Missouri Life and Health Exam Hard Questions - DB

Joint Life Annuity - If a contract provides a set amount of income for two or more persons with the income stopping upon the first death of the insured, it is called a Exclusions. - Items stipulated in the contract that the insurer will not provide coverage for are found in the Ask her to sign a statement of good health - An agent is ready to deliver a policy to an applicant but has not yet received payment. Upon delivery, the agent collects the applicant's premium check, answers any questions the applicant may have, and then leaves. What did he forget to do? It transfers rights of ownership from the owner to another person. - Which of the following statements is TRUE about a policy assignment? Insurer - Which of the following entities can legally bind coverage? Level fixed - Variable Whole Life insurance is based on what type of premium? Inspection Report - An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits. What type of a report is that? The policy will be interpreted as if the insurer waived its right to have an answer on the application. - If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE? It will pay double or triple the face amount. - Which of the following statements is TRUE concerning the Accidental Death Rider? Provide medical services only from physicians in the network - Which of the following answers does NOT describe the principal goal of a Preferred Provider Organization? Survivor protection. - A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as Adjust the benefit in accordance with the increased risk - If the insured under a disability income insurance policy changes to a more hazardous occupation after the policy has been issued, and a claim is filed, the insurance company should do which of the following? One-year term option. - The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the When the application is signed and a check is given to the agent - When is the earliest a policy may go into effect? Cross-purchase plan. - A partnership buy-sell agreement in which each partner purchases insurance on the life of each of the other partners is called a Rated. - Another name for a substandard risk classification is Diagnostic and preventive care - What is an important feature of a dental expense insurance plan that is NOT typically found in a medical expense insurance plan? The applicant must be informed of the sources contacted and how the information is being gathered. - Which is true regarding obtaining underwriting sources? Life Paid-up at Age 65 - Which of the following is an example of a limited-pay life policy? It is reduced to the amount of what the cash value would buy as a single premium. - When a reduced paid-up nonforfeiture option is chosen, what happens to the face amount of the policy? Assets - In a replacement situation, all of the following must be considered EXCEPT Unlimited - Under the Physical Exam and Autopsy provision, how many times can an insurer have the insured examined, at its own expense, while a claim is pending? It is fully funded by Social Security taxes (FICA). - Concerning Medicare Part B, which statement is INCORRECT? Disability Buy-Sell - Which agreement specifies how a business will transfer hands when one of the owners dies or becomes disabled? The group plan will not pay because the employee was injured at work. - An employee insured under a group health policy is injured in a car wreck while performing her duties for her employer. This results in a long hospitalization period. Which of the following is true? Contracts of adhesion. - Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as Guaranteed renewable - A Medicare supplement plan must have at least which of the following renewal provisions? Stop-loss limit - Which of the following terms describes the specified dollar amount beyond which the insured no longer participates in the sharing of expenses? The amount of the distribution is reduced by the amount of a 20% withholding tax. - A 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true? 0% - An insured owns a general disability policy and is injured during a war, rendering him disabled. What will be the extent of benefits that he will receive? A portion of the benefit up to a limit is tax free; the rest is taxable income. - An individual has been diagnosed with Alzheimer's disease. He is insured under a life insurance policy with the accelerated benefits rider. Which of the following is true regarding taxation of the accelerated benefits? The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive. - An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries? Both group and individual plans are renewable. - All of the following apply to short-term disability plans EXCEPT Lump-sum death benefits are not taxable. - Which of the following statements is TRUE concerning whole life insurance?