Missouri Life and Health 2025 -2026 Exam questions with correct
answer s VERIFIED SOLUTIONS GRADED A+ | ASSURED
Insurance transaction includes:correct answer - By mail or other means:
- Solicitation
- Negotiation
- Sale
- Advising an individual about coverage
Elements of a legal contractcorrect answer - -Agreement (offer and acceptance)
- Consideration
- Competent parties
- Legal purpose
- Negotiation does NOT need to happen
Who make the offer in an insurance applicationcorrect answer - - Applicant
When does acceptance take placecorrect answer - - An insurers underwriter approves
the application and issues a policy
The binding force in any contractcorrect answer - - Consideration
- insurer promises to pay in the event of a loss
Contract of adhesioncorrect answer - - Prepared by the insurer and accepted or
rejected by the insured
- "Take it or leave it" basis
Insurance contracts arecorrect answer - - Aleatory
- exchange of unequal amounts of values
Unilateral contractcorrect answer - - only one of the parties is legally bound
- "one-way contract"
"When does an insurance policy go into effect"correct answer - - When the insured
receives it
Conditional contractcorrect answer - - certain conditions must be met by the policy
owner
Warrantycorrect answer - - An absolutely true statement upon upon which the validity of
the insurance policy depends
Representionscorrect answer - - Statements believed to be true
Misrepresentationcorrect answer - - Untrue statements on the applications
- Can void the contract
,Missouri Life and Health 2025 -2026 Exam questions with correct
answer s VERIFIED SOLUTIONS GRADED A+ | ASSURED
Material misrepresentationcorrect answer - - Would alter the underwriting decision of
insurance company
Part 1- General Informationcorrect answer - - Name, age, address, birth date, gender,
income, marital status, and occupation
Part 2- Medical Informationcorrect answer - - Medical background, present health
- Medical visits in recent years
- Medical status of relatives/ causes of deaths
Field underwritercorrect answer - - Solicited the potential insured
- Analyzes health
- Gets info on client
Agents reportcorrect answer - - Observations concerning the proposed insured
- Does not become a part of the entire contract
- communicate with underwriter and provide info about the applicant known by the agent
Required signaturescorrect answer - - the proposed insured
- the agent
- the policy owner (if not proposed insured)
Changes in the applicationcorrect answer - - Applicant must initial the change
Consequences of incomplete applicationscorrect answer - - Must return to applicant for
completion
- If a policy is issued with questions left unanswered, the contract will be interpreted as if
the insurer waived its right to have an answer to the question
Premium receiptcorrect answer - - Agent must issue
- Will determine when coverage will be effective
Conditional receiptcorrect answer - - effective either on the date of application or
medical exam
- Most common type of receipt
- used when applicant submits prepaid application
Replacementcorrect answer - - Terminating an existing policy or letting it lapse and
obtaining a new one
- Nothing illegal about replacing life insurance
Underwritingcorrect answer - - The risk selection process
- Avoid adverse selection
Adverse selectioncorrect answer - - Risks which are more likely to suffer a loss
, Missouri Life and Health 2025 -2026 Exam questions with correct
answer s VERIFIED SOLUTIONS GRADED A+ | ASSURED
- Protects the insurer
Insurable interestcorrect answer - - Must exist between policy owner and insured at time
of application
- Cannot buy on anyone
- Suffer financially if someone dies
Applicationcorrect answer - - Submit an application to the insurer for approval for a
policy to be issued
Fair Credit Reporting Actcorrect answer - - Consumer-reporting agencies must follow in
order to ensure that records are properly used
- Protects consumers
- Insurance rated by states
- "At the time of application"
- If willingly violates Act penalty up to $2,500
Consumer reportcorrect answer - - Written and/or oral information regarding a
consumers credit, character, habits collected by a reporting agency from employment
records, credit reports, and other public sources
Investigative consumer reportscorrect answer - - Visit with neighbors/employers
- insured or reporting agency has 5 days to provider the consumer with additional
informtion
Medical Information Bureau (MIB)correct answer - - Insurance company looks at
- Nonprofit trade organization which received medical info from insurance companies
and maintains confidential medical information
- "Rated or declined"
- "Glucose tolerance test"
- No privacy
Attending Physicians Statement (APS)correct answer - - From a medical practitioner
who treated the applicant for prior medical problem
"Insurance company will do all of the following except"correct answer - - Inform MIB
HIV testingcorrect answer - - Cannot test without permission and written consent
- Common among insurers to require HIV test when an applicant is applying for a large
amount of coverage
Health Insurance Probability and Accountability Act (HIPPA)correct answer - - Federal
law that protects health information
Privacy Rulecorrect answer - - Have a right to view their own medical records
