Ohio Life Insurance Exam Questions and
Answers () (Verified Answers)
According to the entire contract provision, the entire contract includes all of the
following EXCEPT - CORRECT ANSWER The premium payment (other answers
any attachments, any endorsements, and the insurance policy)
In most states, the policy becomes incontestable after - CORRECT ANSWER 2
years
Consideration for an insurance policy includes - CORRECT ANSWER The
statements made in the application and the premium
When waiver of premium applies - CORRECT ANSWER the premium payment
generally resumes when the insured is no longer disabled
Accidental death rider or double indemnity - CORRECT ANSWER This provides
double the face amount of the policy if the insured dies due to accident
Waiver of premium rider - CORRECT ANSWER If the insured becomes disable
during the term of the policy, the premium payments will be waived during the
period of disability
,Payor rider - CORRECT ANSWER Provides for the continuance of insurance
coverage on the life of a juvenile in the event of death or total disability of the
individual responsible for the payment of the premiums
Guaranteed insurability option rider (GIO or GIB) - CORRECT ANSWER Allows for
purchase of specified amounts of additional insurance without evidence of
insurability
Return of premium rider - CORRECT ANSWER Increase in the amount of term
insurance that always equals the total of premiums paid and face value
Cost of living rider - CORRECT ANSWER Guards against the effects of inflation
Substitute insured rider or exchange privilege rider - CORRECT ANSWER Permits
the change of insureds
Accelerated benefits rider - CORRECT ANSWER Allows for the removal of money
from the fund for medical expenses
Disclosures - CORRECT ANSWER When a policy or certificate containing an
accelerated benefit provision is applied for or delivered, the producer is
responsible for providing the applicant a summary of coverage that includes
Garth has a $100,000 whole life insurance policy that has been in effect for 10
years. The policy includes a double indemnity rider. Garth jumps off a bridge and
dies. How much will the policy pay? - CORRECT ANSWER $100,000 because the
multiple indemnity rider excludes death resulting from suicide, but the base
policy's suicide exclusion has expired
,Paul has a life insurance policy on his son for which he pays all the premiums. A
rider to this policy states that if Paul becomes permanently and totally disabled,
the premiums will be paid until his son reaches age 21, at which point his son
will take over the premium payments. Which type of rider does he have? -
CORRECT ANSWER Payor rider
Alberta is concerned that if she became totally and permanently disabled, she
would not be able to pay her life insurance premiums and the policy will lapse.
Which type of rider should she consider to protect against this possibility? -
CORRECT ANSWER Waiver of premium rider
Which of the following riders is increasing term insurance that always equals the
total premiums paid during the time the policy is in effect? - CORRECT ANSWER
Return of premium
Which of the following is waiver of all future premiums in the event of total and
permanent disability? - CORRECT ANSWER Waiver of premium
For the waiver of premium to apply under a waiver of premium rider, the
disability must be one that is - CORRECT ANSWER total and uninterrupted
Cash surrender value - CORRECT ANSWER The cash value is paid out within 6
months of this option and cannot be reinstated
Extended term insurance - CORRECT ANSWER Use the cash value to buy a same-
form policy with no more premium payments
, Reduced paid-up insurance - CORRECT ANSWER Cash value is used to purchase
term insurance with the same face value
Thomas has chosen to receive the settlement from his wife's $100,000 life
insurance policy according to the life income option. Under the option he
chooses, he will receive an income for his life and his daughter will receive
payments if he dies before receiving $100,000 in income. Thomas has selected -
CORRECT ANSWER a refund annuity optiom
Which of the following factors does NOT affect the payment of dividends? -
CORRECT ANSWER Morbidity (Other options operating expenses, mortality and
assumed interest)
Two-tiered annuity - CORRECT ANSWER Different values at maturity depending
on whether the value is taken as a lump sum or periodic payments
Liz purchases an immediate annuity. The annuity contract must be - CORRECT
ANSWER A single premium annuity
Factors used to determine annuity premiums - CORRECT ANSWER Age, sex
(females live longer=higher premiums), assumed interest rate, income amount
and payment guarantee, loading for company expenses
Annuities are a mechanism for transferring to an insurance company the risk of -
CORRECT ANSWER Outliving financial resources
Marcus purchases an annuity that offers a guaranteed minimum interest rate
and a guarantee against loss of principal if the contract is held to term. However,
if the Nasdaq moves upward, Marcus's annuity might end up accruing more
