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Ohio Life Insurance 2025 Final Exam Study
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Which of the following is usually the owner of the annuity? - ✔✔The annuitant Which of the following is not true of the straight life income option for annuities? - ✔✔A beneficiary will receive any balance of the annuity upon the annuitant's death. When an insurance policy is taken out, if the owner of the policy is someone other than the actual insured, the owner must be able to prove: - ✔✔That he/she has an insurable interest Tax-sheltered annuities (TSA) provide retirement income for employees who work for: - ✔✔A nonprofit organization Which of the following statements regarding policy loans from personal life insurance policies is not true? - ✔✔When a personal life insurance policy endows, the amount of any unpaid loan plus interest is not deducted from the policy proceeds. When the only logical beneficiary is a minor, all of the following options are available, EXCEPT: - ✔✔The benefits can go directly to the estate of the insured All of the following are major factors in the determination of premiums for life insurance, EXCEPT: - ✔✔Marital status Which of the following is true about policy loans? - ✔✔They are subject to interest.
What requires that an individual have a valid concern for the continuation of the life or well being of the person insured? - ✔✔Insurable interest Which of the following is true regarding taxes on nonqualified annuities? - ✔✔Premiums are not tax-deductible, but interest is tax-deferred What is the time between when an annuity is purchased and the time when benefits begin? - ✔✔The accumulation period All of the statements are true about universal life policies, EXCEPT: - ✔✔Universal life policies are only subject to the interest rates stated in the contract. Universal life policies allow the policyowner to: - ✔✔a. Take out a policy loan b. Withdraw cash (Both) All of the following are federal income tax free transactions for a life insurance policy, EXCEPT: - ✔✔Gain on policy surrender value Which of the following pertains to Modified Endowment Contracts (MECs)? - ✔✔a. Once a MEC, always a MEC. b. Funds withdrawn are subject to LIFO (Last in first out) tax treatment. c. Any policy exchanged for an MEC is automatically classified as an MEC.
Which of the following is not true about the accelerated benefit rider? - ✔✔Provides a monthly check when you become disabled. All of the following are true about Roth IRAs, EXCEPT: - ✔✔Contributions are tax deductible. All of the following statements are true regarding the IRS early withdrawal penalty for nonqualified annuities, EXCEPT: - ✔✔The IRS early withdrawal penalty is 10%. A temporary insurance agent license can be issued for what maximum period of time? - ✔✔ 180 days Which of the following is not a case in which life insurance proceeds would be included in the deceased's estate? - ✔✔The deceased's wife was the beneficiary. Question 30 Which of the following premium methods will most likely cause the insured to pay the most premium over the life of their policy? - ✔✔Monthly premium A hazard is best defined as: - ✔✔Something that increases the chance of loss Which of the following is a personal use of annuities? - ✔✔a. Life income IRAs Tax-deferred growth/cash accumulation
(all) An application consists of all of the following, EXCEPT: - ✔✔Part IV, the insurer's report Which of the following contains elements that are part of every legal contract? - ✔✔Agreement, Consideration, Competent parties, Legal purpose What guarantee states that if the policyholder discontinues payment of premiums, the policyholder can have access to the cash value of the policy? - ✔✔Nonforfeiture provision All of the following are elements of insurable risks, EXCEPT: - ✔✔Loss must be catastrophic Which of the following fixed annuities has a minimum rate of return and a current rate of return that is connected to the S&P 500? - ✔✔Equity indexed annuity All of the following are features of variable universal life, EXCEPT: - ✔✔Insurer decides where to invest premiums What plan would likely meet the needs of 2 partners who want to create a buy/sell agreement and an inexpensive and simple funding plan? - ✔✔A joint life plan, which will provide the survivor money to buy out the deceased partner's heirs. Mark names his wife and children as beneficiaries on his life policy. They would not be considered: - ✔✔Other insureds
Equity indexed universal life works the same way as universal life, EXCEPT: - ✔✔The nonguaranteed indexed rate can reach yields of 30% or more. An underwriter will consider which of the following conditions in making their decision to approve an application for insurance? - ✔✔A condition that occurs prior to making an application for insurance An example of coverage that can be purchased by a husband for his wife along with other dependent family members is: - ✔✔A family term rider Which of the following is not guaranteed under a fixed annuity contract? - ✔✔That there will be no fluctuation in the interest Field underwriting is helpful with all of the following, EXCEPT: - ✔✔Increase the chance of adverse selection All of the following are types of whole life policies, EXCEPT: - ✔✔Credit Underwriting considerations for group coverage employ which of the following considerations?
