MISSOURI LIFE AND HEALTH INSURANCE FINAL PAPER 2025/2026
QUESTIONS WITH SOLUTION GRADED A+
✔✔all of the following are considered to be typical characteristics describing the nature
of an insurance contract, EXCEPT:
Unilateral
Bilateral
aleatory
adhesion - ✔✔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 - ✔✔is blinded in an accident
✔✔Which health policy clause stipulates that an insured company must attach a copy of
the application to the policy to ensure that it is part of the contract?
a) consideration
b) Entire Contract
c) Free-look
d) Insuring - ✔✔Entire Contract
✔✔Coverage for human leukocyte antigen testing for bone marrow transplantation is
REQUIRED to be provided in all
a) Long-term care policies
b) Short-term disability policies
c) Cancer policies
d) Group comprehensive health policies - ✔✔Group comprehensive health policies
✔✔The phrase "This policy will only pay for a semi-private room" is an example of a(n):
a) maximum policy limit
b) internal limit
c) stop loss
d) participation percentage - ✔✔internal limit
✔✔T and S are named co-primary beneficiaries on a $500,000 Accidental Death and
Dismemberment policy insuring their father. Their mother was named contingent
beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba
accident shortly afterwards. How much of the death benefit will the mother receive?
a) $1,000,000
b) $500,000
c) $250,000
d) $0 - ✔✔$0
,✔✔A comprehensive major medical health insurance policy contains an Eligible
Expenses provision which identifies the types of health care services that are covered.
All of the following health care services are typically covered, EXCEPT for: -
✔✔experimental and investigative services
✔✔an insured recently took out a cancer insurance policy. The time limit on certain
defenses provision in this policy allows the insurer - ✔✔to deny the amount of a claim
for misstatements on the application occurring prior to the expiration of the first two
policy years
✔✔Which type of renewability best describes a Disability Income policy that covers an
individual until the age of 65, but the insurer has the right to change the premium rate? -
✔✔Guaranteed renewable
✔✔Periodic health claim payments MUST be made at least:
a) monthly
b) weekly
c) daily
d) annually - ✔✔monthly
✔✔If a retiree on Medicare required five hospital stays in one year, which policy would
provide the best insurance for excess hospital expenses? - ✔✔Medicare supplement
✔✔Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies?
a) beneficiary
b) insured
c) policyowner
d) insured - ✔✔policyowner
✔✔P is a forty year old woman and would like to purchase an annuity that will provide a
lifetime income stream beginning at age sixty. Which of the following did she NOT buy?
a) a straight life deffered annuity
b) a straight life annuity
c) an immediate annuity
d) a deferred annuity - ✔✔an immediate annuity
✔✔Many small business owners worry how their business would survive financially if
the owner becomes disabled. The policy which BEST addresses this concern is:
a) Business Overhead Expense
b) Disability Income
c) Key Employee Life
d) Contributory - ✔✔Business overhead expense
,✔✔Which of the following health insurance policy provisions specifies the health care
services a policy will provide
a) Insuring clause
b) Usual, Customary, and Reasonable clause
c) Consideration clause
d) Benefit clause - ✔✔Insuring clause
✔✔Which of the following services is NOT covered under a hospitalization expense
policy?
a) daily room and bored
b) surgeon's fees
c) intensive care
d) miscellaneous expenses - ✔✔surgeon's fees
✔✔The provision that defines to whom the insurer will pay benefits to is called:
a) Entire Contract
b) Proof of Loss
c) Claim Forms
d) Payment of Claims - ✔✔Payment of Claims
✔✔When making a recommendation to a consumer to purchase an annuity, the
producer must make reasonable efforts to obtain
a) gender of beneficiary
b) address of payor
c) suitability information
d) owner's place of employment - ✔✔suitability information
✔✔what benefit does the Payer clause on a Juvenile Life policy provide? -
✔✔premiums are waived if the payor becomes disabled
✔✔which of the following provisions guarantees that premiums will be waived if a
Juvenile Life policyowner becomes disabled? - ✔✔Payor Clause
✔✔The conversion provision in a group health insurance policy
a) is an option for the insurer
b) is mandated by the NAIC
c) is mandated by state requirements
d) requires evidence of insurability - ✔✔is mandated by state requirements
✔✔Which of these actions should a producer take when submitting an insurance
application to an insurer?
