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Insurance Licensing Oklahoma Life, Accident, and Health or Sickness Producer Exam Sample Questions (Q139-Q144):
NEW QUESTION # 139
What is the focus of major medical insurance?
- A. Providing care to the needy.
- B. Reducing costs by using in-network facilities.
- C. Providing coverage for hospitalization expenses.
- D. Providing preventative care.
Answer: C
Explanation:
Major medical insuranceis designed to cover significant healthcare expenses, particularly those related to hospitalization, surgeries, and other high-cost medical services. It focuses on providing comprehensive coverage for catastrophic or major medical events, as opposed to routine or preventive care, which may be covered to a lesser extent or through separate plans.
* Option A: Incorrect. Preventive care is often included but is not the primary focus of major medical insurance.
* Option B: Incorrect. Using in-network facilities reduces costs but is a feature of managed care plans, not the core focus of major medical insurance.
* Option C: Correct. The focus of major medical insurance is covering hospitalization and other major expenses.
* Option D: Incorrect. Providing care to the needy is associated with programs like Medicaid, not private major medical insurance.
This question falls under the Prometric content outline section on "Health Providers and Products," which covers the characteristics of major medical insurance.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Accident and Health Insurance).
Oklahoma Insurance Department, Title 36 O.S. § 6060.3 (health insurance policy provisions).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 140
As a form of level premium permanent insurance, ordinary life insurance accumulates a reserve that eventually
- A. results in a dividend payment to the policyowner.
- B. ceases to earn interest or grow in a positive earnings direction.
- C. requires mandatory cash value distributions.
- D. equals the face amount of the policy.
Answer: D
Explanation:
Ordinary life insurance, synonymous with whole life insurance, is a level premium permanent insurance product that accumulates a cash value (or reserve) over time. By design, the cash value grows and, at the policy's maturity (typically age 100 or 121, depending on the policy), equals the face amount of the policy, at which point the policy endows (pays out the face amount to the policyowner if the insured is still alive).
* Option A: Correct. The cash value (reserve) in a whole life policy eventually equals the face amount at maturity.
* Option B: Incorrect. Dividends are paid only in participating policies, not all whole life policies, and are not guaranteed.
* Option C: Incorrect. The cash value continues to earn interest or grow, typically at a guaranteed rate, until maturity.
* Option D: Incorrect. There are no mandatory cash value distributions; policyowners can choose to access the cash value.
This question aligns with the Prometric content outline under "Life Products," which covers the cash value accumulation in whole life insurance.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Life Insurance).
Oklahoma Insurance Department, Title 36 O.S. § 4029 (nonforfeiture benefits and cash value).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 141
Ordinary life insurance should BEST be viewed by the consumer as
- A. a type of policy that provides permanent protection and some flexibility for the lowest total premium outlay.
- B. temporary protection during the policyowner's income-earning years with cash values payable during non-earning periods.
- C. temporary protection for the life expectancy of the policyowner with accumulating cash values throughout the life of the policy.
- D. an endowment type of policy that provides limited payment type of life insurance based on the level of income earned.
Answer: A
Explanation:
Ordinary life insurance, often synonymous with whole life insurance, is a type of permanent life insurance that provides coverage for the insured's entire life, as long as premiums are paid. It typically includes a level premium, a guaranteed death benefit, and a cash value component that grows over time. It is designed to offer permanent protection with some flexibility, such as the ability to borrow against the cash value or adjust premiums in certain policies (e.g., universal life).
* Option A: Incorrect. This describes term life insurance, which provides temporary protection during income-earning years. Ordinary life insurance is permanent, and cash values are not specifically
"payable" during non-earning periods but can be accessed.
* Option B: Incorrect. Ordinary life is not an endowment policy (which matures at a specific age) or tied directly to income levels. It is a whole life policy with level premiums.
* Option C: Correct. Ordinary life insurance provides permanent protection and some flexibility (e.g., cash value loans, dividend options in participating policies) with premiums that are generally lower than other permanent products like limited-pay whole life.
* Option D: Incorrect. Ordinary life is not temporary; it provides lifelong coverage. While it accumulates cash value, the protection is permanent, not limited to the policyowner's life expectancy.
This question is part of the Prometric content outline under "Life Products," focusing on the characteristics of ordinary (whole) life insurance.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Life Insurance).
Oklahoma Insurance Department, Title 36 O.S. § 4002 (definitions of life insurance products).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 142
What type of policy pays an amount per day for hospitalization directly to the insured regardless of the insured's other health insurance?
- A. Blanket
- B. Medigap
- C. Limited-amount per diem
- D. Hospital indemnity
Answer: D
Explanation:
Ahospital indemnity policypays a fixed daily, weekly, or monthly benefit directly to the insured for hospitalization, regardless of other insurance coverage or actual expenses incurred. This is a supplemental policy common in Oklahoma (Title 36 O.S. § 4405).
* Option A: Incorrect. "Limited-amount per diem" is not a standard insurance term.
* Option B: Incorrect. Blanket policies cover groups for specific risks, not individual hospitalization benefits.
* Option C: Incorrect. Medigap covers Medicare gaps, not fixed hospitalization payments.
* Option D: Correct. Hospital indemnity policies pay a fixed amount per day for hospitalization.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Accident and Health Insurance).
Oklahoma Insurance Department, Title 36 O.S. § 4405 (health insurance provisions).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 143
An insured receives a notice from the insurer that the policy has been cancelled in the middle of the term.
Which of the following policies did the insured MOST likely have?
- A. Term.
- B. Optionally renewable.
- C. Conditionally renewable.
- D. Cancelable.
Answer: D
Explanation:
Acancelablehealth insurance policy allows the insurer to cancel the policy at any time during the term with proper notice, typically for reasons like non-payment or fraud, as permitted under Oklahoma's regulations (Title 36 O.S. § 4405). Other policy types, like optionally renewable (insurer can refuse renewal at term end), conditionally renewable (renewal subject to conditions), or term (fixed duration), do not typically allow mid- term cancellation.
* Option A: Incorrect. Optionally renewable policies can be non-renewed at term end, not cancelled mid- term.
* Option B: Incorrect. Term policies (life or health) run for a fixed period and are not typically cancelled mid-term.
* Option C: Incorrect. Conditionally renewable policies restrict renewal, not mid-term cancellation.
* Option D: Correct. A cancelable policy allows mid-term cancellation by the insurer.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Accident and Health Insurance).
Oklahoma Insurance Department, Title 36 O.S. § 4405 (health insurance provisions).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 144
......
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