Ohio Life, Accident & Health Insurance Exam Questions And Answers Latest 2024 (Series 11-35), Life Insurance Basics

Which person does NOT have an insurable interest? a. business partner b. creditor upon the life of a debtor c. key person d. son-in-law on the life of his father-in-law {Ans: Son-in-law on the life of his father-in-law Unless the son-in-law is in business with his father-in-law, insurable risk does not exist.}The inability of a company to pay its obligations when due is known as a. destitute. b. insolvency. c. liquidity. d. solvency. {Ans: insolvency. Solvency is the ability to pay obligations when due. Liquidity refers to organization's ability to produce cash rapidly.}What contractual element consists of the offer and acceptance? a. agreement b. competent parties c. consideration d. legal object {Ans: Agreement Mutual agreement is made when the client makes the offer and signs the application and writes the initial premium check. The underwriter accepts the risk by issuing the policy.}An agent who issues estimates or illustrations that are false or misleading may be guilty of a. misrepresentation b. rebating c. unfair discrimination d. none of the above {Ans: misrepresentation When an agent lies about what the policy does either verbally or in writing, that is known as misrepresentation.}Which is NOT true when a Life