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

When an annuitant dies before the annuity's payout phase begins, the accumulated interest within the annuity is subject to income tax for the beneficiary. The beneficiary receives the premiums paid into the annuity tax-free, but any earnings or interest accrued are taxable as ordinary income. This taxation applies regardless of the beneficiary's relationship to the annuitant.

Fixed annuities are insurance contracts that provide a guaranteed interest rate and fixed periodic payments to the annuitant. The funds in a fixed annuity are invested in the insurance company's general account, not in a separate account. Separate accounts are associated with variable annuities, where the investment risk is borne by the policyholder.

According to the Ohio Life Insurance Study Guide:

"In a fixed annuity, the insurance company guarantees both the rate of return and the payout amount. The funds are invested in the insurer's general account."

In insurance terminology:Riskrefers to the possibility of a loss occurring.

Hazardis a condition that increases the likelihood of a loss.

Perilis the actual cause of the loss.

In this scenario, the act of texting while driving is a hazard because it increases the likelihood of an accident. The collision with the tree is the peril, as it is the direct cause of the loss or damage

According to Ohio Revised Code Section 3905.11, any insurance agent intending to conduct business under a name other than their legal name is required to notify the Superintendent of Insurance prior to using the assumed name. This ensures transparency and proper registration of business names within the state.

Rebating refers to the practice where an insurance agent offers a portion of their commission or other inducements to a prospective client as an incentive to purchase an insurance policy. This practice is considered unethical and is prohibited under Ohio law. Specifically, Ohio Revised Code Section 3905.14 outlines that offering any rebate or inducement not specified in the insurance policy constitutes an unfair trade practice. Therefore, an agent offering 5% of their commission to a potential insured is engaging in rebating.

Agents must provide apolicy summarythat includes details about thelong-term care benefits, costs, and provisions at the time of application.

"A policy summary outlining the coverage, benefits, and cost of long-term care riders must be provided to the applicant during the application process."

Risk sharinginvolvesdistributing risk across multiple parties, such as when professionals pool money to cover liability (e.g., malpractice insurance pools), thereby spreading the cost of potential losses.

"Risk sharing is a method of managing risk by distributing it among several entities, such as in pooling arrangements for malpractice or professional liability."

Aflexible premium deferred annuity (FPDA)allows the annuitant to makevarying premium paymentsover time. The annuity starts paying out at a future date, making it suitable for retirement savings.

"Flexible premium deferred annuities permit payments of varying amounts over time before annuitization, offering flexibility for savers."