Missouri Life and Health Insurance
Questions & Correct and Verified
Answers.Latest update2025/2026 Graded A+,
Exams of Nursing
Insurance transaction includes: - CORRECT ANSWERS By mail or other means:
- Solicitation
- Negotiation
- Sale
- Advising an individual about coverage
Elements of a legal contract - CORRECT ANSWERS -Agreement (offer and acceptance)
- Consideration
- Competent parties
- Legal purpose
- Negotiation does NOT need to happen
Who make the offer in an insurance application - CORRECT ANSWERS - Applicant
When does acceptance take place - CORRECT ANSWERS - An insurers underwriter approves
the application and issues a policy
The binding force in any contract - CORRECT ANSWERS - Consideration
- insurer promises to pay in the event of a loss
,Contract of adhesion - CORRECT ANSWERS - Prepared by the insurer and accepted or rejected
by the insured
- "Take it or leave it" basis
Insurance contracts are - CORRECT ANSWERS - Aleatory
- exchange of unequal amounts of values
Unilateral contract - CORRECT ANSWERS - only one of the parties is legally bound
- "one-way contract"
"When does an insurance policy go into effect" - CORRECT ANSWERS - When the insured
receives it
Conditional contract - CORRECT ANSWERS - certain conditions must be met by the policy
owner
Warranty - CORRECT ANSWERS - An absolutely true statement upon upon which the validity of
the insurance policy depends
Representions - CORRECT ANSWERS - Statements believed to be true
Misrepresentation - CORRECT ANSWERS - Untrue statements on the applications
- Can void the contract
Material misrepresentation - CORRECT ANSWERS - Would alter the underwriting decision of
insurance company
,Part 1- General Information - CORRECT ANSWERS - Name, age, address, birth date, gender,
income, marital status, and occupation
Part 2- Medical Information - CORRECT ANSWERS - Medical background, present health
- Medical visits in recent years
- Medical status of relatives/ causes of deaths
Field underwriter - CORRECT ANSWERS - Solicited the potential insured
- Analyzes health
- Gets info on client
Agents report - CORRECT ANSWERS - 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 signatures - CORRECT ANSWERS - the proposed insured
- the agent
- the policy owner (if not proposed insured)
Changes in the application - CORRECT ANSWERS - Applicant must initial the change
Consequences of incomplete applications - CORRECT ANSWERS - 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 receipt - CORRECT ANSWERS - Agent must issue
- Will determine when coverage will be effective
Conditional receipt - CORRECT ANSWERS - effective either on the date of application or
medical exam
- Most common type of receipt
- used when applicant submits prepaid application
Replacement - CORRECT ANSWERS - Terminating an existing policy or letting it lapse and
obtaining a new one
- Nothing illegal about replacing life insurance
Underwriting - CORRECT ANSWERS - The risk selection process
- Avoid adverse selection
Adverse selection - CORRECT ANSWERS - Risks which are more likely to suffer a loss
- Protects the insurer
Insurable interest - CORRECT ANSWERS - Must exist between policy owner and insured at time
of application
- Cannot buy on anyone
- Suffer financially if someone dies
Application - CORRECT ANSWERS - Submit an application to the insurer for approval for a
policy to be issued
Questions & Correct and Verified
Answers.Latest update2025/2026 Graded A+,
Exams of Nursing
Insurance transaction includes: - CORRECT ANSWERS By mail or other means:
- Solicitation
- Negotiation
- Sale
- Advising an individual about coverage
Elements of a legal contract - CORRECT ANSWERS -Agreement (offer and acceptance)
- Consideration
- Competent parties
- Legal purpose
- Negotiation does NOT need to happen
Who make the offer in an insurance application - CORRECT ANSWERS - Applicant
When does acceptance take place - CORRECT ANSWERS - An insurers underwriter approves
the application and issues a policy
The binding force in any contract - CORRECT ANSWERS - Consideration
- insurer promises to pay in the event of a loss
,Contract of adhesion - CORRECT ANSWERS - Prepared by the insurer and accepted or rejected
by the insured
- "Take it or leave it" basis
Insurance contracts are - CORRECT ANSWERS - Aleatory
- exchange of unequal amounts of values
Unilateral contract - CORRECT ANSWERS - only one of the parties is legally bound
- "one-way contract"
"When does an insurance policy go into effect" - CORRECT ANSWERS - When the insured
receives it
Conditional contract - CORRECT ANSWERS - certain conditions must be met by the policy
owner
Warranty - CORRECT ANSWERS - An absolutely true statement upon upon which the validity of
the insurance policy depends
Representions - CORRECT ANSWERS - Statements believed to be true
Misrepresentation - CORRECT ANSWERS - Untrue statements on the applications
- Can void the contract
Material misrepresentation - CORRECT ANSWERS - Would alter the underwriting decision of
insurance company
,Part 1- General Information - CORRECT ANSWERS - Name, age, address, birth date, gender,
income, marital status, and occupation
Part 2- Medical Information - CORRECT ANSWERS - Medical background, present health
- Medical visits in recent years
- Medical status of relatives/ causes of deaths
Field underwriter - CORRECT ANSWERS - Solicited the potential insured
- Analyzes health
- Gets info on client
Agents report - CORRECT ANSWERS - 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 signatures - CORRECT ANSWERS - the proposed insured
- the agent
- the policy owner (if not proposed insured)
Changes in the application - CORRECT ANSWERS - Applicant must initial the change
Consequences of incomplete applications - CORRECT ANSWERS - 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 receipt - CORRECT ANSWERS - Agent must issue
- Will determine when coverage will be effective
Conditional receipt - CORRECT ANSWERS - effective either on the date of application or
medical exam
- Most common type of receipt
- used when applicant submits prepaid application
Replacement - CORRECT ANSWERS - Terminating an existing policy or letting it lapse and
obtaining a new one
- Nothing illegal about replacing life insurance
Underwriting - CORRECT ANSWERS - The risk selection process
- Avoid adverse selection
Adverse selection - CORRECT ANSWERS - Risks which are more likely to suffer a loss
- Protects the insurer
Insurable interest - CORRECT ANSWERS - Must exist between policy owner and insured at time
of application
- Cannot buy on anyone
- Suffer financially if someone dies
Application - CORRECT ANSWERS - Submit an application to the insurer for approval for a
policy to be issued
