Missouri Life and Health Insurance Final Exam 2025

Missouri Life and Health Insurance Final Exam 2025 Whose interest is being protected by the enactment of " The Replacement of Life Insurance and Annuities" regulation? - Correct Ans-policyowner 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? - Correct Ans-policy was returned with the "free look" period, premium will be fully refunded Which of the following policies is characterized by a flexible premium and death benefit and allows policyowner control of the investment aspect of the plan? - Correct Ans variable universal life Which statement regarding third party ownership of a life insurance policy is true? - Correct Ans-it is used extensively in estate planning as well as business circumstances 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? - Correct Ans-She DOES need to provide evidence of insurability Which of the following statements is CORRECT regarding tax treatment of a lump sum payment paid to a life insurance policy's primary beneficiary? - Correct Ans-all proceeds are income tax free in the year they are received 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? - Correct Ans-5 months 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? - Correct Ans-return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company Which of the following statements is correct regarding an employer/employee group health plan? - Correct Ans-employer receives master policy and employees receive certificates MISSOURI MISSOURI Which of these is a TRUE statement regarding how Missouri law recognizes an association eligible for group coverage? - Correct Ans-the association must NOT have not been the organized for the purpose of obtaining insurance In Missouri, an A&H policy that is paid on a monthly basis requires a grace period of at LEAST ? - Correct Ans-ten days The health insurance program which is administered by each state and funded by both federal and sate governments is called? - Correct Ans-Medicaid Which of the following statements about accumulated interested earned on dividends from an insurance policy is TRUE? - Correct Ans-taxed as ordinary income A producer is circulating incorrect information about the benefits of a policy. This producer may be found guilty of? - Correct Ans-misrepresentation Under an Individual Health Insurance policy, the Time Limit of Certain Defenses provision states that nonfraudulent misstatements firs become incontestable two years - Correct Ans-from the date the policy was issued What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability? - Correct Ans-conversion An insured's inability to perform two or more activities of daily living may trigger which type of policy rider? - Correct Ans-long term care What statement about whole life policy is true? - Correct Ans-cash value may be borrowed against Information obtained from a phone conversation to the proposed insured can be found in which of these reports? - Correct Ans-inspection report The section of an insurance contract which limit coverage are called - Correct Ans exclusions 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? - Correct Ans-reinstatement The advantage of reinstating an original life policy is? - Correct Ans-the premiums are based on a younger age 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? - Correct Ans-written notice to the producer MISSOURI MISSOURI 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 - Correct Ans-income tax and a 10% penalty assessed upon funds withdrawn from the qualified plan Convincing a prospective insured to buy an insurance policy based on exaggerations is called - Correct Ans-misrepresentation Which of the following provisions prohibits an insurance company from incorporating external documents into an insurance policy? - Correct Ans-entire contract Which of the following BEST describes a Hospital Indemnity policy? - Correct Ans coverage that pays a stated amount per day of a covered hospitalization When a group accident and health policy is issued to an employer - Correct Ans-a policy is issued to the employer and a certificate is issued to each employee Health policies that contain coverage for low protein modified food products for treatment of PKU or any inherited disease of amino and organic acids require a coinsurance NOT to exceed of the cost of formula or food products? - Correct Ans-50% The suicide provision for life policies would apply to? - Correct Ans-subsequent increase in benefits can be defined as "making an unfair comparison of two insurance policies"? - Correct Ans-misrepresentation Which tax would an IRA participant be subjected to on distributions received prior to age 59 1/2? - Correct Ans-ordinary income tax and a 10% tax penalty for early withdrawals Which provision allows a portion of any used medical benefits to be restored following a particular amount of benefit has been used, or after the policy has been in effect for a particular period of time? - Correct Ans-restoration of used benefit S filed a written Proof of Loss for a Disability Income claim on September 1. The insurance company did not respond to the claim. S can take legal action against the insurer beginning - Correct Ans-November 1 Which type of contract liquidates an estate through recurrent payments? - Correct Ans annuity A disability elimination period is best described as a? - Correct Ans-time deductible Medicare Part A and Part B do NOT pay for - Correct Ans-dental work MISSOURI MISSOURI T sends proof of loss to her insurer for an acceptable medical expense claim under her individual health insurance policy. Upon receipt, the insurer must pay the benefits? - Correct Ans-immediately Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy? - Correct Ans-reimbursement A foreign insurance company CANNOT conduct business in Missouri without? - Correct Ans-a certificate of authority to transact business in Missouri Under Missouri law, when one group health plan's contract replaces an existing group health plan with similar benefits? - Correct Ans-the succeeding carrier shall give credit for the satisfaction of any deductibles or waiting periods satisfied or partially satisfied under the prior carrier's plan When an employee is terminated, how long does this employee have to convert group life coverage to an individual plan? - Correct Ans-31 days The clause identifies which losses resulting from an accident or sickness are insured by the policy? - Correct Ans-insured Which of these statements regarding health cover for physically handicapped dependents is FALSE? - Correct Ans-the dependent must have been over ten years of age when the handicap was incurred 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) - Correct Ans-anti-money laundering violation What type of