Ohio Department of Insurance Updated OH-Life-Agent-Series-11-44 Exam Questions and Answers by roy

Ahazardis any situation or condition that increases theprobability or severity of a lossoccurring. Examples include poor health, dangerous hobbies, or a faulty heating system.

"Hazards are conditions or situations that increase the likelihood of a loss occurring. They can be physical, moral, or morale-related."

In insurance terminology, exposure refers to the state of being subject to the possibility of loss. It represents the potential risk that an insurer assumes when providing coverage to an individual or entity. Exposure is a fundamental concept in underwriting and risk assessment, as it helps insurers determine the likelihood and potential severity of a loss occurring.

Statements made by the proposed insured on a life insurance application are considered representations, not warranties. Representations are statements believed to be true to the best of the applicant’s knowledge. They are not guaranteed to be absolutely true and do not void the contract unless they are material misrepresentations made with intent to deceive.

If the primary beneficiary of a life insurance policy predeceases the insured and no contingent beneficiary is named, the death benefit becomes payable to the insured's estate. This means the proceeds will be distributed according to the terms of the insured's will or, if there is no will, in accordance with Ohio's intestate succession laws. It's important to regularly update beneficiary designations to ensure that the death benefit is distributed according to the policyowner's wishes.