Vce OH-Life-Agent-Series-11-44 Questions Latest

When dividends are left to accumulate at interest with the insurance company, the interest earned on these dividends is considered taxable income. While the dividends themselves are generally not taxable, the interest they generate is subject to taxation.

According to the Ohio Life Insurance Study Guide:

"Dividends left to accumulate at interest are taxable as income in the year the interest is credited."

Under Ohio law, insurance agents are required to report certain events to the Superintendent of Insurance, including disciplinary actions such as suspensions or revocations of licenses and criminal convictions. However, sharing commissions with another properly licensed and appointed agent is a standard business practice and does not require reporting to the superintendent.

According to the Ohio Revised Code Section 3905.14:

"An agent must report to the superintendent any administrative action taken against the agent in another jurisdiction or by another governmental agency in this state within thirty days of the final disposition of the matter."

Policy loans taken against the cash value of a life insurance policy are generally not considered taxable income, provided the policy remains in force. However, if the policy lapses or is surrendered with an outstanding loan, the loan amount exceeding the premiums paid may become taxable.

An insurance agent's responsibilities in the underwriting process involve gathering necessary information for the insurer to assess risk. This includes completing applications accurately and collecting initial premiums. The final underwriting decisions, such as accepting or declining applications and setting premium amounts, are made by the insurance company's underwriters.

According to the Ohio Life Insurance Study Guide:

"The agent's role in underwriting includes completing the application, collecting initial premiums, and submitting the application to the insurer for approval."