Ok-Life-Accident-and-Health-or-Sickness-Producer Exam Dumps : Oklahoma Life, Accident, and Health or Sickness Producer Exam

Replacing an older health insurance policy involves terminating an existing policy and purchasing a new one, which can have disadvantages such as proving insurability (new underwriting), a new contestability period (typically 2 years for misstatements), and potential exclusions for preexisting conditions under the new policy, as regulated in Oklahoma (O.A.C. 365:10-3-16). However, if the old policy no longer meets the policyowner’s needs, replacing it is an advantage, not a disadvantage.

Option A: Incorrect (is a disadvantage). Proving insurability may result in higher premiums or denial.

Option B: Incorrect (is a disadvantage). A new contestability period restarts the insurer’s ability to contest claims.

Option C: Incorrect (is a disadvantage). Preexisting conditions may face new exclusions or waiting periods.

Option D: Correct (is not a disadvantage). Replacing a policy that doesn’t meet needs is a benefit of replacement.

This question aligns with the Prometric content outline under “Considerations in Replacing Insurance,” which covers the implications of policy replacement.

Whole life insurance policies accumulate cash value over time, which policyowners can borrow against. Typically, cash value begins to accrue immediately, but sufficient value for a loan is often available after1 year, depending on the policy’s terms and premium payments. Oklahoma law (Title 36 O.S. § 4029) requires nonforfeiture benefits, including access to cash value, but does not specify a minimum time; insurer practices generally allow loans after 1 year when cash value is meaningful.

Option A: Incorrect. Policyowners can borrow against cash value once it accumulates.

Option B: Correct. Loans are typically available after 1 year, as cash value is sufficient.

Option C: Incorrect. 2 years is not a standard requirement; loans are often available sooner.

Option D: Incorrect. 3 years is excessive; most policies allow loans earlier.

This question falls under the Prometric content outline section on “Provisions, Options, Exclusions, Riders, Clauses, and Rights,” which covers cash value loans.

When applying for a life or health insurance policy in Oklahoma, the insurer’s underwriting process typically involves reviewing the applicant’smedical historyto assess risk, as permitted under Title 36 O.S. § 1204. This may include questions about personal and family health, but not all family illnesses need to be reported unless specifically requested. Physical examinations are not always required, and undiagnosed conditions are not expected to be recorded; the applicant must disclose known conditions truthfully.

Option A: Incorrect. Reporting all family illnesses is not mandatory unless relevant to underwriting questions.

Option B: Incorrect. A physical exam is not always required; it depends on the insurer’s underwriting guidelines.

Option C: Incorrect. Undiagnosed conditions cannot be recorded; only known conditions are reported.

Option D: Correct. The insured’s medical history may be reviewed and reported during underwriting.