Ohio Insurance Laws and Regulations Practice Exam

What is the purpose of the Ohio Life and Health Insurance Guaranty Association?

1. To provide licensing for new insurance agents

2. To regulate insurance premiums

3. To ensure claims filed against insolvent insurance companies will be paid

4. To offer insurance directly to consumers

The correct answer is: To ensure claims filed against insolvent insurance companies will be paid

The purpose of the Ohio Life and Health Insurance Guaranty Association is to ensure that any claims filed against insolvent insurance companies will be paid. This means that if an insurance company goes bankrupt, their policyholders can still receive coverage and compensation through this association. Option A is incorrect because licensing for new insurance agents is handled by the Ohio State Department of Insurance. Option B is incorrect because the authority to regulate insurance premiums is also held by the Ohio State Department of Insurance. Option D is incorrect because this association does not offer insurance directly to consumers, but rather protects policyholders in case of insolvency.