Free Insurance Licensing OH-Life-Agent-Series-11-44 Practice Exam with Questions & Answers | Set: 2

In a viatical settlement, a policyholder sells their life insurance policy to a third party for a lump sum that is less than the policy’s death benefit but more than its cash surrender value. The buyer then becomes the policy’s beneficiary and receives the full death benefit upon the insured’s death.

According to Ohio Revised Code Section 3965.02, each licensee is required to develop, implement, and maintain a comprehensive written information security program. This program must include administrative, technical, and physical safeguards for the protection of nonpublic information and the licensee's information system. The purpose of the information security program is to:

Protect the security and confidentiality of nonpublic information and the security of the information system;

Protect against any threats or hazards to the security or integrity of nonpublic information and the information system;

Protect against unauthorized access to or use of nonpublic information and minimize the likelihood of harm to any consumer;

Define and periodically reevaluate a schedule for retention of nonpublic information and a mechanism for its destruction when no longer needed.Therefore, the correct answer is A

Universal life insurance policies offer flexible premium payments and adjustable death benefits. One of the features of universal life policies is the ability to make partial surrenders or withdrawals from the policy's cash value without terminating the policy. This allows policyholders to access funds for various needs while maintaining life insurance coverage. Therefore, the correct answer is B

Individual underwritingis not typical in group life insurance. Instead,group policies use simplified underwritingorno individual underwriting, especially for basic coverage. Group plans feature amaster contractandcertificates of insurancefor participants.

"In group life insurance, individual underwriting is usually not required. The insurer issues a master policy to the employer, and employees receive certificates of insurance."

Mortality tablesare statistical charts used by insurers to predict life expectancy and the probability of death at various ages. These tables are based on a large pool ofpeople over time, allowing insurers to estimate risk and set appropriate premiums.

Individuals leaving a group life insurance plan are generally allowed toconvert to an individual permanent policy without providing proof of insurability, provided theyapply within 31 daysof losing group coverage.

"A person has 31 days after termination of group coverage to convert to an individual permanent policy without evidence of insurability."

In the event of a misstatement of age, Ohio law requires an equitable adjustment of the benefits or premiums. According to Ohio Revised Code Section 3917.06(E), if the age of the insured has been misstated, the amount payable under the policy shall be adjusted to the amount that the premium would have purchased at the correct age. This means the insurer's liability is limited to the amount of coverage that the paid premiums would have secured for the insured's actual age at the time of policy issuance.

When underwriting a group life insurance plan, insurers assess the average age of the group members to determine the overall risk and appropriate premium rates. The average age influences the mortality risk profile of the group, which is a critical factor in the insurer's decision-making process.

Juvenile life insurancerefers to policies purchased on the life of a minor. Theparent or guardian is typically the policyowner, and the goal is to provide early financial protection or guarantee future insurability.

"Juvenile insurance is written on the life of a minor, typically with a parent as the policyowner. It can provide early insurance coverage and secure future insurability."

A deferred annuity is characterized by premium payments made over time, with the income payments commencing at a future date. This allows the annuitant to accumulate funds on a tax-deferred basis before the payout phase begins. In contrast, an immediate annuity starts income payments shortly after a lump-sum premium is paid.