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

Under Ohio Revised Code Section 3965.02, each licensee is required to develop, implement, and maintain a comprehensive written information security program based on the licensee's risk assessment. This program must include administrative, technical, and physical safeguards for the protection of nonpublic information and the licensee's information system.

Reinsurersprovide insuranceto insurance companies, helping themmanage risk exposureby sharing large or risky policies. This is known asreinsurance.

"Reinsurers insure insurance companies by accepting part of the risk from the primary insurer. This process is called reinsurance."

In insurance terminology, exposure refers to the state of being subject to the possibility of loss. It represents the potential risk that an insurer assumes when providing coverage to an individual or entity. Exposure is a fundamental concept in underwriting and risk assessment, as it helps insurers determine the likelihood and potential severity of a loss occurring.

The accumulation phase is the period in an annuity contract during which the annuitant makes payments or contributions to the annuity. During this phase, the funds accumulate on a tax-deferred basis, meaning that taxes on earnings are deferred until distributions begin. This phase continues until the annuitant decides to begin receiving payments, at which point the annuity enters the payout or distribution phase

A children’s term rider provides term coverage for a policyholder’s child up to a specific age (commonly 25). When the child reaches that age, the coverage under the rider automatically terminates. The coverage does not convert or continue unless specifically stated in the policy under a conversion option.

Insurance rates must be fair and based on actuarial principles. Rates that are excessive, inadequate, or unfairly discriminatory are prohibited. This ensures that premiums are equitable and reflect the risk profile of the insured.

According to the Ohio Revised Code:

"Rates shall not be excessive, inadequate, or unfairly discriminatory."

Ordinary life insurance, also known as whole life insurance, is a type of permanent life insurance that features level premiums and a guaranteed death benefit. Over time, the policy accumulates a cash value reserve through the payment of premiums and the crediting of interest. This reserve grows steadily and is designed to equal the face amount of the policy by the time the insured reaches the age of 100. This structure ensures that the policy remains in force for the insured's entire life, provided premiums are paid as scheduled.

Concealment refers to the intentional omission of material facts that are crucial to the underwriting process of an insurance policy. In the context of insurance, if an applicant knowingly fails to disclose pertinent information, such as a pre-existing health condition, it can lead to the voiding of the policy or denial of a claim.

According to the Ohio Life Insurance Study Guide:

"Concealment occurs when an applicant intentionally fails to disclose a material fact, which, if known, would have influenced the insurer's decision to issue the policy or determine the premium."

An advertisement maylegitimately include the insurer’s name, but it must not imply anygovernment endorsementor providefalse or misleading information. Benefit guarantees must be truthful and supported by the policy terms.

"All advertisements must clearly identify the insurer. Misleading statements, implying endorsement by the government, or false guarantees are prohibited."

In Ohio, life insurance policies can be backdated up to six months prior to the application date. Backdating is often used to obtain a lower premium by setting the policy's effective date to an earlier age of the insured. However, the applicant must pay premiums from the backdated effective date. This practice is subject to the insurer's approval and must comply with state regulations.