Ohio Life Insurance Practice Exam Questions With Complete Solutions Which of these describes the result of a modified endowment contract that failed to meet the seven-pay test?Policy loans are disallowed The premium payments will be tax deductible Pre-death distributions are typically taxable Withdrawals will be prohibited - Correct Answers ✅Pre- death distributions are typically taxable Purchasing a life insurance policy in order to avoid the forced sale of assets upon death is called estate funding capital withholding capital gains estate conservation - Correct Answers ✅estate conservation Ownership of a life insurance policy may be temporarily transferred with a(n) collateral assignment absolute assignment transferable assignment beneficiary assignemnt - Correct Answers ✅collateral assignment 1 / 3
Ohio Life Insurance Practice Exam Questions With Complete Solutions Julie has a $100,000 30-year mortgage on her new home.What type of life insurance could she purchase that is designed to pay off the loan balance if she dies within the 30- year period?Adjustable life insurance Decreasing term insurance Increasing term insurance Modified life insurance - Correct Answers ✅Decreasing term insurance Which approach predicts a person's earning potential and determines how much of that amount would be devoted to dependents?Future value approach Earnings approach Needs approach Human life value approach - Correct Answers ✅Human life value approach Naming a contingent beneficiary as "all surviving children" is described by which term?Contingent designation Primary designation Class designation Tertiary designation - Correct Answers ✅Class designation 2 / 3
Ohio Life Insurance Practice Exam Questions With Complete Solutions What is implied authority defined as?Authority given in writing to an agent in the agency agreement Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out his/her duties Authority given to handle claims and process payments Authority given to an agent to act outside the scope of the agency agreement - Correct Answers ✅Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out his/her duties Variable life insurance and Universal life insurance are very similar. Which of these features are held exclusively by variable universal life insurance?Policyowner may increase or decrease the premium payments Policyowner may increase or decrease the face amount Policyowner can contribute large sums of money Policyowner has the right to select the investment which will provide the greatest return - Correct Answers ✅Policyowner has the right to select the investment which will provide the greatest return
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