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Missouri Life and Health Insurance State Exam
Simulator- 200+ questions
_________ can be defined as "making an unfair comparison of two
insurance policies". - . . ANSWER ✓✓ misrepresentation
_________ can be defined as "making an unfair comparison of two
insurance policies". - . . ANSWER ✓✓ misrepresentation
A 55 year old recently received a $30,000 distribution from a
previous employer's 401k plan, minus $6,000 withholding. Which
federal taxes apply if none of the funds were rolled over? - . .
ANSWER ✓✓ Income taxes plus a 10% penalty tax on $30,000
A 66 year-old is covered under a group health plan while
employed with a business that has 40 employees. If she injures
herself while walking in the park, what coverage would be
considered primary? - . . ANSWER ✓✓ her group health plan
A business overhead expense - . . ANSWER ✓✓ covers business
expenses such as rent and utilities
A Business Overhead Expense policy: - . . ANSWER ✓✓ covers
business expenses such as rent and utilities
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A CEO's personal assistant suffered injuries at home and as a
result, was unable to work for four months. Which type of policy
will pay a monthly benefit to the personal assistant? - . .
ANSWER ✓✓ disability income
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: - . . ANSWER
✓✓ experimental and investigative services
A Disability Income policyowner recently submitted a claim for a
chronic neck problem that has now resulted in total disability.
The original neck injury occurred before the application was
taken 5 years prior. The neck injury was never disclosed to the
insurer at the time of application. How will the insurer handle
this claim? - . . ANSWER ✓✓ claim will be paid and coverage will
remain in force
A group life insurance policy can be converted to an individual
whole life policy under which circumstance? - . . ANSWER ✓✓
employment termination
A group life insurance policy insured may assign up to _____ of
the insured's coverage. - . . ANSWER ✓✓ 100%
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A Health Reimbursement Arrangement MUST be established: - . .
ANSWER ✓✓ by the employer
A Key Employee policy is taken out by Company X on its vice
president. Ten years later, this employee leaves Company X and
begins working for Company Y. If this individual were to die and
the policy is still in force and unchanged, where would the death
proceeds be directed? - . . ANSWER ✓✓ company x
A licensee must complete ___ hours of continuing education
every two years. - . . ANSWER ✓✓ 16
A life insurance application must be signed by all of these,
EXCEPT: - . . ANSWER ✓✓ beneficiary
A life insurance policy would be considered a wagering contract
WITHOUT: - . . ANSWER ✓✓ insurable interest
A Limited-Pay Life policy has: - . . ANSWER ✓✓ premium
payments limited to a specified number of years
A long-term care rider in a life insurance policy pays a daily
benefit in the event of which of the following? - . . ANSWER ✓✓
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Inability of the insured to perform more than 2 Activities of Daily
Living (ADL's)
A medical care provider which typically delivers health services
at its own local medical facility is known as a: - . . ANSWER ✓✓
HMO (Health Maintenance Organization)
A physician opens up a new practice and qualifies for a
$7,000/month Disability Income policy. What rider would the
physician add if he wants the ability to increase his policy benefit
as his practice and income grow? - . . ANSWER ✓✓ Guaranteed
insurability option rider
A policy of adhesion can only be modified by whom? - . .
ANSWER ✓✓ insurance company
A potential client, age 40, would like to purchase a Whole Life
policy that will accumulate cash value at a faster rate in the early
years of the policy. Which of these statements made by the
producer would be correct? - . . ANSWER ✓✓ 20-Pay Life
accumulates cash value faster than Straight Life
A primary beneficiary has died before the insured in a life
insurance policy. A contingent beneficiary is also named in the
policy. Which of the following will occur when the insured dies? -
. . ANSWER ✓✓ Proceeds will go to the contingent beneficiary
Missouri Life and Health Insurance State Exam
Simulator- 200+ questions
_________ can be defined as "making an unfair comparison of two
insurance policies". - . . ANSWER ✓✓ misrepresentation
_________ can be defined as "making an unfair comparison of two
insurance policies". - . . ANSWER ✓✓ misrepresentation
A 55 year old recently received a $30,000 distribution from a
previous employer's 401k plan, minus $6,000 withholding. Which
federal taxes apply if none of the funds were rolled over? - . .
ANSWER ✓✓ Income taxes plus a 10% penalty tax on $30,000
A 66 year-old is covered under a group health plan while
employed with a business that has 40 employees. If she injures
herself while walking in the park, what coverage would be
considered primary? - . . ANSWER ✓✓ her group health plan
A business overhead expense - . . ANSWER ✓✓ covers business
expenses such as rent and utilities
A Business Overhead Expense policy: - . . ANSWER ✓✓ covers
business expenses such as rent and utilities
,2|Page
A CEO's personal assistant suffered injuries at home and as a
result, was unable to work for four months. Which type of policy
will pay a monthly benefit to the personal assistant? - . .
ANSWER ✓✓ disability income
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: - . . ANSWER
✓✓ experimental and investigative services
A Disability Income policyowner recently submitted a claim for a
chronic neck problem that has now resulted in total disability.
The original neck injury occurred before the application was
taken 5 years prior. The neck injury was never disclosed to the
insurer at the time of application. How will the insurer handle
this claim? - . . ANSWER ✓✓ claim will be paid and coverage will
remain in force
A group life insurance policy can be converted to an individual
whole life policy under which circumstance? - . . ANSWER ✓✓
employment termination
A group life insurance policy insured may assign up to _____ of
the insured's coverage. - . . ANSWER ✓✓ 100%
,3|Page
A Health Reimbursement Arrangement MUST be established: - . .
ANSWER ✓✓ by the employer
A Key Employee policy is taken out by Company X on its vice
president. Ten years later, this employee leaves Company X and
begins working for Company Y. If this individual were to die and
the policy is still in force and unchanged, where would the death
proceeds be directed? - . . ANSWER ✓✓ company x
A licensee must complete ___ hours of continuing education
every two years. - . . ANSWER ✓✓ 16
A life insurance application must be signed by all of these,
EXCEPT: - . . ANSWER ✓✓ beneficiary
A life insurance policy would be considered a wagering contract
WITHOUT: - . . ANSWER ✓✓ insurable interest
A Limited-Pay Life policy has: - . . ANSWER ✓✓ premium
payments limited to a specified number of years
A long-term care rider in a life insurance policy pays a daily
benefit in the event of which of the following? - . . ANSWER ✓✓
, 4|Page
Inability of the insured to perform more than 2 Activities of Daily
Living (ADL's)
A medical care provider which typically delivers health services
at its own local medical facility is known as a: - . . ANSWER ✓✓
HMO (Health Maintenance Organization)
A physician opens up a new practice and qualifies for a
$7,000/month Disability Income policy. What rider would the
physician add if he wants the ability to increase his policy benefit
as his practice and income grow? - . . ANSWER ✓✓ Guaranteed
insurability option rider
A policy of adhesion can only be modified by whom? - . .
ANSWER ✓✓ insurance company
A potential client, age 40, would like to purchase a Whole Life
policy that will accumulate cash value at a faster rate in the early
years of the policy. Which of these statements made by the
producer would be correct? - . . ANSWER ✓✓ 20-Pay Life
accumulates cash value faster than Straight Life
A primary beneficiary has died before the insured in a life
insurance policy. A contingent beneficiary is also named in the
policy. Which of the following will occur when the insured dies? -
. . ANSWER ✓✓ Proceeds will go to the contingent beneficiary
