OHIO LIFE AND HEALTH INSURANCE
PRACTICE EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025
1. Which of the following is NOT an element of an insurable risk?
A. Loss must be due to chance
B. Loss must be catastrophic
C. Loss must be predictable
D. Loss must be measurable
Predictable losses are not insurable; insurance is designed for unexpected
events.
2. What is the purpose of a buy-sell agreement?
A. Provide life insurance to key employees
B. Determine what happens to a business in the event of an owner's
death
C. Provide benefits for employees in retirement
D. Protect creditors in bankruptcy
, Buy-sell agreements fund the transfer of ownership interest upon death or
disability.
3. In health insurance, what is the term for the amount the insured pays
before the insurer covers expenses?
A. Premium
B. Deductible
C. Copayment
D. Coinsurance
A deductible is the initial amount paid by the insured before benefits are
provided.
4. What type of insurance is typically used for mortgage protection?
A. Universal Life
B. Decreasing Term
C. Whole Life
D. Variable Life
Decreasing term coverage declines over time to match the mortgage
balance.
5. Which rider waives the premium if the insured becomes disabled?
A. Accidental Death
B. Term Rider
C. Waiver of Premium
D. Guaranteed Insurability
Waiver of premium riders ensure policy continuity during disability.
PRACTICE EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025
1. Which of the following is NOT an element of an insurable risk?
A. Loss must be due to chance
B. Loss must be catastrophic
C. Loss must be predictable
D. Loss must be measurable
Predictable losses are not insurable; insurance is designed for unexpected
events.
2. What is the purpose of a buy-sell agreement?
A. Provide life insurance to key employees
B. Determine what happens to a business in the event of an owner's
death
C. Provide benefits for employees in retirement
D. Protect creditors in bankruptcy
, Buy-sell agreements fund the transfer of ownership interest upon death or
disability.
3. In health insurance, what is the term for the amount the insured pays
before the insurer covers expenses?
A. Premium
B. Deductible
C. Copayment
D. Coinsurance
A deductible is the initial amount paid by the insured before benefits are
provided.
4. What type of insurance is typically used for mortgage protection?
A. Universal Life
B. Decreasing Term
C. Whole Life
D. Variable Life
Decreasing term coverage declines over time to match the mortgage
balance.
5. Which rider waives the premium if the insured becomes disabled?
A. Accidental Death
B. Term Rider
C. Waiver of Premium
D. Guaranteed Insurability
Waiver of premium riders ensure policy continuity during disability.
