OLAHI - Oklahoma Life Accident and Health Insurance Exam

Question 21: An insured and the primary beneficiary die in the same accident, and it cannot be determined who died first. Which of the following provisions directs that the death benefit be paid as though the beneficiary died before the insured?

The spendthrift clause

The incontestability clause

The common disaster provision

The entire contract provision

Question 22: In a life insurance policy, one party alone holds the rights to name and change the beneficiary, take out loans, assign the policy, and choose the settlement options during the insured's lifetime. Which of the following parties holds these ownership rights in the contract?

The beneficiary

The insurer

The producer

The policyowner

Question 23: For a life insurance contract to be valid, the applicant must have a certain relationship to the insured at the time the policy is purchased, such as being a spouse or a business partner who would suffer loss from the insured's death. Which of the following describes this requirement?

Insurable interest at the time of death

Insurable interest at the time of application

A medical examination requirement

A guaranteed insurability option

Question 24: A policyowner decides to give up a whole life policy that has built up value and take its entire accumulated cash value in a single lump-sum payment, ending the coverage completely. Which of the following nonforfeiture options is the owner choosing here?

Cash surrender

Extended term

Reduced paid-up

Automatic premium loan

Question 25: A policyowner stops paying premiums on a whole life policy and directs that the policy's cash value be used to purchase a smaller amount of fully paid-up permanent insurance that needs no further premiums. Which of the following nonforfeiture options is being used?

Cash surrender

Extended term

Reduced paid-up

Interest only

Question 26: A whole life policy lapses for nonpayment, and the policy provides that unless the owner elects otherwise, the cash value automatically buys paid-up term insurance for the full face amount for as long as the value will support it. Which nonforfeiture option is this default?

Reduced paid-up

Cash surrender

Paid-up additions

Extended term

Question 27: A whole life policy guarantees minimum values that are available to the owner even if premiums stop, so the owner never simply loses the accumulated value when a policy lapses. Which of the following concepts do these guaranteed values represent?

Nonforfeiture values

Dividend options

Settlement options

Policy exclusions

Question 28: A participating whole life policy pays a dividend, and the owner directs the insurer to use each dividend to buy small amounts of additional paid-up permanent insurance that increase the total coverage. Which of the following dividend options is being used?

Accumulate at interest

Reduction of premium

Paid-up additions

Cash payment

Question 29: The owner of a participating policy chooses to leave each year's dividend with the insurer, where it earns interest and can be withdrawn later, rather than buying more insurance or reducing premiums. Which of the following dividend options is this?

Paid-up additions

Accumulate at interest

One-year term

Reduction of premium

Question 30: A policyowner of a participating policy instructs the insurer to apply each annual dividend directly toward the premium coming due, lowering the amount the owner must pay out of pocket for that year. Which of the following dividend options is being used here?

Cash payment

Paid-up additions

Accumulate at interest

Reduction of premium

Question 31: A participating life insurance policy pays annual dividends to its owner, and the policyowner asks both about how those dividends are treated for income tax purposes and where they actually come from. Which of the following best describes life insurance policy dividends?

A generally nontaxable premium refund

Taxable investment earnings

Guaranteed interest payments

A form of taxable capital gain

Question 32: A beneficiary elects to receive the death proceeds in equal installments over a set number of years chosen in advance, with the installment amount determined by how long the payout period lasts. Which of the following settlement options is this?

Interest only

Fixed amount

Fixed period

Lump sum

Question 33: A beneficiary elects to receive a specific dollar amount from the death proceeds each month, continuing until the proceeds and interest are exhausted, so the payment size is set and the number of payments varies. Which of the following settlement options is this?

Fixed period

Life income

Interest only

Fixed amount

Question 34: A beneficiary elects to receive guaranteed payments from the death proceeds for the rest of the beneficiary's own life, no matter how long that turns out to be. Which of the following settlement options provides this lifelong income?

Fixed period

Life income

Fixed amount

Interest only

Question 35: A beneficiary wants to leave the death proceeds with the insurer for now, receiving only the earnings on the money each period while keeping the full principal available to withdraw later. Which of the following settlement options fits this choice?

Fixed period

Life income

Interest only

Fixed amount

Question 36: A life insurance rider provides that if the insured becomes totally disabled for a stated waiting period, the insurer will keep the policy in force by paying the premiums for the insured during the disability. Which of the following riders is described?

Waiver of premium

Guaranteed insurability

Accidental death benefit

Payor benefit

Question 37: A life insurance rider lets the insured purchase additional amounts of coverage at specified future dates or major life events, each time without having to submit new evidence of insurability. Which of the following riders provides this valuable future purchase right?

Waiver of premium

Cost of living

Accidental death benefit

Guaranteed insurability

Question 38: A life insurance rider pays an additional amount, often equal to the face amount, when the insured dies as the result of an accident, effectively doubling the benefit in those cases. Which of the following riders is described?

