MISSOURI LIFE AND HEALTH INSURANCE EXAM SCRIPT 2025/2026
QUESTIONS WITH SOLUTION GRADED A+
✔✔Fair Credit Reporting Act - ✔✔- 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
✔✔Consumer report - ✔✔- Written and/or oral information regarding a consumers
credit, character, habits collected by a reporting agency from employment records,
credit reports, and other public sources
✔✔Investigative consumer reports - ✔✔- Visit with neighbors/employers
- insured or reporting agency has 5 days to provider the consumer with additional
informtion
✔✔Medical Information Bureau (MIB) - ✔✔- Insurance company looks at
- Nonprofit trade organization which received medical info from insurance companies
and maintains confidential medical information
- "Rated or declined"
- "Glucose tolerance test"
- No privacy
✔✔Attending Physicians Statement (APS) - ✔✔- From a medical practitioner who
treated the applicant for prior medical problem
✔✔"Insurance company will do all of the following except" - ✔✔- Inform MIB
✔✔HIV testing - ✔✔- Cannot test without permission and written consent
- Common among insurers to require HIV test when an applicant is applying for a large
amount of coverage
✔✔Health Insurance Probability and Accountability Act (HIPPA) - ✔✔- Federal law that
protects health information
✔✔Privacy Rule - ✔✔- Have a right to view their own medical records
- Have the right to see who accessed them over previous 6 years
✔✔Preferred risk - ✔✔- lower premiums than standard risk
- "Skinny, non smokers"
✔✔Standard risk - ✔✔- Majority of people at their age and similar lifestyles
- Average risk
,✔✔Substandard (High Exposure) risk - ✔✔- Not accepted at standard risk
- Poor physical condition, personal history of disease or dangerous habits
- "Premium rated-up" resulting in higher premiums
✔✔Declined risk - ✔✔- Applicants who are rejected
- "There is no insurable interest"
- "The applicant is medically unacceptable"
✔✔Delivering the policy - ✔✔- When the insurer mails the policy to the policy owner it is
considered legally delivered
- Advised to obtain a delivery receipt
- "Policy delivered when we received it"
✔✔Buyer's guide - ✔✔- Provides basic, generic information about life insurance
policies, language approved by the Department of Insurance
✔✔Policy summary - ✔✔- Written statement describing the features and elements of
the policy being issued
- Includes premium, cash value, dividend, surrender value and death benefits for
specific policy years
✔✔Illustration - ✔✔- A presentation that includes non guaranteed elements of a policy
of individual or group life insurance
✔✔Delivering the policy test Q: "All of the following except" - ✔✔- Illustration
✔✔When coverage begins - ✔✔- The policy does not go into effect until the premium is
paid
- If the initial premium is not paid with the application the agent will be required to collect
the premium at the time of delivery
✔✔Statement of good health - ✔✔- Must be signed by the insured
- Verifies that the insured has not suffered injury or illness since the application date
- "If there is no money then no coverage, must have a statement of good health"
✔✔USA patriot act - ✔✔- Fight and prevent terrorist activities
- 9/11 initiated it
- Patriot act must be more than $10,000
✔✔Term Insurance - ✔✔- Also known as pure life/whole life insurance
- Temporary protection for a specific period of time
- Greatest amount of coverage for the lowest premiums compared to other forms of
protection
, ✔✔Term insurance provisions - ✔✔- If the insured dies during this term, the policy pays
the death benefit to beneficiary
- Nothing is payable if policy is cancelled or expires prior to insured death
- No cash value
✔✔3 types of term coverage - ✔✔- Level
- Increasing
- Decreasing
- The premium is level throughout the term of the policy
- Only the death benefit may fluctuate
✔✔Level term insurance - ✔✔- Most common type of temporary protection
- Level refers to death benefits that does not change throughout life of policy
✔✔Level premium term - ✔✔- Level premium and death benefit during the policy term
✔✔Annually Renewable Term - ✔✔- Purest form of term insurance
- Death benefits remain level
- Guaranteed renewable each year without proof of insurability
- Premium increases annually according to age
✔✔Decreasing term - ✔✔- Death benefit decreases each year over the duration of the
policy
- Purchased to insure the payment of a morgage or other debts if the dies prematurly
- Level premium
✔✔Return or premium - ✔✔- Premium is paid if the death occurs within a specified
period of time or the insured outlives the policy term
- In increasing term policy that pays an additional death benefit to the beneficiary equal
to the amount of premiums paid
✔✔What authorities regulate variable life policies? - ✔✔" Regulated by state and federal
government"
✔✔Renewable policy - ✔✔- Policyowner has the right to renew the coverage at the
experation date without evidence of insurability
- Have to do no matter your health
✔✔Convertible policy - ✔✔- Policyowner has the right to convert the policy to a
permanent insurance policy without evidence of insurability
- Can convert from term to whole life
✔✔Permanent whole life - ✔✔- Build cash value and remain in effect for the entire life of
the insured (or until age 100)
