LIFE AND HEALTH INSURANCE EXAM
(MISSOURI) 2025 QUESTIONS AND
ANSWERS
Insurance policies are considered aleatory contracts because:
1)they are take it or leave it contracts
2)both parties consent to the contract
3)performance is conditioned upon a future occurence
4)the contract is voidable upon proof of fraud - ANS Performance is conditioned upon a
future occurence, because there is an element of chance and potential for unequal exchange of
value
K failed to pay a renewal premium within the time granted by the insurer. K then sends in a
payment which the insurer subsequently accepts. Which policy provision specifies that
coverage may be restored in this situation?
1)free-look
2)reinstatement
3)grace period
4)consideration - ANS Reinstatement
What type of contract liquidates an estate through recurrent payments?
1)Universal life insurance
2)Whole life insurance
3)Annuity
4)401k - ANS Annuity
1 Copyright ©2025 BRAINBARTER ALL RIGHTS RESERVED
, An insured pays premiums on an annual basis for an individual health insurance policy. What is
the MINIMUM number of days for the Grace Period provision?
1)7
2)10
3)20
4)31 - ANS The grace period is a minimum of 31 days for policies hat are paid for on an
annual basis.
Making an unfair comparison of two policies is defined as - ANS misrepresentation
Nursing home benefits must be provided for at least 12 consecutive months in which of the
following types of policies?
1)blanket custodial
2)long term care
3)critical illness
4)Medicare supplements - ANS long term care
T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What
kind of $10,000 policy should T purchase?
1)Interest Sensitive Whole Life
2)Ten Year Endowment
3)Variable Universal Life
4)Ten Year Renewable Term - ANS Ten Year Endowment
An insured recently took out a cancer insurance policy. The time limit on certain defenses
provision in this policy allows the insurer to
1)to cancel a policy for any reason for up to 5 years
2)to reduce the benefit for a loss occurring after two years due to misstatements
2 Copyright ©2025 BRAINBARTER ALL RIGHTS RESERVED
(MISSOURI) 2025 QUESTIONS AND
ANSWERS
Insurance policies are considered aleatory contracts because:
1)they are take it or leave it contracts
2)both parties consent to the contract
3)performance is conditioned upon a future occurence
4)the contract is voidable upon proof of fraud - ANS Performance is conditioned upon a
future occurence, because there is an element of chance and potential for unequal exchange of
value
K failed to pay a renewal premium within the time granted by the insurer. K then sends in a
payment which the insurer subsequently accepts. Which policy provision specifies that
coverage may be restored in this situation?
1)free-look
2)reinstatement
3)grace period
4)consideration - ANS Reinstatement
What type of contract liquidates an estate through recurrent payments?
1)Universal life insurance
2)Whole life insurance
3)Annuity
4)401k - ANS Annuity
1 Copyright ©2025 BRAINBARTER ALL RIGHTS RESERVED
, An insured pays premiums on an annual basis for an individual health insurance policy. What is
the MINIMUM number of days for the Grace Period provision?
1)7
2)10
3)20
4)31 - ANS The grace period is a minimum of 31 days for policies hat are paid for on an
annual basis.
Making an unfair comparison of two policies is defined as - ANS misrepresentation
Nursing home benefits must be provided for at least 12 consecutive months in which of the
following types of policies?
1)blanket custodial
2)long term care
3)critical illness
4)Medicare supplements - ANS long term care
T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What
kind of $10,000 policy should T purchase?
1)Interest Sensitive Whole Life
2)Ten Year Endowment
3)Variable Universal Life
4)Ten Year Renewable Term - ANS Ten Year Endowment
An insured recently took out a cancer insurance policy. The time limit on certain defenses
provision in this policy allows the insurer to
1)to cancel a policy for any reason for up to 5 years
2)to reduce the benefit for a loss occurring after two years due to misstatements
2 Copyright ©2025 BRAINBARTER ALL RIGHTS RESERVED
