OH-Life-Agent-Series-11-44 Exam Dumps - Insurance Licensing OHIO Life Insurance Questions and Answers

A Cost of Living Adjustment (COLA) rider is an optional feature that can be added to a life insurance policy to help protect the death benefit against inflation. This rider automatically increases the policy's face amount periodically, typically in line with the Consumer Price Index (CPI), ensuring that the purchasing power of the death benefit remains consistent over time.

In a "Life Only" or "Straight Life" annuity payout option, the annuitant receives payments for the duration of their life. Upon the annuitant's death, all payments cease, and no further benefits are payable to any beneficiaries or the estate. This means that if the annuitant dies before receiving payments equal to the total value of the annuity, the remaining balance is forfeited to the insurer.

Insurance agents act as intermediaries between the insurer and the insured. One of their key responsibilities during the policy year is to assist policyholders in the claims process, ensuring that claims are filed correctly and followed up on promptly. This duty helps maintain trust and ensures that policyholders receive the benefits they are entitled to under their policies.

According to the Ohio Life Insurance Study Guide:

"Agents have a duty to assist policyholders in the claims process, including helping with the completion of claim forms and providing information on the status of claims."

TheOhio Superintendent of Insurancemay issue acease and desist orderagainst a licensee if a violation of insurance law is suspected and substantiated through a hearing process. This is a legal measure to stop the unlawful conduct.

"If, after a hearing, the Superintendent determines a person has committed or is about to commit an unfair or deceptive act, they may issue a cease and desist order."

Annuities are financial products primarily used for the liquidation of an estate, providing a steady income stream, and allowing for tax-deferred growth of principal. They are not designed to create an estate; instead, they are tools for managing and distributing existing assets over time. Life insurance policies are typically used for estate creation, whereas annuities focus on the systematic distribution of accumulated funds.

The "Reduction of Premium" dividend option allows a policyowner to apply dividends toward paying all or part of the next premium due on their life insurance policy. This option effectively reduces the out-of-pocket premium payment required from the policyowner. If the dividend is equal to or exceeds the premium due, it can cover the entire premium, eliminating the need for the policyowner to make a payment.

An insurance agent's responsibilities in the underwriting process involve gathering necessary information for the insurer to assess risk. This includes completing applications accurately and collecting initial premiums. The final underwriting decisions, such as accepting or declining applications and setting premium amounts, are made by the insurance company's underwriters.

According to the Ohio Life Insurance Study Guide:

"The agent's role in underwriting includes completing the application, collecting initial premiums, and submitting the application to the insurer for approval."

AFixed Annuityprovides a guaranteed, level benefit payment for the term of the annuity. Payments do not fluctuate because they are determined based on a fixed interest rate and the terms of the contract.

"A fixed annuity pays a guaranteed rate of interest and provides level benefit payments throughout the annuitization period, offering safety and predictability for the annuitant."

A waiver of premium rider allows the policy to remain in force without premium payments if the insured becomes totally disabled and meets the terms of the rider. Once activated, the insurance company waives the premium payments, and the policy continues as if payments were being made. The cash value and death benefit remain unaffected, ensuring full policy performance.

Alimited pay life insurance policyallows the policyholder to pay premiums for ashorter, limited period(e.g., 10, 20 years), after which the policy ispaid-up for lifeand continues to provide coverage.

"A limited payment whole life policy has premiums payable for a specified number of years or to a specified age. After that period, no more premiums are required."