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Life and Health Insurance - Ohio Licensing Exam Questions and Answers Latest Version 100% Pass
What does insurable interest mean in a life insurance contract?✔✔ A legitimate financial or emotional relationship with the insured at the time of policy issuance.
What type of insurance policy builds cash value over time and provides lifelong protection?✔✔ Whole life insurance.
What is the purpose of the grace period in a life insurance policy?✔✔ To allow extra time for premium payment before the policy lapses.
What is the contestability period in a life insurance contract?✔✔ A time frame (usually two years) during which the insurer can deny a claim due to misrepresentation.
Who is the beneficiary in a life insurance policy? 1 / 4
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✔✔ The person or entity designated to receive the policy's death benefit.
What does the term "premium" refer to in an insurance policy?✔✔ The payment made to keep the policy in force.
What is the main function of underwriting in life insurance?✔✔ To assess risk and determine the appropriate premium and coverage.
What is term life insurance?✔✔ A policy that provides coverage for a specific period without building cash value.
What happens when a life insurance policy lapses?✔✔ The coverage ends due to nonpayment of premiums.
What is a rider in a life or health insurance policy?✔✔ An optional addition that modifies the base policy’s coverage.
What does the free look period allow the policyholder to do? 2 / 4
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✔✔ Cancel the policy within a set number of days for a full refund.
What is the purpose of a beneficiary designation?✔✔ To identify who will receive the death benefit when the insured dies.
What is the difference between a primary and contingent beneficiary?✔✔ The primary receives benefits first; the contingent receives them if the primary is deceased.
What is a waiver of premium rider?✔✔ It allows the policy to remain in force without premiums if the insured becomes disabled.
How does a health insurance deductible work?✔✔ It is the amount the insured pays out-of-pocket before the insurer begins to pay benefits.
What is coinsurance in a health insurance policy?✔✔ A cost-sharing arrangement between the insurer and insured after the deductible is met.
What is an HMO (Health Maintenance Organization)? 3 / 4
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✔✔ A health plan that requires members to use a network of providers and emphasizes preventive care.
What is the purpose of an accidental death benefit rider?✔✔ To pay an additional death benefit if death results from a covered accident.
What is underwriting classification based on?✔✔ Risk level determined by health, lifestyle, and other factors.
When does an insurance policy become effective?✔✔ When the first premium is paid and the application is approved.
What does the reinstatement clause allow?✔✔ The policyholder can reactivate a lapsed policy under certain conditions.
What does an incontestability clause do?✔✔ Prevents the insurer from voiding the policy after a set period due to misstatements.
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