a) Issue a binding receipt to applicant if no initial premium is submitted
b) disclose to the applicant the amount of commissions to be earned on this transaction
c) inform insurer of relevant information not included on the application
, d) Arrange for a copy of the Attending Physician Statement (APS) to be sent to the
producer - ✔✔inform insurer of relevant information not included on the application
✔✔N purchases an annuity by making payments in an amount no less than $100
quarterly. This describes which of the following annuities?
a) installment immediate
b) fixed installment deferred
c) flexible installment deferred
d) flexible premium immediate - ✔✔Flexible installment deferred
✔✔Which of these is a TRUE statement regarding the regulatory authority of the
Director?
a) the Director may set insurance rates for alien insurers
b) the Director may arbitrate claims for domestic insurers
c) the Director may establish guidelines for continuing education
d) The director may establish insurance laws - ✔✔The director may establish guidelines
for continuing education
✔✔Health coverage for the administration of general anesthesia and hospital charges
for dental care MUST be provided to a(n)
a) insured who requires a tooth extraction
b) insured who needs teeth cleaning and x-rays
c) child under the age of five
d) pregnant women - ✔✔child under the age of five
✔✔C is trying to determine whether to convert her convertible term life policy to whole
life insurance using her original age or attained age. What factor would affect her
decision the most? - ✔✔The cost
✔✔A long-term care rider in a life insurance policy pays a daily benefit in the event of
which of the following?
a) critical illness
b) terminal illness
c) inability of the insured to perform more than 2 Activities of Daily Living (ADL's)
d) - ✔✔Inability of the insured to perform more than 2 Activities of Daily Living (ADL's)
✔✔What is the purpose of the Missouri Life and Health Insurance Guaranty
Association? - ✔✔ensures that claims filed against insolvent insurance companies will
be paid
✔✔Which of the following statements about a Guaranteed Renewable Health Insurance
policy is CORRECT?
a) premiums normally decrease at time of renewal
b) premiums normally increase at time of renewal
QUESTIONS WITH SOLUTION GRADED A+
✔✔all of the following are considered to be typical characteristics describing the nature
of an insurance contract, EXCEPT:
Unilateral
Bilateral
aleatory
adhesion - ✔✔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 - ✔✔is blinded in an accident
✔✔Which health policy clause stipulates that an insured company must attach a copy of
the application to the policy to ensure that it is part of the contract?
a) consideration
b) Entire Contract
c) Free-look
d) Insuring - ✔✔Entire Contract
✔✔Coverage for human leukocyte antigen testing for bone marrow transplantation is
REQUIRED to be provided in all
a) Long-term care policies
b) Short-term disability policies
c) Cancer policies
d) Group comprehensive health policies - ✔✔Group comprehensive health policies
✔✔The phrase "This policy will only pay for a semi-private room" is an example of a(n):
a) maximum policy limit
b) internal limit
c) stop loss
d) participation percentage - ✔✔internal limit
✔✔T and S are named co-primary beneficiaries on a $500,000 Accidental Death and
Dismemberment policy insuring their father. Their mother was named contingent
beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba
accident shortly afterwards. How much of the death benefit will the mother receive?
a) $1,000,000
b) $500,000
c) $250,000
d) $0 - ✔✔$0
,✔✔A comprehensive major medical health insurance policy contains an Eligible
Expenses provision which identifies the types of health care services that are covered.
All of the following health care services are typically covered, EXCEPT for: -
✔✔experimental and investigative services
✔✔an insured recently took out a cancer insurance policy. The time limit on certain
defenses provision in this policy allows the insurer - ✔✔to deny the amount of a claim
for misstatements on the application occurring prior to the expiration of the first two
policy years
✔✔Which type of renewability best describes a Disability Income policy that covers an
individual until the age of 65, but the insurer has the right to change the premium rate? -
✔✔Guaranteed renewable
✔✔Periodic health claim payments MUST be made at least:
a) monthly
b) weekly
c) daily
d) annually - ✔✔monthly
✔✔If a retiree on Medicare required five hospital stays in one year, which policy would
provide the best insurance for excess hospital expenses? - ✔✔Medicare supplement
✔✔Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies?
