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OHIO HEALTH AND LIFE
INSURANCE EXAM WITH 100%
CORRECT ANSWERS
Question 1: An insured has a stop-loss limit of $5,000, a
deductible of $500, and an 80/20 coinsurance. The insured incurs $25,000 of covered losses. How much will the insured have to pay?
$500
$5,000
$5,400
$5,600
$5,000
CORRECT ANSWER: $5,400
Question 2: Which of these is NOT subject to income
taxation under Modified Endowment Contract (MEC)
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Loan against the cash value Policy withdrawal Policy Dividend Death Benefit Death benefit
CORRECT ANSWER: Death benefit
Question 3: An indemnity plan
Pays both the insured and health care provider Provides the insured a specific dollar amount for services Pays the health care provider directly for services rendered Is typically issued as a group plan
CORRECT ANSWER: provides the insured a specific
dollar amount for services
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Question 4: Chris is an insured bricklayer who severed his
left hand in an automobile accident. Although his primary duty cannot be performed, Chris is also a substitute high school teacher. He collects a full disability income check every month. How does his policy define total disability?
Recurrent Any occupation Own occupation Presumptive
CORRECT ANSWER: Own occupation
Question 5: A policyowner can receive an immediate
payment before the insured dies by using a(n)
viatical settlement contract buy-sell arrangement adhesion agreement spendthrift plan
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CORRECT ANSWER: viatical settlement contract
Question 6: Signatures for an insurance application
MUST be obtained by the producer from all of the following sources EXCEPT
The producer The insured The policyowner The beneficiary
CORRECT ANSWER: The beneficiary
Question 7: All of the following are considered
appropriate uses of life insurance for business purposes
EXCEPT
Attracting quality employees by offering a group life plan