Ohio Life and Health Practice Exam
Questions With Correct 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 |- |CORRECT |ANSWER✔✔-$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 |- |CORRECT |ANSWER✔✔-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 |- |CORRECT |ANSWER✔✔-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 |- |CORRECT |ANSWER✔✔-Own |occupation
A |policyowner |can |receive |an |immediate |payment |before |the |insured |dies |by |using |a(n)
viatical |settlement |contract
buy-sell |arrangement
adhesion |agreement
spendthrift |plan |- |CORRECT |ANSWER✔✔-viatical |settlement |contract
Signatures |for |an |insurance |application |MUST |be |obtained |by |the |producer |from |all |of |the |
following |sources |EXCEPT
The |producer
The |insured |
, The |policyowner
The |beneficiary |- |CORRECT |ANSWER✔✔-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 |- |CORRECT |
ANSWER✔✔-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 |- |CORRECT |ANSWER✔✔-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 |- |CORRECT |ANSWER✔✔-Seeks |temporary |
protection |and |lower |premiums
Questions With Correct 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 |- |CORRECT |ANSWER✔✔-$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 |- |CORRECT |ANSWER✔✔-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 |- |CORRECT |ANSWER✔✔-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 |- |CORRECT |ANSWER✔✔-Own |occupation
A |policyowner |can |receive |an |immediate |payment |before |the |insured |dies |by |using |a(n)
viatical |settlement |contract
buy-sell |arrangement
adhesion |agreement
spendthrift |plan |- |CORRECT |ANSWER✔✔-viatical |settlement |contract
Signatures |for |an |insurance |application |MUST |be |obtained |by |the |producer |from |all |of |the |
following |sources |EXCEPT
The |producer
The |insured |
, The |policyowner
The |beneficiary |- |CORRECT |ANSWER✔✔-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 |- |CORRECT |
ANSWER✔✔-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 |- |CORRECT |ANSWER✔✔-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 |- |CORRECT |ANSWER✔✔-Seeks |temporary |
protection |and |lower |premiums