a) beneficiary
b) insured
c) policyowner
d) insured - ✔✔policyowner
✔✔P is a forty year old woman and would like to purchase an annuity that will provide a
lifetime income stream beginning at age sixty. Which of the following did she NOT buy?
a) a straight life deffered annuity
b) a straight life annuity
c) an immediate annuity
d) a deferred annuity - ✔✔an immediate annuity
✔✔Many small business owners worry how their business would survive financially if
the owner becomes disabled. The policy which BEST addresses this concern is:
a) Business Overhead Expense
b) Disability Income
c) Key Employee Life
d) Contributory - ✔✔Business overhead expense
,✔✔Which of the following health insurance policy provisions specifies the health care
services a policy will provide
a) Insuring clause
b) Usual, Customary, and Reasonable clause
c) Consideration clause
d) Benefit clause - ✔✔Insuring clause
✔✔Which of the following services is NOT covered under a hospitalization expense
policy?
a) daily room and bored
b) surgeon's fees
c) intensive care
d) miscellaneous expenses - ✔✔surgeon's fees
✔✔The provision that defines to whom the insurer will pay benefits to is called:
a) Entire Contract
b) Proof of Loss
c) Claim Forms
d) Payment of Claims - ✔✔Payment of Claims
✔✔When making a recommendation to a consumer to purchase an annuity, the
producer must make reasonable efforts to obtain
a) gender of beneficiary
b) address of payor
c) suitability information
d) owner's place of employment - ✔✔suitability information
✔✔what benefit does the Payer clause on a Juvenile Life policy provide? -
✔✔premiums are waived if the payor becomes disabled
✔✔which of the following provisions guarantees that premiums will be waived if a
Juvenile Life policyowner becomes disabled? - ✔✔Payor Clause
✔✔The conversion provision in a group health insurance policy
a) is an option for the insurer
b) is mandated by the NAIC
c) is mandated by state requirements
d) requires evidence of insurability - ✔✔is mandated by state requirements
✔✔Which of these actions should a producer take when submitting an insurance
application to an insurer?
a) Issue a binding receipt to applicant if no initial premium is submitted
b) disclose to the applicant the amount of commissions to be earned on this transaction
c) inform insurer of relevant information not included on the application
, d) Arrange for a copy of the Attending Physician Statement (APS) to be sent to the
producer - ✔✔inform insurer of relevant information not included on the application
✔✔N purchases an annuity by making payments in an amount no less than $100
quarterly. This describes which of the following annuities?
a) installment immediate
b) fixed installment deferred
c) flexible installment deferred
d) flexible premium immediate - ✔✔Flexible installment deferred
✔✔Which of these is a TRUE statement regarding the regulatory authority of the
Director?
a) the Director may set insurance rates for alien insurers
b) the Director may arbitrate claims for domestic insurers
c) the Director may establish guidelines for continuing education
d) The director may establish insurance laws - ✔✔The director may establish guidelines
for continuing education
✔✔Health coverage for the administration of general anesthesia and hospital charges
for dental care MUST be provided to a(n)
a) insured who requires a tooth extraction
b) insured who needs teeth cleaning and x-rays
c) child under the age of five
d) pregnant women - ✔✔child under the age of five
✔✔C is trying to determine whether to convert her convertible term life policy to whole
life insurance using her original age or attained age. What factor would affect her
decision the most? - ✔✔The cost
✔✔A long-term care rider in a life insurance policy pays a daily benefit in the event of
which of the following?
a) critical illness
b) terminal illness
c) inability of the insured to perform more than 2 Activities of Daily Living (ADL's)
d) - ✔✔Inability of the insured to perform more than 2 Activities of Daily Living (ADL's)
✔✔What is the purpose of the Missouri Life and Health Insurance Guaranty
Association? - ✔✔ensures that claims filed against insolvent insurance companies will
be paid
✔✔Which of the following statements about a Guaranteed Renewable Health Insurance
policy is CORRECT?
a) premiums normally decrease at time of renewal
b) premiums normally increase at time of renewal
