Lotta questions in this boi

#138. What is the maximum amount a person guilty of an unfair method of competition or an unfair or deceptive act or a prohibited practice may be fined in any 12 month period? a) $1,000 b) $250,000 c) $100,000 d) $25,000

c) $100,000

#166. What is the maximum percent of customary charges for immunizations that a health care provider may charge? a) 25% b) 50% c) 100% d) 150%

c) 100%

#127. Which of the following authorities is required to conduct a financial examination of the state's insurers? a) State insurance board b) Guaranty Association c) Director d) NAIC

c) Director

#74. An agent selling variable annuities must be registered with a) The Guaranty Association. b) SEC. c) FINRA. d) Department of Insurance.

c) FINRA.

#148. An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of? a) Twisting b) Defamation c) False advertising d) Unfair claims

c) False advertising

#159. Which of the following would NOT be an acceptable interest rate on a policy loan? a) 8% b) 10% c) 4% d) 6%

b) 10%

#166. If an insurer imposes a maximum lifetime benefit for breast cancer treatment using stem cell transplants, this limit must be at least a) $25,000. b) $50,000. c) $75,000. d) $100,000.

d) $100,000.

#168. What is the time limit to contest life insurance policies in Missouri? a) 3 years b) 5 years c) 1 year d) 2 years

d) 2 years

#142. Which of the following is the closest term to an authorized insurer? a) Certified b) Licensed c) Legal d) Admitted

d) Admitted

#41. Under which of the following organizations are the practicing providers compensated on a fee-for-service basis? a) HMO b) Blue Cross/Blue Shield c) Open panel d) PPO

d) PPO

#142. Which of the following is a mandatory coverage in all health benefit plans? a) Accident-only b) Specified disease c) Bone marrow transplant d) Maternity care

c) Bone marrow transplant

#152. What is the maximum amount a person guilty of an unfair method of competition or an unfair or deceptive act or a prohibited practice may be fined in any 12 month period? a) $250,000 b) $100,000 c) $25,000 d) $1,000

b) $100,000

#123. Each child covered under a non-Medicaid health carrier plan will be provided coverage for early intervention services up to how much per year? a) $1,500 b) $3,000 c) $4,500 d) $6,000

b) $3,000

#23. If an insured receives accelerated death benefits, what is the least amount of the original death benefit that the beneficiary would receive after the insured's death? a) 10% b) 0% c) 50% d) 25%

b) 0%

#130. An insured pays a monthly premium of $100 for a health insurance policy. What would be the duration of the grace period under the policy? a) 7 days b) 10 days c) 31 days d) 60 days

b) 10 days

#8. An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy? a) 7 days b) 10 days c) 31 days d) 60 days

b) 10 days

#67. A client has a new individual disability income policy with a 20-day probationary period and a 30-day elimination period. Ten days later, the client breaks their leg and is off work for 45 days. How many days of disability benefits will the policy pay? a) 10 days b) 15 days c) 25 days d) 45 days

b) 15 days

#113. Which of the following disability income policies would have the highest premium? a) 15-day waiting period / 5-year benefit period b) 15-day waiting period / 10-year benefit period c) 30-day waiting period / 10-year benefit period d) 30-day waiting period / 5-year benefit period

b) 15-day waiting period / 10-year benefit period

#153. What is the minimum required age for an insurance producer in this state? a) 17 years old b) 18 years old c) 19 years old d) 21 years old

b) 18 years old

#168. A petition for adoption must be filed within how many days of birth in order for health coverage to extend to an adopted child? a) 365 days b) 30 days c) 10 days d) 90 days

b) 30 days

#49. Ray has an individual major medical policy that requires a coinsurance payment. Ray very rarely visits his physician and would prefer to pay the lowest premium possible. Which coinsurance arrangement would be best for Ray? a) 90/10 b) 50/50 c) 75/25 d) 80/20

b) 50/50

#130. Albert Jones, CPCU, has prepared an insurance course and obtained approval for the course for 6 hours of continuing education credits. Al presented this course to various agent groups during the continuing education term on four different occasions. How many continuing education credit hours may Al claim for his own license renewal? a) 0 b) 6 c) 12 d) 24

b) 6

#90. To attain currently insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters? a) 4 credits b) 6 credits c) 10 credits d) 40 credits

b) 6 credits

#11. Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within a) 60 days of a loss. b) 90 days of a loss. c) 20 days of a loss. d) 30 days of a loss.

b) 90 days of a loss.

