Missouri State Exam Simulator - 145 Questions Weighted Exam, Exams of Insurance law

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Missouri State Exam Simulator - 145

Questions Weighted Exam, Missouri Life and

Health Insurance State Exam Simulator-

200+ questions with correct answers

Convincing a prospective insured to buy an insurance policy based on exaggerations is called - correct answer-Misrepresentation A nondisabled individual is first eligible for a Medicare Supplement policy at age - correct answer- In a qualified retirement plan, the yearly contributions to an employee's account: - correct answer-are restricted to maximum levels set by the IRS What is the purpose of a Policy Summary? - correct answer-It highlights the critical parts of the policy issued Jasmine is a salaried employee of an insurance company. Which of the following duties would require her to be licensed as an insurance producer? - correct answer-Soliciting insurance policies J's Major Medical policy has a $2,000 deductible and an 80/20 Coinsurance clause. If J is hospitalized and receives a bill for $10,000, J would pay: - correct answer-3, What kind of life insurance product covers children under their parent's policy? - correct answer-Term rider A father who dies within 3 years after purchasing a life insurance policy on his infant daughter can have the policy premiums waived under which provision? - correct answer-Payor Provision A major medical policy typically: - correct answer-provides benefits for reasonable and necessary medical expenses, subject to policy limits

In Major Medical Expense policies, what is the intent of a Stop Loss provision? - correct answer-Limits an insured's out-of-pocket medical expenses What type of life insurance gives the greatest amount of coverage for a limited period of time? - correct answer- Which of these statements concerning an Individual Straight Life annuity is accurate? - correct answer- Payments are made to an annuitant for life Quarterly premium payments increase the annual cost of insurance because - correct answer-interest to the insurer is decreased while the administrative costs are increased Deductibles are used in health policies to lower: - correct answer-overuse of medical services Which statement about a whole life policy is correct? - correct answer-Cash value may be borrowed against When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a(n): - correct answer-Anti-Money Laundering violation The sections of an insurance contract which limit coverage are called: - correct answer-exclusions M is insured under a basic Hospital/Surgical Expense policy. A physician performs surgery on M. What determines the claim M is eligible for? - correct answer-Determined by the terms of the policy The situation in which a group of physicians are salaried employees and conduct business in an HMO facility is called a(n): - correct answer-closed panel With Disability Income insurance, an insurance company may limit the monthly benefit amount a prospective policy holder may obtain because of the insured's: - correct answer-gross income at the time of purchase

The percentage of an individual's Primary Insurance Amount (PIA) determines the benefits paid in which of the following programs? - correct answer-Social Security Disability Income Which statement regarding the Change of Beneficiary provision is true? - correct answer-the policyowner can change the beneficiary An IRA owner can start making withdrawals and NOT be subjected to a tax penalty beginning at what age? - correct answer-59 1/ Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options? - correct answer-Variable Life Which of the following types of policies BEST identifies one in which the cash value may fluctuate to reflect changing assumptions regarding mortality cost, interest, and expense factors? - correct answer- Universal Life A policyowner would like to change the beneficiary on a Life insurance policy and make the change permanent. Which type of designation would fulfill this need? - correct answer-Irrevocable Which of the following services is NOT covered under a hospitalization expense policy? - correct answer- Surgeons Fees A characteristic of Preferred Provider Organizations (PPOs) would be: - correct answer-Discounted Fees for the Patient Life insurance and annuity replacement can be BEST described as - correct answer-exchanging an existing policy for a new policy In Missouri, all health policies must address diabetes coverage in which way? - correct answer-Apply the same deductible and copays to covered diabetic supplies as other medical conditions

The reason for a business having a Business Overhead Expense Disability Plan is to cover: - correct answer-Fixed Business Expenses Health insurance plans that cover physical therapy visits may NOT impose a copay that - correct answer- is greater than the copay for primary care office visits A Renewable Term Policy is renewable at the option of the: - correct answer-Insured Which of the following provisions specifies how long a policyowner's health coverage will remain in effect if the policyowner does not pay the premium when it is due? - correct answer-Grace Period How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy? - correct answer-If the Primary Beneficiary dies before the insured Which of the following would a Medicare Supplement policy cover? - correct answer-Allowable amounts under Medicare Part B Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy? - correct answer-Reimbursment Which type of life policy contains a monthly mortality charge as well as self-directed investment choices?

