ONLYSTUDENT STORE 2024/2025 ALL THE BEST
Missouri Life and Health Exam 2024
Questions And 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 - Answer insuring clause
under which circumstance MUST a health insurer have an expedited grievance
review procedure? - Answer when the enrollee's life or health is jeapordized
The Consideration clause in a life insurance contract contains what pertinent
information? - Answer 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 - Answer 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? - Answer
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 -
Answer a representation
Which long term care insurance statement is true? - Answer 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? - Answer 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 - Answer Soliciting insurance policies
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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 - Answer 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 - Answer 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 -
Answer 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? -
Answer 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? - Answer 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 - Answer 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 - Answer 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 - Answer initial deductible
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Any changes made on an insurance application requires the initials of whom? -
Answer Applicant
A policy of adhesion can only be modified by whom? - Answer 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 - Answer Entire Contract
all of the following are considered to be typical characteristics describing the nature
of an insurance contract, EXCEPT:
Unilateral
Bilateral
aleatory
adhesion - Answer Bilateral
The Accidental Death and Dismemberment (AD&D) provision in a life insurance
policy would pay additional benefits if the insured:
a) dies of natural causes
b) becomes critically ill
c) becomes chronically ill
d) is blinded in an accident - Answer is blinded in an accident
Which health policy clause stipulates that an insured company must attach a copy of
the application to the policy to ensure that it is part of the contract?
a) consideration
b) Entire Contract
c) Free-look
d) Insuring - Answer Entire Contract
Coverage for human leukocyte antigen testing for bone marrow transplantation is
REQUIRED to be provided in all
a) Long-term care policies
b) Short-term disability policies
c) Cancer policies
d) Group comprehensive health policies - Answer Group comprehensive health
policies
The phrase "This policy will only pay for a semi-private room" is an example of a(n):
a) maximum policy limit
b) internal limit
c) stop loss
d) participation percentage - Answer internal limit
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and
Dismemberment policy insuring their father. Their mother was named contingent
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beneficiary. Five years later, S dies of natural causes and the father is killed in a
scuba accident shortly afterwards. How much of the death benefit will the mother
receive?
a) $1,000,000
b) $500,000
c) $250,000
d) $0 - Answer $0
A comprehensive major medical health insurance policy contains an Eligible
Expenses provision which identifies the types of health care services that are
covered. All of the following health care services are typically covered, EXCEPT for:
- Answer experimental and investigative services
an insured recently took out a cancer insurance policy. The time limit on certain
defenses provision in this policy allows the insurer - Answer to deny the amount of a
claim for misstatements on the application occurring prior to the expiration of the first
two policy years
Which type of renewability best describes a Disability Income policy that covers an
individual until the age of 65, but the insurer has the right to change the premium
rate? - Answer Guaranteed renewable
Periodic health claim payments MUST be made at least:
a) monthly
b) weekly
c) daily
d) annually - Answer monthly
If a retiree on Medicare required five hospital stays in one year, which policy would
provide the best insurance for excess hospital expenses? - Answer Medicare
supplement
Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies?
a) beneficiary
b) insured
c) policyowner
d) insured - Answer policyowner
P is a forty year old woman and would like to purchase an annuity that will provide a
lifetime income stream beginning at age sixty. Which of the following did she NOT
buy?
a) a straight life deffered annuity
b) a straight life annuity
c) an immediate annuity
d) a deferred annuity - Answer an immediate annuity
Many small business owners worry how their business would survive financially if the
owner becomes disabled. The policy which BEST addresses this concern is:
a) Business Overhead Expense
b) Disability Income
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Missouri Life and Health Exam 2024
Questions And 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 - Answer insuring clause
under which circumstance MUST a health insurer have an expedited grievance
review procedure? - Answer when the enrollee's life or health is jeapordized
The Consideration clause in a life insurance contract contains what pertinent
information? - Answer 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 - Answer 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? - Answer
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 -
Answer a representation
Which long term care insurance statement is true? - Answer 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? - Answer 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 - Answer Soliciting insurance policies
ONLYSTUDENT STORE 1 DO NOT COPY
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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 - Answer 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 - Answer 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 -
Answer 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? -
Answer 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? - Answer 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 - Answer 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 - Answer 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 - Answer initial deductible
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Any changes made on an insurance application requires the initials of whom? -
Answer Applicant
A policy of adhesion can only be modified by whom? - Answer 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 - Answer Entire Contract
all of the following are considered to be typical characteristics describing the nature
of an insurance contract, EXCEPT:
Unilateral
Bilateral
aleatory
adhesion - Answer Bilateral
The Accidental Death and Dismemberment (AD&D) provision in a life insurance
policy would pay additional benefits if the insured:
a) dies of natural causes
b) becomes critically ill
c) becomes chronically ill
d) is blinded in an accident - Answer is blinded in an accident
Which health policy clause stipulates that an insured company must attach a copy of
the application to the policy to ensure that it is part of the contract?
a) consideration
b) Entire Contract
c) Free-look
d) Insuring - Answer Entire Contract
Coverage for human leukocyte antigen testing for bone marrow transplantation is
REQUIRED to be provided in all
a) Long-term care policies
b) Short-term disability policies
c) Cancer policies
d) Group comprehensive health policies - Answer Group comprehensive health
policies
The phrase "This policy will only pay for a semi-private room" is an example of a(n):
a) maximum policy limit
b) internal limit
c) stop loss
d) participation percentage - Answer internal limit
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and
Dismemberment policy insuring their father. Their mother was named contingent
ONLYSTUDENT STORE 3 DO NOT COPY
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beneficiary. Five years later, S dies of natural causes and the father is killed in a
scuba accident shortly afterwards. How much of the death benefit will the mother
receive?
a) $1,000,000
b) $500,000
c) $250,000
d) $0 - Answer $0
A comprehensive major medical health insurance policy contains an Eligible
Expenses provision which identifies the types of health care services that are
covered. All of the following health care services are typically covered, EXCEPT for:
- Answer experimental and investigative services
an insured recently took out a cancer insurance policy. The time limit on certain
defenses provision in this policy allows the insurer - Answer to deny the amount of a
claim for misstatements on the application occurring prior to the expiration of the first
two policy years
Which type of renewability best describes a Disability Income policy that covers an
individual until the age of 65, but the insurer has the right to change the premium
rate? - Answer Guaranteed renewable
Periodic health claim payments MUST be made at least:
a) monthly
b) weekly
c) daily
d) annually - Answer monthly
If a retiree on Medicare required five hospital stays in one year, which policy would
provide the best insurance for excess hospital expenses? - Answer Medicare
supplement
Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies?
a) beneficiary
b) insured
c) policyowner
d) insured - Answer policyowner
P is a forty year old woman and would like to purchase an annuity that will provide a
lifetime income stream beginning at age sixty. Which of the following did she NOT
buy?
a) a straight life deffered annuity
b) a straight life annuity
c) an immediate annuity
d) a deferred annuity - Answer an immediate annuity
Many small business owners worry how their business would survive financially if the
owner becomes disabled. The policy which BEST addresses this concern is:
a) Business Overhead Expense
b) Disability Income
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