MISSOURI LIFE & HEALTH INSURANCE EXAMFX #1 100% Accurate!!

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 - 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) - 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 - 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 - ANSWER A The premium charged for exercisin