MISSOURI LIFE INSURANCE EXAM QUESTIONS AND ANSWERS
2025
Actual Cash Value (ACV) <<<ANSWERS>>>The required amount to
pay damages or for property loss. This amount is calculated based on
the property's current replacement value minus depreciation.
Adhesion <<<ANSWERS>>>A contract offered on a "take-it-or-leave-it"
basis by an insurer, in which the insured's only option is to either
accept or reject the contract. Any ambiguities in the contract will be
settled in favor of the insured.
Adjustable Life <<<ANSWERS>>>Life insurance that permits changed
in the face amount, premium amount, period of protection, and the
duration of the premium payment period.
Adjuster <<<ANSWERS>>>A representative of an insurance company
who investigates and acts on behalf of the company to obtain
agreements for the amount of the insurance claim.
Administrator <<<ANSWERS>>>An individual appointed by a court as
a fiduciary to settle the financial affairs and estate of a deceased
person.
Admitted (Authorized) Insurer <<<ANSWERS>>>An insurance
company authorized and licensed to transact business in a particular
state.
Accelerated Benefits <<<ANSWERS>>>Riders attached to life
insurance policies that allow death benefits to be used to cover nursing
or convalescent home expenses.
,Accidental Death Benefits <<<ANSWERS>>>A policy rider that states
that the cause of death will be analyzed to determine if it complies with
the policy description of accidental death.
Accidental Death Insurance <<<ANSWERS>>>An insurance policy that
provides payment if the insured's death is the result of the accident.
Accumulation Period <<<ANSWERS>>>The time before an annuitant's
retirement during which the annuitant is making payments or
investments in an annuity.
Acquired Immunodeficiency Syndrome (AIDS) <<<ANSWERS>>>An
infections and incurable disease caused by the human
immunodeficiency virus (HIV).
Adult Day Care <<<ANSWERS>>>A program for impaired adults that
attempts to meet their health, social, and functional needs in a setting
away from their homes.
Adverse Selection <<<ANSWERS>>>The tendency of risks with higher
probability of loss to purchase and maintain insurance more often than
the risks who present lower probability.
Agency <<<ANSWERS>>>An insurance sales office or company.
Agent <<<ANSWERS>>>An individual who is licensed to sell,
negotiate, or effect insurance contracts on behalf of the insurer.
Agent Appointment <<<ANSWERS>>>The authorization of an agent to
act for or represent an insurer.
, Agent's Authority <<<ANSWERS>>>Special powers granted to an
agent by his or her agency contract.
Aleatory <<<ANSWERS>>>A contract in which participating parties
exchange unequal amounts. Insurance contracts are aleatory in that
the amount the insured will pay in premiums is unequal the the amount
the insurer will pay in the event of a loss.
Alien Insurer <<<ANSWERS>>>An insurance company that is
incorporated outside the United States.
Annual Statement <<<ANSWERS>>>A detailed financial report that an
insurance company must submit every year to the insurance
department of state in which it conducts business.
Annuity <<<ANSWERS>>>A contract that provides income for a
specified period of years, or for life.
Apparent Authority <<<ANSWERS>>>The appearance of the
assumption of authority based on the actions, words, or deeds of the
principal or because of circumstances of the principal created.
Applicant <<<ANSWERS>>>A person making applications for, or
offering himself, herself or another to be insured under an insurance
contract.
Appication <<<ANSWERS>>>A document that provides information for
underwriting purposes. After the policy is issued, any unanswered
questions are considered waived by the insurer.
2025
Actual Cash Value (ACV) <<<ANSWERS>>>The required amount to
pay damages or for property loss. This amount is calculated based on
the property's current replacement value minus depreciation.
Adhesion <<<ANSWERS>>>A contract offered on a "take-it-or-leave-it"
basis by an insurer, in which the insured's only option is to either
accept or reject the contract. Any ambiguities in the contract will be
settled in favor of the insured.
Adjustable Life <<<ANSWERS>>>Life insurance that permits changed
in the face amount, premium amount, period of protection, and the
duration of the premium payment period.
Adjuster <<<ANSWERS>>>A representative of an insurance company
who investigates and acts on behalf of the company to obtain
agreements for the amount of the insurance claim.
Administrator <<<ANSWERS>>>An individual appointed by a court as
a fiduciary to settle the financial affairs and estate of a deceased
person.
Admitted (Authorized) Insurer <<<ANSWERS>>>An insurance
company authorized and licensed to transact business in a particular
state.
Accelerated Benefits <<<ANSWERS>>>Riders attached to life
insurance policies that allow death benefits to be used to cover nursing
or convalescent home expenses.
,Accidental Death Benefits <<<ANSWERS>>>A policy rider that states
that the cause of death will be analyzed to determine if it complies with
the policy description of accidental death.
Accidental Death Insurance <<<ANSWERS>>>An insurance policy that
provides payment if the insured's death is the result of the accident.
Accumulation Period <<<ANSWERS>>>The time before an annuitant's
retirement during which the annuitant is making payments or
investments in an annuity.
Acquired Immunodeficiency Syndrome (AIDS) <<<ANSWERS>>>An
infections and incurable disease caused by the human
immunodeficiency virus (HIV).
Adult Day Care <<<ANSWERS>>>A program for impaired adults that
attempts to meet their health, social, and functional needs in a setting
away from their homes.
Adverse Selection <<<ANSWERS>>>The tendency of risks with higher
probability of loss to purchase and maintain insurance more often than
the risks who present lower probability.
Agency <<<ANSWERS>>>An insurance sales office or company.
Agent <<<ANSWERS>>>An individual who is licensed to sell,
negotiate, or effect insurance contracts on behalf of the insurer.
Agent Appointment <<<ANSWERS>>>The authorization of an agent to
act for or represent an insurer.
, Agent's Authority <<<ANSWERS>>>Special powers granted to an
agent by his or her agency contract.
Aleatory <<<ANSWERS>>>A contract in which participating parties
exchange unequal amounts. Insurance contracts are aleatory in that
the amount the insured will pay in premiums is unequal the the amount
the insurer will pay in the event of a loss.
Alien Insurer <<<ANSWERS>>>An insurance company that is
incorporated outside the United States.
Annual Statement <<<ANSWERS>>>A detailed financial report that an
insurance company must submit every year to the insurance
department of state in which it conducts business.
Annuity <<<ANSWERS>>>A contract that provides income for a
specified period of years, or for life.
Apparent Authority <<<ANSWERS>>>The appearance of the
assumption of authority based on the actions, words, or deeds of the
principal or because of circumstances of the principal created.
Applicant <<<ANSWERS>>>A person making applications for, or
offering himself, herself or another to be insured under an insurance
contract.
Appication <<<ANSWERS>>>A document that provides information for
underwriting purposes. After the policy is issued, any unanswered
questions are considered waived by the insurer.
