ohio state license insurance exam (parts)

Insurance Regulation

The set of state laws and rules that govern insurance companies, agents, licensing, and consumer protection to ensure fair practices and financial stability.

State Insurance Department

Government agency that enforces insurance laws, licenses agents, and investigates complaints.

Producer (Agent) Licensing

Process required by the state for individuals to legally sell insurance products.

Risk

The possibility of loss or injury.

Insurance

A contract that transfers risk from an individual to an insurance company in exchange for a premium.

Hazard

A condition that increases the likelihood of a loss.

Peril

The actual cause of a loss (fire, accident, death, etc.).

Life Insurance

A contract that pays a death benefit to a beneficiary upon the insured’s death.

Beneficiary

The person or entity who receives the death benefit.

Premium

The amount paid to keep an insurance policy active.

Insured

The person whose life is covered by the policy.

Death Benefit

The amount paid to the beneficiary when the insured dies.

Term Life Insurance

Temporary coverage that pays only if death occurs during a specific time period.

Whole Life Insurance

Permanent insurance with fixed premiums, cash value, and lifelong coverage.

Universal Life Insurance

Flexible permanent insurance with adjustable premiums and death benefits.

Cash Value

Savings component in permanent life insurance that grows over time.

Rider

An add-on to a policy that provides extra coverage or benefits.

Waiver of Premium Rider

Pays premiums if the insured becomes disabled.

Accidental Death Benefit Rider

Pays extra benefit if death is caused by an accident.

Grace Period

Time after a missed premium payment when coverage remains active.

Reinstatement

Restoring a lapsed policy after requirements are met.

Annuity

A contract that provides income payments over time, often used for retirement.

Accumulation Phase

Period when money is being paid into the annuity and growing.

Annuitization Phase

Period when the annuity begins paying income.

Fixed Annuity

Annuity with guaranteed interest and fixed payments