has to "rollover" funds from an IRA or qualified plan is -
ANSWER 60 days
Contributions made by an employee to a qualified retirement plan are required to be -
ANSWER subject to a vesting schedule
An employee welfare plan exempt from ERISA regulations would be - ANSWER church
plans
How are qualified Roth IRA distributions normally treated for tax purposes? - ANSWER
Received income tax-free
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do
not take the required minimum distributions from their qualified retirement plan? -
ANSWER 50%
What does a 401(k) plan generally provide its participants? - ANSWER Salary-deferral
option
How long do most states allow an insurance company to delay the payment of a cash
surrender under the Delayed Payment provision? - ANSWER 6 months
A contingent beneficiary is described as the - ANSWER person who receives the death
benefits if the primary beneficiary dies before the insured
Life insurance premiums are based on what three factors? - ANSWER Mortality,
interest, expenses
Which settlement option makes minimum guaranteed dollar payments over a stated
number of years? - ANSWER Fixed-Period
Verified
According to the law of large numbers, how would losses be affected if the number of
similar insured units increases? - ANSWER Predictability of losses will be improved
Which of the following can be defined as "the potential for loss"? - ANSWER Risk
An insurer has a contractual agreement which transfers a portion of its risk exposure to
another insurer. What type of contractual arrangement is this? - ANSWER Reinsurance
contract
Which of these statements regarding insurance is false? - ANSWER As the number of
insured units increases, the number of losses decreases
The powers directly given to an agent in an agency contract are called - ANSWER
express
Which of these is true regarding the exchange of consideration among parties involved
in an insurance contract? - ANSWER Can be unequal
What is the reason that insurance companies require a minimum number of employees
participating in a group insurance plan? - ANSWER Adverse selection is minimized
What type of policy can group term life insurance normally be converted to? - ANSWER
An individual permanent life insurance policy
Any employee insured under a group life insurance plan is normally - ANSWER
protected by term life insurance
Which of these is NOT relevant when determining the amount of personal life insurance
needed? - ANSWER Local unemployment rates
What is considered a valid reason for small businesses to insure the lives of its major
shareholders? - ANSWER Fund a buy-sell agreement
Employers often purchase life insurance on a key employee in order to - ANSWER help
offset the cost of finding and training a replacement if the employee dies
Which of the following is NOT considered to be an expense for surviving family
members of a deceased wage earner? - ANSWER Unemployment tax expenses
An insurance policy may be issued with a preferred insurance premium in all of these
situations EXCEPT - ANSWER living in a rural area
, The initial premium for a life insurance policy is typically paid in what way? - ANSWER It
is typically obtained by the producer and forwarded to the insurer
The Medical Information Bureau consists of members from which group? - ANSWER
Insurance companies
When does the agent give a premium receipt for a life insurance application? -
ANSWER When the initial premium has been collected with the application
Which of these is NOT an underwriting responsibility of a life insurance agent? -
ANSWER Determining the final rate classification
After an applicant reads and signs an insurance application, he/she should be
conscious of the fact that - ANSWER a false statement could lead to loss of coverage
The time limit an individual has to "rollover" funds from an IRA or qualified plan is -
ANSWER 60 days
Contributions made by an employee to a qualified retirement plan are required to be -
ANSWER subject to a vesting schedule
An employee welfare plan exempt from ERISA regulations would be - ANSWER church
plans
How are qualified Roth IRA distributions normally treated for tax purposes? - ANSWER
Received income tax-free
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do
not take the required minimum distributions from their qualified retirement plan? -
ANSWER 50%
What does a 401(k) plan generally provide its participants? - ANSWER Salary-deferral
option
How long do most states allow an insurance company to delay the payment of a cash
surrender under the Delayed Payment provision? - ANSWER 6 months
A contingent beneficiary is described as the - ANSWER person who receives the death
benefits if the primary beneficiary dies before the insured
Life insurance premiums are based on what three factors? - ANSWER Mortality,
interest, expenses
Which settlement option makes minimum guaranteed dollar payments over a stated
number of years? - ANSWER Fixed-Period
