Authentic Insurance Licensing Certification Exam OH-Life-Agent-Series-11-44 Questions Answers

Insurable interest is a fundamental principle in life insurance, requiring that the policyholder has a financial or emotional interest in the continued life of the insured. This principle prevents individuals from taking out policies on strangers for speculative purposes. According to Ohio Revised Code Section 3911.09, a person may procure life insurance on their own life or on the life of another person in whom they have an insurable interest, such as a spouse, child, or business partner. This ensures that the policyholder would suffer a genuine loss upon the death of the insured.

Alimited pay life insurance policyallows the policyholder to pay premiums for ashorter, limited period(e.g., 10, 20 years), after which the policy ispaid-up for lifeand continues to provide coverage.

"A limited payment whole life policy has premiums payable for a specified number of years or to a specified age. After that period, no more premiums are required."

A payor benefit rider is typically added to juvenile life policies and waives premium payments if the person responsible for paying the premiums (usually a parent or guardian) becomes totally disabled or dies before the child reaches a specified age. This ensures that the child’s coverage remains in force even if the premium payer is unable to continue payments.