LIFE, ACCIDENT AND
HEALTH INSURANCE
OHIO
• Which statement BEST describes the tax responsibilities
under a Business Overhead policy?
• Premiums are deductible, benefits are deductible.
• Premiums are deductible, benefits are taxed.
• Premiums are not deductible, expenses are deductible.
,• Premiums are not deductible, benefits are taxed.
ANSWER Premiums are deductible, benefits are taxed
• The Group Insurance provision that prevents two insurers
from paying more than the actual loss is called the...
• Coordination of Benefits.
• Over Insurance clause.
• Over-insurance clause.
• Pro rata liability. ANSWER Coordination of Benefits (COD)
- they could have a primary and secondary insurance but
they won't pay out more than the total loss.
• In which type of insurance company may stockholders
share in the profits and losses of the insurer?
• assessment
• mutual
• service
• stock ANSWER Stock.
,Whenever the insurance company has an increase in profits,
the Board of Directors may increase the dividend payment
from the prior year so the stockholders share in the increased
profits.
• In which company may policy owners receive policy
dividends when there is a profit?
• assessment
• mutual
• service
• stock ANSWER Mutual company.
Dividends, if paid, are not taxable and are never guaranteed
• And agent who circulates false or misleading information for
the purpose of inducing a prospect to lapse or cancel an
existing policy to purchase a new one is guilty of the unfair
trade practice of...
, • discrimination
• rebating.
• twisting.
• none of the above ANSWER Twisting
• If the policy owner has not heard from the insurer, an
Individual Health policy is considered reinstated days
following the request
• 10
• 15
• 30
• 45 ANSWER 45 days.
The insurer is automatically reinstated by 45 days unless the
insurer rejects the insured.
• The law of large numbers states that...
• all losses are predictable.
• large losses are easier to predict.
HEALTH INSURANCE
OHIO
• Which statement BEST describes the tax responsibilities
under a Business Overhead policy?
• Premiums are deductible, benefits are deductible.
• Premiums are deductible, benefits are taxed.
• Premiums are not deductible, expenses are deductible.
,• Premiums are not deductible, benefits are taxed.
ANSWER Premiums are deductible, benefits are taxed
• The Group Insurance provision that prevents two insurers
from paying more than the actual loss is called the...
• Coordination of Benefits.
• Over Insurance clause.
• Over-insurance clause.
• Pro rata liability. ANSWER Coordination of Benefits (COD)
- they could have a primary and secondary insurance but
they won't pay out more than the total loss.
• In which type of insurance company may stockholders
share in the profits and losses of the insurer?
• assessment
• mutual
• service
• stock ANSWER Stock.
,Whenever the insurance company has an increase in profits,
the Board of Directors may increase the dividend payment
from the prior year so the stockholders share in the increased
profits.
• In which company may policy owners receive policy
dividends when there is a profit?
• assessment
• mutual
• service
• stock ANSWER Mutual company.
Dividends, if paid, are not taxable and are never guaranteed
• And agent who circulates false or misleading information for
the purpose of inducing a prospect to lapse or cancel an
existing policy to purchase a new one is guilty of the unfair
trade practice of...
, • discrimination
• rebating.
• twisting.
• none of the above ANSWER Twisting
• If the policy owner has not heard from the insurer, an
Individual Health policy is considered reinstated days
following the request
• 10
• 15
• 30
• 45 ANSWER 45 days.
The insurer is automatically reinstated by 45 days unless the
insurer rejects the insured.
• The law of large numbers states that...
• all losses are predictable.
• large losses are easier to predict.
