Insurance Licensing OH-Life-Agent-Series-11-44 - OHIO Life Insurance Agent Series 11-44

Policy loans taken against the cash value of a life insurance policy are generally not considered taxable income, provided the policy remains in force. However, if the policy lapses or is surrendered with an outstanding loan, the loan amount exceeding the premiums paid may become taxable.

Under the Accumulation at Interest Option, dividends are retained by the insurer and invested on behalf of the policyowner. The insurer pays interest on these dividends at a specified rate, and both the original dividend and the accrued interest remain with the insurer until withdrawn by the policyowner or used to enhance policy values.

TheAutomatic Premium Loan (APL) provisionis a feature in many whole life insurance policies. If a policyholder fails to pay a premium by the end of the grace period, the insurer automatically takes a loan against the policy's cash value to cover the premium payment. This prevents the policy from lapsing due to non-payment. Interest accrues on the loan, and if not repaid, the loan amount plus interest is deducted from the death benefit.

In insurance terminology, a peril is the specific cause of a loss. In this scenario, the peril is fire, as it is the direct cause of the damage to the grocery store. While the furnace malfunction and sparks are contributing factors, and the cleaning rags may be considered hazards, the fire is the peril that resulted in the loss.

AClass designationis used when a group of individuals is identified as beneficiaries without naming each one individually, such as “all of my children.” This allows for inclusion of future children or changes in family composition.

"A class designation identifies a group of individuals as beneficiaries, like 'all of my children,' instead of naming each person individually. It ensures that any future members of the class are included."

Under Ohio insurance laws, it is prohibited to use misleading or deceptive titles in insurance advertisements. Specifically, using a policy title that inaccurately describes the coverage can mislead consumers regarding the nature and extent of the insurance being offered. This practice is considered an unfair and deceptive act under Ohio Revised Code Section 3901.21

According to the Ohio Revised Code:

"No person shall make, issue, or circulate any estimate, illustration, circular, or statement misrepresenting the terms of any policy issued or to be issued."

A "Period Certain" annuity, also known as a "term certain" or "fixed period" annuity, guarantees payments for a specified period, such as 10, 15, or 20 years, regardless of whether the annuitant lives or dies during that period. If the annuitant dies before the end of the period, the remaining payments are made to a designated beneficiary. This option provides a predictable income stream for a set duration.

Credit life insuranceis a type of decreasing term life insurance policy designed to pay off a borrower's outstanding debts if the borrower dies before the debt is repaid. The coverage amount decreases over time, corresponding with the declining loan balance. This insurance ensures that the debt is settled, preventing financial burden on the borrower's estate or family.

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.

According to Ohio insurance law, agents are required to maintain accurate records and provide them upon request to the Superintendent of Insurance. This authority ensures regulatory compliance and supports investigations into insurance practices.