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

An immediate annuity is designed to start providing income payments shortly after a lump-sum premium is paid. Typically, these payments commence within 30 days to one year from the date of purchase, depending on the terms of the contract

Risk avoidanceinvolveseliminating exposure to risk altogether. Choosingnot to go skydivingavoids the risk entirely, making it the correct method in this context.

"Risk avoidance means eliminating the risk entirely, such as choosing not to participate in a hazardous activity like skydiving."

Whole life insurance policies accumulate cash value over time, which policyholders can borrow against. When Bettie takes a loan of $30,000 against her policy's cash value, she is not required to repay the loan during her lifetime. However, any outstanding loan amount, plus interest, will be deducted from the death benefit paid to her beneficiaries upon her death. It's important to note that while repayment is not mandatory, unpaid loans can reduce the policy's death benefit and, if the loan balance exceeds the cash value, may cause the policy to lapse

A long-term care rider allows policyholders to access a portion of their life insurance benefits to cover expenses associated with long-term care, such as stays in nursing homes or assisted living facilities.

TheOhio Superintendent of Insurancemay issue acease and desist orderagainst a licensee if a violation of insurance law is suspected and substantiated through a hearing process. This is a legal measure to stop the unlawful conduct.

"If, after a hearing, the Superintendent determines a person has committed or is about to commit an unfair or deceptive act, they may issue a cease and desist order."

In insurance terminology, exposure refers to the state of being subject to the possibility of loss. It represents the potential risk that an insurer assumes when providing coverage to an individual or entity. Exposure is a fundamental concept in underwriting and risk assessment, as it helps insurers determine the likelihood and potential severity of a loss occurring.

When dividends are left to accumulate at interest with the insurance company, the interest earned on these dividends is considered taxable income. While the dividends themselves are generally not taxable, the interest they generate is subject to taxation.

According to the Ohio Life Insurance Study Guide:

"Dividends left to accumulate at interest are taxable as income in the year the interest is credited."

Variable universal life insurancecombines flexible premium options and death benefit features of universal life withinvestment choicestypically found in variable life policies. Theunique featureis thepolicyholder’s ability to select investment optionsfrom a separate account to maximize returns.

"Variable universal life insurance allows the policyholder to allocate premium dollars to a variety of separate accounts which may increase or decrease in value based on investment performance."