OHIO LIFE/HEALTH INSURANCE STUDY GUIDE WITH
ALL CORRECT & 100% VERIFIED ANSWERS|ALREADY
GRADED A+
Which statement best describes the tax responsibilities under a Business Overhead policy? Correct
answer-Premiums are deductible, benefits are taxed
In which type of insurance company may stockholders share in the profits and losses of the insurer?
Correct answer-Stock
In which company may policy owners receive policy dividends when there is a profit? Correct
answer-mutual
The law of large numbers states that Correct answer-Predictions become more accurate as the
number of units being considered increases
Premiums paid by sole proprietors for Individual Health Insurance coverage are Correct answer-
Fully deductible
In Group Health Insurance, the contract is between the Correct answer-Employer and the
insurance company
An agent is a representative of the Correct answer-Insurance company
What statement is TRUE regarding an agent sharing commissions? Correct 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? Correct answer-50
Which term means that an insurance contract has unequal consideration between the policy owner
and the company? Correct answer-Aleatory
The free look when replacing Long-Term Care insurance is ______ days? Correct answer-30
Insurance is a means of ______ risk. Correct 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 Correct 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? Correct answer-Long-Term Care
Insurance does not cover acute care in the hospital
HIV exams Correct answer-Require prior informed written consent from the applicant
, A Health Insurance policy providing family coverage must cover newborns Correct answer-From
the moment of birth
The Disability policy probationary period Correct answer-Applies only to sickness
An insurance agent license in Ohio must be renewed every _____ year(s) Correct answer-2
For how long may a temporary insurance agent license be issued? Correct answer-Up to 180 days
A customer who wants coverage for medical bills for a broken leg should buy Correct answer-
Medical Expense
Regarding Disability Income benefits under Social Security, Correct answer-The claimant must not
be able to perform any substantial, gainful work
Ohio Small Group policies may cover a minimum of _____ people. Correct answer-2
A Medicare Part A claim begins on the date of Correct 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 Correct answer-Give the insurer time to investigate the claim
Premiums paid for Individual Disability Income policies are Correct answer-Not tax deductible
Key Employee Disability Income Insurance Correct 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, Correct answer-It is also referred to as the COBRA regulation
The reinstatement provision Correct answer-Requires the policy owner to pay all premiums in
arrears for the policy to be reinstated.
Qualified retirement plans such as a 401 (k) are set up by employers to benefit their employees.
Sometimes annuities are chosen as the funding vehicle. Which of the following is true about
qualified plans or annuities that fund them? Correct answer-If an annuity is used, it can be an
individual or group annuity contract
A beneficiary designation that reads, "Jane, my wife, only if she survives me by 30 days," is an
example of which clauses? Correct answer-Common Disaster
In insurance, the principle of making someone whole after a loss by paying only for the actual losses
is called Correct answer-Indemnity
Which statement is FALSE about the replacement of Life Insurance?
a. Agents must review the existing policy prior to replacement to see if it contains any limitations
b. Replacement is illegal
c. Replacement to the detriment of the client is illegal
d. Special forms must be given to clients electing to replace coverage Correct answer-b.
Replacement is illegal
ALL CORRECT & 100% VERIFIED ANSWERS|ALREADY
GRADED A+
Which statement best describes the tax responsibilities under a Business Overhead policy? Correct
answer-Premiums are deductible, benefits are taxed
In which type of insurance company may stockholders share in the profits and losses of the insurer?
Correct answer-Stock
In which company may policy owners receive policy dividends when there is a profit? Correct
answer-mutual
The law of large numbers states that Correct answer-Predictions become more accurate as the
number of units being considered increases
Premiums paid by sole proprietors for Individual Health Insurance coverage are Correct answer-
Fully deductible
In Group Health Insurance, the contract is between the Correct answer-Employer and the
insurance company
An agent is a representative of the Correct answer-Insurance company
What statement is TRUE regarding an agent sharing commissions? Correct 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? Correct answer-50
Which term means that an insurance contract has unequal consideration between the policy owner
and the company? Correct answer-Aleatory
The free look when replacing Long-Term Care insurance is ______ days? Correct answer-30
Insurance is a means of ______ risk. Correct 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 Correct 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? Correct answer-Long-Term Care
Insurance does not cover acute care in the hospital
HIV exams Correct answer-Require prior informed written consent from the applicant
, A Health Insurance policy providing family coverage must cover newborns Correct answer-From
the moment of birth
The Disability policy probationary period Correct answer-Applies only to sickness
An insurance agent license in Ohio must be renewed every _____ year(s) Correct answer-2
For how long may a temporary insurance agent license be issued? Correct answer-Up to 180 days
A customer who wants coverage for medical bills for a broken leg should buy Correct answer-
Medical Expense
Regarding Disability Income benefits under Social Security, Correct answer-The claimant must not
be able to perform any substantial, gainful work
Ohio Small Group policies may cover a minimum of _____ people. Correct answer-2
A Medicare Part A claim begins on the date of Correct 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 Correct answer-Give the insurer time to investigate the claim
Premiums paid for Individual Disability Income policies are Correct answer-Not tax deductible
Key Employee Disability Income Insurance Correct 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, Correct answer-It is also referred to as the COBRA regulation
The reinstatement provision Correct answer-Requires the policy owner to pay all premiums in
arrears for the policy to be reinstated.
Qualified retirement plans such as a 401 (k) are set up by employers to benefit their employees.
Sometimes annuities are chosen as the funding vehicle. Which of the following is true about
qualified plans or annuities that fund them? Correct answer-If an annuity is used, it can be an
individual or group annuity contract
A beneficiary designation that reads, "Jane, my wife, only if she survives me by 30 days," is an
example of which clauses? Correct answer-Common Disaster
In insurance, the principle of making someone whole after a loss by paying only for the actual losses
is called Correct answer-Indemnity
Which statement is FALSE about the replacement of Life Insurance?
a. Agents must review the existing policy prior to replacement to see if it contains any limitations
b. Replacement is illegal
c. Replacement to the detriment of the client is illegal
d. Special forms must be given to clients electing to replace coverage Correct answer-b.
Replacement is illegal
