OLAHI Oklahoma Life Accident and Health Insurance Exam - Set 4 - Part 3
Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.
Question 41: An insurer decides how much of a very large life insurance risk it will keep for its own account and arranges to transfer the portion above that limit to another insurance company. Which of the following describes the arrangement the insurer uses to transfer part of the risk?
Question 42: A producer must treat the money an applicant pays with the application as belonging to the insurer and handle it properly rather than mixing it with the producer's own funds. Which of the following best describes a producer improperly combining client or insurer funds with personal funds?
Question 43: When an insured under a life policy dies during the early contestable period and the insurer suspects a material misstatement on the application, the insurer may investigate the claim more closely than it would after that period ends. Which of the following explains why the insurer may do so?
Question 44: A producer is told by an applicant about a recent hospitalization, but the applicant asks the producer to leave it off the application so the policy will be approved. Which of the following is the producer's correct course of action in this situation?
Question 45: An arrangement has investors encourage a healthy senior to buy a large new life policy and then transfer it to the investors, who paid the premiums, so they collect the death benefit despite having no relationship to the insured. Which of the following describes this arrangement?
Question 46: An insurer requires a paramedical examination for a large life insurance application, in which a trained professional measures the applicant's height, weight, and blood pressure and collects specimens, though the examiner is not the applicant's own doctor. Which of the following best describes this examination?
Question 47: A producer explains to an applicant that the answers on the application must be truthful because the insurer relies on them to decide the risk, and that both parties owe each other honesty and full disclosure of material facts in forming the contract. Which of the following principles is the producer describing?
Question 48: An applicant qualifies for a life insurance policy at a rate lower than the ordinary rate because the applicant is in excellent health, does not use tobacco, and has a very safe lifestyle and family history. Which of the following risk classifications applies to this applicant?
Question 49: An applicant applies for life insurance and is concerned about how the insurer will use the sensitive health details gathered during underwriting. Federal and model privacy rules generally require the insurer to tell the applicant how that personal information will be used and disclosed. Which document commonly serves this purpose?
Question 50: An applicant asks a producer whether the producer can promise that a pending application will be approved and issued exactly as applied for before the underwriter has even reviewed the file. Which of the following is the producer's correct and honest response?
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