• correct answer-Variable Universal Life Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies? - correct answer- Policyowner Q is hospitalized for 3 days and receives a bill for $10,100. Q has a Major Medical policy with a $ deductible and 80/20 coinsurance. How much will Q be responsible for paying on this claim? - correct answer-$2, (Correct.) In this situation, $10,000 x 20% coinsurance + $100 deductible = $2,100.

Which of the following statements BEST defines usual, customary, and reasonable (UCR) charges? - correct answer-The maximum amount considered eligible for reimbursement by an insurance company under a health plan Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first six months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of unequal values reflects which of the following insurance contract features? - correct answer-aleatory Group/voluntary long-term care policy premiums are typically deducted from the employee's income and, - correct answer-Are less costly as compared to individual long term care coverage. A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid: - correct answer-mandatory income tax withholding on the transfer amount Which of the following statements about a Guaranteed Renewable Health Insurance policy is CORRECT?

• correct answer-Premiums normally increase at time of renewal What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time? - correct answer-Decreasing Term Which of these life products is NOT considered interest-sensitive? - correct answer-Modified Whole Life A noncontributory group term life plan is characterized by: - correct answer- When must a producer deliver a Notice Regarding Replacement of Life Insurance? - correct answer-on the day of the application Under which of the following circumstances will the benefits under COBRA continuation coverage end? - correct answer-All group health plans are eliminated by the employer The option that provides an additional death benefit for a limited amount of time at the lowest possible cost is called a(n): - correct answer-AD&D

D was actively serving in the Marines when he was killed in an automobile accident while on leave. His $100,000 Whole life policy contains a War Exclusion clause. How much will D's beneficiary's receive? - correct answer-The full face amount When is a Group Health policy required to provide coverage for a newborn child? - correct answer-at the moment of birth Which statement regarding a Key Employee Life policy is NOT true? - correct answer-The beneficiary is named by the key employee Which of these statements regarding health coverage for physically handicapped dependents is FALSE? - correct answer-have been over ten years of age when the handicap was incurred The Notice of Claims provision requires a policyowner to - correct answer-notify an insurer of a claim within a specified time Which of these statements is INCORRECT regarding a Preferred Provider Organization (PPO)? - correct answer-PPO's are NOT a type of managed care systems T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive? - correct answer-$ Consumer reports requested by an underwriter during the application process of a life insurance policy can be used to determine: - correct answer-probability of making timely premium payments Coverage for human leukocyte antigen testing for bone marrow transplantation is REQUIRED to be provided in all - correct answer-Group comprehensive health insurance If an insurance company issues a Disability Income policy that it cannot cancel or for which it cannot increase premiums, the type of renewability that best desribes this policy is called: - correct answer- noncancellable

J's Major Medical policy has a $2000 deductible and an 80/20 coinsurance clause. If J is hospitalized and receives a bill for $10,000, j would pay - correct answer-3,600 (2k + 20% of thr remaining bill) Life insurance that covers an insured's whole life with level premiums paid over a limited time is called: - correct answer-Limited Pay Life What is the purpose of the Missouri Life and Health Insurance Guaranty Association? - correct answer- Ensures that claims filed against insolvent insurance companies will be paid M's insurance company denied a reinstatement application for her lapsed health insurance policy. The company did not notify M of this denial. How many days from the reinstatement application date does the insurance company have to notify M of the denial before the policy will be automatically placed back in force?? - correct answer-45 days N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life insurance policy with level premiums, permanent protection, and be paid-up at retirement. Which of these should N purchase? - correct answer-30 Pay Life V is insured under an individual Disability Income policy with a 30-day Elimination period. On July 1, he is involved in an accident and temporarily disabled. He returns to work on December 1. How many months of benefit are payable? - correct answer-4 months 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: - correct answer-experimental and investigative services Which type of life policy contains a monthly mortality charge as well as self-directed investment choices?

