Insurance Licensing Ok-Life-Accident-and-Health-or-Sickness-Producer - Oklahoma Life, Accident, and Health or Sickness Producer Exam

Ordinary life insurance, often synonymous with whole life insurance, is a type of permanent life insurance that provides coverage for the insured’s entire life, as long as premiums are paid. It typically includes a level premium, a guaranteed death benefit, and a cash value component that grows over time. It is designed to offer permanent protection with some flexibility, such as the ability to borrow against the cash value or adjust premiums in certain policies (e.g., universal life).

Option A: Incorrect. This describes term life insurance, which provides temporary protection during income-earning years. Ordinary life insurance is permanent, and cash values are not specifically “payable” during non-earning periods but can be accessed.

Option B: Incorrect. Ordinary life is not an endowment policy (which matures at a specific age) or tied directly to income levels. It is a whole life policy with level premiums.

Option C: Correct. Ordinary life insurance provides permanent protection and some flexibility (e.g., cash value loans, dividend options in participating policies) with premiums that are generally lower than other permanent products like limited-pay whole life.

Option D: Incorrect. Ordinary life is not temporary; it provides lifelong coverage. While it accumulates cash value, the protection is permanent, not limited to the policyowner’s life expectancy.

This question is part of the Prometric content outline under “Life Products,” focusing on the characteristics of ordinary (whole) life insurance.

Life insurance underwriting assesses risk based on factors likeage(affects mortality risk),family history(indicates hereditary conditions), andtobacco use(increases health risks), as outlined in Oklahoma’s underwriting practices (Title 36 O.S. § 1204).Marital statusis not a key factor, as it has minimal impact on mortality risk, though it may be noted for beneficiary or financial planning purposes.

Option A: Incorrect. Age is a key underwriting factor.

Option B: Incorrect. Family history is a key underwriting factor.

Option C: Incorrect. Tobacco use is a key underwriting factor.

Option D: Correct. Marital status is not a key underwriting factor.

Long-Term Care (LTC) insuranceis designed to cover services for individuals with chronic diseases or disabilities who need assistance with activities of daily living (ADLs) or have cognitive impairments. It often includes coverage for nursing home care, home-based care, assisted living, and respite care, as regulated in Oklahoma under Title 36 O.S. § 4426.1.

Option A: Incorrect. Medicare provides limited coverage for skilled nursing or home health care but not comprehensive LTC services.

Option B: Incorrect. Medicaid covers LTC for low-income individuals but is a government program, not a private insurance policy.

Option C: Correct. LTC insurance covers nursing home, home-based, and respite care for chronic conditions.

Option D: Incorrect. Group health insurance covers medical expenses but typically does not include LTC services.

This question falls under the Prometric content outline section on “Long-Term Care (LTC) Policies,” which covers LTC coverage and services.

Ordinary life insurance, synonymous with whole life insurance, is a level premium permanent insurance product that accumulates a cash value (or reserve) over time. By design, the cash value grows and, at the policy’s maturity (typically age 100 or 121, depending on the policy), equals the face amount of the policy, at which point the policy endows (pays out the face amount to the policyowner if the insured is still alive).

Option A: Correct. The cash value (reserve) in a whole life policy eventually equals the face amount at maturity.

Option B: Incorrect. Dividends are paid only in participating policies, not all whole life policies, and are not guaranteed.

Option C: Incorrect. The cash value continues to earn interest or grow, typically at a guaranteed rate, until maturity.

Option D: Incorrect. There are no mandatory cash value distributions; policyowners can choose to access the cash value.

This question aligns with the Prometric content outline under “Life Products,” which covers the cash value accumulation in whole life insurance.

In life and health insurance policies with family or dependent coverage riders, Oklahoma insurance regulations typically allow a 31-day period for the insured to notify the insurer of a newly-born child to add them to the policy for continued coverage. This aligns with standard provisions for automatic coverage of newborns, which often provide temporary coverage from birth (e.g., for 31 days) before requiring formal notification and premium adjustment to maintain coverage.

Option A: Correct. The insured has 31 days to notify the insurer to add a newly-born child, consistent with standard policy provisions and Oklahoma regulations.

Option B: Incorrect. 30 days is not the standard timeframe in Oklahoma for this purpose.

Option C: Incorrect. 21 days is too short and not aligned with typical insurance provisions.

