Life and Health Insurance Exam
(Missouri) Questions and Answers
Performance is conditioned upon a future occurence, because there is an element of
chance and potential for unequal exchange of value - ANSWER-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
Reinstatement - ANSWER-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
Annuity - ANSWER-What type of contract liquidates an estate through recurrent
payments?
1)Universal life insurance
2)Whole life insurance
3)Annuity
4)401k
The grace period is a minimum of 31 days for policies hat are paid for on an annual
basis. - ANSWER-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
misrepresentation - ANSWER-Making an unfair comparison of two policies is defined as
long term care - ANSWER-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
Ten Year Endowment - ANSWER-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
To deny the amount of a claim for missstatements occurring prior to the expiration of the
first 2 policy years - ANSWER-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
The licensee must hold them in a separate account before transmitting them to the
insurance company. - ANSWER-All of these statements concerning a licensee's
responsibility for premiums received are true EXCEPT
Producer and applicant - ANSWER-Who signs a Notice Regarding Replacement form
when an application is taken for a new life insurance policy that replaces an existing
one?
Noncancelable - ANSWER-J purchased a Disability Income Policy that ONLY J can
terminate and on which the rates will never increase above those illustrated in the
policy. Which of the following types of policies did J purchase?
1)Guarenteed renewable
2)Noncancelable
3)Optionally Renewable
4)Conditionally renewable
Insurance contract to the proposed insured - ANSWER-What is being delivered during a
policy delivery?
Allowable amounts under Medicare Part B - ANSWER-Which of the following would a
Medicare supplement policy cover?
1)Long term disabiltiy
2)Allowable amounts under Medicare Part B
3)Loss of income due to disability
4)Services excluded by Medicare
(Missouri) Questions and Answers
Performance is conditioned upon a future occurence, because there is an element of
chance and potential for unequal exchange of value - ANSWER-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
Reinstatement - ANSWER-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
Annuity - ANSWER-What type of contract liquidates an estate through recurrent
payments?
1)Universal life insurance
2)Whole life insurance
3)Annuity
4)401k
The grace period is a minimum of 31 days for policies hat are paid for on an annual
basis. - ANSWER-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
misrepresentation - ANSWER-Making an unfair comparison of two policies is defined as
long term care - ANSWER-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
Ten Year Endowment - ANSWER-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
To deny the amount of a claim for missstatements occurring prior to the expiration of the
first 2 policy years - ANSWER-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
The licensee must hold them in a separate account before transmitting them to the
insurance company. - ANSWER-All of these statements concerning a licensee's
responsibility for premiums received are true EXCEPT
Producer and applicant - ANSWER-Who signs a Notice Regarding Replacement form
when an application is taken for a new life insurance policy that replaces an existing
one?
Noncancelable - ANSWER-J purchased a Disability Income Policy that ONLY J can
terminate and on which the rates will never increase above those illustrated in the
policy. Which of the following types of policies did J purchase?
1)Guarenteed renewable
2)Noncancelable
3)Optionally Renewable
4)Conditionally renewable
Insurance contract to the proposed insured - ANSWER-What is being delivered during a
policy delivery?
Allowable amounts under Medicare Part B - ANSWER-Which of the following would a
Medicare supplement policy cover?
1)Long term disabiltiy
2)Allowable amounts under Medicare Part B
3)Loss of income due to disability
4)Services excluded by Medicare
