Sure Pass Exam Ok-Life-Accident-and-Health-or-Sickness-Producer PDF

Anendowment policyis a life insurance product that pays the face amount to the insured if they are alive at the end of a specified period (maturity) or to the beneficiary if the insured dies before maturity. It combines life insurance with a savings component, as defined in Oklahoma’s life insurance regulations (Title 36 O.S. § 4002).

Option A: Incorrect. Universal life is flexible permanent insurance, not tied to a specific maturity payout.

Option B: Incorrect. Modified life has lower initial premiums, not a maturity payout feature.

Option C: Correct. An endowment policy pays the face amount at maturity if the insured is alive.

Option D: Incorrect. A juvenile trust is not a life insurance policy type; it’s a financial arrangement.

In life insurance, aninsurable interestexists when the policyowner would suffer a financial loss or hardship from the insured’s death. Oklahoma law (Title 36 O.S. § 3604) requires insurable interest at the time the policy is purchased, typically based on a financial benefit from the insured’s continued life (e.g., spouse, business partner). Distant relationships or business ties alone are insufficient without financial dependency.

Option A: Correct. A financial benefit from the insured’s continued life establishes insurable interest.

Option B: Incorrect. A business relationship alone does not guarantee insurable interest without financial loss.

Option C: Incorrect. Distant family relationships may not qualify unless financial dependency exists.

Option D: Incorrect. Insurable interest must exist at policy purchase, not at the time of death.

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

Anaccelerated death benefit (ADB)provision allows an insured to receive a portion of the life insurance death benefit before death under specific conditions, such as aterminal illness. Theterminal illness settlement benefitis a form of ADB, providing funds for medical or personal needs, as regulated in Oklahoma (Title 36 O.S. § 4051).

Option A: Incorrect. A home care benefit relates to long-term care, not ADB.

Option B: Incorrect. A nonforfeiture extended term benefit is a policy lapse option, not an ADB.

Option C: Correct. A terminal illness settlement benefit is a type of accelerated death benefit.

Option D: Incorrect. A cost of living benefit adjusts benefits for inflation, not an ADB.

Thechange of beneficiary provisionallows the policyowner (often the insured) to change the beneficiary at any time unless the beneficiary is designated asirrevocable. An irrevocable beneficiary cannot be changed without their consent, as specified in Oklahoma’s life insurance regulations (Title 36 O.S. § 4001 et seq.).

Option A: Incorrect. Insurability of the beneficiary does not affect the right to change them.

Option B: Correct. An irrevocable beneficiary cannot be changed without their consent.

Option C: Incorrect. Power of attorney affects legal authority, not beneficiary changes.

Option D: Incorrect. A deceased beneficiary can be replaced without restriction.