MISSOURI LIFE & HEALTH INSURANCE REAL EXAM AND STUDY GUIDE 170 QUESTIONS AND CORRECT ANSWERS LATEST VERSION//ALREADY GRADED A+
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MISSOURI LIFE & HEALTH INSURANCE REAL
Institution
MISSOURI LIFE & HEALTH INSURANCE REAL
MISSOURI LIFE & HEALTH INSURANCE REAL EXAM
AND STUDY GUIDE 170 QUESTIONS AND CORRECT
ANSWERS LATEST VERSION//ALREADY
GRADED A+
MISSOURI LIFE & HEALTH INSURANCE REAL EXAM
AND STUDY GUIDE 170 QUESTIONS AND CORRECT
ANSWERS LATEST VERSION//ALREADY
GRADED A+
MISSOURI LIFE & HEALTH INSURANCE REAL EXAM
AND STUDY GUIDE 170 QUESTIONS AND CORRECT
ANSWERS 2024-2025 LATEST VERSION//ALREADY
GRADED A+
What is the maximum period of time during which an insurer may contest fraudulent misstatements
made in a health insurance application?
A: 90 days after the effective policy date
B: 6 months after the effective policy date
C: 1 year after the effective policy date
D: As long as the policy is in force - CORRECT ANSWER-D
L has a major medical policy with a $500 deductible and 80/20 coinsurance. L is hospitalized and sustains
a $2,500 loss. What is the maximum amount that L will have to pay?
A: $1,000 (deductible + 20% of the entire bill)
B: $2,500 (the entire bill)
C: $900 (deductible + 20% of the bill after the deductible [20% of $2,000])
D: $500 (amount of deductible) - CORRECT ANSWER-C
With respect to the consideration clause, which of the following is a consideration on the part of the
insurer?
A: Promising to pay in accordance with the contract terms
B: Offering a secondary policy to the applicant
C: Offering an unconditional contract
D: Explaining policy revisions to the applicant - CORRECT ANSWER-A
A business owner was trying to obtain a bank loan to fund the purchase of a new business facility, but
the bank required proof of additional assets to secure the loan. The business owner then decided to use
her $250,000 life insurance policy to secure the loan. Which provision makes this possible?
A: Collateral assignment
,B: Insurable interest
C: Modification clause
D: Ownership provision - CORRECT ANSWER-A
The premium charged for exercising the guaranteed insurability rider is based on the insureds
A: Attained age
B: Assumed age
C:Average age
D: Issue age - CORRECT ANSWER-A
Which provision concerns the insured's duty to provide the insurer with reasonable notice in the event
of a loss?
A: Claims initiation
B: Consideration
C: Notice of claim
D: Loss notification - CORRECT ANSWER-C
Which of the following premium modes would result in the highest annual cost for an insurance policy?
A: Monthly
B: Quarterly
C: Semi-annual
D: Annual - CORRECT ANSWER-A
All of the following are true regarding insurance policy loans EXCEPT
A: Policy loans can be made on policies that do not accumulate cash value
B: The amount of the outstanding loan and interest will be deducted from the policy proceeds when the
insured dies.
C: The policy will terminate if the loan plus interest equals or exceeds the cash value of the policy.
D: Policy owners can borrow up to the full amount of their whole life policy's cash value. - CORRECT
ANSWER-A
,A policy with a 31-day grace period implies
A: The policy benefits must be paid within 31 days after a claim is submitted.
B: The policy will not lapse for 31 days if the premium is not paid when due.
C: The policyholder may return the policy for a full refund within 31 days.
D: The policy is incontestable after 31 days of delivery. - CORRECT ANSWER-B
Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis
are classified as
A: Aleatory contracts
B: Binding contracts
C: Contracts of adhesion
D: Unilateral contracts - CORRECT ANSWER-C
Which of the following statements is most correct concerning the changing of an irrevocable
beneficiary?
A: The may be changed only on the anniversary date of the policy.
B: They can be changed only with the written consent of that beneficiary.
C: They may be changed at any time.
D: They can never be changed. - CORRECT ANSWER-B
Social security was created to provide all of the following benefits EXCEPT
A: Disability income
B: Retirement income
C: Unemployment income
D: Survivor's benefits - CORRECT ANSWER-C
Which of the following allows the insurer to relieve a minor insured from premium payments if the
minor's parents have died or become disabled?
A: Waiver of premium
, B: Payor benefit
C: Jumping juvenile
D: Juvenile premium provision - CORRECT ANSWER-B
Which is NOT true about beneficiary designations?
A: The policy does not have to have a beneficiary named in order to be valid.
B: Trusts can be valid beneficiaries.
C: The beneficiary must have an insurable interest in the insured.
D: The beneficiary may be a natural person. - CORRECT ANSWER-C
The president of a manufacturing company has offered one of the company's officers a special individual
annuity plan that is unavailable to lower-echelon employees. This plan would be funded with before-tax
corporate dollars, and it does not meet government approval standards. This annuity plan is
A: Subject to government standards
B: Illegal
C: A non-qualified annuity plan
D: An executive annuity plan - CORRECT ANSWER-C
All of the following are true regarding key employee disability income insurance EXCEPT
A: Premiums are not tax deductible for the employer.
B: Benefits are taxable to the employer.
C: The employer owns the policy.
D: Benefits are paid to the employer to retrain a new person. - CORRECT ANSWER-B
The minimum interest rate on an equity-indexed annuity is often based on
A: The annuitant's individual stock portfolio.
B: The insurance company's general account investments.
C: An index like the standard and poor's 500.
D: The returns from the insurance company's separate account. - CORRECT ANSWER-C
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