OHIO LIFE/HEALTH LATEST
INSURANCE EXAM
Which is NOT true when a Life Insurance premium is overdue?
a. Non-forfeiture provisions apply to lapsed Whole Life policies
b. The policy may be reinstated if certain conditions are satisfied
c. The policy will be reinstated without a physical exam if overdue
premiums are paid
d. Policy will lapse at the end of the grace period - ANSWERS-a. Non-
forfeiture provisions apply to lapsed Whole Life policies
Which statement about preferred risk for Life Insurance is FALSE?
a. The applicant has a longer-than-average life expectancy
b. Because it is preferred, the cash value will grow faster than a policy
with standard rates
c. The premium will be discounted from the standard rates
d. The premiums will be lower than for an applicant who uses tobacco -
ANSWERS-b. Because it is preferred, the cash value will grow faster
than a policy with standard rates
Which person does NOT have an insurable interest?
a. Business Partner
b. Creditor upon the life of a debtor
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, OHIO LIFE/HEALTH LATEST
INSURANCE EXAM
c. Key person
d. Son-in-law on the life of his father-in-law - ANSWERS-Son-in-law
on the life of his father-in-law
What type of insurance best protects a 30-year mortgage obligation? -
ANSWERS-Decreasing Term
Which statement regarding speculative risk is FALSE?
a. It involves a possibility of gain
b. It involves an uncertainty of loss
c. It is a feature of gambling
d. It is a feature of insurance - ANSWERS-d. It is a feature of insurance
Which statement best describes the tax responsibilities under a Business
Overhead policy? - ANSWERS-Premiums are deductible, benefits are
taxed
In which type of insurance company may stockholders share in the
profits and losses of the insurer? - ANSWERS-Stock
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2
, OHIO LIFE/HEALTH LATEST
INSURANCE EXAM
In which company may policy owners receive policy dividends when
there is a profit? - ANSWERS-mutual
The law of large numbers states that - ANSWERS-Predictions become
more accurate as the number of units being considered increases
Premiums paid by sole proprietors for Individual Health Insurance
coverage are - ANSWERS-Fully deductible
In Group Health Insurance, the contract is between the - ANSWERS-
Employer and the insurance company
An agent is a representative of the - ANSWERS-Insurance company
What statement is TRUE regarding an agent sharing commissions? -
ANSWERS-An agent may share commissions with another agent who is
licensed for that line of insurance
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PAGE
3
INSURANCE EXAM
Which is NOT true when a Life Insurance premium is overdue?
a. Non-forfeiture provisions apply to lapsed Whole Life policies
b. The policy may be reinstated if certain conditions are satisfied
c. The policy will be reinstated without a physical exam if overdue
premiums are paid
d. Policy will lapse at the end of the grace period - ANSWERS-a. Non-
forfeiture provisions apply to lapsed Whole Life policies
Which statement about preferred risk for Life Insurance is FALSE?
a. The applicant has a longer-than-average life expectancy
b. Because it is preferred, the cash value will grow faster than a policy
with standard rates
c. The premium will be discounted from the standard rates
d. The premiums will be lower than for an applicant who uses tobacco -
ANSWERS-b. Because it is preferred, the cash value will grow faster
than a policy with standard rates
Which person does NOT have an insurable interest?
a. Business Partner
b. Creditor upon the life of a debtor
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PAGE
1
, OHIO LIFE/HEALTH LATEST
INSURANCE EXAM
c. Key person
d. Son-in-law on the life of his father-in-law - ANSWERS-Son-in-law
on the life of his father-in-law
What type of insurance best protects a 30-year mortgage obligation? -
ANSWERS-Decreasing Term
Which statement regarding speculative risk is FALSE?
a. It involves a possibility of gain
b. It involves an uncertainty of loss
c. It is a feature of gambling
d. It is a feature of insurance - ANSWERS-d. It is a feature of insurance
Which statement best describes the tax responsibilities under a Business
Overhead policy? - ANSWERS-Premiums are deductible, benefits are
taxed
In which type of insurance company may stockholders share in the
profits and losses of the insurer? - ANSWERS-Stock
END OF
PAGE
2
, OHIO LIFE/HEALTH LATEST
INSURANCE EXAM
In which company may policy owners receive policy dividends when
there is a profit? - ANSWERS-mutual
The law of large numbers states that - ANSWERS-Predictions become
more accurate as the number of units being considered increases
Premiums paid by sole proprietors for Individual Health Insurance
coverage are - ANSWERS-Fully deductible
In Group Health Insurance, the contract is between the - ANSWERS-
Employer and the insurance company
An agent is a representative of the - ANSWERS-Insurance company
What statement is TRUE regarding an agent sharing commissions? -
ANSWERS-An agent may share commissions with another agent who is
licensed for that line of insurance
END OF
PAGE
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