Chapter 8: Ohio Laws To Insurance

Question 1

Office of Insurance Regulation

Answer 1

To ensure that insurance companies license to do business are financially viable, operate within the laws and regulations of the insurance industry

Question 2

Unauthorized Entities

Answer 2

Concerns:

• Potential for criminal activity within insurance business
• Adverse economic impact
• Unpaid claims due to dishonesty

Question 3

Agent Responsibilities

Answer 3

Notice of Replacement
Free look
Buyers guide

Question 4

Notice of Replacement

Answer 4

If the agent knows that the purchase of this policy will replace an existing policy there are certain rules

Question 5

Free look

Answer 5

States that for a certain period an applicant may test the policy out and receive a full refund if dissatisfied

Question 6

Buyers guide

Answer 6

Provides basic information on types of insurance policies and policy summaries

Question 7

Agent Ethics

Answer 7

Agent needs:

• Insurance companies name and agent license number on first page of contract
• all information must be legible and there must be a copy of application provided to applicant

Question 8

Group life certificate

Answer 8

Must contain:

• group policy number
• description of insurance protection
• names of the insured, beneficiaries and dependents
• rights and conditions

Question 9

Cobra/conversion

Answer 9

Federal law that requires employers with 20 or more employees to include a continuation of benefits provision for form employees and their dependents

Question 10

Provision vs. Rider

Answer 10

Provision adds benefits to or amends the terms of a basic policy

Riders provide insured parties with options as additional coverage or may limit coverage

Question 11

Defamation

Answer 11

Untrue statements about another person/insurance company

Question 12

Rating system for Fair Credit Reporting Act

Answer 12

Bronze 60%
Silver 70%
Gold 80%
Platinum 90%