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

Ohio law mandates that life insurance applications contain questions aimed at preventingStranger-Originated Life Insurance (STOLI), which involves investors purchasing policies for profit, rather than legitimate insurable interest.

"Applications must include questions to detect and deter STOLI transactions, which are prohibited as they lack insurable interest and are against public policy."

Thereduced paid-upoption allows the policyholder to use the cash value to buy asmaller amount of the same type of insurance, fully paid-up for life, withno more premiums required.

"Under the reduced paid-up insurance option, the policy cash value is used to purchase a smaller amount of permanent insurance that requires no further premium payments."

Awaiveris defined as theintentional and voluntary relinquishment of a known right. In insurance, this often occurs when an insurer chooses not to enforce a policy provision.

"A waiver is the intentional relinquishment of a known right. It may occur when an insurer voluntarily gives up a right under the policy."

Roth Individual Retirement Accounts (IRAs) are funded with after-tax dollars, meaning that contributions are not tax deductible. This is in contrast to traditional IRAs, where contributions may be tax deductible depending on the individual's income and participation in an employer-sponsored retirement plan. The primary advantage of a Roth IRA is that qualified distributions, including earnings, are tax-free, provided certain conditions are met

Implied authorityis not explicitly granted but is assumed to be given so the agent can fulfill their duties. It includes actions that are typical or necessary to carry out express authority.

"Implied authority is not specifically stated in the agency agreement but is necessary for the agent to carry out duties of the position."

In Ohio, insurance licensees are required to complete 24 hours of continuing education (CE) every two years. This includes a mandatory 3 hours of ethics training. The CE requirements must be fulfilled by the last day of the licensee's birth month in the renewal year. This ensures that insurance professionals remain knowledgeable about current laws, regulations, and best practices.

A hazard is any condition or behavior that increases the likelihood of a loss occurring. Hazards are categorized as physical, moral, or morale. For example, driving under the influence is a hazard because it elevates the chance of a car accident. In contrast, a peril is the actual cause of loss, such as fire or theft.

Lloyd's associations, also known as Lloyd's of London, are not insurance companies but rather a marketplace where members (syndicates) form groups to underwrite risks. These groups specialize in unique or complex risks that traditional insurers may not cover, such as marine, aviation, or catastrophe risks. The structure allows multiple underwriters to spread the risk.

According to theOhio Insurance Study Guide, Lloyd’s associations operate as an insurance marketplace that offers insurance for unusual or large risks. This arrangement makes them distinct from reciprocal insurers (who are essentially mutual insurers), risk retention groups (which are liability insurance companies owned by their members), and fraternal benefit societies (which provide insurance and other benefits to members of a lodge, religious group, or similar organization).

Under Ohio insurance regulations, HIV testing as part of the underwriting process requires informed consent. The applicant must be notified in writing and must sign a consent form prior to the test. This ensures compliance with privacy and discrimination laws and protects the rights of the applicant.