- Most common type is whole life
QUESTIONS WITH SOLUTION GRADED A+
✔✔Fair Credit Reporting Act - ✔✔- 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
✔✔Consumer report - ✔✔- Written and/or oral information regarding a consumers
credit, character, habits collected by a reporting agency from employment records,
credit reports, and other public sources
✔✔Investigative consumer reports - ✔✔- Visit with neighbors/employers
- insured or reporting agency has 5 days to provider the consumer with additional
informtion
✔✔Medical Information Bureau (MIB) - ✔✔- Insurance company looks at
- Nonprofit trade organization which received medical info from insurance companies
and maintains confidential medical information
- "Rated or declined"
- "Glucose tolerance test"
- No privacy
✔✔Attending Physicians Statement (APS) - ✔✔- From a medical practitioner who
treated the applicant for prior medical problem
✔✔"Insurance company will do all of the following except" - ✔✔- Inform MIB
✔✔HIV testing - ✔✔- Cannot test without permission and written consent
- Common among insurers to require HIV test when an applicant is applying for a large
amount of coverage
✔✔Health Insurance Probability and Accountability Act (HIPPA) - ✔✔- Federal law that
protects health information
✔✔Privacy Rule - ✔✔- Have a right to view their own medical records
- Have the right to see who accessed them over previous 6 years
✔✔Preferred risk - ✔✔- lower premiums than standard risk
- "Skinny, non smokers"
✔✔Standard risk - ✔✔- Majority of people at their age and similar lifestyles
- Average risk
,✔✔Substandard (High Exposure) risk - ✔✔- Not accepted at standard risk
- Poor physical condition, personal history of disease or dangerous habits
- "Premium rated-up" resulting in higher premiums
✔✔Declined risk - ✔✔- Applicants who are rejected
- "There is no insurable interest"
- "The applicant is medically unacceptable"
✔✔Delivering the policy - ✔✔- When the insurer mails the policy to the policy owner it is
considered legally delivered
- Advised to obtain a delivery receipt
- "Policy delivered when we received it"
✔✔Buyer's guide - ✔✔- Provides basic, generic information about life insurance
policies, language approved by the Department of Insurance
✔✔Policy summary - ✔✔- Written statement describing the features and elements of
the policy being issued
- Includes premium, cash value, dividend, surrender value and death benefits for
specific policy years
✔✔Illustration - ✔✔- A presentation that includes non guaranteed elements of a policy
of individual or group life insurance
✔✔Delivering the policy test Q: "All of the following except" - ✔✔- Illustration
✔✔When coverage begins - ✔✔- The policy does not go into effect until the premium is
paid
- If the initial premium is not paid with the application the agent will be required to collect
the premium at the time of delivery
✔✔Statement of good health - ✔✔- Must be signed by the insured
- Verifies that the insured has not suffered injury or illness since the application date
- "If there is no money then no coverage, must have a statement of good health"
✔✔USA patriot act - ✔✔- Fight and prevent terrorist activities
- 9/11 initiated it
- Patriot act must be more than $10,000
✔✔Term Insurance - ✔✔- Also known as pure life/whole life insurance
- Temporary protection for a specific period of time
- Greatest amount of coverage for the lowest premiums compared to other forms of
protection
, ✔✔Term insurance provisions - ✔✔- If the insured dies during this term, the policy pays
the death benefit to beneficiary
- Nothing is payable if policy is cancelled or expires prior to insured death
- No cash value
✔✔3 types of term coverage - ✔✔- Level
- Increasing
- Decreasing
- The premium is level throughout the term of the policy
- Only the death benefit may fluctuate
✔✔Level term insurance - ✔✔- Most common type of temporary protection
- Level refers to death benefits that does not change throughout life of policy
✔✔Level premium term - ✔✔- Level premium and death benefit during the policy term
✔✔Annually Renewable Term - ✔✔- Purest form of term insurance
- Death benefits remain level
- Guaranteed renewable each year without proof of insurability
- Premium increases annually according to age
✔✔Decreasing term - ✔✔- Death benefit decreases each year over the duration of the
policy
- Purchased to insure the payment of a morgage or other debts if the dies prematurly
- Level premium
✔✔Return or premium - ✔✔- Premium is paid if the death occurs within a specified
period of time or the insured outlives the policy term
- In increasing term policy that pays an additional death benefit to the beneficiary equal
to the amount of premiums paid
✔✔What authorities regulate variable life policies? - ✔✔" Regulated by state and federal
government"
✔✔Renewable policy - ✔✔- Policyowner has the right to renew the coverage at the
experation date without evidence of insurability
- Have to do no matter your health
✔✔Convertible policy - ✔✔- Policyowner has the right to convert the policy to a
permanent insurance policy without evidence of insurability
- Can convert from term to whole life
✔✔Permanent whole life - ✔✔- Build cash value and remain in effect for the entire life of
the insured (or until age 100)
- Most common type is whole life
