Life and Health Insurance Exam
(Missouri)
A 55 year old recently received a $30,000 distribution from a previous employer's 401k
plan, minus $6,000 withholding. Which federal taxes apply if none of the funds were
rolled over? - Ans - Income taxes plus a 10% penalty tax on $30,000
A credit life insurance policy covers the life of the - Ans - Debtor
A foreign insurance company cannot conduct business in Missouri without a
1) approval of the NAIC
2) a certificate of authority to transact business in Missouri
3) a waiver from their home state
4) reaching a minimum level of sales - Ans - A certificate of authority to transact
business in Missouri
A Limited-Pay Life policy has - Ans - premium payments limited to a specified number of
years
A non disabled individual is first eligible for a Medicare supplement policy at the age of -
Ans - 65
A policyowner's rights are limited under which beneficiary designation? - Ans -
irrevocable
A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of these
statements made by the producer would be correct? - Ans - 20-Pay Life accumulates
cash value faster than Straight Life
A prehospitalization authorization program (pre-certification) is a good example of - Ans
- managed care
ABC Insurance Company has accepted a life insurance application which contains
unanswered questions. The company then makes the application part of the life
contract. In this situation, the insurer has - Ans - waived one of its legal rights
According to the Mandatory Uniform Policy Provisions, what is the maximum amount of
time after the premium due date during which the policy remains in force even though
the premium has not been paid? - Ans - 31 days
According to the Time Payment of Claims provision, the insurer must pay Disability
Income benefits no less frequently than which of the following options?
, 1) Annually
2)Semiannually
3)Quarterly
4)Monthly - Ans - Monthly
The time of payment for claims is usually specified in different policies as 60 days, 45
days, or 30 days. However, if the claim involves disability income benefits, the benefits
must be paid not less frequently than monthly.
All of the following statements about traditional individual retirement accounts are false
EXCEPT
1) 10% penalty is applied to withdrawals after age 59 1/2
2)withdrawals are normally tax free to the recipient
3) 10% penalty is applied to withdrawals before age 59 1/2
4) Contributions are not tax deductible - Ans - 10% penalty is applied to withdrawls
before age 59 1/2
All of these statements concerning a licensee's responsibility for premiums received are
true EXCEPT - Ans - The licensee must hold them in a separate account before
transmitting them to the insurance company.
An immediate annuity consists of a - Ans - Single Premium
An insurance company normally has 2 years to contest information provided on an
accident and health application. This 2 year period begins on the date that the:
1) medical examination is given
2) producer completes the application
3) insurer dates the policy
4) the first premium is made - Ans - Insurer dates the policy
An insured must notify an insurer of a medical claim within how many days after an
accident? - Ans - 20
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.
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
3) to deny the amount of a claim for statements on the application
(Missouri)
A 55 year old recently received a $30,000 distribution from a previous employer's 401k
plan, minus $6,000 withholding. Which federal taxes apply if none of the funds were
rolled over? - Ans - Income taxes plus a 10% penalty tax on $30,000
A credit life insurance policy covers the life of the - Ans - Debtor
A foreign insurance company cannot conduct business in Missouri without a
1) approval of the NAIC
2) a certificate of authority to transact business in Missouri
3) a waiver from their home state
4) reaching a minimum level of sales - Ans - A certificate of authority to transact
business in Missouri
A Limited-Pay Life policy has - Ans - premium payments limited to a specified number of
years
A non disabled individual is first eligible for a Medicare supplement policy at the age of -
Ans - 65
A policyowner's rights are limited under which beneficiary designation? - Ans -
irrevocable
A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of these
statements made by the producer would be correct? - Ans - 20-Pay Life accumulates
cash value faster than Straight Life
A prehospitalization authorization program (pre-certification) is a good example of - Ans
- managed care
ABC Insurance Company has accepted a life insurance application which contains
unanswered questions. The company then makes the application part of the life
contract. In this situation, the insurer has - Ans - waived one of its legal rights
According to the Mandatory Uniform Policy Provisions, what is the maximum amount of
time after the premium due date during which the policy remains in force even though
the premium has not been paid? - Ans - 31 days
According to the Time Payment of Claims provision, the insurer must pay Disability
Income benefits no less frequently than which of the following options?
, 1) Annually
2)Semiannually
3)Quarterly
4)Monthly - Ans - Monthly
The time of payment for claims is usually specified in different policies as 60 days, 45
days, or 30 days. However, if the claim involves disability income benefits, the benefits
must be paid not less frequently than monthly.
All of the following statements about traditional individual retirement accounts are false
EXCEPT
1) 10% penalty is applied to withdrawals after age 59 1/2
2)withdrawals are normally tax free to the recipient
3) 10% penalty is applied to withdrawals before age 59 1/2
4) Contributions are not tax deductible - Ans - 10% penalty is applied to withdrawls
before age 59 1/2
All of these statements concerning a licensee's responsibility for premiums received are
true EXCEPT - Ans - The licensee must hold them in a separate account before
transmitting them to the insurance company.
An immediate annuity consists of a - Ans - Single Premium
An insurance company normally has 2 years to contest information provided on an
accident and health application. This 2 year period begins on the date that the:
1) medical examination is given
2) producer completes the application
3) insurer dates the policy
4) the first premium is made - Ans - Insurer dates the policy
An insured must notify an insurer of a medical claim within how many days after an
accident? - Ans - 20
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.
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
3) to deny the amount of a claim for statements on the application