• correct answer-Variable Universal Life In order to establish a Health Reimbursement Arrangement (HRA), it MUST: - correct answer-Be established with the employer A term life insurance policy matures: - correct answer-upon the insured's death during the term of the policy

Which of the following consists of an offer, acceptance, and consideration? - correct answer-contract On a life insurance policy, who is qualified to change the beneficiary designation? - correct answer- policyowner Prior to a producer's license being revoked, a hearing must be held. Prior to this hearing, the Director of Insurance is REQUIRED to give - correct answer-written notice to the producer Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE? - correct answer- Evidence of insurability is required when the option is exercised Whose interest is being protected by the enactment of "The Replacement of Life Insurance and Annuities" regulation? - correct answer-policyowner All students attending a large university could be covered by: - correct answer-a blanket policy 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? - correct answer-20-Pay Life accumulates cash value faster than Straight Life Once the insurance company receives a notice of claim, they have ___ days to send the claim form. - correct answer- An accident policy will most likely pay a benefit for a(n): - correct answer-off the job accident Which of these is NOT a reason for purchasing life insurance on the life of a minor? - correct answer-If both parents were to die, it would provide death benefits to the child Health coverage for the administration of general anesthesia and hospital charges for dental care MUST be provided to a(n) - correct answer-child under the age of five

When an individual is planning to protect his family with life insurance, one method of doing so is called needs analysis. What exactly does needs analysis involve? - correct answer-Establishes the needs of the individual and his dependents Medicare is intended for all of the following groups, EXCEPT: - correct answer-those enrolled as a full time student What type of life policy covers 2 lives and pays the face amount after the first one dies? - correct answer- Joint Life Policy Which of the following types of policies pays a benefit if the insured goes blind? - correct answer- Accidental Death and Disbursement Which of the following is NOT included in an annuity contract? - correct answer-AD&D Rider Which type of policy is considered to be overfunded, as stated by IRS guidelines? - correct answer- Modified Endowment Contract All of these are considered to be a benefit under Social Security, EXCEPT for: - correct answer- Unemployment Chemical dependency coverage is required in which type of policy? - correct answer-Comprehensive Major Medical To be eligible for Social Security disability benefits, an employee must be unable to perform: - correct answer-any occupation A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the: - correct answer-policy loan provision If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, where are the death proceeds to be directed under the Uniform Simultaneous Death Act?

• correct answer-insured's contingent beneficiary

What provision in a life insurance policy states that the application is considered part of the contract? - correct answer-Entire Contract Provision What percent of personal life insurance premiums is usually deductible for federal income tax purposes?

• correct answer-0% In Missouri, a health insurance policy that is not exempt from state-mandated benefits must cover childhood immunizations and shall not charge any deductible or copayment. The EXCEPTION to this would be - correct answer-HMO's that exclude coverage to subscribers who obtain services by a non- participating provider Which of the following reimburses its insureds for covered medical expenses? - correct answer- Commercial Insurers Under a trustee group life policy, who would be eligible for a certificate of coverage? - correct answer- employee Which of these is NOT relevant when determining the amount of personal life insurance needed? - correct answer-local unemployment rate 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? - correct answer-company x Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q be disabled before being able to apply for Social Security disability benefits? - correct answer-5 months Whole Life insurance policies are contractually guaranteed to provide each of the following, EXCEPT: - correct answer-partial withdrawal features beyond a surrender charge period Which Accident and Health policy provision addresses preexisting conditions? - correct answer-time limit on certain defenses

The Director of Insurance is authorized - correct answer-to enforce state laws relating to insurance A life insurance policy would be considered a wagering contract WITHOUT: - correct answer-insurable interest Which of the following is NOT allowed in regards to a Medigap (Medicare Supplement) policy? - correct answer-Issuing an additional Medigap policy to ensure no out-of-pocket exposure for the insured From what authority derives the requirement that an insurance application contains a disclosure stating that an investigative consumer report may be obtained on an applicant? - correct answer-Fair Credit Reporting Act Pre-Hospitalization authorization is considered an example of - correct answer-Managed Care Medicare Part C is - correct answer-Available to those who are enrolled in Medicare Part A and Part B A provision in a life insurance policy that pays the policy owner an amount that does not surpass the guaranteed cash value is called the - correct answer-Policy loan provision XYZ Company pays the entire premium for its group health plan. The MINIMUM percentage of eligible employees that must be covered is - correct answer-100% If the sale of a Medicare Supplement involves replacement, all of these actions must be performed by the producer EXCEPT - correct answer-Notify the replaced insurance company Health insurance coverage of autism spectrum disorder treatments may be limited in which way? - correct answer-Medically necessary treatment in accordance with a treatment plan Rick recently died and left behind an individual IRA account in his name. His widow was forwarded the balance of the IRA. The widow qualifies for the: - correct answer-Marital Deduction