policy would offer a 40 year old the quickest accumulation of cash value? - Correct Ans-20 pay life S wants to open a tax-exempt Health Savings Account. To qualify for this type of account, Federal law dictates that S must be enrolled in a - Correct Ans-high deductible health plan Within days after a policy delivery, a Medicare Supplement policy can be returned for 100%premium refund? - Correct Ans-30 Insurers may request a hearing within if their policy is rejected? - Correct Ans-20 days An applicant for a nonresident producer license MUST ? - Correct Ans-be a producer in good standing in their home state E and F are business partners. Each takes out a $500,000 life insurance policy on the other, naming himself as primary beneficiary. E and F eventually terminate their MISSOURI MISSOURI business, and four months later E dies. Although E was married with three children at the time of death, the primary beneficiary is still F. However, an insurable interest no longer exists. Where will the proceeds from E's life insurance policy be directed to? - Correct Ans-F Which of the following medical expenses does Cancer insurance NOT cover? - Correct Ans-arthritis When does a Probationary Period provision become effective in a health insurance contract? - Correct Ans-at the policy's inception Whole Life insurance policies are contractually guaranteed to provide each of the following, EXCEPT? - Correct Ans-partial withdrawals features beyond a surrender charge period Which of the following statements about the classification of applicants is INCORRECT? - Correct Ans-substandard applicants are never denied by underwriters A nondisabled individual is first eligible for Medicare Supplement policy at age? - Correct Ans-65 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 ? - Correct Ans-insurer dates the policy What is the required renewability status of all Medicare supplement policies? - Correct Ans-guaranteed renewable T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary? - Correct Ans-request of the change will be refused Which of these individuals may NOT be compensated from an insurance company? - Correct Ans-a licensed producer not appointed by the company When an insurance company sends a policy to the insured with an attached application, the element that makes the application part of the contract between the insured and the insurer is called the - Correct Ans-entire contract provision Medicare Part C is? - Correct Ans-available to those that are enrolled in Medicare Part A and Part B Chemical dependency coverage is required in which type of policy? - Correct Ans comprehensive major medical MISSOURI MISSOURI Nursing home benefits must be provided for at least 12 consecutive months in which of the following types of policies? - Correct Ans-long term care The Director of Insurance is authorized? - Correct Ans-to enforce state laws relating to insurance In a life insurance policy, which provision states who may select policy options, designate and name a beneficiary, and be the recipient of any financial benefits from the policy? - Correct Ans-owner's rights Taking receipt of premiums and holding them for the insurance company is an example of - Correct Ans-Fiduciary responsibility S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the principal with a minimum level or risk. Which product would S be advised to purchase? - Correct Ans-equity index insurance A health insurance policy application may ONLY be altered with the written consent of the? - Correct Ans-applicant An immediate annuity consist of? - Correct Ans-single premium Coverage for human leukocyte antigen testing for bone marrow transplantation is REQUIRED to be provided in all - Correct Ans-group comprehensive health policies Which of the following is a requirement for obtaining a resident producer license in Missouri - Correct Ans-pay a $100 license fee What must a producer sign when an existing life insurance policy is being reissued with a reduction in cash value? - Correct Ans-notice regarding replacement Who makes the legally enforceable promises in a unilateral contract? - Correct Ans insurance company A disability income policyowner recently submitted a claim for a chronic neck pain that has now resulted in total disability. The original neck injury occurred before the application was taken 5 years prior. The neck injury was never disclosed to the insurer at the time of the application. How will the insurer handle this claim? - Correct Ans-claim will be paid and coverage will remain in force Who signs a "Notice Regarding Replacement" form when the application is taken for a new life insurance policy that replaces an existing one? - Correct Ans-producer and applicant After a life insurance policy has been in force for more than _____ years, it becomes incontestable. - Correct Ans-2 MISSOURI MISSOURI The insuring clause - Correct Ans-States the scope and limits of the coverage A producer does not have the authority to change a policy or waive any or its provisions. The health provision that best describes this statement is called the? - Correct Ans entire contract Which entity issues Medicare Supplement insurance? - Correct Ans-insurance companies The accidental death and dismemberment (AD&D) provision in a life insurance policy would pay additional benefits if the insured - Correct Ans-is blinded in an accident A Limited-Pay Life policy has - Correct Ans-premium payments limited to a specified number of years M becomes disabled and is unable to work for six months. M dies soon after from complications arising from this disability. M has a Disability Income policy that pays $2,000 a month. Which of the following statements BEST describes what is owed to her estate? - Correct Ans-earned but unpaid benefits What is being delivered during a policy delivery? - Correct Ans-Insurance contract to the proposed insured The reason for backdating a policy is? - Correct Ans-to obtain a premium rate based on an earlier age Which of the following may NOT be issued after the Director of Insurance finds an insurance code violation committed by a licensee? - Correct Ans-warrant for arrest What type of group plan involves employees sharing the cost? - Correct Ans contributory plan Which of the following is NOT a required provision in a group life policy? - Correct Ans accidental death and dismemberment Variable Whole Life Insurance can be described as - Correct Ans-both an insurance and securities product Which of these statements is INCORRECT regarding federal income tax treatment of life insurance? - Correct Ans-entire cash surrender is taxable In a disability income policy, which of these clauses acts as a deductible? - Correct Ans elimination period A Term Life rider offers the insured - Correct Ans-additional life coverage