OLAHI - Oklahoma Life Accident and Health Insurance Exam

Question 1: During the sale of a life insurance policy, the producer meets the applicant, asks the application questions, and forms a first impression of the risk before submitting the paperwork to the home office for a decision. Which of the following best describes this front-line role of the producer?

Claims adjusting

Actuarial pricing

Policy delivery

Field underwriting

Question 2: When completing a life insurance application, the producer records the applicant's answers to health, occupation, and lifestyle questions, and the applicant signs to confirm those answers are true to the best of the applicant's knowledge and belief. Which of the following best describes the legal status of those answers?

Warranties guaranteed absolutely true

Binding contract terms

Representations believed true

Opinions of no legal effect

Question 3: An applicant for life insurance answers a clear application question falsely about a serious health condition, and the insurer would not have issued the policy at that premium had it known the truth. Which of the following describes an untrue statement important enough to affect the insurer's decision?

A material misrepresentation

An immaterial error

A warranty of health

A permissible omission

Question 4: An applicant deliberately stays silent about a material fact that the insurer never directly asked about but that the applicant knew was important to the risk being underwritten. Which of the following terms describes this failure to volunteer a known material fact?

Representation

Waiver

Estoppel

Concealment

Question 5: An insurer completes underwriting on an applicant who presents typical health and lifestyle characteristics for their age, and it issues the policy at the ordinary premium with no extra charge and no discount. Which of the following risk classifications has the insurer assigned to this applicant?

Preferred risk

Standard risk

Substandard risk

Declined risk

Question 6: An applicant with a history of a serious health condition applies for life insurance, and the insurer decides to issue the policy but adds an extra charge to the premium to reflect the greater-than-average risk the applicant presents. Which of the following risk classifications describes this applicant?

Standard risk

Preferred risk

Substandard risk

Uninsurable risk

Question 7: For a life insurance contract to be valid at the time it is purchased, the applicant must stand to suffer a genuine loss, whether financial or emotional, if the insured were to die, such as a spouse or a key business partner. Which of the following requirements does this describe?

Insurable interest

Consideration

Utmost good faith

Indemnity

Question 8: An applicant pays the initial premium with the application and receives a receipt providing that coverage takes effect on the application date or medical exam date, but only if the applicant is later found insurable as a standard risk under the insurer's rules. Which of the following receipts is this?

A binding receipt

A policy delivery receipt

A premium refund receipt

A conditional receipt

Question 9: An applicant pays the first premium and receives a receipt that puts coverage into force immediately from the date of the receipt, giving the insurer no chance to decline coverage during the period even if underwriting is still pending. Which of the following receipts is described here?

A conditional receipt

An inspection receipt

A binding receipt

A statement of good health

Question 10: A life insurance policy is issued and the producer must deliver it to the owner, but because the applicant did not pay the premium with the application, the producer must collect the first premium and, on many policies, obtain a signed form before coverage takes effect. Which form is this?

A conditional receipt

A statement of good health

A buyer's guide

A policy summary

Question 11: An applicant pays the premium with the application and receives a conditional receipt, then dies in an accident before the insurer finishes underwriting, though the evidence later shows the applicant was insurable as a standard risk on the application date. Which of the following describes the insurer's obligation?

Denied, since no policy was issued

Only premiums are refunded

Coverage never began

Paid, since the applicant was insurable

Question 12: A life insurer wants to check whether an applicant has previously applied for insurance and reported any significant medical conditions, using a nonprofit membership organization that keeps coded records shared among member insurers. Which of the following underwriting sources provides this information?

The Medical Information Bureau

The attending physician statement

The inspection report

The buyer's guide

Question 13: During underwriting of an applicant with a complex medical history, the insurer needs detailed records directly from the doctor who has treated the applicant, describing diagnoses, treatments, and prognosis. Which of the following underwriting sources provides this physician-supplied medical detail?

An inspection report

A Medical Information Bureau record

An attending physician statement

An agent's report

Question 14: For a large life insurance application, the insurer arranges an investigation into the applicant's general reputation, lifestyle, finances, and habits, gathered by an outside consumer reporting agency partly through interviews with people who know the applicant. Which of the following is this underwriting source?

An attending physician statement

A statement of good health

A conditional receipt

An inspection or investigative report

Question 15: A federal law governs how consumer reporting agencies gather and share consumer information used for insurance and credit decisions, and it gives consumers rights to know about and dispute the information in their reports. Which of the following laws provides these protections?

The Social Security Act

The Fair Credit Reporting Act

The Sherman Antitrust Act

The National Labor Relations Act

Question 16: An insurer plans to obtain an investigative consumer report that includes information gathered through personal interviews about an applicant's character and mode of living. Under federal consumer reporting law, which of the following must the insurer do regarding that report?

Notify the applicant of the report

Nothing, since applicants expect it

Obtain a court order first

Publish the report publicly

Question 17: After reviewing a consumer report, an insurer declines an applicant's coverage based partly on information in that report. Under federal consumer reporting law, which of the following must the insurer do for the applicant as a result of this adverse decision?

Nothing at all

Provide the report free to competitors

Tell the applicant, name the agency

Pay the applicant a penalty

Question 18: Before an insurer or producer may obtain medical records about an applicant from doctors and the Medical Information Bureau, the applicant must give permission through a signed document that authorizes the release of that protected health information. Which of the following does the applicant sign?

A conditional receipt

A statement of good health

A policy loan agreement

A signed authorization to disclose information

Question 19: A producer taking a life insurance application must make sure certain parties put their signatures on the application before it is submitted, so the insurer has the required authorizations and certifications. Which of the following parties normally must sign the life insurance application?

The applicant and the producer

Only the beneficiary

The Insurance Commissioner

Two disinterested witnesses

Question 20: A producer discovers that an applicant gave an incorrect answer on the application after the applicant already signed it, and the producer wants to fix the entry properly. Which of the following is the correct way to handle a needed change on a life insurance application?

The producer erases and rewrites it quietly

The change is made after submission

The applicant initials the corrected entry

The producer signs for the applicant

OLAHI Oklahoma Life Accident and Health Insurance Exam - Set 4 - Part 1

Question 4: An applicant deliberately stays silent about a material fact that the insurer never directly asked about but that the applicant knew was important to the risk being underwritten. Which of the following terms describes this failure to volunteer a known material fact?

Question 7: For a life insurance contract to be valid at the time it is purchased, the applicant must stand to suffer a genuine loss, whether financial or emotional, if the insured were to die, such as a spouse or a key business partner. Which of the following requirements does this describe?

Question 9: An applicant pays the first premium and receives a receipt that puts coverage into force immediately from the date of the receipt, giving the insurer no chance to decline coverage during the period even if underwriting is still pending. Which of the following receipts is described here?

Question 15: A federal law governs how consumer reporting agencies gather and share consumer information used for insurance and credit decisions, and it gives consumers rights to know about and dispute the information in their reports. Which of the following laws provides these protections?

Question 16: An insurer plans to obtain an investigative consumer report that includes information gathered through personal interviews about an applicant's character and mode of living. Under federal consumer reporting law, which of the following must the insurer do regarding that report?

Question 17: After reviewing a consumer report, an insurer declines an applicant's coverage based partly on information in that report. Under federal consumer reporting law, which of the following must the insurer do for the applicant as a result of this adverse decision?

Question 20: A producer discovers that an applicant gave an incorrect answer on the application after the applicant already signed it, and the producer wants to fix the entry properly. Which of the following is the correct way to handle a needed change on a life insurance application?

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