Ohio Life & Health Practice Test

Answer choices

1. A. The Ohio Department of Insurance.
2. B. The insurer's general account exclusively.
3. C. The beneficiary only after the annuitant dies.
4. D. The contract owner.

Wrong-answer review

• A. The Ohio Department of Insurance.: Incorrect. A regulator does not guarantee the investment performance.
• B. The insurer's general account exclusively.: Incorrect. Variable values are tied to separate-account investment performance.
• C. The beneficiary only after the annuitant dies.: Incorrect. Investment risk affects the owner's contract values during the accumulation period.

Answer choices

1. A. The exclusion automatically voids the entire long-term care policy.
2. B. Ignore the family relationship because a family-care exclusion cannot apply when the insured needs assistance with activities of daily living.
3. C. The services must be covered because all family care is mandated.
4. D. The informal family-provided services may be excluded if they fall within the policy's stated exclusion.

Answer choices

1. A. Express authority only, because apparent authority can never arise from the insurer's conduct.
2. B. Implied authority only, because consumers may never rely on outward appearances.
3. C. Apparent authority.
4. D. No authority, because an agent can bind a principal only through a written power of attorney.

Answer choices

1. A. Tell the applicant medical history never affects life underwriting.
2. B. Change the answer without telling the applicant so the case will issue faster.
3. C. Ask the applicant to correct the application accurately and document the change according to the insurer's procedures.
4. D. Submit the application with the known omission and wait until a future claim occurs before telling the insurer about the missing medical diagnosis.

Answer choices

1. A. Only the first $50,000 is income-tax-free.
2. B. The death benefit is tax-free only if paid to a spouse.
3. C. The entire death benefit is ordinary taxable income.
4. D. The death proceeds are generally excluded from the beneficiary's gross income.

Answer choices

1. A. An HSA contribution arrangement.
2. B. A nonqualified deferred-compensation arrangement.
3. C. A qualified 401(k) plan solely because payment is deferred.
4. D. A Medicare Supplement plan.

Answer choices

1. A. Exclude all interest credited on retained life insurance death proceeds from federal gross income because the underlying death benefit was income-tax-free.
2. B. The entire principal becomes taxable once interest is credited.
3. C. The interest is generally taxable income even though the underlying death proceeds are generally excluded.
4. D. Only interest earned after ten years is taxable.

Answer choices

1. A. Complete at least 3 approved ethics credits before filing the renewal application.
2. B. Convert the license to inactive status automatically and continue soliciting insurance.
3. C. File the renewal because any 24 approved credits are sufficient.
4. D. File the renewal and promise to complete ethics training after renewal.

Answer choices

1. A. The producer may alter adverse information before sending it to underwriting.
2. B. The applicant must receive applicable disclosures and consumer-report protections, and the report is one permitted underwriting information source.
3. C. An investigative report replaces the need for an application.
4. D. The report can be used secretly with no notice under any circumstances.

Answer choices

1. A. Subrogation.
2. B. Indemnity.
3. C. Reinsurance.
4. D. Adverse selection.