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

Question 1

Which of the following describes the process of selection, classification, and rating of risks?

A. claims experience

B. underwriting

C. adverse selection

D. cost containment

Correct Answer: B

Question 2

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

A. policy is delivered and accepted.

B. company underwriter approves the risk.

C. application is postmarked and mailed to the insurer.

D. application is signed.

Correct Answer: A

Question 3

Which of the following dividend options is taxable?

A. Paid up additions.

B. Return of premium.

C. Accumulation at interest.

D. 1-year term.

Correct Answer: C

Question 4

An Insured owns a whole life policy that has accumulated cash value. Which of the following statements Is
true about the policy's cash value?

A. It is subject to fluctuations of the company's overall performance.

B. The growth of the policy's cash value Is not subject to income tax while the policy Is in force.

C. The cash value is not guaranteed.

D. The policy's cash value is viewed as investment growth and therefore subject to taxation for each
calendar year.

Correct Answer: B

Question 5

In reference to life Insurance in contract law, a person MOST likely will have an insurable interest in insuring
a person's life If

A. any type of business relationship exists between the insured party and the beneficiary.

B. the interest exists at the time of application.

C. any type of distant family relationship exists with the insured party.

D. the interest exists at the time of death.

Correct Answer: B

Question 6

Which of the following is a characteristic of a contract of adhesion?

A. Each party is entitled to rely on others' representations.

B. The terms must be accepted or rejected in full.

C. The insurer's obligations are dependent upon certain acts of the insured individual.

D. The Insurer agrees to pay a stated sum regardless of loss.

Correct Answer: B

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