Life and Health Insurance Exam (Missouri) Questions & Answers

Life and Health Insurance Exam (Missouri) Questions & Answers Insurance policies are considered aleatory contracts because: 1)they are take it or leave it contracts 2)both parties consent to the contract 3)performance is conditioned upon a future occurence 4)the contract is voidable upon proof of fraud - ANS-Performance is conditioned upon a future occurence, because there is an element of chance and potential for unequal exchange of value K failed to pay a renewal premium within the time granted by the insurer. K then sends in a payment which the insurer subsequently accepts. Which policy provision specifies that coverage may be restored in this situation? 1)free-look 2)reinstatement 3)grace period 4)consideration - ANS-Reinstatement What type of contract liquidates an estate through recurrent payments? 1)Universal life insurance 2)Whole life insurance 3)Annuity 4)401k - ANS-Annuity An insured pays premiums on an annual basis for an individual health insurance policy. What is the MINIMUM number of days for the Grace Period provision? 1)7 2)10 3)20 4)31 - ANS-The grace period is a minimum of 31 days for policies hat are paid for on an annual basis. Making an unfair comparison of two policies is defined as - ANS-misrepresentation Nursing home benefits must be provided for at least 12 consecutive months in which of the following types of policies? 1)blanket custodial 2)long term care 3)critical illness 4)Medicare supplements - ANS-long term care T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What kind of $10,000 policy should T purchase? 1)Interest Sensitive Whole Life 2)Ten Year Endowment 3)Variable Universal Life 4)Ten Year Renewable Term - ANS-Ten Year Endowment An insured recently took out a cancer insurance policy. The time limit on certain defenses provision in this policy allows the insurer to 1)to cancel a policy for any reason for up to 5 years 2)to reduce the benefit for a loss occurring after two years due to misstatements 3)to deny the amount of a claim for statements on the application 4)to deny the amount of a claim for misstatements occurring prior to the expiration of the first 2 policy years - ANS-To deny the amount of a claim for missstatements occurring prior to the expiration of the first 2 policy years Elimination Period - ANS-The time between the onset of a disability, and when you are eligible for benefits. Medicare Part B does not cover...