Which of the following medical expenses does Cancer insurance NOT cover? - correct answer-Arthritis Defamation occurs when a producer makes a false statement intended to - correct answer-Malign Another Insurer All of these statements concerning a licensee's responsibility for premiums received are true EXCEPT - correct answer-The licensee must hold them in a separate account before transmitting them to the insurance company Which of these is considered an unfair trade practice? - correct answer-A producer stating that a policy's dividends are guaranteed T is receiving $3,000/month from a Disability Income policy in which T's employer had paid the premiums. How are the $3,000 benefit payments taxable? - correct answer-Benefits are taxable to T T applies for a life insurance policy and is told by the producer that the insurer is bound to the coverage as of the date of the application or medical examination, whichever is later. Assuming that T is an acceptable risk, what item is given to T? - correct answer-Conditional Receipt When does a life insurance contract become effective if the initial premium is not collected during the application process? - correct answer-When producer delivers policy and collects initial premium When an insurance application is taken by a producer, which of these statements is true? - correct answer-Any changes made on the application require the applicant's initials Any changes made on the application require the applicant's initials - correct answer-Insurance Company Which of these statements regarding health coverage for physically handicapped dependents is FALSE? - correct answer-have been over ten years of age when the handicap was incurred After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms? - correct answer-file written proof of loss

Information obtained from a phone conversation to the proposed insured can be found in which of these reports? - correct answer-Inspection Report Health insurance plans that cover physical therapy visits may NOT impose a copay that - correct answer- is greater than the copay for primary care office visits All of these statements concerning Settlement Options are true, EXCEPT: - correct answer-Only the Beneficiary may select How are surrender charges deducted in a life policy with a rear-end loaded provision? - correct answer- Deducted when the policy is discontinued Disability policies do NOT normally pay for disabilities arising from which of the following? - correct answer-War Insureds in the same risk classification are being charged different premiums by an insurance company. This insurer is committing the illegal act of - correct answer-Unfair Discrimination The Legal Actions provision of an insurance contract is designed to do all of the following, EXCEPT: - correct answer-Protect the producer An individual has a Major Medical policy with a $5,000 deductible and an 80/20 Coinsurance clause. How much will the INSURED have to pay if a total of $15,000 in covered medical expenses are incurred? - correct answer-7k (5k + 20% of the remaining bill) All of these insurance products require an agent to have proper FINRA securities registration in order to sell them, EXCEPT for: - correct answer-Modified Whole Life What type of renewability guarantees premium rates and renewability? - correct answer-Non-Cancelable An insurer may exclude pre-existing conditions coverage on a Medicare Supplement policy for up to - correct answer-6 Months

Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take? - correct answer-Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company The premiums paid by an employer for his employee's group life insurance are usually considered to be:

• correct answer-tax deductible to the employer T has an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that if T dies before receiving payments for 20 years, the remaining payments will be paid to his son for the balance of the 20 years. What type of annuity is this? - correct answer-Life annuity with period certain Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy? - correct answer-Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company When applied to Whole Life insurance, the word "straight" denotes: - correct answer-the duration of premium payments When making a recommendation to a consumer to purchase an annuity, the producer must make reasonable efforts to obtain suitability information. Suitability information includes - correct answer-Age, Annual Income, Financial Experience An employee requested that the balance of her 401(k) account be sent directly to her in one lump sum. Upon receipt of the distribution, she immediately has the funds rolled over into an IRA. What is the tax consequence of the distribution sent to this employee? - correct answer-distribution is subject to federal income tax withholding Which of the following would a Medicare Supplement policy cover? - correct answer-Allowable amounts under Medicare Part B

An insured recently took out a cancer insurance policy. The time limit on certain defenses provision in this policy allows the insurer - correct answer-to deny the amount of a claim for misstatements on the application occurring prior to the expiration of the first two policy years The provision that defines to whom the insurer will pay benefits to is called: - correct answer-payment of claims Which entity issues Medicare Supplement insurance? - correct answer-The Insurance Companies G purchased a $50,000 single premium, Straight Life Annuity 2 years ago. G has been receiving monthly payments from the annuity. When G dies, the insurer: - correct answer-Does not have to make any further payments Which licensee faces possible license revocation by the Director of Insurance? - correct answer-Licensee who commingles monies belonging to policyholders with personal funds What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's death? - correct answer-Face Amount plus cash value Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party? - correct answer-Subrogation Company Z has a Cross Purchase Buy-Sell Agreement in place among its three founding partners. If the agreement is funded with individual life insurance, what would it require? - correct answer-Each partner must own a policy on the other partners Why would the Director of Insurance examine the records of an insurance company? - correct answer-To determine the solvency of the company Which unfair trade practice involves making false statements about the financial condition of another insurance company? - correct answer-Defamation

Which rider provides coverage for a child under a parent's life insurance policy? - correct answer-Child Term Rider K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary? - correct answer-20 k death benefit Which of the following situations does a Critical Illness plan cover? - correct answer-Leukemia What type of policy would only provide coverage for specific types of illnesses (cancer, stroke, etc)? - correct answer-Dread Disease Insurance Which of the following organizations would make reimbursement payments directly to the insured individual for covered medical expenditures? - correct answer-Commercial Insurer The suicide provision for life policies would apply to - correct answer-subsequent increases in benefit In a Disability Income policy, which of these clauses acts as a deductible? - correct answer-Elimination Period How many days must the insured wait to take legal action against a health insurer after submitting written proof of loss if the insurer refuses to pay? - correct answer-60 days Which type of plan allows an employer to give money to an employee for buying a life insurance policy and also permits the employee to select the beneficiary? - correct answer-Split-Dollar Plan Taking receipt of premiums and holding them for the insurance company is an example of: - correct answer-Fiduciary Responsibility A Business Overhead Expense policy: - correct answer-covers business expenses such as rent and utilities Which of the following Dividend options results in taxable income to the policyowner? - correct answer- accumulation at interest

In Missouri, which of the following is considered an Unfair Trade Practice? - correct answer-Coercion What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability? - correct answer-Conversion Which is true concerning a Variable Universal Life policy? - correct answer-Policyowner controls where the investment will go and selects the amount of the premium payment V is insured under an individual Disability Income policy with a 30-day Elimination period. On July 1, he is involved in an accident and temporarily disabled. He returns to work on December 1. How many months of benefit are payable? - correct answer-4 months L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L had understated her age on the application. Under the Misstatement of Age provision, the insurer will: - correct answer-adjust the death benefit to a reduced amount Which statement is true regarding a minor beneficiary? - correct answer-Normally, a guardian is required to be appointed in the Beneficiary clause of the contract Which of the following may NOT be issued after the Director of Insurance finds an insurance code violation committed by a licensee? - correct answer-Warrant for arrest Which of these life products is NOT considered interest-sensitive? - correct answer-Modified Whole Life N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life insurance policy with level premiums, permanent protection, and be paid-up at retirement. Which of these should N purchase? - correct answer-30 pay life Basic Medical Expense insurance - correct answer-has lower benefit limits than Major Medical insurance Which of these individuals may NOT be compensated from an insurance company? - correct answer-a producer not apointed by the company

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?

• correct answer-her group health plan _________ can be defined as "making an unfair comparison of two insurance policies". - correct answer- misrepresentation When can a policyowner change a revocable beneficiary? - correct answer-anytime 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? - correct answer-disability income Which of the following statements BEST defines usual, customary, and reasonable (UCR) charges? - correct answer-The maximum amount considered eligible for reimbursement by an insurance company under a health plan For which of the following expenses does a Basic Hospital policy pay? - correct answer-Hospital Room and Board A long-term care rider in a life insurance policy pays a daily benefit in the event of which of the following? - correct answer-Inability of the insured to perform more than 2 Activities of Daily Living (ADL's) A Whole Life Insurance Policy endows when the: - correct answer-Cash value equals the death benefit All of the following are limited benefit plans, EXCEPT: - correct answer-Life Insurance Policies Which of the following statements BEST describes how a policy that uses the "accidental bodily injury" definition of an accident differs from one that uses the "accidental means" definition? - correct answer- less restrictive

