Missouri Life and Health Exam questions with
correct answers
In a Life insurance contract, an insurance company's promise to pay stated benefits
is called the:
a) insuring clause
b) consideration clause
c) entire contract
d) owner's rights ans ✓✓ insuring clause
under which circumstance MUST a health insurer have an expedited grievance
review procedure? ans ✓✓ when the enrollee's life or health is jeapordized
The Consideration clause in a life insurance contract contains what pertinent
information? ans ✓✓ amount of premium payments and when they are due
Long Term Care policies will usually pay for eligible benefits using which of the
following methods?
a) delayed
b) fee for service
c) expense incurred
d) respite ans ✓✓ Expense incurred
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?
ans ✓✓ Benefits are taxable to T
,A statement made by an insured in an insurance application that must be true to the
best of one's knowledge and which becomes a part of the contract is known as
ans ✓✓ a representation
Which long term care insurance statement is true? ans ✓✓ Pre-existing
conditions must be covered after the coverage has been in force for six months
Pre-existing conditions are those for which medical advice or treatment was
recommended by or received from a health provider within 6 months preceding the
effective date of an individual long-term care policy.
which of the following is NOT allowed in regards to the Medigap (Medicare
Supplement) policy? ans ✓✓ Issuing an additional Medigap policy to ensure no
out-of-pocket exposure for the insured
Jasmine is a salaried employee of an insurance company. Which of the following
duties would require her to be licensed as an insurance producer?
a) adjusting claims
b) underwriting insurance applications
c) administrative assistant to the VP of Sales
d) soliciting insurance policies ans ✓✓ Soliciting insurance policies
All of these are characteristics of an Adjustable Life policy EXCEPT
a) adjustable premiums
b)adjustable premium payment period
c) combination of term and whole life insurance
d) face amount can be adjusted using policy dividends ans ✓✓ face amount can
be adjusted using policy dividends
,The Director of Insurance is authorized
a) to enforce state laws relating to insurance
b) to pass state laws relating to insurance
c) to set insurance rates for foreign insurers
d) to set sales quotas ans ✓✓ to enforce state laws relating to insurance
When a group accident and health policy is issued to an employer,
a) a blanket policy is issued to each employee
b) the free-look period is 60 days
c) a policy is issued to the employer and a certificate is issued to each employee
d) a certificate is issued to the employer and a policy is issued to each employee
ans ✓✓ a policy is issued to the employer and a certificate is issued to each
employee
which of the following statements is CORRECT about accelerated death benefits?
ans ✓✓ Must have a terminal illness to qualify.
T is covered by an Accidental Death and Dismemberment (AD&D) policy that has
an irrevocable beneficiary. What action will the insurance company take if T
requests a change of beneficiary? ans ✓✓ Request of the change will be refused
which of these statements is INCORRECT regarding the federal income tax
treatment of life insurance
-Premiums are normally not tax deductible
-Cash dividends are normally not taxed
-Entire cash surrender value is taxable
-Proceeds are received tax-free if there is a named beneficiary ans ✓✓ Entire
cash surrender value is taxable
, A producer is circulating incorrect information about the benefits of a policy. This
producer may be found guilty of
a) misrepresentation
b) sliding
c) boycotting
d) coercion ans ✓✓ misrepresentation
The first portion of a covered Major Medical insurance expense that the insured is
required to pay is called the:
a) corridor deductible
b) initial deductible
c) stop-loss deductible
d) coinsurance deductible ans ✓✓ initial deductible
Any changes made on an insurance application requires the initials of whom? ans
✓✓ Applicant
A policy of adhesion can only be modified by whom? ans ✓✓ The insurance
company
Which of the following health policy provisions states that the producer does NOT
have the authority to change the policy or waive any of its provisions?
