Missouri Life and Health Exam2025-2026
ACTUAL EXAM COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS
WITH RATIONALES
In a Life insurance contract, an insurance company's promise to pay stated benefits is called the:
a) insuring clause
b) consideration clause
c) entire contract
d) owner's rights - CORRECT ANSWERS insuring clause
under which circumstance MUST a health insurer have an expedited grievance review procedure? -
CORRECT ANSWERS when the enrollee's life or health is jeapordized
The Consideration clause in a life insurance contract contains what pertinent information? - CORRECT
ANSWERS amount of premium payments and when they are due
Long Term Care policies will usually pay for eligible benefits using which of the following methods?
a) delayed
b) fee for service
c) expense incurred
d) respite - CORRECT ANSWERS Expense incurred
T is receiving $3,000/month from a Disability Income policy in which T's employer had paid the
premiums. How are the $3,000 benefit payments taxable? - CORRECT ANSWERS
Benefits are taxable to T
,A statement made by an insured in an insurance application that must be true to the best of one's
knowledge and which becomes a part of the contract is known as - CORRECT ANSWERS
a representation
Which long term care insurance statement is true? - CORRECT ANSWERS Pre-
existing conditions must be covered after the coverage has been in force for six months
Pre-existing conditions are those for which medical advice or treatment was recommended by or
received from a health provider within 6 months preceding the effective date of an individual long-term
care policy.
which of the following is NOT allowed in regards to the Medigap (Medicare Supplement) policy? -
CORRECT ANSWERS Issuing an additional Medigap policy to ensure no out-of-
pocket exposure for the insured
Jasmine is a salaried employee of an insurance company. Which of the following duties would require
her to be licensed as an insurance producer?
a) adjusting claims
b) underwriting insurance applications
c) administrative assistant to the VP of Sales
d) soliciting insurance policies - CORRECT ANSWERS Soliciting insurance policies
All of these are characteristics of an Adjustable Life policy EXCEPT
a) adjustable premiums
b)adjustable premium payment period
c) combination of term and whole life insurance
d) face amount can be adjusted using policy dividends - CORRECT ANSWERS face
amount can be adjusted using policy dividends
The Director of Insurance is authorized
,a) to enforce state laws relating to insurance
b) to pass state laws relating to insurance
c) to set insurance rates for foreign insurers
d) to set sales quotas - CORRECT ANSWERS to enforce state laws relating to
insurance
When a group accident and health policy is issued to an employer,
a) a blanket policy is issued to each employee
b) the free-look period is 60 days
c) a policy is issued to the employer and a certificate is issued to each employee
d) a certificate is issued to the employer and a policy is issued to each employee - CORRECT ANSWERS
a policy is issued to the employer and a certificate is issued to each employee
which of the following statements is CORRECT about accelerated death benefits? - CORRECT ANSWERS
Must have a terminal illness to qualify.
T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable
beneficiary. What action will the insurance company take if T requests a change of beneficiary? -
CORRECT ANSWERS Request of the change will be refused
which of these statements is INCORRECT regarding the federal income tax treatment of life insurance
-Premiums are normally not tax deductible
-Cash dividends are normally not taxed
-Entire cash surrender value is taxable
-Proceeds are received tax-free if there is a named beneficiary - CORRECT ANSWERS
Entire cash surrender value is taxable
, A producer is circulating incorrect information about the benefits of a policy. This producer may be
found guilty of
a) misrepresentation
b) sliding
c) boycotting
d) coercion - CORRECT ANSWERS misrepresentation
The first portion of a covered Major Medical insurance expense that the insured is required to pay is
called the:
a) corridor deductible
b) initial deductible
c) stop-loss deductible
d) coinsurance deductible - CORRECT ANSWERS initial deductible
Any changes made on an insurance application requires the initials of whom? - CORRECT ANSWERS
Applicant
A policy of adhesion can only be modified by whom? - CORRECT ANSWERS The
insurance company
Which of the following health policy provisions states that the producer does NOT have the authority to
change the policy or waive any of its provisions?