What is issued to each employee of an employer health plan? - correct answer-certificate Which of the following is NOT a required provision in a group life policy? - correct answer-Accidental Death and Disbursment A medical care provider which typically delivers health services at its own local medical facility is known as a: - correct answer-HMO (Health Maintenance Organization) The Coordination of Benefits provision: - correct answer-prevents an insured covered by two health plans from making a profit on a covered loss Which of these types of coverage is best described as a short term medical policy? - correct answer- interim coverage Credit life insurance is typically issued with which of the following types of coverage? - correct answer- Decreasing term Which life insurance rider typically appears on a Juvenile life insurance policy? - correct answer-Payor Benefit Rider M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the beneficiary designation at anytime. What type of beneficiary is his son? - correct answer-Revocable S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits? - correct answer-Full benefits are payable under the Master contract An IRA owner can start making withdrawals and NOT be subjected to a tax penalty beginning at what age? - correct answer-59 1/ Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options? - correct answer-Variable Life

Which of these do NOT constitute policy delivery? - correct answer-Policy issued with a rating Medicare Part B does NOT cover: - correct answer-inpatient hospital services When making a recommendation to a consumer to purchase an annuity, the producer must make reasonable efforts to obtain - correct answer-suitability information The part of a life insurance policy guaranteed to be true is called a(n): - correct answer-warranty 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? - correct answer- Proceeds will go to the contingent beneficiary Under which circumstance could a child be denied enrollment into a health plan in Missouri? - correct answer-The child is not related to and is not adopted by the plan member Which of these actions should a producer take when submitting an insurance application to an insurer? - correct answer-Inform insurer of relevant information not included on the application Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies? - correct answer- Policyowner Which of these is a TRUE statement regarding the regulatory authority of the DIrector? - correct answer- The Director may establish guidelines for continuing education Which Medicare product requires use of specific hospitals and physicians for non-emergency care? - correct answer-Medicare Select What is the primary factor that determines the benefits paid under a disability income policy? - correct answer-wages

Which of these terms accurately defines an underwriter's assessment of information on a life insurance application? - correct answer-Risk Classification Insureds in the same risk classification are being charged different premiums by an insurance company. This insurer is committing the illegal act of - correct answer-Unfair Discrimination Within ___ days after policy delivery, a Medicare Supplement policy can be returned for a 100% premium refund. - correct answer-30 days The insuring clause - correct answer-States the scope and limits of the coverage Which of these actions is taken when a policyowner uses a Life Insurance policy as collateral for a bank loan? - correct answer-collateral assignment Life insurance and annuity replacement can be BEST described as - correct answer-exchanging an existing policy for a new policy Which provision prevents an insurer from changing the terms of the contract with the policyowner by referring to documents not found within the policy itself? - correct answer-entire contract provision Which of these is a TRUE statement regarding how Missouri law recognizes an association eligible for group coverage? - correct answer-The association must NOT have been organized for the purpose of obtaining insurance Which of the following may NOT be issued after the Director of Insurance finds an insurance code violation committed by a licensee? - correct answer-warrant for arrest Which health policy clause stipulates that an insurance company must attach a copy of the application to the policy to ensure that it is part of the contract? - correct answer-Entire Contract P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in

a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to: - correct answer-P only Which of these would be considered a Limited-Pay Life policy? - correct answer-Life Paid-Up at Age 70 P is looking to purchase a life insurance policy that will pay a stated monthly income to his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that 20 year period. What type of policy should P purchase? - correct answer-Family Maintenance policy Which mode of payment is NOT used by health insurance policies? - correct answer-single premium All of the following statements about Major Medical benefits are true, EXCEPT: - correct answer-Benefits have no maximum limit Continuing education (CE) providers must report to the Director a licensee's earned credit hours within - correct answer-30 days of course completion Which of these would NOT be an unfair claims practice? - correct answer-Offering payment of approved claims within 30 days after affirming liability An applicant for a nonresident producer license MUST - correct answer-be a producer in good standing in their home state Which type of provider is known for stressing preventative medical care? - correct answer-Health Maintenance Organizations (HMO's) M purchases a $70,000 Life Insurance Policy with premium payments of $550 a year for the first 5 years. At the beginning of the sixth year, the premium will increase to $800 per year but will remain level thereafter. The face amount will remain at $70,000 throughout the life of the policy. The type of policy that M has purchased is: - correct answer-Modified Premium Life A producer must report any personal felony charges within ___ days of a pre-trial hearing. - correct answer-30 days