#162. If a policyholder declines the nonforfeiture benefit, what must the insurer provide to the client upon the lapse of the policy? a) Pro Rata premiums b) A contingent benefit c) An aleatory benefit d) A full refund of premiums

b) A contingent benefit

#117. All of the following are correct about the required provisions of a health insurance policy EXCEPT a) The entire contract clause means the signed application, policy, endorsements, and attachments constitute the entire contract. b) A reinstated policy provides immediate coverage for an illness. c) Proof-of-loss forms must be sent to the insured within 15 days of notice of claim. d) A grace period of 31 days is found in an annual pay policy.

b) A reinstated policy provides immediate coverage for an illness.

#93. An insured misstated her age on an application for an individual health insurance policy. The insurance company found the mistake after the contestable period had expired. The insurance company will take which of the following actions regarding any claim that has been issued? a) Pay the full amount of a claim because the contestable period has ended b) Adjust the claim benefit to reflect the insured's true age c) Deny any claims and cancel the policy d) Deny paying a claim based on misrepresentation

b) Adjust the claim benefit to reflect the insured's true age

#144. Which type of insurers will be held liable for their actions in court? a) Only insurers holding a Certificate of Authority b) All companies: authorized and unauthorized c) Only authorized companies d) Only domestic companies

b) All companies: authorized and unauthorized

#131. Insurers that issue individual variable contracts in this state are required to mail the policyowner a statement of the investments. How often must they mail the statement? a) Upon request from the policyowner b) Annually c) Monthly d) Quarterly

b) Annually

#137. All health insurance policies issued in this state must provide coverage for maternity services. How many hours of inpatient care must be provided to a mother after a delivery by caesarian section? a) At least 48 b) At least 96 c) At least 24 d) At least 36

b) At least 96

#170. In insurance, producers are permitted to share or split commissions if a) There is a written agreement between the agents. b) Both are properly licensed for the line of insurance. c) The insured knows and agrees to the arrangement. d) The insurance department knows of the arrangement.

b) Both are properly licensed for the line of insurance.

#76. All of the following are personal uses of life insurance EXCEPT a) Cash accumulation. b) Buy-sell agreement. c) Survivor protection. d) Estate creation.

b) Buy-sell agreement.

#16. The type of policy that can be changed from one that does not accumulate cash value to the one that does, is a a) Whole Life Policy. b) Convertible Term Policy. c) Renewable Term Policy. d) Decreasing Term Policy.

b) Convertible Term Policy.

#132. Which of the following is true regarding the insurance amount in a credit life policy? a) The amount of coverage can be greater than the amount owed. b) Creditor can only insure the debtor for the amount owed. c) Creditor may insure the debtor for an unlimited amount of coverage. d) Allowable amount of coverage is determined by the State Insurance Commissioner.

b) Creditor can only insure the debtor for the amount owed.

#145. Which of the following types of insurance policies is most commonly used in credit life insurance? a) Equity indexed life b) Decreasing term c) Increasing term d) Whole life

b) Decreasing term

#79. Which of the following is NOT covered by Health Maintenance Organizations (HMOs)? a) Well-baby care b) Elective services c) Immunizations d) Routine physicals

b) Elective services

#115. Long-term care coverage may be available as any of the following options EXCEPT a) Endorsement to a life policy. b) Endorsement to a health policy. c) Group long-term care. d) Individual long-term care.

b) Endorsement to a health policy.

