Life and Health Insurance Exam
(Missouri) Questions and
Answers(SCORED A)
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 - ANSWER-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 - ANSWER-Reinstatement
What type of contract liquidates an estate through recurrent payments?
1)Universal life insurance
2)Whole life insurance
3)Annuity
4)401k - ANSWER-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 - ANSWER-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 - ANSWER-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 - ANSWER-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 - ANSWER-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 - ANSWER-To deny the amount of a claim for missstatements
occurring prior to the expiration of the first 2 policy years
Elimination Period - ANSWER-The time between the onset of a disability, and when you
are eligible for benefits.
(Missouri) Questions and
Answers(SCORED A)
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 - ANSWER-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 - ANSWER-Reinstatement
What type of contract liquidates an estate through recurrent payments?
1)Universal life insurance
2)Whole life insurance
3)Annuity
4)401k - ANSWER-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 - ANSWER-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 - ANSWER-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 - ANSWER-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 - ANSWER-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 - ANSWER-To deny the amount of a claim for missstatements
occurring prior to the expiration of the first 2 policy years
Elimination Period - ANSWER-The time between the onset of a disability, and when you
are eligible for benefits.
