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

Reinsurers form a separate segment of the insurance industry by providing coverage to primary insurance companies. This process, called reinsurance, allows insurers to reduce their exposure to large losses by sharing risks with another company. This enhances the stability and solvency of the insurance system.

Credit life insurance is a special form of decreasing term insurance tied to a loan. The coverage amount typically matches the outstanding loan balance and decreases over time. Policies can be written individually or on a group basis. However, conversion privileges (which allow a policyholder to convert the coverage to a permanent policy without proof of insurability) are not included in standard credit life insurance contracts.

According to Ohio Administrative Code 3901-5-09, insurers are required to notify the superintendent within 30 days after the termination of an agent’s appointment. This ensures that the state maintains accurate records of active and terminated appointments

A long-term care rider allows policyholders to access a portion of their life insurance benefits to cover expenses associated with long-term care, such as stays in nursing homes or assisted living facilities.

If the primary beneficiary of a life insurance policy predeceases the insured and no contingent beneficiary is named, the death benefit becomes payable to the insured's estate. This means the proceeds will be distributed according to the terms of the insured's will or, if there is no will, in accordance with Ohio's intestate succession laws. It's important to regularly update beneficiary designations to ensure that the death benefit is distributed according to the policyowner's wishes.

Single-Life Insuranceis a policy that insures one individual. The death benefit is paid upon the death of the insured person.

In contrast:

Survivorship Policycovers two individuals and pays the death benefit only after both have passed away.

Joint Life Contractalso insures two people but pays the death benefit upon the first death.

Rebating refers to the practice where an insurance agent offers a portion of their commission or other inducements to a prospective client as an incentive to purchase an insurance policy. This practice is considered unethical and is prohibited under Ohio law. Specifically, Ohio Revised Code Section 3905.14 outlines that offering any rebate or inducement not specified in the insurance policy constitutes an unfair trade practice. Therefore, an agent offering 5% of their commission to a potential insured is engaging in rebating.

A waiver of premium rider allows the policy to remain in force without premium payments if the insured becomes totally disabled and meets the terms of the rider. Once activated, the insurance company waives the premium payments, and the policy continues as if payments were being made. The cash value and death benefit remain unaffected, ensuring full policy performance.

A first-to-die joint life policy pays the death benefit upon the death of the first insured among the covered individuals. Once the benefit is paid, the policy terminates and provides no further coverage for the surviving insureds. It is typically used in business or family situations to provide immediate funds upon the first death.

A Single Premium Whole Life Insurance policy is a type of permanent life insurance where the policyholder makes a one-time lump-sum payment to fully fund the policy. This single payment covers the entire cost of the policy, eliminating the need for future premium payments. The policy provides a guaranteed death benefit and accumulates cash value over time, which grows on a tax-deferred basis.

This structure is advantageous for individuals who have a substantial amount of capital and wish to secure lifelong insurance coverage without the obligation of ongoing premium payments.