Ohio Life and Health Practice Exam
ACCURATE 100%
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 - 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 - 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 - 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 - 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 - 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 - 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 -
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 - 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 - ANSWER Seeks temporary
protection and lower premiums
Sole proprietors are permitted tax deductions for health cost paid from their earnings in
the amount of
cost that exceed 7 1/2 % of AGI
cost that exceed 10% of AGI
, 100% of cost
no deduction permitted - ANSWER 100 % of cost
A form of medical health insurance covering the treatment and care of gum disease is
called - ANSWER Dental expense insurance
A beneficiary change can occur - ANSWER normally at any time during the policy term
A life insurance applicant in Ohio may backdate the application for up to ___ month(s) -
ANSWER 3
Which of these is NOT a qualifying event for Medicare
- On Social Security disability for over 2 years- Kidney failure- Age 65 or older- Falling
below the federal poverty level - ANSWER Falling below the federal poverty level
An agent's license has been suspended for non-renewal. The agent may apply for
reinstatement - ANSWER the 12 month period following the date when the license
should have been renewed
Craig submits a $500 claim for medical expenses. With a past due premium of $100,
the insurer pays $400. Which of the Uniform Optional Provisions covers this situation? -
ANSWER Unpaid premium
An insurance producer is often responsible for field underwriting during the application
process. All of these are possible field underwriting roles EXCEPT - ANSWER providing
commission information to the applicant
An insurance company advertises an accident and health insurance product in a local
Ohio newspaper and refers to dollar amount benefits. This insurer must also disclose
which of the following in the advertisement? - ANSWER Any applicable benefit
reduction
A Renewable Term Life Insurance policy can be renewed - ANSWER at a
predetermined date or age, regardless of the insured's health
As of January 1, 2014, an employer with up to 25 full time equivalent (FTE's) with
average annual wages of less than $50,000 may be eligible for a tax credit of ___ of the
premiums paid by the employer.
30%
40%
50%
60% - ANSWER 50%
Respite care is able to provide:
ACCURATE 100%
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 - 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 - 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 - 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 - 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 - 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 - 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 -
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 - 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 - ANSWER Seeks temporary
protection and lower premiums
Sole proprietors are permitted tax deductions for health cost paid from their earnings in
the amount of
cost that exceed 7 1/2 % of AGI
cost that exceed 10% of AGI
, 100% of cost
no deduction permitted - ANSWER 100 % of cost
A form of medical health insurance covering the treatment and care of gum disease is
called - ANSWER Dental expense insurance
A beneficiary change can occur - ANSWER normally at any time during the policy term
A life insurance applicant in Ohio may backdate the application for up to ___ month(s) -
ANSWER 3
Which of these is NOT a qualifying event for Medicare
- On Social Security disability for over 2 years- Kidney failure- Age 65 or older- Falling
below the federal poverty level - ANSWER Falling below the federal poverty level
An agent's license has been suspended for non-renewal. The agent may apply for
reinstatement - ANSWER the 12 month period following the date when the license
should have been renewed
Craig submits a $500 claim for medical expenses. With a past due premium of $100,
the insurer pays $400. Which of the Uniform Optional Provisions covers this situation? -
ANSWER Unpaid premium
An insurance producer is often responsible for field underwriting during the application
process. All of these are possible field underwriting roles EXCEPT - ANSWER providing
commission information to the applicant
An insurance company advertises an accident and health insurance product in a local
Ohio newspaper and refers to dollar amount benefits. This insurer must also disclose
which of the following in the advertisement? - ANSWER Any applicable benefit
reduction
A Renewable Term Life Insurance policy can be renewed - ANSWER at a
predetermined date or age, regardless of the insured's health
As of January 1, 2014, an employer with up to 25 full time equivalent (FTE's) with
average annual wages of less than $50,000 may be eligible for a tax credit of ___ of the
premiums paid by the employer.
30%
40%
50%
60% - ANSWER 50%
Respite care is able to provide:
