MISSOURI LIFE AND HEALTH
INSURANCE EXAM 2025 QUESTIONS
AND ANSWERS
Insurance transaction includes: - ANS By mail or other means:
- Solicitation
- Negotiation
- Sale
- Advising an individual about coverage
Elements of a legal contract - ANS -Agreement (offer and acceptance)
- Consideration
- Competent parties
- Legal purpose
- Negotiation does NOT need to happen
Who make the offer in an insurance application - ANS - Applicant
When does acceptance take place - ANS - An insurers underwriter approves the application
and issues a policy
The binding force in any contract - ANS - Consideration
- insurer promises to pay in the event of a loss
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,Contract of adhesion - ANS - Prepared by the insurer and accepted or rejected by the insured
- "Take it or leave it" basis
Insurance contracts are - ANS - Aleatory
- exchange of unequal amounts of values
Unilateral contract - ANS - only one of the parties is legally bound
- "one-way contract"
"When does an insurance policy go into effect" - ANS - When the insured receives it
Conditional contract - ANS - certain conditions must be met by the policy owner
Warranty - ANS - An absolutely true statement upon upon which the validity of the insurance
policy depends
Representions - ANS - Statements believed to be true
Misrepresentation - ANS - Untrue statements on the applications
- Can void the contract
Material misrepresentation - ANS - Would alter the underwriting decision of insurance
company
Part 1- General Information - ANS - Name, age, address, birth date, gender, income, marital
status, and occupation
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,Part 2- Medical Information - ANS - Medical background, present health
- Medical visits in recent years
- Medical status of relatives/ causes of deaths
Field underwriter - ANS - Solicited the potential insured
- Analyzes health
- Gets info on client
Agents report - ANS - Observations concerning the proposed insured
- Does not become a part of the entire contract
- communicate with underwriter and provide info about the applicant known by the agent
Required signatures - ANS - the proposed insured
- the agent
- the policy owner (if not proposed insured)
Changes in the application - ANS - Applicant must initial the change
Consequences of incomplete applications - ANS - Must return to applicant for completion
- If a policy is issued with questions left unanswered, the contract will be interpreted as if the
insurer waived its right to have an answer to the question
Premium receipt - ANS - Agent must issue
- Will determine when coverage will be effective
Conditional receipt - ANS - effective either on the date of application or medical exam
3 Copyright ©2025 BRAINBARTER ALL RIGHTS RESERVED
, - Most common type of receipt
- used when applicant submits prepaid application
Replacement - ANS - Terminating an existing policy or letting it lapse and obtaining a new
one
- Nothing illegal about replacing life insurance
Underwriting - ANS - The risk selection process
- Avoid adverse selection
Adverse selection - ANS - Risks which are more likely to suffer a loss
- Protects the insurer
Insurable interest - ANS - Must exist between policy owner and insured at time of application
- Cannot buy on anyone
- Suffer financially if someone dies
Application - ANS - Submit an application to the insurer for approval for a policy to be issued
Fair Credit Reporting Act - ANS - Consumer-reporting agencies must follow in order to ensure
that records are properly used
- Protects consumers
- Insurance rated by states
- "At the time of application"
- If willingly violates Act penalty up to $2,500
4 Copyright ©2025 BRAINBARTER ALL RIGHTS RESERVED
INSURANCE EXAM 2025 QUESTIONS
AND ANSWERS
Insurance transaction includes: - ANS By mail or other means:
- Solicitation
- Negotiation
- Sale
- Advising an individual about coverage
Elements of a legal contract - ANS -Agreement (offer and acceptance)
- Consideration
- Competent parties
- Legal purpose
- Negotiation does NOT need to happen
Who make the offer in an insurance application - ANS - Applicant
When does acceptance take place - ANS - An insurers underwriter approves the application
and issues a policy
The binding force in any contract - ANS - Consideration
- insurer promises to pay in the event of a loss
1 Copyright ©2025 BRAINBARTER ALL RIGHTS RESERVED
,Contract of adhesion - ANS - Prepared by the insurer and accepted or rejected by the insured
- "Take it or leave it" basis
Insurance contracts are - ANS - Aleatory
- exchange of unequal amounts of values
Unilateral contract - ANS - only one of the parties is legally bound
- "one-way contract"
"When does an insurance policy go into effect" - ANS - When the insured receives it
Conditional contract - ANS - certain conditions must be met by the policy owner
Warranty - ANS - An absolutely true statement upon upon which the validity of the insurance
policy depends
Representions - ANS - Statements believed to be true
Misrepresentation - ANS - Untrue statements on the applications
- Can void the contract
Material misrepresentation - ANS - Would alter the underwriting decision of insurance
company
Part 1- General Information - ANS - Name, age, address, birth date, gender, income, marital
status, and occupation
2 Copyright ©2025 BRAINBARTER ALL RIGHTS RESERVED
,Part 2- Medical Information - ANS - Medical background, present health
- Medical visits in recent years
- Medical status of relatives/ causes of deaths
Field underwriter - ANS - Solicited the potential insured
- Analyzes health
- Gets info on client
Agents report - ANS - Observations concerning the proposed insured
- Does not become a part of the entire contract
- communicate with underwriter and provide info about the applicant known by the agent
Required signatures - ANS - the proposed insured
- the agent
- the policy owner (if not proposed insured)
Changes in the application - ANS - Applicant must initial the change
Consequences of incomplete applications - ANS - Must return to applicant for completion
- If a policy is issued with questions left unanswered, the contract will be interpreted as if the
insurer waived its right to have an answer to the question
Premium receipt - ANS - Agent must issue
- Will determine when coverage will be effective
Conditional receipt - ANS - effective either on the date of application or medical exam
3 Copyright ©2025 BRAINBARTER ALL RIGHTS RESERVED
, - Most common type of receipt
- used when applicant submits prepaid application
Replacement - ANS - Terminating an existing policy or letting it lapse and obtaining a new
one
- Nothing illegal about replacing life insurance
Underwriting - ANS - The risk selection process
- Avoid adverse selection
Adverse selection - ANS - Risks which are more likely to suffer a loss
- Protects the insurer
Insurable interest - ANS - Must exist between policy owner and insured at time of application
- Cannot buy on anyone
- Suffer financially if someone dies
Application - ANS - Submit an application to the insurer for approval for a policy to be issued
Fair Credit Reporting Act - ANS - Consumer-reporting agencies must follow in order to ensure
that records are properly used
- Protects consumers
- Insurance rated by states
- "At the time of application"
- If willingly violates Act penalty up to $2,500
4 Copyright ©2025 BRAINBARTER ALL RIGHTS RESERVED
