Pass the Insurance Licensing Life, Accident, and Health Ok-Life-Accident-and-Health-or-Sickness-Producer Questions and answers with ExamsMirror

A life insurance policyowner has several rights, including assigning or transferring the policy (e.g., through absolute or collateral assignment), borrowing against the cash value (in policies with cash value), and selecting or changing the beneficiary, as outlined in Oklahoma’s Insurance Code (Title 36 O.S. § 4001 et seq.). However, anabsolute assignmenttransfers all ownership rights to the assignee, and the original policyowner cannot unilaterally revoke it without the assignee’s consent, as it is a complete transfer of ownership.

Option A: Incorrect (is a right). The policyowner can assign or transfer the policy to another party.

Option B: Incorrect (is a right). The policyowner can borrow against the cash value in policies like whole life or universal life.

Option C: Incorrect (is a right). The policyowner can select and change the beneficiary unless restricted (e.g., irrevocable beneficiary).

Option D: Correct (is not a right). An absolute assignment cannot be revoked by the original policyowner without the assignee’s agreement.

This question aligns with the Prometric content outline under “Provisions, Options, Exclusions, Riders, Clauses, and Rights,” which covers policyowner rights and assignments.

A rider is an amendment to an insurance policy that modifies its coverage. In the context of life insurance, thefamily rider(also known as a family term rider) provides term life insurance coverage for the insured’s spouse and children under the primary insured’s policy. This rider is commonly offered to extend protection to family members without requiring separate policies.

Option A: Incorrect. The payor benefit rider waives premiums if the policyowner (often a parent) becomes disabled or dies, typically used in juvenile policies. It does not provide coverage for family members.

Option B: Correct. The family rider adds term life coverage for the insured’s spouse and children, ensuring they are protected under the same policy.

Option C: Incorrect. The jumping juvenile rider increases the death benefit of a juvenile policy at a specified age (e.g., 21) without additional underwriting. It applies only to the child, not the spouse.

Option D: Incorrect. The guaranteed insurability rider allows the insured to purchase additional coverage at specified intervals without proving insurability, but it does not cover family members.

This question falls under the Prometric content outline section on “Provisions, Options, Exclusions, Riders, Clauses, and Rights,” which includes knowledge of life insurance riders.

Theincontestable clausein life insurance policies, mandated in Oklahoma (Title 36 O.S. § 4004), prevents the insurer from contesting the policy after a specified period (typically 2 years) except for non-payment of premiums. However, errors inageor sex on the application are an exception; insurers can adjust the death benefit or premiums to reflect the correct age, even after the incontestable period, as these errors affect the policy’s pricing. Other factors like occupation, education, or residence do not typically have this exception.

Option A: Incorrect. Errors in occupation are contestable within the 2-year period but not after.

Option B: Correct. Errors in age are not covered by the incontestable clause and can lead to adjustments.

Option C: Incorrect. Education level is not typically material to life insurance underwriting.

Option D: Incorrect. State of residence errors are not an exception to the incontestable clause.

Ascheduled dental policyprovides coverage based on a predetermined schedule of benefits, which lists specific maximum dollar amounts payable for each dental procedure (e.g., $100 for a filling, $500 for a crown). This contrasts with comprehensive dental plans that may pay a percentage of expenses or cover all costs after a deductible.

Option A: Incorrect. Scheduled dental policies do not pay all expenses after a deductible; they limit payments to scheduled amounts.

Option B: Incorrect. Paying a percentage of expenses is typical of comprehensive dental plans, not scheduled policies.

Option C: Correct. Benefits are limited to a specific maximum dollar amount per procedure, as defined in the schedule.

Option D: Incorrect. Benefits are not paid as a lump sum directly to the insured; they are paid per procedure up to the scheduled limit.

This question aligns with the Prometric content outline under “Health Providers and Products,” which covers dental insurance structures.

Afield underwriter, typically an insurance producer, gathers initial information from applicants to assess their insurability and ensure the application is accurate and complete. A main task is ensuring the accuracy and completeness of an individual’s medical information, as this is critical for the insurer’s underwriting decision. Field underwriters do not approve policies or edit reports to guarantee approval; they facilitate the process by providing reliable data.

Option A: Incorrect. Editing reports to ensure approval is unethical and not a field underwriter’s role.

Option B: Incorrect. Approving policies is the role of the insurer’s underwriting department, not the field underwriter.

Option C: Correct. Ensuring accuracy and completeness of medical information is a key task of a field underwriter.

Option D: Incorrect. Obtaining an MIB report is typically done by the insurer, not the field underwriter.

This question aligns with the Prometric content outline under “Underwriting,” which covers the role of field underwriters.

Theentire contract provision, mandated in Oklahoma for life and health insurance (Title 36 O.S. § 4001 for life, § 4405 for health), specifies that theentire contractconsists of the policy, any attached endorsements or riders, and a copy of theapplicationif endorsed upon or attached to the policy at issuance. This ensures no external documents can alter the agreement unless included. Clauses and provisions are part of the policy itself, while credit reports are used in underwriting but not part of the contract.

Option A: Incorrect. Clauses are components of the policy, not a separate item added to the entire contract.

Option B: Incorrect. Credit reports are underwriting tools, not part of the contract.

Option C: Incorrect. Provisions are part of the policy, not a distinct addition.

Option D: Correct. The application, when attached, is part of the entire contract.