Missouri State Exam Simulator - 145 Questions Weighted Exam, Missouri Life and Health Insurance

Missouri State Exam Simulator - 145 Questions Weighted Exam, Missouri Life and Health Insurance State Exam Simulator Convincing a prospective insured to buy an insurance policy based on exaggerations is called - Misrepresentation A nondisabled individual is first eligible for a Medicare Supplement policy at age - 65 In a qualified retirement plan, the yearly contributions to an employee's account: - are restricted to maximum levels set by the IRS What is the purpose of a Policy S ummary? - It highlights the critical parts of the policy issued Jasmine is a salaried employee of an insurance company. Which of the following duties would require her to be licensed as an insurance producer? - Soliciting insurance policies J's Major Med ical policy has a $2,000 deductible and an 80/20 Coinsurance clause. If J is hospitalized and receives a bill for $10,000, J would pay: - 3,600 What kind of life insurance product covers children under their parent's policy? - Term rider A father who die s within 3 years after purchasing a life insurance policy on his infant daughter can have the policy premiums waived under which provision? - Payor Provision A major medical policy typically: - provides benefits for reasonable and necessary medical expens es, subject to policy limits In Major Medical Expense policies, what is the intent of a Stop Loss provision? - Limits an insured's out -of-pocket medical expenses What type of life insurance gives the greatest amount of coverage for a limited period of time? - Which of these statements concerning an Individual Straight Life annuity is accurate? - Payments are made to an annuitant for life Quarterly premium payments increase the annual cost of insurance because - interest to the insurer is decreased whil e the administrative costs are increased Deductibles are used in health policies to lower: - overuse of medical services Which statement about a whole life policy is correct? - Cash value may be borrowed against When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a(n): - Anti-Money Laundering violation The sections of an insurance contract which limit coverage are called: - exclusions M is insured under a basic Hospital/Surgical Expense policy. A physician performs surgery on M. What determines the claim M is eligible for? - Determined by the terms of the policy The situation in which a group of physicians are salaried employees and cond uct business in an HMO facility is called a(n): - closed panel With Disability Income insurance, an insurance company may limit the monthly benefit amount a prospective policy holder may obtain because of the insured's: - gross income at the time of purch ase The percentage of an individual's Primary Insurance Amount (PIA) determines the benefits paid in which of the following programs? - Social Security Disability Income Which statement regarding the Change of Beneficiary provision is true? - the policyo wner can change the beneficiary An IRA owner can start making withdrawals and NOT be subjected to a tax penalty beginning at what age? - 59 1/2 Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options? - Variable Life Which of the following types of policies BEST identifies one in which the cash value may fluctuate to reflect changing assumptions regarding mortality cost, interest, and expense factors? - Universal Life A policyowner would like to change the beneficiary on a Life insurance policy and make the change permanent. Which type of designation would fulfill this need? - Irrevocable Which of the following services is NOT covered under a hospitalization expense p olicy? - Surgeons Fees A characteristic of Preferred Provider Organizations (PPOs) would be: - Discounted Fees for the Patient Life insurance and annuity replacement can be BEST described as - exchanging an existing policy for a new policy In Missouri, all health policies must address diabetes coverage in which way? - Apply the same deductible and copays to covered diabetic supplies as other medical conditions The reason for a business having a Business Overhead Expense Disability Plan is t o cover: - Fixed Business Expenses Health insurance plans that cover physical therapy visits may NOT impose a copay that - is greater than the copay for primary care office visits A Renewable Term Policy is renewable at the option of the: - Insured Whic h of the following provisions specifies how long a policyowner's health coverage will remain in effect if the policyowner does not pay the premium when it is due? - Grace Period How would a contingent beneficiary receive the policy proceeds in an Accident al Death and Dismemberment (AD&D) policy? - If the Primary Beneficiary dies before the insured Which of the following would a Medicare Supplement policy cover? - Allowable amounts under Medicare Part B Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy? - Reimbursment Which type of life policy contains a monthly mortality charge as well as self -directed investment choices? - Variable Universal Life Who benefits in Investor -Originated Life Insurance (IOLI) when t he insured dies? - Policyowner Q is hospitalized for 3 days and receives a bill for $10,100. Q has a Major Medical policy with a $100 deductible and 80/20 coinsurance. How much will Q be responsible for paying on this claim? - $2,100 (Correct.) In this si tuation, $10,000 x 20% coinsurance + $100 deductible = $2,100. Which of the following statements BEST defines usual, customary, and reasonable (UCR) charges? - The maximum amount considered eligible for reimbursement by an insurance company under a health plan