OH Life & Health flashcards
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32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Ohio producer license
- A resident Ohio insurance producer license requires prelicensing education, a passing exam, an application, and insurer appointment, and it must be renewed with continuing education.
- Ohio continuing education
- Ohio life and health producers generally must complete 24 credit hours every two years, including at least 3 hours of ethics, to renew their licenses.
- Unfair trade practice
- An unfair trade practice is an illegal insurance business act such as misrepresentation, rebating, twisting, coercion, or false advertising that can lead to fines or license action.
- Pure risk
- A pure risk involves only the chance of loss or no loss, with no possibility of gain, and is the type of risk generally insurable.
- Insurable interest
- A financial interest in the continuation of a person's life or property; for life insurance it must exist when the policy is applied for.
- Utmost good faith
- A principle requiring both insured and insurer to disclose material facts honestly; concealment or material misrepresentation can affect the insurance contract.
- Conditional receipt
- A receipt given when premium is paid with the application; coverage may begin on the application or medical exam date if the proposed insured meets insurability conditions.
- Level premium
- A premium that remains constant over the policy period; early overpayments fund reserves because mortality charges rise with age.
- Policyowner rights
- The owner of a life insurance policy controls it, including naming beneficiaries, taking loans, surrendering, assigning, and choosing settlement options; the owner may differ from the insured.
- Term life insurance
- Temporary life insurance providing a death benefit for a specified period, with no cash value; it may be renewable or convertible.
- Universal life
- Permanent life insurance with flexible premiums and an adjustable death benefit; its cash value earns credited interest and is reduced by cost of insurance and charges.
- Variable life insurance
- Permanent life insurance whose cash value is invested in separate subaccounts; it requires a securities license and a prospectus because values fluctuate.
- Incontestability clause
- A policy provision stating that after a stated period, usually two years, the insurer cannot contest the policy for material misrepresentation in the application.
- Nonforfeiture options
- Options that give a whole life policyowner a cash surrender value, reduced paid-up insurance, or extended term insurance if the policy lapses after cash value develops.
- Waiver of premium rider
- A rider that waives premiums if the insured becomes totally disabled for a specified period, keeping the policy in force.
- Exclusion ratio
- The portion of each annuity payment that is excluded from taxable income, calculated by dividing the investment in the contract by the expected return.
- Deferred annuity
- An annuity whose accumulation phase lasts more than one payment period, with annuitization beginning at a later date; growth is tax-deferred.
- Joint and survivor annuity
- An annuity payout that continues income to a second annuitant, often a spouse, after the first annuitant dies, usually at a reduced amount.
- MEC
- A modified endowment contract is a life policy that fails the seven-pay test; distributions are taxed income first and may incur a 10% penalty before age 59 1/2.
- 1035 exchange
- A tax-free exchange of an existing life insurance policy or annuity for another life policy or annuity, preserving the original cost basis.
- Death benefit taxation
- Life insurance proceeds paid because of the insured's death are generally free of federal income tax, but interest paid on the proceeds is taxable.
- Coordination of benefits
- A process that determines which health plan pays first when a person has multiple coverages, preventing duplicate payment for the same expense.
- Out-of-pocket maximum
- The maximum amount an insured pays for covered health expenses in a plan year, after which the insurer generally pays 100% of covered benefits.
- Preauthorization
- A managed care requirement that the insurer approve certain services or treatments before they are provided, or benefits may be reduced or denied.
- Own-occupation disability
- A disability income policy definition that pays benefits if the insured cannot perform the duties of their own occupation, even if able to work elsewhere.
- Elimination period
- The waiting period after a disability begins before disability income benefits become payable; longer elimination periods reduce premium.
- Residual disability
- A disability benefit that pays a reduced amount when the insured returns to work but earns less than before because of disability.
- COBRA continuation
- A federal law requiring employers with 20 or more employees to offer continued group health coverage after qualifying events, generally for 18 or 36 months.
- Contributory group plan
- A group health plan in which employees pay part of the premium; it usually requires a minimum percentage of eligible employees to participate.
- Group health certificate
- A document given to a participant in a group health plan that summarizes coverage; the employer or plan holds the master policy.
- Medicare Part A
- Hospital insurance under Medicare that helps cover inpatient hospital, skilled nursing facility, hospice, and some home health services.
- Medigap
- Private supplemental insurance that helps pay Medicare Part A and B cost-sharing but cannot be used with Medicare Advantage.