Missouri Life and Health Insurance Final Exam

Missouri Life and Health Insurance Final Exam Interest and Regulations - Whose interest is being protected by the enactment of "The Replacement of Life Insurance and Annuities" regulation? ️ Policyowner. Policy Delivery and Returns - Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation? ️ Policy was returned with the "free look" period; premium will be fully refunded. Investment Control in Policies - Which of the following policies is characterized by a flexible premium and death benefit and allows the policyowner control of the investment aspect of the plan? ️ Variable universal life. Third-Party Ownership - Which statement regarding third-party ownership of a life insurance policy is true? ️ It is used extensively in estate planning as well as business circumstances. COBRA and Health Coverage - P is an employee who quits her job and wants to convert her group health coverage to an individual policy. After the expiration of COBRA laws, which of the following statements is TRUE? ️ She DOES need to provide evidence of insurability. Tax Treatment of Life Insurance Proceeds - Which of the following statements is CORRECT regarding tax treatment of a lump sum payment paid to a life insurance policy's primary beneficiary? ️ All proceeds are income tax-free in the year they are received. Social Security Disability Benefits - Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q be disabled before being able to apply for Social Security disability benefits? ️ 5 months. Handling Premium Checks - Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take? ️ Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company. Group Health Plans - Which of the following statements is correct regarding an employer/employee group health plan? ️ Employer receives the master policy and employees receive certificates. - Which of these is a TRUE statement regarding how Missouri law recognizes an association eligible for group coverage? ️ The association must NOT have been organized for the purpose of obtaining insurance. Grace Period for A&H Policies - In Missouri, an A&H policy that is paid on a monthly basis requires a grace period of at LEAST: ️ Ten days. Medicaid Program - The health insurance program which is administered by each state and funded by both federal and state governments is called: ️ Medicaid. Taxation of Dividends - Which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE? ️ Taxed as ordinary income. Misrepresentation - A producer is circulating incorrect information about the benefits of a policy. This producer may be found guilty of: ️ Misrepresentation. Time Limit of Certain Defenses - Under an Individual Health Insurance policy, the Time Limit of Certain Defenses provision states that nonfraudulent misstatements first become incontestable two years: ️ From the date the policy was issued. Conversion Feature in Group Policies - What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability? ️ Conversion. Long Term Care Riders - An insured's inability to perform two or more activities of daily living may trigger which type of policy rider? ️ Long term care. Whole Life Policies - What statement about whole life policy is true? ️ Cash value may be borrowed against. Inspection Reports - Information obtained from a phone conversation to the proposed insured can be found in which of these reports? ️ Inspection report. Exclusions in Insurance Contracts - The section of an insurance contract which limits coverage is called: ️ Exclusions. Reinstatement of Coverage - 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? ️ Reinstatement. Advantage of Reinstating Policies - The advantage of reinstating an original life policy is: ️ The premiums are based on a younger age. Producer's License Hearing - Prior to a producer's license being revoked, a hearing must be held. Prior to this hearing, the Director of Insurance is REQUIRED to give: ️ Written notice to the producer. Qualified Plans and Early Withdrawals - At the age of 45, an individual withdraws $50,000 from his Qualified Profit-Sharing Plan and then deposits this amount into a personal savings account. This action would result in: ️ Income tax and a 10% penalty assessed upon funds withdrawn from the qualified plan. Misrepresentation in Insurance Sales - Convincing a prospective insured to buy an insurance policy based on exaggerations is called: ️ Misrepresentation. Entire Contract Provision - Which provision prohibits an insurance company from incorporating external documents into an insurance policy? ️ Entire contract. Hospital Indemnity Policy Description - Which of the following BEST describes a Hospital Indemnity policy? ️ Coverage that pays a stated amount per day of a covered hospitalization.