a) Time Limit on Certain Defenses
b) Reinstatement
c) Entire Contract
d) Change of Beneficiary - CORRECT ANSWERS Entire Contract
ACTUAL EXAM COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS
WITH RATIONALES
In a Life insurance contract, an insurance company's promise to pay stated benefits is called the:
a) insuring clause
b) consideration clause
c) entire contract
d) owner's rights - CORRECT ANSWERS insuring clause
under which circumstance MUST a health insurer have an expedited grievance review procedure? -
CORRECT ANSWERS when the enrollee's life or health is jeapordized
The Consideration clause in a life insurance contract contains what pertinent information? - CORRECT
ANSWERS amount of premium payments and when they are due
Long Term Care policies will usually pay for eligible benefits using which of the following methods?
a) delayed
b) fee for service
c) expense incurred
d) respite - CORRECT ANSWERS Expense incurred
T is receiving $3,000/month from a Disability Income policy in which T's employer had paid the
premiums. How are the $3,000 benefit payments taxable? - CORRECT ANSWERS
Benefits are taxable to T
,A statement made by an insured in an insurance application that must be true to the best of one's
knowledge and which becomes a part of the contract is known as - CORRECT ANSWERS
a representation
Which long term care insurance statement is true? - CORRECT ANSWERS Pre-
existing conditions must be covered after the coverage has been in force for six months
Pre-existing conditions are those for which medical advice or treatment was recommended by or
received from a health provider within 6 months preceding the effective date of an individual long-term
care policy.
which of the following is NOT allowed in regards to the Medigap (Medicare Supplement) policy? -
CORRECT ANSWERS Issuing an additional Medigap policy to ensure no out-of-
pocket exposure for the insured
Jasmine is a salaried employee of an insurance company. Which of the following duties would require
her to be licensed as an insurance producer?
a) adjusting claims
b) underwriting insurance applications
c) administrative assistant to the VP of Sales
d) soliciting insurance policies - CORRECT ANSWERS Soliciting insurance policies
All of these are characteristics of an Adjustable Life policy EXCEPT
a) adjustable premiums
b)adjustable premium payment period
c) combination of term and whole life insurance
d) face amount can be adjusted using policy dividends - CORRECT ANSWERS face
amount can be adjusted using policy dividends
The Director of Insurance is authorized
,a) to enforce state laws relating to insurance
b) to pass state laws relating to insurance
c) to set insurance rates for foreign insurers
d) to set sales quotas - CORRECT ANSWERS to enforce state laws relating to
insurance
When a group accident and health policy is issued to an employer,
a) a blanket policy is issued to each employee
b) the free-look period is 60 days
c) a policy is issued to the employer and a certificate is issued to each employee
d) a certificate is issued to the employer and a policy is issued to each employee - CORRECT ANSWERS
a policy is issued to the employer and a certificate is issued to each employee
which of the following statements is CORRECT about accelerated death benefits? - CORRECT ANSWERS
Must have a terminal illness to qualify.
T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable
beneficiary. What action will the insurance company take if T requests a change of beneficiary? -
CORRECT ANSWERS Request of the change will be refused
which of these statements is INCORRECT regarding the federal income tax treatment of life insurance
-Premiums are normally not tax deductible
-Cash dividends are normally not taxed
-Entire cash surrender value is taxable
-Proceeds are received tax-free if there is a named beneficiary - CORRECT ANSWERS
Entire cash surrender value is taxable
, A producer is circulating incorrect information about the benefits of a policy. This producer may be
found guilty of
a) misrepresentation
b) sliding
c) boycotting
d) coercion - CORRECT ANSWERS misrepresentation
The first portion of a covered Major Medical insurance expense that the insured is required to pay is
called the:
a) corridor deductible
b) initial deductible
c) stop-loss deductible
d) coinsurance deductible - CORRECT ANSWERS initial deductible
Any changes made on an insurance application requires the initials of whom? - CORRECT ANSWERS
Applicant
A policy of adhesion can only be modified by whom? - CORRECT ANSWERS The
insurance company
Which of the following health policy provisions states that the producer does NOT have the authority to
change the policy or waive any of its provisions?
a) Time Limit on Certain Defenses
b) Reinstatement
c) Entire Contract
d) Change of Beneficiary - CORRECT ANSWERS Entire Contract