a) Time Limit on Certain Defenses
b) Reinstatement
c) Entire Contract
d) Change of Beneficiary ans ✓✓ Entire Contract
correct answers
In a Life insurance contract, an insurance company's promise to pay stated benefits
is called the:
a) insuring clause
b) consideration clause
c) entire contract
d) owner's rights ans ✓✓ insuring clause
under which circumstance MUST a health insurer have an expedited grievance
review procedure? ans ✓✓ when the enrollee's life or health is jeapordized
The Consideration clause in a life insurance contract contains what pertinent
information? ans ✓✓ amount of premium payments and when they are due
Long Term Care policies will usually pay for eligible benefits using which of the
following methods?
a) delayed
b) fee for service
c) expense incurred
d) respite ans ✓✓ Expense incurred
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?
ans ✓✓ Benefits are taxable to T
,A statement made by an insured in an insurance application that must be true to the
best of one's knowledge and which becomes a part of the contract is known as
ans ✓✓ a representation
Which long term care insurance statement is true? ans ✓✓ Pre-existing
conditions must be covered after the coverage has been in force for six months
Pre-existing conditions are those for which medical advice or treatment was
recommended by or received from a health provider within 6 months preceding the
effective date of an individual long-term care policy.
which of the following is NOT allowed in regards to the Medigap (Medicare
Supplement) policy? ans ✓✓ Issuing an additional Medigap policy to ensure no
out-of-pocket exposure for the insured
Jasmine is a salaried employee of an insurance company. Which of the following
duties would require her to be licensed as an insurance producer?
a) adjusting claims
b) underwriting insurance applications
c) administrative assistant to the VP of Sales
d) soliciting insurance policies ans ✓✓ Soliciting insurance policies
All of these are characteristics of an Adjustable Life policy EXCEPT
a) adjustable premiums
b)adjustable premium payment period
c) combination of term and whole life insurance
d) face amount can be adjusted using policy dividends ans ✓✓ face amount can
be adjusted using policy dividends
,The Director of Insurance is authorized
a) to enforce state laws relating to insurance
b) to pass state laws relating to insurance
c) to set insurance rates for foreign insurers
d) to set sales quotas ans ✓✓ to enforce state laws relating to insurance
When a group accident and health policy is issued to an employer,
a) a blanket policy is issued to each employee
b) the free-look period is 60 days
c) a policy is issued to the employer and a certificate is issued to each employee
d) a certificate is issued to the employer and a policy is issued to each employee
ans ✓✓ a policy is issued to the employer and a certificate is issued to each
employee
which of the following statements is CORRECT about accelerated death benefits?
ans ✓✓ Must have a terminal illness to qualify.
T is covered by an Accidental Death and Dismemberment (AD&D) policy that has
an irrevocable beneficiary. What action will the insurance company take if T
requests a change of beneficiary? ans ✓✓ Request of the change will be refused
which of these statements is INCORRECT regarding the federal income tax
treatment of life insurance
-Premiums are normally not tax deductible
-Cash dividends are normally not taxed
-Entire cash surrender value is taxable
-Proceeds are received tax-free if there is a named beneficiary ans ✓✓ Entire
cash surrender value is taxable
, A producer is circulating incorrect information about the benefits of a policy. This
producer may be found guilty of
a) misrepresentation
b) sliding
c) boycotting
d) coercion ans ✓✓ misrepresentation
The first portion of a covered Major Medical insurance expense that the insured is
required to pay is called the:
a) corridor deductible
b) initial deductible
c) stop-loss deductible
d) coinsurance deductible ans ✓✓ initial deductible
Any changes made on an insurance application requires the initials of whom? ans
✓✓ Applicant
A policy of adhesion can only be modified by whom? ans ✓✓ The insurance
company
Which of the following health policy provisions states that the producer does NOT
have the authority to change the policy or waive any of its provisions?
a) Time Limit on Certain Defenses
b) Reinstatement
c) Entire Contract
d) Change of Beneficiary ans ✓✓ Entire Contract
