Ohio Life Insurance License practice exam missed questions and answers Questions With Complete Solutions What part of the Internal Revenue Code allows an owner of a life insurance policy or annuity to exchange or replace their current contract with another contract without creating adverse tax consequences?a)Section 1035 Policy Exchange b)Modified Endowment Exchange c)401(k) Plan) d)Section 457 Deferred Compensation Plan - Correct Answers ✅a) Section 1035 Policy Exchange If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a a)Settlement option.b)Nontaxable exchange c)Nonforfeiture option d)Rollover. - Correct Answers ✅a) settlement option Which of the following is TRUE about credit life insurance?a)Creditor is the policyowner.b)Debtor is the annuitant. 1 / 3
Ohio Life Insurance License practice exam missed questions and answers Questions With Complete Solutions c)Creditor is the insured.d)Debtor is the policy beneficiary. - Correct Answers ✅a) Creditor is the policyowner Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?a)Undercutting b)Twisting c)Slandering d)Defamation - Correct Answers ✅d) Defamation The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least how many years?a)1 year b)3 years c)5 years d)7 years - Correct Answers ✅b) 3 years 2 / 3
Ohio Life Insurance License practice exam missed questions and answers Questions With Complete Solutions An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?a)The beneficiary will receive 2/3 of the lump sum up front, and the remaining 1/3 will be paid over time.b)The beneficiary will receive 2/3 of the total benefit, with the final 1/3 payable when the first beneficiary dies.c)One of the beneficiaries will receive 1/3 and the other 2/3 of the proceeds when the insured dies.d)The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive. - Correct Answers ✅d) The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive Which of the following is NOT true regarding a Certificate of Authority?a)It is issued to group insurance participants.b)It may be necessary for transacting business in a specific state.c)It is equivalent to an insurance license.d)It is issued by the state department of insurance. - Correct Answers ✅a) It is issued to group insurance participants
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