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

Awaiver of premium riderallows the insured to stop paying premiums if they become totally disabled,without changing any other termsof the policy. Coverage and cash value growth continue as if premiums were paid.

"The waiver of premium rider relieves the insured of premium payments during total disability. The policy remains in force, and all values continue to accumulate as if the premiums were being paid."

The premium mode refers to the frequency with which premium payments are made on an insurance policy. Common premium modes include annual, semi-annual, quarterly, and monthly payments. While the mode affects the payment schedule, it does not change the total annual premium amount; however, insurers may apply additional charges for more frequent payment modes due to increased administrative costs.

The Fixed Period settlement option provides equal payments over a specified period, such as 10 years, until the entire death benefit is paid out. This option ensures that the beneficiary receives income for a predetermined time frame.

According to the Ohio Life Insurance Study Guide:

"Under the fixed period option, the insurer pays the death benefit in equal installments over a specified period. If the beneficiary dies before the period ends, the remaining payments go to a secondary beneficiary."

Interest and earnings in a Traditional Individual Retirement Account (IRA) grow tax-deferred, meaning they are not taxed during the accumulation period. Taxes are applied when distributions are taken from the account. According to IRS guidelines, withdrawals from a Traditional IRA are taxed as ordinary income in the year they are distributed. This tax treatment allows the investment to grow without immediate tax implications, deferring taxation until retirement when distributions are typically made

An insurable interest is a legal requirement in life insurance contracts to prevent moral hazard. In Ohio, insurable interest must exist at the time of application — not at the time of death. This ensures that the policyholder has a legitimate, financial or emotional interest in the insured person’s life. Distant family or business relationships may not always qualify unless there’s a financial dependency.

According to Ohio Administrative Code Rule 3901-1-54, it is considered an unfair claims settlement practice for an insurer to fail to provide a reasonable explanation for the denial of a claim. Specifically, the rule states that no insurer shall deny a claim on the grounds of a specific policy provision, condition, or exclusion unless reference to such provision, condition, or exclusion is included in the denial. This ensures transparency and fairness in the claims process.

The Guaranteed Insurability Rider (GIR) allows a policyowner to purchase additional insurance coverage at predetermined dates or life events (such as marriage or the birth of a child) without undergoing further medical underwriting. This rider is beneficial for individuals who anticipate the need for increased coverage in the future but want to secure the option now, regardless of potential changes in health status. The additional coverage amounts and option dates are specified in the rider agreement.

In Ohio, life insurance policies can be backdated up to six months prior to the application date. Backdating is often used to obtain a lower premium by setting the policy's effective date to an earlier age of the insured. However, the applicant must pay premiums from the backdated effective date. This practice is subject to the insurer's approval and must comply with state regulations.