Answers () (Verified Answers)
According to the entire contract provision, the entire contract includes all of the
following EXCEPT - CORRECT ANSWER The premium payment (other answers
any attachments, any endorsements, and the insurance policy)
In most states, the policy becomes incontestable after - CORRECT ANSWER 2
years
Consideration for an insurance policy includes - CORRECT ANSWER The
statements made in the application and the premium
When waiver of premium applies - CORRECT ANSWER the premium payment
generally resumes when the insured is no longer disabled
Accidental death rider or double indemnity - CORRECT ANSWER This provides
double the face amount of the policy if the insured dies due to accident
Waiver of premium rider - CORRECT ANSWER If the insured becomes disable
during the term of the policy, the premium payments will be waived during the
period of disability
,Payor rider - CORRECT ANSWER Provides for the continuance of insurance
coverage on the life of a juvenile in the event of death or total disability of the
individual responsible for the payment of the premiums
Guaranteed insurability option rider (GIO or GIB) - CORRECT ANSWER Allows for
purchase of specified amounts of additional insurance without evidence of
insurability
Return of premium rider - CORRECT ANSWER Increase in the amount of term
insurance that always equals the total of premiums paid and face value
Cost of living rider - CORRECT ANSWER Guards against the effects of inflation
Substitute insured rider or exchange privilege rider - CORRECT ANSWER Permits
the change of insureds
Accelerated benefits rider - CORRECT ANSWER Allows for the removal of money
from the fund for medical expenses
Disclosures - CORRECT ANSWER When a policy or certificate containing an
accelerated benefit provision is applied for or delivered, the producer is
responsible for providing the applicant a summary of coverage that includes
Garth has a $100,000 whole life insurance policy that has been in effect for 10
years. The policy includes a double indemnity rider. Garth jumps off a bridge and
dies. How much will the policy pay? - CORRECT ANSWER $100,000 because the
multiple indemnity rider excludes death resulting from suicide, but the base
policy's suicide exclusion has expired
,Paul has a life insurance policy on his son for which he pays all the premiums. A
rider to this policy states that if Paul becomes permanently and totally disabled,
the premiums will be paid until his son reaches age 21, at which point his son
will take over the premium payments. Which type of rider does he have? -
CORRECT ANSWER Payor rider
Alberta is concerned that if she became totally and permanently disabled, she
would not be able to pay her life insurance premiums and the policy will lapse.
Which type of rider should she consider to protect against this possibility? -
CORRECT ANSWER Waiver of premium rider
Which of the following riders is increasing term insurance that always equals the
total premiums paid during the time the policy is in effect? - CORRECT ANSWER
Return of premium
Which of the following is waiver of all future premiums in the event of total and
permanent disability? - CORRECT ANSWER Waiver of premium
For the waiver of premium to apply under a waiver of premium rider, the
disability must be one that is - CORRECT ANSWER total and uninterrupted
Cash surrender value - CORRECT ANSWER The cash value is paid out within 6
months of this option and cannot be reinstated
Extended term insurance - CORRECT ANSWER Use the cash value to buy a same-
form policy with no more premium payments
, Reduced paid-up insurance - CORRECT ANSWER Cash value is used to purchase
term insurance with the same face value
Thomas has chosen to receive the settlement from his wife's $100,000 life
insurance policy according to the life income option. Under the option he
chooses, he will receive an income for his life and his daughter will receive
payments if he dies before receiving $100,000 in income. Thomas has selected -
CORRECT ANSWER a refund annuity optiom
Which of the following factors does NOT affect the payment of dividends? -
CORRECT ANSWER Morbidity (Other options operating expenses, mortality and
assumed interest)
Two-tiered annuity - CORRECT ANSWER Different values at maturity depending
on whether the value is taken as a lump sum or periodic payments
Liz purchases an immediate annuity. The annuity contract must be - CORRECT
ANSWER A single premium annuity
Factors used to determine annuity premiums - CORRECT ANSWER Age, sex
(females live longer=higher premiums), assumed interest rate, income amount
and payment guarantee, loading for company expenses
Annuities are a mechanism for transferring to an insurance company the risk of -
CORRECT ANSWER Outliving financial resources
Marcus purchases an annuity that offers a guaranteed minimum interest rate
and a guarantee against loss of principal if the contract is held to term. However,
if the Nasdaq moves upward, Marcus's annuity might end up accruing more
