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

A hazard is any condition or behavior that increases the likelihood of a loss occurring. Hazards are categorized as physical, moral, or morale. For example, driving under the influence is a hazard because it elevates the chance of a car accident. In contrast, a peril is the actual cause of loss, such as fire or theft.

In a whole life insurance policy, the cash value grows on a tax-deferred basis. This means that as long as the policy remains active, the policyholder does not pay income tax on the gains within the cash value. Taxes may apply if the policy is surrendered or lapses, and the amount received exceeds the total premiums paid into the policy.

A Single Premium Whole Life Insurance policy is a type of permanent life insurance where the policyholder makes a one-time lump-sum payment to fully fund the policy. This single payment covers the entire cost of the policy, eliminating the need for future premium payments. The policy provides a guaranteed death benefit and accumulates cash value over time, which grows on a tax-deferred basis.

This structure is advantageous for individuals who have a substantial amount of capital and wish to secure lifelong insurance coverage without the obligation of ongoing premium payments.

Awaiveris defined as theintentional and voluntary relinquishment of a known right. In insurance, this often occurs when an insurer chooses not to enforce a policy provision.

"A waiver is the intentional relinquishment of a known right. It may occur when an insurer voluntarily gives up a right under the policy."

Apparent Authorityarises when a third party reasonably believes, based on the agent's actions or representations, that the agent has the authority to act on behalf of the insurer, even if the agent does not have actual authority. This perception can bind the insurer to the agent's actions if the third party's belief is justified. Apparent authority is established through the agent's conduct and the insurer's representations, not through explicit agreements.

If no premium was paid with the application, the agent mustcollect the premium,obtain a statement of continued good health, andexplain the policyupon delivery. However, there isno requirement to re-sign the applicationunless changes have been made.

"When the initial premium is not submitted with the application, the producer must obtain a statement of continued good health, collect the premium, and deliver the policy with explanation. Re-signing the application is not required unless changes occur."

Implied authorityis not explicitly granted but is assumed to be given so the agent can fulfill their duties. It includes actions that are typical or necessary to carry out express authority.

"Implied authority is not specifically stated in the agency agreement but is necessary for the agent to carry out duties of the position."

Thecommon disaster clauseis used to address situations where the insured and beneficiary die in the same accident. It presumes that theinsured outlived the beneficiary, ensuring that the proceeds go to a contingent beneficiary or the estate of the insured.

"The common disaster clause assumes that the insured survived the beneficiary when both die in the same incident, ensuring proceeds are distributed accordingly."

The grace period in a life insurance policy is a specified duration after the premium due date during which the policy remains in force, even if the premium has not been paid. According to the Ohio Revised Code, every life insurance policy issued in the state must contain a provision for a grace period of one month (not less than 30 days) for the payment of every premium after the first. During this period, the insurance coverage continues, and if the insured dies within the grace period, the overdue premium may be deducted from the death benefit.

Aflexible premium deferred annuity (FPDA)allows the annuitant to makevarying premium paymentsover time. The annuity starts paying out at a future date, making it suitable for retirement savings.

"Flexible premium deferred annuities permit payments of varying amounts over time before annuitization, offering flexibility for savers."