LIFE, ACCIDENT AND HEALTH INSURANCE OHIO: EXAM REVIEW QUESTIONS AND ANSWERS, GRADED A+

LIFE, ACCIDENT AND HEALTH INSURANCE OHIO: EXAM REVIEW QUESTIONS AND ANSWERS, GRADED A+ Which statement BEST describes the tax responsibilities under a Business Overhead policy? a. Premiums are deductible, benefits are deductible. b. Premiums are deductible, benefits are taxed. c. Premiums are not deductible, expenses are deductible. d. Premiums are not deductible, benefits are taxed. - -Premiums are deductible, benefits are taxed The Group Insurance provision that prevents two insurers from paying more than the actual loss is called the... a. Coordination of Benefits. b. Over Insurance clause. c. Over-insurance clause. d. Pro rata liability. - -Coordination of Benefits (COD) - they could have a primary and secondary insurance but they won't pay out more than the total loss. In which type of insurance company may stockholders share in the profits and losses of the insurer? a. assessment b. mutual c. service d. stock - -Stock. Whenever the insurance company has an increase in profits, the Board of Directors may increase the dividend payment from the prior year so the stockholders share in the increased profits. In which company may policy owners receive policy dividends when there is a profit? a. assessment b. mutual c. service d. stock - -Mutual company. Dividends, if paid, are not taxable and are never guaranteed And agent who circulates false or misleading information for the purpose of inducing a prospect to lapse or cancel an existing policy to purchase a new one is guilty of the unfair trade practice of... a. discrimination b. rebating. c. twisting. d. none of the above - -Twisting If the policy owner has not heard from the insurer, an Individual Health policy is considered reinstated ______ days following the request: a. 10 b. 15 c. 30 d. 45 - -45 days. The insurer is automatically reinstated by 45 days unless the insurer rejects the insured. The law of large numbers states that... a. all losses are predictable. b. large losses are easier to predict. c. predictions become more accurate as the number of units being considered increase. d. small losses are predictable. - -The predictions become more accurate as the number of units being considered increases. The more people an insurer covers, the easier it is to predict future claims based on this law. This is why Life insurance companies usually make a profit by measuring the chance of death using a mortality table.