Missouri Life and Health Exam
Questions and Answers(RATED A)
In a Life insurance contract, an insurance company's promise to pay stated benefits is
called the:
a) insuring clause
b) consideration clause
c) entire contract
d) owner's rights - ANSWER-insuring clause
under which circumstance MUST a health insurer have an expedited grievance review
procedure? - ANSWER-when the enrollee's life or health is jeapordized
The Consideration clause in a life insurance contract contains what pertinent
information? - ANSWER-amount of premium payments and when they are due
Long Term Care policies will usually pay for eligible benefits using which of the following
methods?
a) delayed
b) fee for service
c) expense incurred
d) respite - ANSWER-Expense incurred
T is receiving $3,000/month from a Disability Income policy in which T's employer had
paid the premiums. How are the $3,000 benefit payments taxable? - ANSWER-Benefits
are taxable to T
A statement made by an insured in an insurance application that must be true to the
best of one's knowledge and which becomes a part of the contract is known as -
ANSWER-a representation
,Which long term care insurance statement is true? - ANSWER-Pre-existing conditions
must be covered after the coverage has been in force for six months
Pre-existing conditions are those for which medical advice or treatment was
recommended by or received from a health provider within 6 months preceding the
effective date of an individual long-term care policy.
which of the following is NOT allowed in regards to the Medigap (Medicare Supplement)
policy? - ANSWER-Issuing an additional Medigap policy to ensure no out-of-pocket
exposure for the insured
Jasmine is a salaried employee of an insurance company. Which of the following duties
would require her to be licensed as an insurance producer?
a) adjusting claims
b) underwriting insurance applications
c) administrative assistant to the VP of Sales
d) soliciting insurance policies - ANSWER-Soliciting insurance policies
All of these are characteristics of an Adjustable Life policy EXCEPT
a) adjustable premiums
b)adjustable premium payment period
c) combination of term and whole life insurance
d) face amount can be adjusted using policy dividends - ANSWER-face amount can be
adjusted using policy dividends
The Director of Insurance is authorized
a) to enforce state laws relating to insurance
b) to pass state laws relating to insurance
c) to set insurance rates for foreign insurers
d) to set sales quotas - ANSWER-to enforce state laws relating to insurance
When a group accident and health policy is issued to an employer,
,a) a blanket policy is issued to each employee
b) the free-look period is 60 days
c) a policy is issued to the employer and a certificate is issued to each employee
d) a certificate is issued to the employer and a policy is issued to each employee -
ANSWER-a policy is issued to the employer and a certificate is issued to each
employee
which of the following statements is CORRECT about accelerated death benefits? -
ANSWER-Must have a terminal illness to qualify.
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? - ANSWER-Request of the change will be refused
which of these statements is INCORRECT regarding the federal income tax treatment
of life insurance
-Premiums are normally not tax deductible
-Cash dividends are normally not taxed
-Entire cash surrender value is taxable
-Proceeds are received tax-free if there is a named beneficiary - ANSWER-Entire cash
surrender value is taxable
A producer is circulating incorrect information about the benefits of a policy. This
producer may be found guilty of
a) misrepresentation
b) sliding
c) boycotting
d) coercion - ANSWER-misrepresentation
The first portion of a covered Major Medical insurance expense that the insured is
required to pay is called the:
a) corridor deductible
, b) initial deductible
c) stop-loss deductible
d) coinsurance deductible - ANSWER-initial deductible
Any changes made on an insurance application requires the initials of whom? -
ANSWER-Applicant
A policy of adhesion can only be modified by whom? - ANSWER-The insurance
company
Which of the following health policy provisions states that the producer does NOT have
the authority to change the policy or waive any of its provisions?
a) Time Limit on Certain Defenses
b) Reinstatement
c) Entire Contract
d) Change of Beneficiary - ANSWER-Entire Contract
all of the following are considered to be typical characteristics describing the nature of
an insurance contract, EXCEPT:
Unilateral
Bilateral
aleatory
adhesion - ANSWER-Bilateral
The Accidental Death and Dismemberment (AD&D) provision in a life insurance policy
would pay additional benefits if the insured:
a) dies of natural causes
b) becomes critically ill
c) becomes chronically ill
d) is blinded in an accident - ANSWER-is blinded in an accident
Questions and Answers(RATED A)
In a Life insurance contract, an insurance company's promise to pay stated benefits is
called the:
a) insuring clause
b) consideration clause
c) entire contract
d) owner's rights - ANSWER-insuring clause
under which circumstance MUST a health insurer have an expedited grievance review
procedure? - ANSWER-when the enrollee's life or health is jeapordized
The Consideration clause in a life insurance contract contains what pertinent
information? - ANSWER-amount of premium payments and when they are due
Long Term Care policies will usually pay for eligible benefits using which of the following
methods?
