PSI Ohio Insurance Practice Exam

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Study for the PSI Ohio Insurance Exam. Utilize flashcards and multiple choice questions, with hints and explanations for each question. Prepare confidently for your exam!

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What does a waiver of premium provision in a life insurance policy allow?

Premiums to be discounted
Premiums to be refunded
Premiums to be waived during disability
Premiums to be paid annually instead of monthly

The correct answer is: Premiums to be waived during disability

The waiver of premium provision in a life insurance policy is designed to protect policyholders by allowing them to stop paying premiums if they become disabled and unable to work. This feature is particularly beneficial for individuals who rely on their income to pay for their insurance coverage. Essentially, if the insured becomes disabled for a certain period, which is specified in the policy, the insurance company will waive the requirement to pay premiums, ensuring that the life insurance coverage remains in force without financial burden on the policyholder during their time of disability. This provision is vital for maintaining financial security during challenging times, as it ensures that a policyholder's life insurance protection continues even when their ability to generate income has been compromised. Other options like discounting or refunding premiums or changing payment schedules do not address the intent of this provision to provide specific assistance during a period of disability.