OH Life & Health Exam Flashcards

Q: What is the Ohio Series 11-35 exam format?

The Ohio Series 11-35 Life, Accident and Health combined exam has 150 questions and a 2.5-hour (150-minute) time limit, administered by PSI Services. Candidates need a 70% scaled score to pass and pay a $49 exam fee. The PSI bulletin lists no mandatory waiting period between retakes, but prelicense certificates must still be valid at each new sitting.

Q: What prelicense education does Ohio require for Life and Health?

Ohio requires 20 hours of approved prelicense education per major line of authority, so a combined Life and Accident & Health applicant must complete 40 hours total before sitting for Series 11-35. Completion certificates are valid for 180 calendar days, and both Life and A&H certificates must be presented on exam day. CLU and certain other designations may waive the prelicense requirement.

Q: What is the Ohio free-look period for life insurance?

Ohio gives policy owners a 10-day free-look period on individual life insurance and annuity contracts, measured from policy delivery, during which the contract can be returned for a full premium refund. The free-look is extended to 30 days when a life insurance or annuity policy replaces an existing contract, giving consumers more time to compare the old and new coverage.

Q: What does the Ohio Life & Health Guaranty Association cover?

The Ohio Life & Health Insurance Guaranty Association (OLHIGA) protects Ohio residents when a member insurer becomes insolvent. Statutory limits are generally $300,000 in life insurance death benefits, $100,000 in life insurance cash surrender or withdrawal values, $250,000 in annuity present-value benefits, and $500,000 in major medical coverage. OLHIGA is funded by assessments on member insurers and may not be used as a sales inducement.

Q: What are Ohio's continuing education requirements after licensing?

Resident Ohio major-line producers must complete 24 hours of continuing education every two-year license cycle, including a mandatory 3 hours of ethics. Licenses renew by the last day of the producer's birth month, with a one-month late renewal window that carries a $50 late fee. A license expired more than 12 months requires the producer to retake and pass the licensing exam.

Q: What background check does Ohio require for an insurance license?

Ohio Revised Code 3905.051 requires resident producer applicants to complete a BCI/FBI fingerprint-based criminal background check. Fingerprints are submitted through a WebCheck provider or PSI testing center (PSI lists a $72.25 fingerprint fee in the current bulletin). A criminal record is not an automatic bar, but ODI weighs the nature, recency, and pattern of any offenses, especially those involving fraud or breach of trust.

Question 1

Ohio Department of Insurance (ODI)

Accepted Answer

State agency that regulates insurance in Ohio. Headed by the Superintendent of Insurance, who is appointed by the Governor with Senate confirmation. Enforces Ohio Revised Code Title 39, licenses producers, approves forms, and handles consumer complaints.

Question 2

Ohio Revised Code Title 39

Accepted Answer

The portion of Ohio statute containing insurance law: producer licensing, policy provisions, unfair practices, claims handling, and ODI authority. Chapter 3905 specifically governs insurance producers.

Question 3

ORC 3905.051 (Fingerprint Requirement)

Accepted Answer

Ohio statute requiring resident producer applicants to submit fingerprints for a BCI and FBI criminal background check. Prints are taken through a WebCheck provider or PSI; results go directly to ODI.

Question 4

Ohio Series 11-35 Exam

Accepted Answer

Combined Life, Accident & Health producer exam: 150 questions, 2.5 hours, 70% passing score, $49 fee, administered by PSI. Candidates must present valid prelicense certificates for BOTH Life and A&H lines on test day.

Question 5

Ohio Prelicense Education

Accepted Answer

20 hours of approved education per major line — so 40 hours total for combined Life + Accident & Health. Certificates are valid 180 calendar days from issuance and must be presented at the testing center.

Question 6

Ohio Continuing Education (CE)

Accepted Answer

Resident major-line producers complete 24 hours of CE every 2-year license cycle, including 3 hours of ethics. CE must be finished before the renewal deadline (last day of birth month).

Question 7

Ohio License Renewal Cycle

Accepted Answer

Ohio resident producer licenses renew every 2 years by the last day of the licensee's birth month. A one-month late period is available with a $50 late fee; expiration of more than 12 months requires retaking the exam.

Question 8

Ohio Address/Status Change Reporting

Accepted Answer

Producers must notify ODI within 30 days of changes to legal name, residence or business address, email, administrative actions by another state, or criminal charges/convictions. Failure to report can trigger fines or other discipline.

Question 9

Ohio Producer Appointment

Accepted Answer

After licensure a producer must be appointed by an insurer to sell that company's products in Ohio. Appointments are filed with ODI, the appointing insurer is responsible for the producer's conduct, and a producer may hold multiple appointments.

Question 10

Ohio Free-Look — Standard

Accepted Answer

10 days on new individual life insurance and annuity contracts, measured from policy delivery. Owner can return the policy for a full refund of premiums paid; no questions and no penalty.

