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

Awaiveris defined as theintentional and voluntary relinquishment of a known right. In insurance, this often occurs when an insurer chooses not to enforce a policy provision.

"A waiver is the intentional relinquishment of a known right. It may occur when an insurer voluntarily gives up a right under the policy."

A deferred annuity is characterized by premium payments made over time, with the income payments commencing at a future date. This allows the annuitant to accumulate funds on a tax-deferred basis before the payout phase begins. In contrast, an immediate annuity starts income payments shortly after a lump-sum premium is paid.

A tax liability ariseswhen the amount received upon surrender exceeds the total premiums paidinto the policy. This gain is considered taxable income.

"If the policy is surrendered for its cash value and the amount received exceeds the total premiums paid, the excess is subject to income taxation."

A payor benefit rider is typically added to juvenile life policies and waives premium payments if the person responsible for paying the premiums (usually a parent or guardian) becomes totally disabled or dies before the child reaches a specified age. This ensures that the child’s coverage remains in force even if the premium payer is unable to continue payments.

AnAccelerated Death Benefit (ADB)is a provision in a life insurance policy that allows the policyholder to receive a portion of the death benefit while still alive, under certain qualifying conditions. According to the Ohio Administrative Code Rule 3901-6-06, accelerated death benefits are payable to the policyowner during the lifetime of the insured upon the occurrence of a qualifying event, which includes:

A medical condition that drastically reduces the potential life span of the insured to a period of time specified in the policy, often 24 months or less.

A medical condition that requires extraordinary medical intervention, such as a major organ transplant or continuous artificial life support, without which the insured would die.

A condition that normally results in continuous confinement in an eligible institution, if the insured is expected to remain there for the rest of their life.

The amount received through an ADB reduces the death benefit payable to beneficiaries upon the insured's death.

A payor benefit rider is an optional addition to a juvenile life insurance policy that waives the premium payments if the policyowner (typically a parent or guardian) becomes totally disabled or dies before the insured child reaches a specified age, usually 21. This rider ensures that the policy remains in force during the payor's period of disability or after their death, providing uninterrupted coverage for the insured child without the burden of premium payments.

Ohio law mandates that life insurance applications contain questions aimed at preventingStranger-Originated Life Insurance (STOLI), which involves investors purchasing policies for profit, rather than legitimate insurable interest.

"Applications must include questions to detect and deter STOLI transactions, which are prohibited as they lack insurable interest and are against public policy."

Nonforfeiture provisions in whole life insurance policies provide options to the policyholder if they stop paying premiums. One such option is extended term insurance, where the policy's cash value is used to purchase term insurance with the same face amount as the original policy for as long a period as the cash value allows.

According to the Ohio Life Insurance Study Guide:

"Under the nonforfeiture provision, a policyholder may choose extended term insurance, which uses the policy's cash value to provide term coverage equal to the original face amount for a limited time."