OHIO Life Insurance Agent Series 11-44 Questions and Answers
Question 17
Who can surrender an annuity during the accumulation period?
Options:
A.
The company
B.
The beneficiary
C.
The annuitant
D.
The policyowner
Answer:
D
Explanation:
During the accumulation period of an annuity, the policyowner holds the rights to the contract, including the ability to surrender the annuity. Surrendering the annuity means the policyowner can terminate the contract and receive the accumulated value, subject to any applicable surrender charges or tax implications. The annuitant is the individual whose life expectancy is used to determine the annuity payments, but they do not have ownership rights unless they are also the policyowner.
[Reference:Ohio Life Insurance Study Guide – Annuities – "Annuity Contract Ownership and Rights", ]
Question 18
An accelerated death benefit:
Options:
A.
Pays an additional benefit if the policyholder dies as a result of an accident.
B.
Allows the policyowner to sell their policy to a third party.
C.
Pays a portion of the face amount when a policyowner is determined to be terminally ill.
D.
Pays only in the event of an accident resulting in death.
Answer:
C
Explanation:
AnAccelerated Death Benefit (ADB)is a provision in a life insurance policy that allows the policyholder to receive a portion of the death benefit while still alive, under certain qualifying conditions. According to the Ohio Administrative Code Rule 3901-6-06, accelerated death benefits are payable to the policyowner during the lifetime of the insured upon the occurrence of a qualifying event, which includes:
A medical condition that drastically reduces the potential life span of the insured to a period of time specified in the policy, often 24 months or less.
A medical condition that requires extraordinary medical intervention, such as a major organ transplant or continuous artificial life support, without which the insured would die.
A condition that normally results in continuous confinement in an eligible institution, if the insured is expected to remain there for the rest of their life.
The amount received through an ADB reduces the death benefit payable to beneficiaries upon the insured's death.
Insurance is a risk management tool that allows individuals or businesses to transfer the financial burden of a potential loss to an insurance company. By paying premiums, the insured shifts the responsibility for financial protection to the insurer, which assumes the risk and provides compensation in the event of a covered loss.
[Reference: Ohio Life Insurance Study Guide – Insurance Basics and Concepts – "Purpose of Insurance – Risk Transfer", ]
Question 20
Which of the following is an example of risk sharing?
Options:
A.
Purchasing an insurance policy to cover liability exposures
B.
Installing a sprinkler system in a high-rise building
C.
Pooling money to cover malpractice exposures
D.
Choosing not to purchase a car
Answer:
C
Explanation:
Risk sharinginvolvesdistributing risk among a group, such as in mutual insurance companies or professional groups pooling money for coverage. This differs from risk transfer (insurance) or risk avoidance.
"Risk sharing occurs when a group of individuals or entities pools resources to mutually cover potential losses, such as pooling funds to cover professional liability."