Waiver of premium

Payor benefit

Accidental death benefit

Return of premium

Question 39: A juvenile life insurance policy includes a rider providing that if the adult who pays the premiums dies or becomes totally disabled, the premiums are waived until the child reaches a stated age. Which of the following riders is described here?

Payor benefit

Guaranteed insurability

Waiver of premium

Accelerated benefit

Question 40: A life insurance rider lets a terminally ill insured receive a portion of the death benefit in advance to help with expenses, reducing the amount payable to the beneficiary at death. Which of the following riders provides this advance?

Cost of living rider

Guaranteed insurability rider

Return of premium rider

Accelerated death benefit rider

OLAHI Oklahoma Life Accident and Health Insurance Exam - Set 3 - Part 2

Question 21: An insured and the primary beneficiary die in the same accident, and it cannot be determined who died first. Which of the following provisions directs that the death benefit be paid as though the beneficiary died before the insured?

Question 22: In a life insurance policy, one party alone holds the rights to name and change the beneficiary, take out loans, assign the policy, and choose the settlement options during the insured's lifetime. Which of the following parties holds these ownership rights in the contract?

Question 23: For a life insurance contract to be valid, the applicant must have a certain relationship to the insured at the time the policy is purchased, such as being a spouse or a business partner who would suffer loss from the insured's death. Which of the following describes this requirement?

Question 24: A policyowner decides to give up a whole life policy that has built up value and take its entire accumulated cash value in a single lump-sum payment, ending the coverage completely. Which of the following nonforfeiture options is the owner choosing here?

Question 25: A policyowner stops paying premiums on a whole life policy and directs that the policy's cash value be used to purchase a smaller amount of fully paid-up permanent insurance that needs no further premiums. Which of the following nonforfeiture options is being used?

Question 26: A whole life policy lapses for nonpayment, and the policy provides that unless the owner elects otherwise, the cash value automatically buys paid-up term insurance for the full face amount for as long as the value will support it. Which nonforfeiture option is this default?

Question 27: A whole life policy guarantees minimum values that are available to the owner even if premiums stop, so the owner never simply loses the accumulated value when a policy lapses. Which of the following concepts do these guaranteed values represent?

Question 28: A participating whole life policy pays a dividend, and the owner directs the insurer to use each dividend to buy small amounts of additional paid-up permanent insurance that increase the total coverage. Which of the following dividend options is being used?

Question 29: The owner of a participating policy chooses to leave each year's dividend with the insurer, where it earns interest and can be withdrawn later, rather than buying more insurance or reducing premiums. Which of the following dividend options is this?

Question 30: A policyowner of a participating policy instructs the insurer to apply each annual dividend directly toward the premium coming due, lowering the amount the owner must pay out of pocket for that year. Which of the following dividend options is being used here?

Question 31: A participating life insurance policy pays annual dividends to its owner, and the policyowner asks both about how those dividends are treated for income tax purposes and where they actually come from. Which of the following best describes life insurance policy dividends?

Question 32: A beneficiary elects to receive the death proceeds in equal installments over a set number of years chosen in advance, with the installment amount determined by how long the payout period lasts. Which of the following settlement options is this?

Question 33: A beneficiary elects to receive a specific dollar amount from the death proceeds each month, continuing until the proceeds and interest are exhausted, so the payment size is set and the number of payments varies. Which of the following settlement options is this?

Question 34: A beneficiary elects to receive guaranteed payments from the death proceeds for the rest of the beneficiary's own life, no matter how long that turns out to be. Which of the following settlement options provides this lifelong income?

Question 35: A beneficiary wants to leave the death proceeds with the insurer for now, receiving only the earnings on the money each period while keeping the full principal available to withdraw later. Which of the following settlement options fits this choice?

Question 36: A life insurance rider provides that if the insured becomes totally disabled for a stated waiting period, the insurer will keep the policy in force by paying the premiums for the insured during the disability. Which of the following riders is described?

Question 37: A life insurance rider lets the insured purchase additional amounts of coverage at specified future dates or major life events, each time without having to submit new evidence of insurability. Which of the following riders provides this valuable future purchase right?

Question 38: A life insurance rider pays an additional amount, often equal to the face amount, when the insured dies as the result of an accident, effectively doubling the benefit in those cases. Which of the following riders is described?

Question 39: A juvenile life insurance policy includes a rider providing that if the adult who pays the premiums dies or becomes totally disabled, the premiums are waived until the child reaches a stated age. Which of the following riders is described here?

Question 40: A life insurance rider lets a terminally ill insured receive a portion of the death benefit in advance to help with expenses, reducing the amount payable to the beneficiary at death. Which of the following riders provides this advance?

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