Option D: Incorrect. 14 days is insufficient for the notification period in most policies.

This question is part of the Prometric content outline under “Provisions, Options, Exclusions, Riders, Clauses, and Rights,” which covers dependent coverage and policy provisions.

Oklahoma requires insurance producers to complete 24 hours of continuing education (CE) every 2 years, including 3 hours of ethics and 2 hours of legislative updates (Title 36 O.S. § 1435.29; O.A.C. 365:25-3-1). Failure to meet CE requirements results innonrenewal of the license, as the Oklahoma Insurance Department will not renew until CE is completed. Revocation or felony charges apply to more serious violations (e.g., fraud), not CE non-compliance.

Option A: Incorrect. There is no provision for additional CE hours as a penalty; CE must be completed for renewal.

Option B: Incorrect. CE failure is not a felony; it’s an administrative issue.

Option C: Correct. Nonrenewal of the license occurs if CE requirements are not met.

Option D: Incorrect. Revocation is for severe violations, not CE non-compliance.

In insurance, a contract is effective when there is mutual consideration, offer, acceptance, and a meeting of the minds. For a health insurance contract, this occurs when the insured pays the initial premium (consideration from the insured) and the insurer issues the policy as applied for (acceptance by the insurer), as outlined in Oklahoma’s Insurance Code (Title 36 O.S. § 4401). The policy becomes binding at this point, assuming all other conditions (e.g., underwriting approval) are met.

Option A: Incorrect. Providing services occurs during claims, not when the contract is effective.

Option B: Incorrect. Paying the premium alone is not sufficient without policy issuance.

Option C: Correct. The contract is effective when the premium is paid and the policy is issued as applied for.

Option D: Incorrect. Signing by both parties is not typically required; issuance and premium payment suffice.

This question aligns with the Prometric content outline under “Provisions, Options, Exclusions, Riders, Clauses, and Rights,” which covers contract formation in health insurance.

Alife annuity(or straight life annuity) pays periodic payments to the annuitant until their death, at which point all payments cease, with no further benefits to beneficiaries. This contrasts with other annuity types, such as refund or joint-life annuities, which may continue payments or provide refunds.

Option A: Incorrect. “Terminal annuity” is not a standard insurance term.

Option B: Incorrect. “Finite annuity” is not a recognized annuity type.

Option C: Incorrect. A refund annuity provides a refund or continued payments to a beneficiary if the annuitant dies early.

Option D: Correct. A life annuity ceases payments upon the annuitant’s death.

This question falls under the Prometric content outline section on “Life Products,” which covers annuities and their features.

Under Oklahoma insurance law and standard group life insurance provisions, a group life policy includes a mandatory grace period of 31 days for the payment of premiums (except the first premium, which must be paid to initiate coverage). During this grace period, the policy remains in force, and the full death benefit is payable if the insured dies, provided the premium is eventually paid or the policy has not lapsed.

Option A: Incorrect. Coverage is not discontinued during the grace period; it continues to protect the insured.

Option B: Incorrect. The death benefit is not reduced to 50% during the grace period; it remains at 100% of the policy’s face amount.

Option C: Correct. The death benefit coverage continues in force during the 31-day grace period, as mandated by Oklahoma law.

Option D: Incorrect. The death benefit is not reduced to 75%; it remains fully in effect.

This provision is outlined in Oklahoma statutes and aligns with the Prometric exam content outline under “Provisions, Options, Exclusions, Riders, Clauses, and Rights,” which includes knowledge of grace periods in group life policies.

Long-Term Care (LTC) policies cover services for individuals with chronic conditions or disabilities, such as assistance with activities of daily living. Oklahoma regulations (Title 36 O.S. § 4426.1) allow LTC policies to exclude coverage for conditions like alcoholism or drug addiction, acts of war (especially military service), and self-inflicted injuries, as these are considered high-risk or intentional. However,Alzheimer’s diseaseis a core condition typically covered by LTC policies, as it is a common cause of long-term care needs.

Option A: Incorrect (excluded). Alcoholism or drug addiction is often excluded unless treatment is completed.

Option B: Incorrect (excluded). Acts of war, especially in military service, are standard exclusions.

Option C: Incorrect (excluded). Self-inflicted injuries are excluded as intentional acts.

Option D: Correct (not excluded). Alzheimer’s disease is typically covered by LTC policies.