Question 11

Ohio Free-Look — Replacement

Accepted Answer

Extended to 30 days when a new life insurance or annuity contract replaces an existing one. The longer window gives consumers time to compare the new and old coverage before forfeiting the original policy.

Question 12

Ohio Replacement Notification

Accepted Answer

The replacing insurer must notify the existing insurer within 5 business days of receiving a replacement application. The existing insurer then has roughly 20 days to contact the owner and try to conserve the policy.

Question 13

Twisting

Accepted Answer

Inducing a policy owner to replace existing coverage through misrepresentation or incomplete comparison. Prohibited in Ohio; penalties include license suspension or revocation and per-violation fines.

Question 14

Churning

Accepted Answer

Replacing a customer's policies repeatedly — often using cash values of the existing policy — to generate new commissions rather than to benefit the client. Prohibited as an unfair trade practice.

Question 15

OLHIGA (Ohio Life & Health Guaranty Association)

Accepted Answer

Nonprofit association of life and health insurers that protects Ohio policyholders if a member insurer becomes insolvent. Funded by assessments on member insurers; producers may NOT advertise OLHIGA as a sales inducement.

Question 16

OLHIGA Coverage Limits

Accepted Answer

Typical Ohio limits per insured life: $300,000 life insurance death benefit, $100,000 life cash surrender value, $250,000 annuity present value, $500,000 major medical, and $300,000 disability or long-term care.

Question 17

Insurable Interest (Life)

Accepted Answer

A reasonable expectation that the policy owner will suffer financial or emotional loss at the insured's death. In life insurance it must exist at policy issue (not at death) and is presumed between spouses and close family.

Question 18

Adhesion Contract

Accepted Answer

A contract drafted by one party (the insurer) and accepted by the other (the applicant) without negotiation. Ambiguities are interpreted against the insurer — the drafting party.

Question 19

Aleatory Contract

Accepted Answer

A contract in which the values exchanged are unequal: a small premium may yield a large benefit, or no benefit at all. Life and health insurance contracts are aleatory.

Question 20

Warranty vs. Representation

Accepted Answer

A warranty is guaranteed true and any breach voids the policy; a representation is believed true to the best of the applicant's knowledge. Statements in life and health applications are treated as representations, not warranties.

Question 21

Term Life Insurance

Accepted Answer

Pure protection for a stated period with no cash value. Premiums are lowest at issue; the policy pays only if the insured dies during the term. Common forms: level term, annually renewable term, and decreasing term.

Question 22

Whole Life Insurance

Accepted Answer

Permanent coverage for the insured's entire life with level premiums, a guaranteed death benefit, and a guaranteed cash value that grows tax-deferred. Endows at age 100 or 121 depending on mortality table.

Question 23

Universal Life Insurance

Accepted Answer

Permanent insurance with flexible premiums and an adjustable death benefit. Premiums fund a cash account credited with current interest; cost-of-insurance and expense charges are deducted monthly. Lapses if the account cannot cover charges.

Question 24

Variable Life Insurance

Accepted Answer

Permanent insurance with fixed premium and a death benefit that varies with the performance of separate-account subaccounts chosen by the owner. Considered a security; producer must hold both a life license and a FINRA registration (Series 6 or 7).

Question 25

Variable Universal Life (VUL)

Accepted Answer

Combines universal life's flexible premium and adjustable death benefit with variable life's separate-account investment options. Requires both an insurance license and a securities registration to sell.

Question 26

Modified Endowment Contract (MEC)

Accepted Answer

A life policy that fails the IRS 7-pay test by being funded too quickly. Loans and withdrawals from a MEC are taxed LIFO (gain first) and may incur a 10% penalty before age 59½; the death benefit remains income-tax-free.

Question 27

IRC §1035 Exchange

Accepted Answer

A tax-free exchange of like-kind insurance contracts. Allowed exchanges include life-to-life, life-to-annuity, annuity-to-annuity, and life or annuity to qualified long-term care. An annuity may NOT be exchanged for a life policy tax-free.

Question 28

Life Insurance Death Benefit Taxation

Accepted Answer

Death benefits paid in a lump sum to a named beneficiary are generally received income-tax-free. If paid in installments, the interest portion is taxable as ordinary income.

Question 29

Incontestability Clause

Accepted Answer

After a policy has been in force during the insured's lifetime for two years (the Ohio standard), the insurer may no longer contest the policy except for nonpayment of premium. Fraud may still be challenged depending on policy language.

Question 30

Suicide Clause

Accepted Answer

Most life policies exclude death by suicide during the first two years (the Ohio standard). After the period expires, suicide is covered like any other cause of death. During the exclusion the insurer refunds premiums paid.

Question 31

Grace Period

Accepted Answer

The number of days after the due date during which a premium may be paid without lapse. Ohio life insurance requires at least 31 days for annual/semi-annual premiums and 10 days for monthly premiums; coverage continues during the grace period.