#165. Which of the following statements is true regarding LTC insurance? a) LTC policies must allow a 60-day free-look period. b) Every policy must offer nonforfeiture benefits to the applicant. c) Every policy must offer reduced paid-up insurance to the applicant. d) LTC policies may not include any riders.

b) Every policy must offer nonforfeiture benefits to the applicant.

#55. Items stipulated in the contract that the insurer will not provide coverage for are found in the a) Consideration clause. b) Exclusions. c) Insuring clause. d) Benefit Payment clause.

b) Exclusions.

#65. Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member? a) Additional insured rider b) Family term rider c) Spouse rider d) Children's rider

b) Family term rider

#70. Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member? a) Additional insured rider b) Family term rider c) Spouse rider d) Children's rider

b) Family term rider

#34. Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid a) Until the policyowner's age 100, when the policy matures. b) For 20 years or until death, whichever occurs first. c) Until the policyowner's age 65. d) For 20 years.

b) For 20 years or until death, whichever occurs first.

#102. Which provision allows the policyholder a period of time, while coverage is in force, to examine a health insurance policy and determine whether or not to keep it? a) Probationary Period b) Free Look Period c) Grace Period d) Elimination Period

b) Free Look Period

#63. Which provision allows the policyholder a period of time, while coverage is in force, to examine a health insurance policy and determine whether or not to keep it? a) Probationary Period b) Free Look Period c) Grace Period d) Elimination Period

b) Free Look Period

#58. What phase begins after a new policy is delivered? a) Grace period b) Free-look period c) Insurability period d) Elimination period

b) Free-look period

#151. Health policies issued in Missouri must provide coverage for the immunization of children of what age? a) Age 5 to 8 b) From birth to age 5 c) From birth to age 10 d) Age 3 to 5

b) From birth to age 5

#31. An insured is involved in an accident that renders him permanently deaf, although he does not sustain any other major injuries. The insured is still able to perform his current job. To what extent will he receive Presumptive Disability benefits? a) No benefits b) Full benefits c) Partial benefits d) Full benefits for 2 years

b) Full benefits

#139. An insured has a life insurance policy with graded death benefits. In the first year of the policy, the death benefit is less than 50% of the face amount on the policy. What amount must the policy contain in accidental death benefits during the graded death benefit period? a) There is no requirement b) Full face amount of the policy c) Half the face amount of the policy d) The same amount as the general death benefits

b) Full face amount of the policy

#60. In life insurance policies, cash value increases a) Are only taxed when the owner reaches age 65. b) Grow tax deferred. c) Are income taxable immediately. d) Are taxed annually.

b) Grow tax deferred.

#24. If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a a) Nonforfeiture option. b) Guaranteed insurability rider. c) Paid-up additions option. d) Cost of living provision.

b) Guaranteed insurability rider.

#155. Which of the following is NOT a requirement for companies that issue variable contracts in this State? a) Maintain a capital of $2,500,000 b) Have surplus of at least $3,000,000 c) Have a license to transact insurance d) Be considered in good standing by the Director

b) Have surplus of at least $3,000,000

#110. Under the Privacy Rule for HIPAA, protected information includes all individually identifiable health information a) Held or transmitted in paper form. b) Held or transmitted in any form. c) Transmitted electronically only. d) Held in a computer format.

b) Held or transmitted in any form.

#66. A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium? a) If the daughter is disabled for any length of time b) If the father is disabled for more than 6 months c) If the father is disabled for at least a year d) If the daughter is disabled for more than 3 months

b) If the father is disabled for more than 6 months

#163. A producer has submitted a new application to his insurer; however, 30 days later there was still no coverage available for the applicant. What must the producer do? a) Submit a request for coverage to the insurer b) Inform the applicant in writing c) Nothing: producer has no further obligations once the application is submitted to the insurer. d) Submit a complaint to the Department of Insurance

b) Inform the applicant in writing

#68. An underwriter may obtain information on an applicant's hobbies, financial status, and habits by ordering a(n) a) Attending Physician Statement. b) Inspection report. c) Medical Information Bureau report. d) Medical examination.

b) Inspection report.

