OH-Life-Agent-Series-11-44 Exam Dumps : OHIO Life Insurance Agent Series 11-44

The Ohio Life and Health Insurance Guaranty Association (OLHIGA) provides protection to policyholders in the event that a member insurer becomes insolvent. According to Ohio Revised Code Section 3956.08, the association may guarantee, assume, reissue, or reinsure the policies of an impaired or insolvent insurer to ensure the payment of contractual obligations. This protection is specifically activated when an insurer is declared insolvent and is unable to fulfill its obligations to policyholders.

Policy loans taken against the cash value of a life insurance policy are generally not considered taxable income, provided the policy remains in force. However, if the policy lapses or is surrendered with an outstanding loan, the loan amount exceeding the premiums paid may become taxable.

Whole life insuranceprovides adeath benefit that is generally income tax-freeto the beneficiary under current tax laws, making it a popular estate planning tool.

"Proceeds from a life insurance policy paid to a named beneficiary are usually income tax-free under IRC Section 101(a)."