Question 32

Nonforfeiture Options

Accepted Answer

Three guaranteed choices for a permanent policy owner who stops paying premiums: (1) take the cash surrender value, (2) reduced paid-up insurance, or (3) extended term insurance. Extended term is the automatic default if no choice is made.

Question 33

Waiver of Premium Rider

Accepted Answer

Rider that waives policy premiums if the insured becomes totally disabled, typically after a 6-month elimination period. The policy continues in force as if premiums were being paid; coverage usually ends at age 60 or 65.

Question 34

Accelerated Death Benefit Rider

Accepted Answer

Allows a terminally ill insured to receive a portion of the death benefit before death, usually income-tax-free under IRC §101(g). The remaining death benefit at death is reduced by the accelerated payment plus any accrued interest.

Question 35

Return of Premium (ROP) Rider

Accepted Answer

Term-life rider that refunds all premiums paid if the insured survives the term. Premiums are significantly higher than standard term; the refund is generally received income-tax-free as a return of basis.

Question 36

Fixed Annuity

Accepted Answer

Annuity that credits a guaranteed minimum interest rate to the cash value and provides a guaranteed payout at annuitization. Principal is protected by the insurer's general account; not a security.

Question 37

Variable Annuity

Accepted Answer

Annuity whose cash value and (often) payout fluctuate with separate-account investment performance. Considered a security; producer must hold a Series 6 or 7 registration along with a life insurance license to sell one in Ohio.

Question 38

Annuity Suitability (Ohio)

Accepted Answer

Ohio has adopted the NAIC Suitability in Annuity Transactions and best-interest standard. Producers must collect customer information (financials, objectives, liquidity), have a reasonable basis to believe the sale fits the consumer's needs, and document the analysis.

Question 39

Qualified vs. Nonqualified Annuity

Accepted Answer

Qualified annuities are funded with pre-tax dollars inside a retirement plan (IRA, 403(b)) — entire distribution is taxable. Nonqualified annuities are funded with after-tax dollars — only the earnings portion of each payout is taxable (exclusion ratio).

Question 40

Accident & Health Free-Look (Ohio)

Accepted Answer

Ohio individual accident and health policies provide a 10-day free-look from delivery. Medicare supplement and long-term care policies require a 30-day free-look under separate model regulations adopted by Ohio.

Question 41

Pre-Existing Condition (ACA)

Accepted Answer

A health condition for which the insured received treatment or advice before coverage began. Under the ACA, ACA-compliant individual and group major medical plans cannot impose pre-existing condition exclusions; HIPAA still limits exclusions in non-ACA contexts.

Question 42

Disability Income — Elimination Period

Accepted Answer

The waiting period after a covered disability before benefits begin, similar to a deductible measured in days (commonly 30, 60, 90, or 180). Longer elimination periods lower the premium.

Question 43

Own-Occupation vs. Any-Occupation Disability

Accepted Answer

Own-occupation pays if the insured cannot perform the duties of their specific job; any-occupation pays only if the insured cannot work in any job they are reasonably suited for. Own-occ pays more often and costs more.

Question 44

Medicare Part A

Accepted Answer

Hospital insurance covering inpatient hospital stays, skilled nursing facility care, hospice, and some home health. Funded by payroll taxes; most beneficiaries pay no Part A premium because they or a spouse earned at least 40 quarters of Medicare-covered work.

Question 45

Medicare Part B

Accepted Answer

Medical insurance covering physician services, outpatient care, durable medical equipment, and preventive services. Requires a monthly premium based on income (IRMAA) and an annual deductible.

Question 46

Medicare Part C (Medicare Advantage)

Accepted Answer

Private plan alternative to Original Medicare that bundles Parts A and B (usually D) and is offered by Medicare-contracted insurers. Often uses HMO or PPO networks and may add benefits like vision, dental, or hearing.

Question 47

Medigap Open Enrollment

Accepted Answer

A 6-month one-time window beginning the first month a beneficiary is age 65 or older AND enrolled in Medicare Part B. During this window, Medigap plans are guaranteed-issue with no medical underwriting.

Question 48

Group Insurance Underwriting

Accepted Answer

Underwriting evaluates the GROUP as a whole rather than each individual. Key factors: group purpose (must exist for reasons other than insurance), participation percentage (typically 75% contributory / 100% noncontributory), and size/turnover.

Question 49

COBRA Continuation

Accepted Answer

Federal law allowing qualified beneficiaries to continue employer group health coverage after a qualifying event. Continuation is generally 18 months (29 for disability, 36 for divorce or death of employee). Beneficiary pays up to 102% of the group premium.

Question 50

HIPAA Portability & Privacy

Accepted Answer

The Health Insurance Portability and Accountability Act limits pre-existing condition exclusions in group plans, guarantees portability via creditable coverage, and protects PHI through the Privacy and Security Rules. Producers handling PHI must follow HIPAA safeguards.

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