- ✔✔Groups usually do not have a requirement for medical exams. Collin intentionally surrendered a right on his contract is known as waiver. What prevented him from reclaiming the right? - ✔✔Estoppel Insurance uses a pre-existing condition clause to prevent: - ✔✔Adverse selection
An annuity that will not only provide benefits for the life of a husband, but also the wife if she outlives the husband is called: - ✔✔Joint life and survivorship annuity What annuity is characterized by flexible premium payment amounts and frequency, and an annuity period that begins 20 years after the annuity purchase date? - ✔✔FPDA All of the following statements are correct, EXCEPT: - ✔✔All annuities are qualified. Which of the following is a typical characteristic of a whole life insurance policy? - ✔✔a. The premiums remain level for the entire period that the policy is in force. b. Whole life policies have a guaranteed cash value. c. The face amount of the policy does not change while the policy is in force. (all) Which of the following is not a use of annuities? - ✔✔To provide tax-free income Steven currently earns $50,000 annually. He has calculated that he should have approximately $1,500,000 in life insurance to be sure his family is guaranteed the lifestyle he would provide if he dies. This approach is called: - ✔✔Human Life Value An annuity contract provides for all of the following, EXCEPT: - ✔✔A health plan When does the clock start running on the free look provision of a life policy? - ✔✔When the policy is delivered to the insured
An insurance company whose main responsibility is to make money for its policyholders is called a: - ✔✔Mutual insurance company Which of the following is an example of a government insurance program? - ✔✔Social Security A settlement option that would leave the proceeds of the insurance policy with the insurer and the insurer would pay interest to the beneficiary on an installment basis is known as a: - ✔✔Interest only option Which of the following is not a common use for annuities? - ✔✔Pay legal fees Which of the following is a common element, when it occurs, that allows an insurer to charge lower premiums? - ✔✔Higher interest earnings What is the test the IRS uses to determine if a policy should be defined as life insurance or as a modified endowment contract (MEC)? - ✔✔A seven-pay test All of the following are commonly used when investigating the insurability of an applicant, EXCEPT: - ✔✔Talking to the neighborhood watch Which of the following is a nonforfeiture option? - ✔✔a. Reduced paid up insurance b. Cash surrender value c. Extended term insurance
(all) The earliest age that distributions from a nonqualified individual annuity may be made without incurring the 10% IRS early withdrawal penalty is: - ✔✔ 59 1/ Waiver of premium differs from the waiver of the cost of insurance in which of the following ways: - ✔✔Waiver of premiums waives the full premium due. Waiver of the cost of insurance will only continue a death benefit feature of the policy. Which of the following is true about the waiver of premium rider on an insurance policy? - ✔✔a. The premiums are waived during the period of the disability b. There is usually a waiting period for the benefit to kick in. c. There is an additional premium charged for this coverage. (all) Which of the following is NOT a right of the owner of a life insurance policy? - ✔✔a. Changing the irrevocable beneficiary b. Implementing a verbally agreed change c. Borrowing funds before cash value exists (all) An application for insurance is considered to be: - ✔✔A written request by the applicant to an insurer requesting the insurer the issuance of a policy of insurance on the basis of the information provided in the application
Which of the following is not a settlement option in a life insurance policy? - ✔✔Extended term option Which of the following is true about the automatic premium loan rider? - ✔✔The rider gives the company the right to borrow against the policy's cash value. The annual renewable term (ART): - ✔✔Has no requirement for proof of insurability at renewal and a maximum age. All of the following are true about personal contracts, EXCEPT: - ✔✔Life insurance contracts cannot be assigned. What is a life insurance settlement option that uses an annuity to pay policy proceeds to the beneficiary for a set number of years? - ✔✔Period certain Which dividend option may offset some or all of the benefit reduction caused by loans from a participating whole life plan? - ✔✔One-year term option Which of the following is not a correct statement about equity-indexed annuities? - ✔✔A securities license is required to sell EIAs. If, after a hearing, the Superintendent finds that an individual has engaged in an unfair practice, the Superintendent can take all the following actions, EXCEPT: - ✔✔Jail the individual All of the following exchanges would qualify under Section 1035 of the Internal Revenue code, EXCEPT: - ✔✔Vacant land for another piece of vacant land
Which of the following is an effective and legal way to deliver a policy? - ✔✔a. Personal delivery by an agent b. Mailing the policy to the policyowner c. Giving the policy to an agent of the policyowner (all) A deferred annuity with a decreasing term life insurance rider is a: - ✔✔Retirement income annuity Using an insurance license to sell mainly to relatives is referred to as: - ✔✔A controlled business All of the following correctly describe the law of large numbers, EXCEPT: - ✔✔The law of large numbers provides the best data when groups consist of dissimilar risks. The law of large numbers provides the best data when groups consist of dissimilar risks. - ✔✔Interest-sensitive whole life Which of the following best describes the annuity period? - ✔✔It is the period when the cash value is converted to income payments. Life insurance dividends are: - ✔✔Not taxable Which of the following statements best describes how cash value in a life insurance policy is taxed? - ✔✔If the policy cash value is surrendered, the interest earned on the cash value is taxable as ordinary income.
