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Ohio Department of Insurance OH-Life-Agent-Series-11-44 OHIO Life Insurance Agent Series 11-44 Exam Practice Test

OHIO Life Insurance Agent Series 11-44 Questions and Answers

Question 1

What law do all Insurers and their agents need to comply with In regards to Information being obtained from a third party concerning the applicant?

Options:

A.

Dodd Frank Act

B.

McCarran-Ferguson Act

C.

Fair Credit Reporting Act

D.

Unauthorized Insurers Service of Process Act

Question 2

Competency of an Individual to enter into an Insurance contract is determined based on

Options:

A.

legal age.

B.

legal purpose.

C.

ownership.

D.

payment of premium.

Question 3

Which of the following is a life insurance contract written on the life of an individual?

Options:

A.

Insurance.

B.

Survivorship Policy.

C.

Joint Life Contract.

D.

Single-Life Insurance.

Question 4

In Ohio, an agent must be appointed by the Insurer within how many days from the date the agency contract Is executed, or the first Insurance application Is submitted?

Options:

A.

10

B.

15

C.

20

D.

30

Question 5

Under Ohio insurance laws, what must a licensee do prior to operating under an assumed business name?

Options:

A.

notify the superintendent

B.

notify all prospective insureds

C.

obtain approval from the insurer

D.

notify the National Association of Insurance Commissioners

Question 6

The PRIMARY reason for purchasing life Insurance Is to provide

Options:

A.

death benefits.

B.

college tuition.

C.

retirement Income.

D.

safety of principal.

Question 7

At what age can an Individual begin to receive distributions from an IRA without a tax penalty?

Options:

A.

55 1/2 years.

B.

59 1/2 years.

C.

63 1/2 years.

D.

65 1/2 years.

Question 8

Without written consent, a policyowner CANNOT change the beneficiary If he has named

Options:

A.

a contingent beneficiary.

B.

a revocable beneficiary.

C.

a permanent beneficiary.

D.

an irrevocable beneficiary.

Question 9

Each of the following are characteristics of a fixed annuity contract EXCEPT

Options:

A.

funds are Invested in a separate account.

B.

the minimum interest rate is guaranteed in the contract.

C.

benefit payments remain level.

D.

it may be sold as an immediate or deferred annuity.

Question 10

An agent qualified to sell variable products in Ohio must report each of the following to the superintendent of Insurance EXCEPT

Options:

A.

a suspension from the National Association of Securities Dealers.

B.

the revocation of an insurance license held in another state.

C.

the sharing of commissions with another qualified agent.

D.

a felony criminal conviction.

Question 11

After a request has been received for verification of coverage from a viatical settlement provider, an insurance company authorized to do business shall respond within:

Options:

A.

30 calendar days

B.

45 calendar days

C.

60 calendar days

D.

90 calendar days

Question 12

Which nonforfeiture option allows the policyowner to purchase less coverage for life?

Options:

A.

Reduced Paid-Up Insurance.

B.

Cash Surrender Value.

C.

Settlement Value.

D.

Extended Term.

Question 13

The settlement option that allows proceeds to remain with the Insurer and the earnings to be paid to the beneficiary on a monthly basis is called

Options:

A.

interest only.

B.

lump sum.

C.

fixed period.

D.

fixed amount.

Question 14

All of the following statements regarding a group annuity are correct, EXCEPT

Options:

A.

purchased as part of a structured corporate pension plan.

B.

each employee signs and receives an individual contract.

C.

participation is limited to eligible employees.

D.

considered a defined-benefit plan.

Question 15

Kelvin is receiving tax deferred growth until retirement. In what phase would Kelvin's annuity be?

Options:

A.

Nonforfeiture period.

B.

Accumulation period.

C.

Annuity period.

D.

Payout period.

Question 16

Falsifying the terms, benefits, advantages, or conditions of an insurance policy Is an example of which of the following?

Options:

A.

Forgery

B.

Coercion

C.

Concealment

D.

Misrepresentation

Question 17

Reinsurers are a specialized branch of the insurance industry because they

Options:

A.

provide insurance to otherwise uninsurable individuals.

B.

provide alternative means.

C.

Insure insurers.

D.

keep premiums low.

Question 18

An insured has a 5-year Renewable Term Life Insurance Policy. Upon exercising the renewable privilege, the Insured MUST

Options:

A.

provide evidence of insurability.

B.

renew for at least 10 years.

C.

pay an annual premium that may be higher.

D.

convert to a whole life policy.

Question 19

The purpose of insurance Is to

Options:

A.

avoid risk.

B.

reduce risk.

C.

transfer risk.

D.

increase risk.

Question 20

Under the children's term rider, what occurs when a child reaches the specified age? He or she

Options:

A.

automatically becomes the beneficiary of the life insurance policy.

B.

must show evidence of insurability to remain covered.

C.

may Increase the term coverage of the rider.

D.

is eliminated from coverage.

Question 21

In which of the following fixed annuity features Is the surrender value tied to Interest rates?

Options:

A.

fixed value rates

B.

variable sub accounts

C.

market value adjustments

D.

interest sensitive trigger

Question 22

Insurance agents have duties and responsibilities to the insured and the insurer. Which of the following responsibilities does an agent owe the insured during the policy year?

Options:

A.

Help the insured file and follow up on claims.

B.

Notify the insurance department when claims are paid.

C.

Work with rating bureaus to establish insurer ratings.

D.

Pay the insured's premiums if they are unable to do so.

Question 23

If an agent does NOT send a refund to a policyholder within an expectable time frame, the agent may

Options:

A.

be barred from seeking an appeal.

B.

receive a deduction in commissions.

C.

be charged interest on the refund amount.

D.

have his or her license suspended or revoked.

Question 24

Insurers do business in Ohio only after a thorough financial review. Most insurance policies written in Ohio are protected by the Guaranty Association established to protect policy owners In the event an admitted company

Options:

A.

cannot meet it's capital surplus requirements.

B.

merges with a foreign insurer.

C.

becomes financially insolvent.

D.

depletes its loss reserves.

Question 25

Which of the following individuals has the right to name a beneficiary?

Options:

A.

producer

B.

owner

C.

Insured

D.

assignee

Question 26

What is the approach to assessing the consumer's need for life insurance that focuses on an individual's future stream of income?

Options:

A.

Needs approach

B.

Affordability approach

C.

Human Life Value approach

D.

Return of Investment approach

Question 27

An Insurer would consider which of the following In determining whether to accept a group life plan?

Options:

A.

Grace period

B.

Beneficiary

C.

Average age

D.

Dependents

Question 28

An agent's underwriting duties Include which of the following?

Options:

A.

Setting premium amounts.

B.

Completing all applications and collecting initial premiums.

C.

Declining or accepting an application.

D.

Issuing the policy.

Question 29

The period after an annuity Is purchased but before distributions begin Is referred to as the

Options:

A.

annuity phase.

B.

build-up phase.

C.

endowment phase.

D.

accumulation phase.

Question 30

Generally, If a life application Is NOT prepaid, the effective date of coverage begins on the date the

Options:

A.

application is signed.

B.

policy is delivered and accepted.

C.

company underwriter approves the risk.

D.

application is postmarked and mailed to the insurer.

Question 31

After the hearing, if the insurance superintendent has determined a licensee has committed a violation of Ohio Insurance Laws, what can the insurance superintendent do?

Options:

A.

impose an administrative penalty

B.

suspend the licensee s premium accounts

C.

immediately terminate insurer appointments

D.

sentence the licensee up to 30 days in jail