a) delayed
b) fee for service
c) expense incurred
d) respite - ANSWER-Expense incurred
T is receiving $3,000/month from a Disability Income policy in which T's employer had
paid the premiums. How are the $3,000 benefit payments taxable? - ANSWER-Benefits
are taxable to T
A statement made by an insured in an insurance application that must be true to the
best of one's knowledge and which becomes a part of the contract is known as -
ANSWER-a representation
,Which long term care insurance statement is true? - ANSWER-Pre-existing conditions
must be covered after the coverage has been in force for six months
Pre-existing conditions are those for which medical advice or treatment was
recommended by or received from a health provider within 6 months preceding the
effective date of an individual long-term care policy.
which of the following is NOT allowed in regards to the Medigap (Medicare Supplement)
policy? - ANSWER-Issuing an additional Medigap policy to ensure no out-of-pocket
exposure for the insured
Jasmine is a salaried employee of an insurance company. Which of the following duties
would require her to be licensed as an insurance producer?
a) adjusting claims
b) underwriting insurance applications
c) administrative assistant to the VP of Sales
d) soliciting insurance policies - ANSWER-Soliciting insurance policies
All of these are characteristics of an Adjustable Life policy EXCEPT
a) adjustable premiums
b)adjustable premium payment period
c) combination of term and whole life insurance
d) face amount can be adjusted using policy dividends - ANSWER-face amount can be
adjusted using policy dividends
The Director of Insurance is authorized
a) to enforce state laws relating to insurance
b) to pass state laws relating to insurance
c) to set insurance rates for foreign insurers
d) to set sales quotas - ANSWER-to enforce state laws relating to insurance
When a group accident and health policy is issued to an employer,
,a) a blanket policy is issued to each employee
b) the free-look period is 60 days
c) a policy is issued to the employer and a certificate is issued to each employee
d) a certificate is issued to the employer and a policy is issued to each employee -
ANSWER-a policy is issued to the employer and a certificate is issued to each
employee
which of the following statements is CORRECT about accelerated death benefits? -
ANSWER-Must have a terminal illness to qualify.
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? - ANSWER-Request of the change will be refused
which of these statements is INCORRECT regarding the federal income tax treatment
of life insurance
-Premiums are normally not tax deductible
-Cash dividends are normally not taxed
-Entire cash surrender value is taxable
-Proceeds are received tax-free if there is a named beneficiary - ANSWER-Entire cash
surrender value is taxable
A producer is circulating incorrect information about the benefits of a policy. This
producer may be found guilty of
a) misrepresentation
b) sliding
c) boycotting
d) coercion - ANSWER-misrepresentation
The first portion of a covered Major Medical insurance expense that the insured is
required to pay is called the:
a) corridor deductible
, b) initial deductible
c) stop-loss deductible
d) coinsurance deductible - ANSWER-initial deductible
Any changes made on an insurance application requires the initials of whom? -
ANSWER-Applicant
A policy of adhesion can only be modified by whom? - ANSWER-The insurance
company
Which of the following health policy provisions states that the producer does NOT have
the authority to change the policy or waive any of its provisions?
a) Time Limit on Certain Defenses
b) Reinstatement
c) Entire Contract
d) Change of Beneficiary - ANSWER-Entire Contract
all of the following are considered to be typical characteristics describing the nature of
an insurance contract, EXCEPT:
Unilateral
Bilateral
aleatory
adhesion - ANSWER-Bilateral
The Accidental Death and Dismemberment (AD&D) provision in a life insurance policy
would pay additional benefits if the insured:
a) dies of natural causes
b) becomes critically ill
c) becomes chronically ill
d) is blinded in an accident - ANSWER-is blinded in an accident
