OHIO Life Insurance Exam Questions and Verified Answers, 100% Guarantee Pass (Latest 2025)
Insurance: - Correct Answers ✅A contract in which the
insurance company agrees to indemnify the insured party against loss, damage or liability arising from an unknown event.
Insurance Transfers: - Correct Answers ✅The risk of loss
from an individual or business entity to an insurance company, which in turn spreads costs of unexpected losses to many individuals.
Direct response marketing: - Correct Answers ✅A direct
response marketing system effectively bypasses the insurance agent. Business is conducted over the phone, through the mail, or online. This is a perfectly legal approach to selling insurance. It is not mandatory in all situations for the insured to physically sign any documents in order for coverage to go into effect.
Insurance Transaction: (4) - Correct Answers ✅Solicitation,
Negotiations, Sale (effectuation of a contract of insurance, and Advising an individual concerning coverage of claims.
Risk: (Two Types) - Correct Answers ✅The uncertainty or
chance of a loss occurring.
Pure Risk: 1 / 4
OHIO Life Insurance Exam Questions and Verified Answers, 100% Guarantee Pass (Latest 2025) -Situations that can only result in a loss or no change. There is no opportunity for financial gain. This is the only type that insurance companies will accept.
Speculative Risk:
-Involves the opportunity for either loss or gain. Ex: Risk of
gambling. These are not insurable risks.
Concealment: - Correct Answers ✅The withholding of
information that will result in an imprecise underwriting decision.
Exposure: - Correct Answers ✅A unit of measure used to
determine rates charged for insurance coverage.
EX of Life insurance factors:
-Age, medical history, occupation, and sex.
Homogenous: - Correct Answers ✅A large number of units
having the same or similar exposure to loss.
Hazards: (3 types) - Correct Answers ✅Conditions or
situations that increase the probability of an insured loss occurring. 2 / 4
OHIO Life Insurance Exam Questions and Verified Answers, 100% Guarantee Pass (Latest 2025)
Physical hazards:
-Individual characteristics that increase the chances of the
cause of loss. Ex: past medical history, condition at birth
(blindness).
Moral Hazards:
-Tendencies towards increased risk. Involves evaluating the
character and reputation of a proposed insured. Ex: When an
applicant lies on the application for insurance.
Morale Hazards:
-Arise from a state of mind that causes indifference to loss,
such as carelessness. Ex: Not spending money on a flu shot
because if you get the flu your insurance company will pay for it.
Perils: - Correct Answers ✅The causes of loss insured
against in an insurance policy.-Life insurance -Health insurance -Property insurance -Casualty insurance 3 / 4
OHIO Life Insurance Exam Questions and Verified Answers, 100% Guarantee Pass (Latest 2025)
Loss: - Correct Answers ✅The reduction, decrease, or
disappearance of the value of the person or property insured in a policy, caused by a named peril.Look at transfer stuff pg 7
Avoidance: (Method of handling risk) - Correct Answers
✅Eliminating exposure to a loss. Ex: If a person wanted to
avoid the risk of being killed in an airplane crash, he/she might choose never to fly in an airplane. It is effective but not practical.
Risk Retention: (Method of handling risk) - Correct Answers
✅The planned assumption of risk by an insured through the use of deductibles, copayments, or self-insurance.
Purpose of retention: (3 things) - Correct Answers ✅1)
Reduce expenses and improve cashflow 2) Increase control of claim reserving and claims settlements 3)To fund for losses that cannot be insured
Sharing: (Method of handling risk) - Correct Answers
✅Method of dealing with risk for a group of individuals or
- / 4