OH-Life-Agent-Series-11-44 Exam Dumps - OHIO Life Insurance Agent Series 11-44

According to Ohio Revised Code Section 3965.02, each licensee is required to develop, implement, and maintain a comprehensive written information security program. This program must include administrative, technical, and physical safeguards for the protection of nonpublic information and the licensee's information system. The purpose of the information security program is to:

Protect the security and confidentiality of nonpublic information and the security of the information system;

Protect against any threats or hazards to the security or integrity of nonpublic information and the information system;

Protect against unauthorized access to or use of nonpublic information and minimize the likelihood of harm to any consumer;

Define and periodically reevaluate a schedule for retention of nonpublic information and a mechanism for its destruction when no longer needed.Therefore, the correct answer is A

An advertisement maylegitimately include the insurer’s name, but it must not imply anygovernment endorsementor providefalse or misleading information. Benefit guarantees must be truthful and supported by the policy terms.

"All advertisements must clearly identify the insurer. Misleading statements, implying endorsement by the government, or false guarantees are prohibited."

Insurance agents act as intermediaries between the insurer and the insured. One of their key responsibilities during the policy year is to assist policyholders in the claims process, ensuring that claims are filed correctly and followed up on promptly. This duty helps maintain trust and ensures that policyholders receive the benefits they are entitled to under their policies.

According to the Ohio Life Insurance Study Guide:

"Agents have a duty to assist policyholders in the claims process, including helping with the completion of claim forms and providing information on the status of claims."

In the context of insurance applications, representations are statements made by the applicant regarding their personal information, including health history, family health history, occupation, and hobbies. These statements are considered to be true to the best of the applicant's knowledge and belief. Representations are not warranties but are used by the insurer to assess the risk associated with insuring the applicant. Misrepresentations can lead to the voiding of the policy if they are found to be material to the risk and were made with intent to deceive.

Thenonforfeiture valueof an annuity prior to annuitization is the amount available to the policyholder if the contract is surrendered. It includes all premiums paid, accumulated interest, minus any withdrawals and applicable surrender charges. This ensures that the policyholder retains some value from the contract, even if they choose to terminate it before receiving annuity payments.

A non-admitted insurer, also known as an unauthorized insurer, is an insurance company that has not been licensed or authorized by the state's Department of Insurance to conduct business within that state. As a result, policies issued by non-admitted insurers are not protected by the state's guaranty fund, which is designed to protect policyholders in the event of an insurer's insolvency.

Non-admitted insurers are typically utilized for surplus lines insurance, which covers unique or high-risk situations that admitted insurers are unwilling or unable to insure. While they provide necessary coverage options, consumers should be aware of the lack of guaranty fund protection.

A Modified Endowment Contract (MEC) is a life insurance policy that has exceeded the premium limits set by the Internal Revenue Code, specifically under the "seven-pay test." When a policy becomes a MEC, it is often because it has been funded with higher premiums in a shorter period, transforming it into an investment vehicle rather than a traditional life insurance policy.

The tax treatment of MECs differs notably from standard life insurance policies. While the death benefit remains income tax-free to beneficiaries, any distributions (including loans and withdrawals) taken before the insured's death are taxed on a last-in, first-out (LIFO) basis. This means that earnings are considered withdrawn first and are subject to income tax. Additionally, if the policyowner is under age 59½, a 10% penalty may apply to the taxable portion of the distribution.

This tax treatment aligns more closely with that of investment products, hence the characterization of MECs as investment vehicles.

The "Reduction of Premium" dividend option allows a policyowner to apply dividends toward paying all or part of the next premium due on their life insurance policy. This option effectively reduces the out-of-pocket premium payment required from the policyowner. If the dividend is equal to or exceeds the premium due, it can cover the entire premium, eliminating the need for the policyowner to make a payment.