Amodified whole life policyfeatures premiums that arelower than typical whole life premiums during the initial years(e.g., first 3-5 years) to make the policy more affordable early on, thenhigher thereafterto compensate for the initial discount while maintaining lifelong coverage. This is a variation of whole life insurance, as defined in Oklahoma's regulations (Title 36 O.S. § 4002).
* Option A: Incorrect. Premiums do not decrease in the last few years; they increase after the initial period.
* Option B: Incorrect. Premiums are not higher in the last few years compared to typical whole life; they adjust after the initial period.
* Option C: Correct. Premiums are lower initially and higher thereafter.
* Option D: Incorrect. Premiums are not higher initially and lower later; the opposite is true.
:
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 (life insurance products).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.

Whole life insurance policies accumulate cash value over time, which policyowners can borrow against.
Typically, cash value begins to accrue immediately, but sufficient value for a loan is often available after1 year, depending on the policy's terms and premium payments. Oklahoma law (Title 36 O.S. § 4029) requires nonforfeiture benefits, including access to cash value, but does not specify a minimum time; insurer practices generally allow loans after 1 year when cash value is meaningful.
* Option A: Incorrect. Policyowners can borrow against cash value once it accumulates.
* Option B: Correct. Loans are typically available after 1 year, as cash value is sufficient.
* Option C: Incorrect. 2 years is not a standard requirement; loans are often available sooner.
* Option D: Incorrect. 3 years is excessive; most policies allow loans earlier.
This question falls under the Prometric content outline section on "Provisions, Options, Exclusions, Riders, Clauses, and Rights," which covers cash value loans.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Life Insurance Provisions).
Oklahoma Insurance Department, Title 36 O.S. § 4029 (nonforfeiture benefits).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.

Awhole life insurance policyprovidespermanent coveragefor the insured's entire life, as long as premiums are paid, along with a guaranteed death benefit and cash value accumulation. This is a key advantage over term life, which is temporary. Whole life premiums are typically higher than term life, and underwriting guidelines or premium flexibility depend on the insurer, not the product itself.
* Option A: Incorrect. Underwriting guidelines vary by insurer, not by policy type.
* Option B: Incorrect. Whole life has higher initial premiums compared to term life.
* Option C: Incorrect. Whole life typically has fixed premiums, unlike universal life, which offers variable premiums.
* Option D: Correct. Permanent coverage is a primary advantage of whole life insurance.
This question falls under the Prometric content outline section on "Life Products," which covers the benefits of 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 (life insurance products).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.

Medical expense plans often include exclusions for high-risk activities or situations not typically covered under standard health insurance. A common exclusion is injuries or losses resulting fromair travel in a private plane, as this is considered a hazardous activity. Other options, like auto accidents or recreational sports, are generally covered unless specifically excluded, and home repairs are not standard exclusions.
* Option A: Correct. Air travel in a private plane is a common exclusion due to its high-risk nature.
* Option B: Incorrect. Auto accident injuries are typically covered, often coordinated with auto insurance.
* Option C: Incorrect. Recreational sports injuries are usually covered unless the policy specifies otherwise.
* Option D: Incorrect. Injuries from home repairs are not commonly excluded in medical expense plans.
This question falls under the Prometric content outline section on "Provisions, Options, Exclusions, Riders, Clauses, and Rights," which covers health insurance exclusions.
:
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 policy provisions).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.

In insurance, a contract is effective when there is mutual consideration, offer, acceptance, and a meeting of the minds. For a health insurance contract, this occurs when the insured pays the initial premium (consideration from the insured) and the insurer issues the policy as applied for (acceptance by the insurer), as outlined in Oklahoma's Insurance Code (Title 36 O.S. § 4401). The policy becomes binding at this point, assuming all other conditions (e.g., underwriting approval) are met.
* Option A: Incorrect. Providing services occurs during claims, not when the contract is effective.
* Option B: Incorrect. Paying the premium alone is not sufficient without policy issuance.
* Option C: Correct. The contract is effective when the premium is paid and the policy is issued as applied for.
* Option D: Incorrect. Signing by both parties is not typically required; issuance and premium payment suffice.
This question aligns with the Prometric content outline under "Provisions, Options, Exclusions, Riders, Clauses, and Rights," which covers contract formation in health 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. § 4401 (health insurance contracts).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.