Missouri Life and Health Insurance Final Exam
Interest and Regulations - Whose interest is being protected by the enactment of "The Replacement of Life Insurance and
Annuities" regulation?
️ Policyowner.
Policy Delivery and Returns - Q applied for life insurance and submitted the initia...
Missouri Life and Health Insurance Final Exam
Interest and Regulations
- Whose interest is being protected by the enactment of "The Replacement of Life Insurance and
Annuities" regulation?
✔️ Policyowner.
Policy Delivery and Returns
- Q applied for life insurance and submitted the initial premium on January 1. The policy was issued
February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy
February 13. How will the insurer handle this situation?
✔️ Policy was returned with the "free look" period; premium will be fully refunded.
Investment Control in Policies
- Which of the following policies is characterized by a flexible premium and death benefit and allows the
policyowner control of the investment aspect of the plan?
✔️ Variable universal life.
Third-Party Ownership
- Which statement regarding third-party ownership of a life insurance policy is true?
✔️ It is used extensively in estate planning as well as business circumstances.
COBRA and Health Coverage
- P is an employee who quits her job and wants to convert her group health coverage to an individual
policy. After the expiration of COBRA laws, which of the following statements is TRUE?
✔️ She DOES need to provide evidence of insurability.
Tax Treatment of Life Insurance Proceeds
- Which of the following statements is CORRECT regarding tax treatment of a lump sum payment paid to
a life insurance policy's primary beneficiary?
✔️ All proceeds are income tax-free in the year they are received.
,Social Security Disability Benefits
- 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?
✔️ 5 months.
Handling Premium Checks
- 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?
✔️ Return to the customer, collect a new check made out to the insurance company, and send the
new check out to the insurance company.
Group Health Plans
- Which of the following statements is correct regarding an employer/employee group health plan?
✔️ Employer receives the master policy and employees receive certificates.
- Which of these is a TRUE statement regarding how Missouri law recognizes an association eligible for
group coverage?
✔️ The association must NOT have been organized for the purpose of obtaining insurance.
Grace Period for A&H Policies
- In Missouri, an A&H policy that is paid on a monthly basis requires a grace period of at LEAST:
✔️ Ten days.
Medicaid Program
- The health insurance program which is administered by each state and funded by both federal and
state governments is called:
✔️ Medicaid.
, Taxation of Dividends
- Which of the following statements about accumulated interest earned on dividends from an insurance
policy is TRUE?
✔️ Taxed as ordinary income.
Misrepresentation
- A producer is circulating incorrect information about the benefits of a policy. This producer may be
found guilty of:
✔️ Misrepresentation.
Time Limit of Certain Defenses
- Under an Individual Health Insurance policy, the Time Limit of Certain Defenses provision states that
nonfraudulent misstatements first become incontestable two years:
✔️ From the date the policy was issued.
Conversion Feature in Group Policies
- What group term life feature permits an individual to depart from the group and continue to be
covered without providing evidence of insurability?
✔️ Conversion.
Long Term Care Riders
- An insured's inability to perform two or more activities of daily living may trigger which type of policy
rider?
✔️ Long term care.
Whole Life Policies
- What statement about whole life policy is true?
✔️ Cash value may be borrowed against.
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