MO Life Accident and Health Insurance Producer
1. An employee who owns an individual disability income policy is injured in an automobile accident and
files proof of loss with the insurance company. Under the payment of claims provision in the policy, the
company will likely pay the policy be...
1. An employee who owns an individual disability income policy is injured in an automobile accident and
files proof of loss with the insurance company. Under the payment of claims provision in the policy, the
company will likely pay the policy benefits to the:
- A: Insured's employer
- B: Insured's attending physician if the insured has assigned the benefits
- C: Insured's beneficiary
- D: Insured ✔️
2. Which of the following statements is CORRECT about beneficiary designations?
- A: By naming an irrevocable beneficiary, a policy owner forfeits the right to change the beneficiary
✔️
- B: A primary beneficiary may not be a minor
- C: A primary beneficiary and a contingent beneficiary each receive one-half of the proceeds
- D: In group insurance, the employer is the beneficiary for each employee
3. Which of the following statements is CORRECT about Medicare?
- A: It is a medical assistance program
- B: It is a hospital and medical expense insurance program ✔️
- C: It provides benefits to totally disabled persons only
- D: Its part A provides payment for physicians' bills
4. An insured is injured while robbing a bank. If the insured's Accident and Health policy contains an
illegal occupation provision, the policy will pay:
- A: The full benefits
- B: One-half of the policy benefits
- C: A premium refund only
- D: Nothing ✔️
,5. Which of the following statements is CORRECT about an individual disability income policy?
- A: Its benefits are taxable
- B: It is considered to be a reimbursement policy
- C: It often contains an Elimination period ✔️
- D: It has a six-month incontestable clause
6. Which of the following statements is correct about statements a proposed insured makes on a life
insurance application?
- A: They are warranties and are considered to be literally true
- B: They are representations and deemed true to the best of the applicant's knowledge ✔️
- C: The producer is responsible for determining their truth
- D: If untrue, they are deemed an act of concealment and automatically void the policy
7. If an insured fails to pay the premium when due, the insured's health policy will remain in force for a
specified period of time under which of the following provisions?
- A: Grace period ✔️
- B: Waiver of premium
- C: Guaranteed insurability
- D: Entire contract
8. Which of the following statements is CORRECT about benefits provided by a basic hospital and
surgical policy?
- A: They are lower than the actual expenses incurred ✔️
- B: They are subject to large deductibles
- C: They are higher than those provided by major medical policies
- D: They are unlimited
9. On May 14, a prospect completes an application for insurance. The producer collects the initial
premium and issues a conditional receipt. The insurance company determines that the prospect is
,insurable and issues a standard policy on May 26. If the producer delivers the policy to the insured on
June 1, the effective date of coverage is:
- A: May 14
- B: May 24
- C: May 26 ✔️
- D: June 1
10. Which of the following statements is required by Long-Term Care insurers when referring to inflation
protection in qualified Long Term Care policies?
- A: All policies must include inflation protection
- B: It is mandatory for the insurance companies to offer consumers the option of inflation protection
✔️
- C: The insurance companies have the choice if they want to offer inflation protection
- D: The purchaser must request inflation protection after the policy is issued
11. Which of the following sections of an insurance contract limits coverage?
- A: Waiver of premium
- B: Conditions
- C: Exclusions ✔️
- D: Declarations
12. On July 1, a producer accepts an application and the annual premium for a health policy. On July 15,
the insurance company issues the policy, but the producer does not deliver it until August 15. If the
insured decides not to accept the policy and returns it to the producer on August 24, the company will:
- A: Refund the full premium ✔️
- B: Refund the premium minus a prorated amount for the forty days of coverage
- C: Refund six months of the premium
- D: Retain the full premium
, 13. J owns a disability income policy. Before purchasing the policy, J suffered a major back injury that is
specifically for coverage under the policy. The clause in J's policy that EXCLUDES back injury claims is
found in the:
- A: Impairment rider ✔️
- B: Guaranteed insurability rider
- C: Recurrent disability clause
- D: Concurrent disability insurability rider
14. S applies for an individual major medical policy and the insurance company issues a standard policy.
When S receives the policy, S notices that the application is attached to the policy. Which of the
following policy elements makes the application, if attached, part of the contract between S and the
insurance company?
- A: Entire contract provision ✔️
- B: Legal actions provision
- C: Incontestable clause
- D: Insuring clause
15. The time of payment of claims provision requires that an insurance company pay disability income
benefits no less frequently than:
- A: Annually
- B: Semiannually
- C: Quarterly
- D: Monthly ✔️
Which of the following provisions can an insured use to put a policy in force that has lapsed as a result of
non-payment?
A: Reinstatement
B: Legal actions
C: Grace period
D: Time limit on certain defenses
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