Life and Health Insurance Exam (Missouri)
A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan,
minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over? -
ANS-Income taxes plus a 10% penalty tax on $30,000
\A credit life insurance policy covers the life of the - ANS-Debtor
\A foreign insurance company cannot conduct business in Missouri without a
1)approval of the NAIC
2)a certificate of authority to transact business in Missouri
3)a waiver from their home state
4)reaching a minimum level of sales - ANS-A certificate of authority to transact business in
Missouri
\A Limited-Pay Life policy has - ANS-premium payments limited to a specified number of years
\A non disabled individual is first eligible for a Medicare supplement policy at the age of -
ANS-65
\A policyowner's rights are limited under which beneficiary designation? - ANS-irrevocable
\A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash
value at a faster rate in the early years of the policy. Which of these statements made by the
producer would be correct? - ANS-20-Pay Life accumulates cash value faster than Straight Life
\A prehospitalization authorization program (pre-certification) is a good example of -
ANS-managed care
\ABC Insurance Company has accepted a life insurance application which contains unanswered
questions. The company then makes the application part of the life contract. In this situation, the
insurer has - ANS-waived one of its legal rights
\According to the Mandatory Uniform Policy Provisions, what is the maximum amount of time
after the premium due date during which the policy remains in force even though the premium
has not been paid? - ANS-31 days
\According to the Time Payment of Claims provision, the insurer must pay Disability Income
benefits no less frequently than which of the following options?
1)Annually
2)Semiannually
3)Quarterly
4)Monthly - ANS-Monthly
The time of payment for claims is usually specified in different policies as 60 days, 45 days, or
30 days. However, if the claim involves disability income benefits, the benefits must be paid not
less frequently than monthly.
\All of the following statements about traditional individual retirement accounts are false
EXCEPT
1)10% penalty is applied to withdrawals after age 59 1/2
2)withdrawals are normally tax free to the recipient
3)10% penalty is applied to withdrawals before age 59 1/2
, 4)Contributions are not tax deductible - ANS-10% penalty is applied to withdrawls before age 59
1/2
\All of these statements concerning a licensee's responsibility for premiums received are true
EXCEPT - ANS-The licensee must hold them in a separate account before transmitting them to
the insurance company.
\An immediate annuity consists of a - ANS-Single Premium
\An insurance company normally has 2 years to contest information provided on an accident
and health application. This 2 year period begins on the date that the:
1)medical examination is given
2)producer completes the application
3)insurer dates the policy
4)the first premium is made - ANS-Insurer dates the policy
\An insured must notify an insurer of a medical claim within how many days after an accident? -
ANS-20
\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.
\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
\Business Overhead Expense Insurance - ANS-A form of disability income coverage designed
to pay necessary business overhead expenses, such as rent, should the insured business
owner become disabled.
\Chemical dependency coverage is required in which type of policy?
1)Comprehensive major medical
2)Cancer
3)Short term disability
4)Long term care - ANS-Comprehensive major medical
\COBRA gives workers and their families whose employment has been terminated the right too -
ANS-Continue group health benefits
\Deductibles are used in health policies to lower - ANS-overuse of medical services
\Elimination Period - ANS-The time between the onset of a disability, and when you are eligible
for benefits.
\Group life insurance policies are generally written as - ANS-annually renewable term
A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan,
minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over? -
ANS-Income taxes plus a 10% penalty tax on $30,000
\A credit life insurance policy covers the life of the - ANS-Debtor
\A foreign insurance company cannot conduct business in Missouri without a
1)approval of the NAIC
2)a certificate of authority to transact business in Missouri
3)a waiver from their home state
4)reaching a minimum level of sales - ANS-A certificate of authority to transact business in
Missouri
\A Limited-Pay Life policy has - ANS-premium payments limited to a specified number of years
\A non disabled individual is first eligible for a Medicare supplement policy at the age of -
ANS-65
\A policyowner's rights are limited under which beneficiary designation? - ANS-irrevocable
\A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash
value at a faster rate in the early years of the policy. Which of these statements made by the
producer would be correct? - ANS-20-Pay Life accumulates cash value faster than Straight Life
\A prehospitalization authorization program (pre-certification) is a good example of -
ANS-managed care
\ABC Insurance Company has accepted a life insurance application which contains unanswered
questions. The company then makes the application part of the life contract. In this situation, the
insurer has - ANS-waived one of its legal rights
\According to the Mandatory Uniform Policy Provisions, what is the maximum amount of time
after the premium due date during which the policy remains in force even though the premium
has not been paid? - ANS-31 days
\According to the Time Payment of Claims provision, the insurer must pay Disability Income
benefits no less frequently than which of the following options?
1)Annually
2)Semiannually
3)Quarterly
4)Monthly - ANS-Monthly
The time of payment for claims is usually specified in different policies as 60 days, 45 days, or
30 days. However, if the claim involves disability income benefits, the benefits must be paid not
less frequently than monthly.
\All of the following statements about traditional individual retirement accounts are false
EXCEPT
1)10% penalty is applied to withdrawals after age 59 1/2
2)withdrawals are normally tax free to the recipient
3)10% penalty is applied to withdrawals before age 59 1/2
, 4)Contributions are not tax deductible - ANS-10% penalty is applied to withdrawls before age 59
1/2
\All of these statements concerning a licensee's responsibility for premiums received are true
EXCEPT - ANS-The licensee must hold them in a separate account before transmitting them to
the insurance company.
\An immediate annuity consists of a - ANS-Single Premium
\An insurance company normally has 2 years to contest information provided on an accident
and health application. This 2 year period begins on the date that the:
1)medical examination is given
2)producer completes the application
3)insurer dates the policy
4)the first premium is made - ANS-Insurer dates the policy
\An insured must notify an insurer of a medical claim within how many days after an accident? -
ANS-20
\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.
\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
\Business Overhead Expense Insurance - ANS-A form of disability income coverage designed
to pay necessary business overhead expenses, such as rent, should the insured business
owner become disabled.
\Chemical dependency coverage is required in which type of policy?
1)Comprehensive major medical
2)Cancer
3)Short term disability
4)Long term care - ANS-Comprehensive major medical
\COBRA gives workers and their families whose employment has been terminated the right too -
ANS-Continue group health benefits
\Deductibles are used in health policies to lower - ANS-overuse of medical services
\Elimination Period - ANS-The time between the onset of a disability, and when you are eligible
for benefits.
\Group life insurance policies are generally written as - ANS-annually renewable term
