Life and Health Insurance Exam (Missouri)
Questions & Correct and Verified
Answers.Latest update2025/2026 Graded A+,
Exams of Nursing
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 - CORRECT ANSWERS 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 - CORRECT ANSWERS Reinstatement
What type of contract liquidates an estate through recurrent payments?
1)Universal life insurance
2)Whole life insurance
3)Annuity
4)401k - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS
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 - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS To deny the amount of a claim for missstatements occurring prior
to the expiration of the first 2 policy years
Elimination Period - CORRECT ANSWERS The time between the onset of a disability, and when
you are eligible for benefits.
Medicare Part B does not cover
1)occupational therapy
2)inpatient hospital services
3)physician and surgeon services
4)medical equipment rental - CORRECT ANSWERS inpatient hospital services
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 - CORRECT ANSWERS 10% penalty is applied to
withdrawls before age 59 1/2
What is Old Age and Survivors Health Insurance (OASDHI) also known as? - CORRECT ANSWERS
social security
Which of the following dividend options results in taxable income to the policy owner?
1)paid up additions
Questions & Correct and Verified
Answers.Latest update2025/2026 Graded A+,
Exams of Nursing
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 - CORRECT ANSWERS 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 - CORRECT ANSWERS Reinstatement
What type of contract liquidates an estate through recurrent payments?
1)Universal life insurance
2)Whole life insurance
3)Annuity
4)401k - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS
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 - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS To deny the amount of a claim for missstatements occurring prior
to the expiration of the first 2 policy years
Elimination Period - CORRECT ANSWERS The time between the onset of a disability, and when
you are eligible for benefits.
Medicare Part B does not cover
1)occupational therapy
2)inpatient hospital services
3)physician and surgeon services
4)medical equipment rental - CORRECT ANSWERS inpatient hospital services
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 - CORRECT ANSWERS 10% penalty is applied to
withdrawls before age 59 1/2
What is Old Age and Survivors Health Insurance (OASDHI) also known as? - CORRECT ANSWERS
social security
Which of the following dividend options results in taxable income to the policy owner?
1)paid up additions