#37. What is the benefit of choosing extended term as a nonforfeiture option? a) It can be converted to a fixed annuity. b) It has the highest amount of insurance protection. c) It matures at age 100. d) It allows for coverage to continue beyond maturity date.

b) It has the highest amount of insurance protection.

#70. Which of the following best describes the MIB? a) It is a rating organization for health insurance. b) It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance. c) It is a government agency that collects medical information on the insured from the insurance companies. d) It is a member organization that protects insured against insolvent insurers.

b) It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance.

#5. An insured buys a 5-year level premium term policy with a face amount of $10,000. The policy also contains renewability and convertibility options. When the insured renews the policy in 5 years, what will happen to the premium? a) It will increase each year during the next 5 years as the face amount increases each year. b) It will increase because the insured will be 5 years older than when the policy was originally purchased. c) It will remain the same for the new 5-year term. d) It will decrease for the new 5-year term since the insured is now a lesser risk to the company.

b) It will increase because the insured will be 5 years older than when the policy was originally purchased.

#111. Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die? a) Ordinary Life b) Joint Life c) Decreasing Term d) Whole Life

b) Joint Life

#38. Under workers compensation, which of the following benefits are NOT included? a) Death benefits b) Legal benefits c) Medical and rehabilitation benefits d) Income benefits

b) Legal benefits

#154. Which of the following best describes the unfair trade practice of defamation? a) Refusing to deal with other insurers b) Making derogatory oral statements about another insurer's financial condition c) Assuming the name and identity of another person d) Issuing false advertising material

b) Making derogatory oral statements about another insurer's financial condition

#14. The coverage provided by a disability income policy that does not pay benefits for losses occurring as the result of the insured's employment is called a) Workers compensation. b) Nonoccupational coverage. c) Unemployment coverage. d) Occupational coverage.

b) Nonoccupational coverage.

#140. No insurance company may transact insurance business in Missouri unless it first a) Appoints an adequate number of resident producers to service policies written in the state. b) Obtains from the Director a Certificate of Authority. c) Establishes a regional office in the state. d) Applies for membership in the National Association of Insurance Commissioners.

b) Obtains from the Director a Certificate of Authority.

#109. Which of the following provisions would prevent an insurance company from paying a reimbursement claim to someone other than the policyowner? a) Proof of Loss b) Payment of Claims c) Change of beneficiary d) Entire Contract Clause

b) Payment of Claims

#92. Which of the following provisions would prevent an insurance company from paying a reimbursement claim to someone other than the policyowner? a) Proof of Loss b) Payment of Claims c) Change of beneficiary d) Entire Contract Clause

b) Payment of Claims

#94. Who can request changes in premium payments, face value, loans, and policy plans? a) Producer b) Policyowner c) Contingent beneficiary d) Beneficiary

b) Policyowner

#112. Regarding the taxation of Business Overhead policies, a) Premiums are not deductible, but expenses paid are deductible. b) Premiums are deductible and benefits are taxed. c) Premiums are not deductible and benefits are taxed. d) Premiums are not deductible, but benefits are deductible.

b) Premiums are deductible and benefits are taxed.

#122. An insured pays $1,200 annually for her life insurance premium. The insured applies this year's $300 worth of accumulated dividends to the next year's premium, thus reducing it to $900. What option does this describe? a) Flexible Premium b) Reduction of Premium c) Accumulation at Interest d) Cash option

b) Reduction of Premium

#108. Which of the following is NOT provided by an HMO? a) Patient care b) Reimbursement c) Services d) Financing

b) Reimbursement

#92. The primary purpose of disability income insurance is to a) Reimburse loss of income to a family due to the death of the insured. b) Replace income lost due to a disability. c) Reimburse medical expenses and/or loss income due to accidents at work. d) Reimburse lost income while in the hospital.

b) Replace income lost due to a disability.

