Free Ohio Life & Health practice questions

Answer: C. Twelve months

Ohio Rev. Code Sec. 3915.051(E) requires the maximum rate on each policy to be determined at regular intervals at least once every twelve months, so twelve months is the longest permitted gap. Eighteen and twenty-four months would exceed that limit. Six months is an allowed interval, since the same division forbids determinations only more often than once in any three-month period, but it is not the longest one permitted.

Answer: C. At the time the cash loan is made to the policyholder

Ohio Rev. Code Sec. 3915.051(F)(1) requires the life insurer to tell the policyholder the initial loan interest rate at the time a cash loan is made. The as-soon-as-reasonably-practical standard applies to premium loans under division (F)(2), not to a cash loan. No thirty-day window appears in division (F) for this notice. Advance notice of a rate increase is a separate duty under division (F)(3) and does not replace notice of the initial rate.

Answer: D. Its name so resembles that of a company already doing business in Ohio that the public could be confused

Under Ohio Rev. Code Sec. 3907.08, once the superintendent is satisfied that the company is properly organized and its stock has been subscribed, paid in and invested as the law requires, the superintendent furnishes the license unless the company's name is so similar to that of another company doing business in Ohio that it would confuse the public. The license is itself the company's authority to commence business and issue policies, so having issued no policies yet is expected rather than a ground for refusal. The section gives no weight to a competitor's objection, and depositing more than the required securities meets the deposit condition rather than defeating it.

Answer: A. 80 percent

Ohio Rev. Code Sec. 3907.05(B) allows a domestic life insurer's paid-in capital to be placed in bonds or notes secured by mortgages on unencumbered Ohio real estate only where the loan is no more than 80 percent of the property's actual market value. Sixty and 70 percent are tighter limits than the statute imposes, and 90 percent would permit a larger loan than the 80 percent ceiling allows.

Answer: D. 40 days after the filing

When the superintendent sets a public hearing on an individual sickness and accident rate filing, the hearing must begin within forty days after the filing. Twenty days is the written notice the insurer must receive before that hearing, not the outer limit for starting it. Thirty days is the window in which the superintendent chooses whether to disapprove, set a hearing or take no action. Fifteen days is the period for holding a hearing the insurer requests after a disapproval, which is a different route. This hearing route does not apply to insurers organized or doing business under Chapters 3907 or 3909, Ohio's life insurance company chapters.

Answer: C. $2,500,000

Ohio Rev. Code Sec. 3907.05(A)(1) conditions a new domestic life insurer's certificate of authority on the company obtaining at least $2,500,000 of combined capital and surplus before it starts doing insurance business. The $250,000 figure is the escrow the incorporators must place before the company may be incorporated ($100,000 paid-in capital plus $150,000 contributed surplus), not the pre-business aggregate. The $1,000,000 figure is the floor for each of the two parts of the aggregate, paid-in capital and contributed surplus, so it falls short of the total. The section sets no $5,000,000 requirement.

Answer: A. The premium the insurer charges, as computed when the borrower's charge is set

Ohio Rev. Code Sec. 3918.08(D) caps what a debtor may be charged for credit life or credit accident and health insurance at the premium the insurer charges, computed at the time the debtor's charge is determined. An add-on for the lender's own costs exceeds that cap, and the borrower's written agreement does not raise it. A schedule of the lender's own does not set the limit either; the cap is the insurer's premium.

Answer: A. Five years

The superintendent, or a person the superintendent appoints, must examine each domestic insurer at least every three years, looking at its condition, whether it meets its contract obligations, and its compliance with the law. The superintendent may put that examination off for a longer period, but the deferral may not exceed five years. Four, seven and ten years are not limits the statute uses.

Answer: B. Within thirty days after June 15, the termination's effective date

An insurer that ends its appointment, contract or other business relationship with an insurance agent must notify the superintendent within thirty days after the effective date of the termination, so here the deadline runs from June 15. Fifteen days is the separate period for mailing the agent a copy of that notification, measured from when the superintendent was notified. Thirty days after the agent receives the copy is the window for the agent to file written comments, not the insurer's deadline. Ten business days is not a period this section uses.

Answer: A. The same class and an equal expectation of life

Ohio Rev. Code Sec. 3911.20 prohibits a life insurer doing business in Ohio, on a group or any other plan, from discriminating in favor of individuals among insured persons who are of the same class and have an equal expectation of life, whether in premiums, rates, dividends or other contract terms. Age and residence alone, a shared employer or group policy, and a shared agent or issue date are not the comparison the statute uses; its test is class combined with expectation of life.