The most important factor to consider when determining whether to convert term insurance at the insured's attained age or the insured's original age is: - correct answer-the cost Health insurance policies in Missouri are REQUIRED to contain coverage for human leukocyte antigen testing for bone marrow transplant - correct answer-with each issued health policy A Health Reimbursement Arrangement MUST be established: - correct answer-by the employer Which of these statements describe a Modified Endowment Contract (MEC)? - correct answer-Exceeds the maximum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract On January 8, an applicant filled out an application for a life insurance policy but did not include the initial premium. The insurance company approved the application on January 14 and issued the policy January 15. The producer delivered the policy on January 26 and collected the first premium. When did the coverage become effective? - correct answer-January 26 A producer has influenced an existing policyowner to convert an existing whole life policy to Reduced Paid-up insurance. The producer then sells the policyowner a new universal life policy. This transaction is called a(n): - correct answer-replacement Any state-regulated health insurance plan issued in Missouri MUST - correct answer-cover childhood immunization services Which of the following BEST describes how a Preferred Provider Organization (PPO) is less restrictive than a Health Maintenance Organization (HMO)? - correct answer-more physicians to choose from In Missouri, an A&H policy that is paid on a monthly basis requires a grace period of at LEAST - correct answer-10 days Who signs a "Notice Regarding Replacement" form when an application is taken for a new life insurance policy that replaces an existing one? - correct answer-producer and applicant

An insurance company receives E's application for an individual health policy. E did not complete all of the medical history questions because she could not remember the exact dates. E signed the policy and submitted it to the insurance company anyway. A few weeks later, E suffers a heart attack and is hospitalized without completing the medical history questions and paying the initial premium. E is not insured. Which of the following clauses details the conditions that E did not meet? - correct answer- consideration clause When determining the monthly benefit amount for a Disability Income policy, the factor that limits the amount a prospective insured may purchase is - correct answer-income Long Term Care policies will usually pay for eligible benefits using which of the following methods? - correct answer-Expense Incurred What action can a policyowner take if an application for a bank loan requires collateral? - correct answer- assign policy ownership to the bank A group life insurance policy can be converted to an individual whole life policy under which circumstance? - correct answer-employment termination Which of the following statements is CORRECT about the period in which a Term Policy can be converted? - correct answer-it varies according to the contract An insured is past due on his life insurance premium, but is still within the Grace Period. What will the beneficiary receive if the insured dies during this Grace Period? - correct answer-Full face amount minus any past due premiums J has an Accidental Death and Dismemberment policy with a principal sum of $50,000. While trimming the hedges, J cuts off one of his fingers. What is the MAXIMUM J will receive from his policy? - correct answer-25 k 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 for the overall risk class? - correct answer-Guaranteed Renewable

How long is the typical free look period for Long Term care insurance policies? - correct answer-30 days Which of the following will a Long Term Care plan typically provide benefits for? - correct answer-home health care Many small business owners worry how their business would survive financially if the owner becomes disabled. The policy which BEST addresses this concern is: - correct answer-business overhead expense N is covered by a Term Life policy and does not make the required premium payment which was due August 1. N dies September 15. What action will the insurer take? - correct answer-Claim will be denied J, an Accidental Death and Dismemberment (AD&D) policy holder, dies after injuries sustained in an accident. J's age as stated on the application five years ago was found to be understated by ten years. Which of the following actions will the insurance company take? - correct answer-The insurer will adjust the benefit to what the premiums paid would have purchased at the insured's actual age What is the consideration given by an insurer in the Consideration clause of a life policy? - correct answer-Promise to pay a death benefit to a named beneficiary When an insured receives chiropractic service, the co-payment may NOT exceed ___ of the total cost of providing the service. - correct answer-50% Which of the following services is NOT covered under a hospitalization expense policy? - correct answer- surgeons fees P is self-employed and owns an Individual Disability Income policy. He becomes totally disabled on June 1 and receives $2,000 a month for the next 10 months. How much of this income is subject to federal income tax? - correct answer-$0 Which statement is TRUE regarding a group accident & health policy issued to an employer? - correct answer-The employer receives the policy and each employee is issued a certificate