answer s VERIFIED SOLUTIONS GRADED A+ | ASSURED
Insurance transaction includes:correct answer - By mail or other means:
- Solicitation
- Negotiation
- Sale
- Advising an individual about coverage
Elements of a legal contractcorrect answer - -Agreement (offer and acceptance)
- Consideration
- Competent parties
- Legal purpose
- Negotiation does NOT need to happen
Who make the offer in an insurance applicationcorrect answer - - Applicant
When does acceptance take placecorrect answer - - An insurers underwriter approves
the application and issues a policy
The binding force in any contractcorrect answer - - Consideration
- insurer promises to pay in the event of a loss
Contract of adhesioncorrect answer - - Prepared by the insurer and accepted or
rejected by the insured
- "Take it or leave it" basis
Insurance contracts arecorrect answer - - Aleatory
- exchange of unequal amounts of values
Unilateral contractcorrect answer - - only one of the parties is legally bound
- "one-way contract"
"When does an insurance policy go into effect"correct answer - - When the insured
receives it
Conditional contractcorrect answer - - certain conditions must be met by the policy
owner
Warrantycorrect answer - - An absolutely true statement upon upon which the validity of
the insurance policy depends
Representionscorrect answer - - Statements believed to be true
Misrepresentationcorrect answer - - Untrue statements on the applications
- Can void the contract
,Missouri Life and Health 2025 -2026 Exam questions with correct
answer s VERIFIED SOLUTIONS GRADED A+ | ASSURED
Material misrepresentationcorrect answer - - Would alter the underwriting decision of
insurance company
Part 1- General Informationcorrect answer - - Name, age, address, birth date, gender,
income, marital status, and occupation
Part 2- Medical Informationcorrect answer - - Medical background, present health
- Medical visits in recent years
- Medical status of relatives/ causes of deaths
Field underwritercorrect answer - - Solicited the potential insured
- Analyzes health
- Gets info on client
Agents reportcorrect answer - - Observations concerning the proposed insured
- Does not become a part of the entire contract
- communicate with underwriter and provide info about the applicant known by the agent
Required signaturescorrect answer - - the proposed insured
- the agent
- the policy owner (if not proposed insured)
Changes in the applicationcorrect answer - - Applicant must initial the change
Consequences of incomplete applicationscorrect answer - - Must return to applicant for
completion
- If a policy is issued with questions left unanswered, the contract will be interpreted as if
the insurer waived its right to have an answer to the question
Premium receiptcorrect answer - - Agent must issue
- Will determine when coverage will be effective
Conditional receiptcorrect answer - - effective either on the date of application or
medical exam
- Most common type of receipt
- used when applicant submits prepaid application
Replacementcorrect answer - - Terminating an existing policy or letting it lapse and
obtaining a new one
- Nothing illegal about replacing life insurance
Underwritingcorrect answer - - The risk selection process
- Avoid adverse selection
Adverse selectioncorrect answer - - Risks which are more likely to suffer a loss
, Missouri Life and Health 2025 -2026 Exam questions with correct
answer s VERIFIED SOLUTIONS GRADED A+ | ASSURED
- Protects the insurer
Insurable interestcorrect answer - - Must exist between policy owner and insured at time
of application
- Cannot buy on anyone
- Suffer financially if someone dies
Applicationcorrect answer - - Submit an application to the insurer for approval for a
policy to be issued
Fair Credit Reporting Actcorrect answer - - Consumer-reporting agencies must follow in
order to ensure that records are properly used
- Protects consumers
- Insurance rated by states
- "At the time of application"
- If willingly violates Act penalty up to $2,500
Consumer reportcorrect answer - - Written and/or oral information regarding a
consumers credit, character, habits collected by a reporting agency from employment
records, credit reports, and other public sources
Investigative consumer reportscorrect answer - - Visit with neighbors/employers
- insured or reporting agency has 5 days to provider the consumer with additional
informtion
Medical Information Bureau (MIB)correct answer - - Insurance company looks at
- Nonprofit trade organization which received medical info from insurance companies
and maintains confidential medical information
- "Rated or declined"
- "Glucose tolerance test"
- No privacy
Attending Physicians Statement (APS)correct answer - - From a medical practitioner
who treated the applicant for prior medical problem
"Insurance company will do all of the following except"correct answer - - Inform MIB
HIV testingcorrect answer - - Cannot test without permission and written consent
- Common among insurers to require HIV test when an applicant is applying for a large
amount of coverage
Health Insurance Probability and Accountability Act (HIPPA)correct answer - - Federal
law that protects health information
Privacy Rulecorrect answer - - Have a right to view their own medical records
