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Life, Accident and Health Insurance Ohio
Questions and Correct Answers/ Latest
Update / Already Graded
Which statement BEST describes the tax responsibilities under a
Business Overhead policy?
a. Premiums are deductible, benefits are deductible.
b. Premiums are deductible, benefits are taxed.
c. Premiums are not deductible, expenses are deductible.
d. Premiums are not deductible, benefits are taxed.
Ans: Premiums are deductible, benefits are taxed
The Group Insurance provision that prevents two insurers from paying
more than the actual loss is called the...
a. Coordination of Benefits.
b. Over Insurance clause.
c. Over-insurance clause.
d. Pro rata liability.
Ans: Coordination of Benefits (COD) - they could have a
primary and secondary insurance but they won't pay out more
than the total loss.
All rights reserved © 2025/ 2026 |
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In which type of insurance company may stockholders share in the
profits and losses of the insurer?
a. assessment
b. mutual
c. service
d. stock
Ans: Stock.
Whenever the insurance company has an increase in profits, the
Board of Directors may increase the dividend payment from the
prior year so the stockholders share in the increased profits.
In which company may policy owners receive policy dividends when
there is a profit?
a. assessment
b. mutual
c. service
d. stock
Ans: Mutual company.
Dividends, if paid, are not taxable and are never guaranteed
All rights reserved © 2025/ 2026 |
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And agent who circulates false or misleading information for the
purpose of inducing a prospect to lapse or cancel an existing policy to
purchase a new one is guilty of the unfair trade practice of...
a. discrimination
b. rebating.
c. twisting.
d. none of the above
Ans: Twisting
If the policy owner has not heard from the insurer, an Individual Health
policy is considered reinstated ______ days following the request:
a. 10
b. 15
c. 30
d. 45
Ans: 45 days.
The insurer is automatically reinstated by 45 days unless the
insurer rejects the insured.
All rights reserved © 2025/ 2026 |
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The law of large numbers states that...
a. all losses are predictable.
b. large losses are easier to predict.
c. predictions become more accurate as the number of units being
considered increase.
d. small losses are predictable.
Ans: The predictions become more accurate as the number of
units being considered increases.
The more people an insurer covers, the easier it is to predi ct
future claims based on this law. This is why Life insurance
companies usually make a profit by measuring the chance of
death using a mortality table.
Premiums paid by sole proprietors for Individual Health Insurance
coverage are...
a. deductible only if they exceed 7 1/2 % of adjusted gross income.
b. fully deductible.
c. not deductible.
d. partially deductible.
Ans: Fully deductible.
All rights reserved © 2025/ 2026 |
Life, Accident and Health Insurance Ohio
Questions and Correct Answers/ Latest
Update / Already Graded
Which statement BEST describes the tax responsibilities under a
Business Overhead policy?
a. Premiums are deductible, benefits are deductible.
b. Premiums are deductible, benefits are taxed.
c. Premiums are not deductible, expenses are deductible.
d. Premiums are not deductible, benefits are taxed.
Ans: Premiums are deductible, benefits are taxed
The Group Insurance provision that prevents two insurers from paying
more than the actual loss is called the...
a. Coordination of Benefits.
b. Over Insurance clause.
c. Over-insurance clause.
d. Pro rata liability.
Ans: Coordination of Benefits (COD) - they could have a
primary and secondary insurance but they won't pay out more
than the total loss.
All rights reserved © 2025/ 2026 |
, Page |2
In which type of insurance company may stockholders share in the
profits and losses of the insurer?
a. assessment
b. mutual
c. service
d. stock
Ans: Stock.
Whenever the insurance company has an increase in profits, the
Board of Directors may increase the dividend payment from the
prior year so the stockholders share in the increased profits.
In which company may policy owners receive policy dividends when
there is a profit?
a. assessment
b. mutual
c. service
d. stock
Ans: Mutual company.
Dividends, if paid, are not taxable and are never guaranteed
All rights reserved © 2025/ 2026 |
, Page |3
And agent who circulates false or misleading information for the
purpose of inducing a prospect to lapse or cancel an existing policy to
purchase a new one is guilty of the unfair trade practice of...
a. discrimination
b. rebating.
c. twisting.
d. none of the above
Ans: Twisting
If the policy owner has not heard from the insurer, an Individual Health
policy is considered reinstated ______ days following the request:
a. 10
b. 15
c. 30
d. 45
Ans: 45 days.
The insurer is automatically reinstated by 45 days unless the
insurer rejects the insured.
All rights reserved © 2025/ 2026 |
, Page |4
The law of large numbers states that...
a. all losses are predictable.
b. large losses are easier to predict.
c. predictions become more accurate as the number of units being
considered increase.
d. small losses are predictable.
Ans: The predictions become more accurate as the number of
units being considered increases.
The more people an insurer covers, the easier it is to predi ct
future claims based on this law. This is why Life insurance
companies usually make a profit by measuring the chance of
death using a mortality table.
Premiums paid by sole proprietors for Individual Health Insurance
coverage are...
a. deductible only if they exceed 7 1/2 % of adjusted gross income.
b. fully deductible.
c. not deductible.
d. partially deductible.
Ans: Fully deductible.
All rights reserved © 2025/ 2026 |
