OH-Life-Agent-Series-11-44 Exam Dumps : OHIO Life Insurance Agent Series 11-44

Insurable interest is a fundamental principle in life insurance, requiring that the policyholder has a financial or emotional interest in the continued life of the insured. This principle prevents individuals from taking out policies on strangers for speculative purposes. According to Ohio Revised Code Section 3911.09, a person may procure life insurance on their own life or on the life of another person in whom they have an insurable interest, such as a spouse, child, or business partner. This ensures that the policyholder would suffer a genuine loss upon the death of the insured.

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.

The Fixed Period settlement option provides equal payments over a specified period, such as 10 years, until the entire death benefit is paid out. This option ensures that the beneficiary receives income for a predetermined time frame.

According to the Ohio Life Insurance Study Guide:

"Under the fixed period option, the insurer pays the death benefit in equal installments over a specified period. If the beneficiary dies before the period ends, the remaining payments go to a secondary beneficiary."