Life and Health Insurance Ohio Licensing Exam with correct answers

Life and Health Insurance Ohio Licensing Exam with
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correct answers
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Absolute |Assignment |- |correct |answer |The |assignment |by |the |policy |owner |of |all |control |and |
rights |to |a |third |party. |This |differs |from |collateral |assignment, |which |allows |all |the |rights |and |
control |to |revert |to |the |owner |once |a |loan |is |paid |off



Accident |- |correct |answer |A |fortuitous |event; |unforeseen |and |unintended



Accidental |Death |Insurance |- |correct |answer |A |form |of |health |insurance |that |provides |
payment |if |death |of |the |insured |results |from |accident. |Accidental |death |insurance |is |often |
combined |with |dismemberment |insurance |in |a |form |called |accidental |death |and |
dismemberment |(AD&D)



Accident |and |Sickness |- |correct |answer |Insurance |against |bodily |injury, |disability, |or |death |by |
accident |or |accidental |means, |or |expense |thereof, |or |against |disability |or |expense |resulting |
from |sickness |and |the |insurance |relating |thereto



Accident |means |- |correct |answer |The |unexpected |cause |of |an |accidental |bodily |injury. |Under |
an |accidental |means |definition, |the |mishap |itself |must |be |accidental. |If |a |person |does |
something |to |contribute |to |the |accident, |the |claim |would |not |be |paid |under |this |restrictive |
definition



Accelerated |benefit |- |correct |answer |Available |only |if |the |benefits |are |available |during |the |
insured's |lifetime, |benefit |amounts |are |fixed |when |accelerated, |and |the |benefits, |when |paid, |
reduces |the |death |benefit



Accumulation |at |interest |option |- |correct |answer |A |dividend |option |under |which |the |policy |
owner |allows |dividends |to |accumulate |at |interest |with |the |company. |Only |the |interest |on |the |
dividends |is |taxable |as |income |(participating |policies |only).

,Actuary |- |correct |answer |Once |concerned |with |the |application |of |probability |and |statistical |
theory |to |insurance. |This |person |sets |expenses, |and |interest |assumptions.



ADB |- |correct |answer |Accidental |death |benefit, |also |known |as |double |indemnity. |There |is |
another |variation |called |triple |indemnity.



AD&D |- |correct |answer |Accidental |death |and |dismemberment |insurance.



Administrator |- |correct |answer |The |person |appointed |by |a |court |to |settle |a |deceased's |estate, |
sometimes |called |and |executor.



Adverse |selection |- |correct |answer |Selection |against |the |insurance |company. |The |tendency |of |
poorer |risks |to |want |insurance |more |often |than |standard |risks.



Agent |- |correct |answer |The |individual |appointed |by |an |insurance |company |to |solicit, |
negotiate, |effect, |or |countersign |insurance |contracts |on |its |behalf.



Aleatory |- |correct |answer |Something |that |depends |upon |chance |or |is |random. |It |is |derived |
from |the |Latin |idea |of |"rolling |the |dice."



Aleatory |contract |- |correct |answer |A |contract |in |which |both |parties |know |that |one |or |the |
other |may |receive |more |than |paid |in. |This |payment |is |dependent |upon |a |fortuitous |event. |For |
example. |a |person |pays |the |premium |for |a |term |policy |for |many |years |and |does |not |die, |thus, |
a |claim |is |never |filed.



Alien |company |- |correct |answer |An |insured |organized |and |domiciled |in |a |country |other |than |
the |United |States



Annuitant |- |correct |answer |The |one |receiving |the |Annuity |and |on |whose |life |expectancy |the |
rates |are |figured.

, Annuity |- |correct |answer |1. |An |amount |of |money, |payable |monthly |or |yearly, |which |liquidates |
a |financial |asset. |2. |An |agreement |by |an |insurer |to |make |periodic |payments |that |continue |
during |the |survival |of |the |annuitant(s) |or |for |a |specified |period. |Annuities |are |also |
accumulations |vehicles |that |function |much |like |savings |accounts.



Applicant |- |correct |answer |The |party |making |application |to |the |insurance |company |for |the |
policy



Application |- |correct |answer |A |form |on |which |the |prospective |insured |states |facts |requested |
by |the |insurer |and |on |the |basis |of |which |the |insurer |decides |whether |to |accept |the |risk, |
modify |the |coverage |offered, |or |decline |the |risk.



Assignee |- |correct |answer |The |person |to |whom |policy |rights |are |assigned |in |whole |or |in |part |
by |the |policy |owner.



Assignment |- |correct |answer |The |transfer |of |rights |in |a |policy |to |someone |other |than |the |
policy |owner.



Attained |age |- |correct |answer |The |present |age |of |the |insured. |This |is |a |factor |when |a |person |
converts |term |insurance |to |whole |life |insurance |or |buys |added |disability |under |a |GIR |provision



Attorney-in-fact |- |correct |answer |A |person |to |whom |authorization |is |given |by |an |individual |to |
exchange |insurance |with |other |persons. |Always |present |in |a |reciprocal |insurance |company.



Authorized |company |- |correct |answer |An |insurer |permitted |to |sell |insurance |within |a |state, |
evidenced |by |a |certificate |of |authority |from |the |insurance |commissioner, |also |called |
ADMITTED



Automatic |premium |loan |- |correct |answer |A |provision |in |a |life |policy |authorizing |the |insurance
|company |to |use |the |loan |value |to |pay |premiums |not |paid |by |the |end |of |the |grace |period. |


May |be |present |in |whole |life |or |other |traditional |cash |value |policies |only, |but |never |in |term |
policies