#48. A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy a) Decreased death benefit at each renewal. b) Required a premium increase each renewal. c) Built cash values. d) Required proof of insurability every year.

b) Required a premium increase each renewal.

#95. Which is the appropriate action by the insurer if a prospective insured submitted an incomplete application? a) Fill in the blanks to the best of the insurer's knowledge b) Return the application to the applicant for completion c) Issue a policy anyway since the application has been submitted d) Ask the producer who solicited the policy to complete and resign the application

b) Return the application to the applicant for completion

#80. Which type of retirement account allows contributions to continue beyond age 70½ and does not force distributions to start at age 70½? a) Traditional IRA b) Roth IRA c) Flexible IRA d) Standard IRA

b) Roth IRA

#52. Upon policy delivery, the producer may be required to obtain any of the following EXCEPT a) Delivery receipt. b) Signed waiver of premium. c) Statement of good health. d) Payment of premium.

b) Signed waiver of premium.

#30. An IRA purchased by a small employer to cover employees is known as a a) 403(b) plan. b) Simplified Employee Pension plan. c) 401(k) plan. d) Defined contribution plan.

b) Simplified Employee Pension plan.

#24. All of the following long-term care coverages would allow an insured to receive care at home EXCEPT a) Home health care. b) Skilled care. c) Custodial care in insured's house. d) Respite care.

b) Skilled care.

#146. Group life insurance policies delivered in this state must contain all of the following provisions EXCEPT a) A copy of the application is considered part of the policy. b) Statements of the applicant are considered warranties. c) A grace period of 31 days. d) Incontestability period of 2 years.

b) Statements of the applicant are considered warranties.

#23. The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true? a) The contract can be issued without an annuitant. b) The annuitant must be a natural person. c) A corporation can be an annuitant as long as it is also the owner. d) A corporation can be an annuitant as long as the beneficiary is a natural person.

b) The annuitant must be a natural person.

#107. Which is NOT true about beneficiary designations? a) Trusts can be valid beneficiaries. b) The beneficiary must have insurable interest in the insured. c) The beneficiary may be a natural person. d) The policy does not have to have a beneficiary named in order to be valid.

b) The beneficiary must have insurable interest in the insured.

#136. The premium for a group life insurance policy was due on March 1. The policyowner was not able to pay the premium until March 31. What will happen to the coverage under the policy during the 30 days the premium was due but was not paid? a) The coverage will be suspended until the premium is paid. b) The coverage will continue in force. c) The policy will be cancelled due to nonpayment of premium. d) The coverage will be limited.

b) The coverage will continue in force.

#101. If a business wants to buy a disability income policy on a key employee, which of the following is considered the applicant? a) The producer b) The employer c) The insurer d) The employee

b) The employer

#97. An employee insured under a group health policy is injured in a car wreck while performing her duties for her employer. This results in a long hospitalization period. Which of the following is true? a) The group plan will pay depending on the employee's recovery. b) The group plan will not pay because the employee was injured at work. c) The group plan will pay. d) The group plan will pay a portion of the employee's expenses.

b) The group plan will not pay because the employee was injured at work.

#119. An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT? a) The premium for individual coverage will be based upon the insured's attained age. b) The insured may choose to convert to term or permanent individual coverage. c) The insured would not need to prove insurability for a conversion policy. d) The insured may convert coverage to an individual policy within 31 days.

b) The insured may choose to convert to term or permanent individual coverage.

#45. A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums? a) The insured will have to pay premiums for 6 months. If at the end of this period the father is still disabled, the insured will be refunded the premiums. b) The insured's premiums will be waived until she is 21. c) The premiums will become tax deductible until the insured's 18th birthday. d) Since it is the policyowner, and not the insured, who has become disabled, the life insurance policy will not be affected.

b) The insured's premiums will be waived until she is 21.

#35. Which of the following is NOT a feature of a noncancellable policy? a) The insured has the right to renew the policy for the life of the contract. b) The insurer may terminate the contract only at renewal for certain conditions. c) The premiums cannot be increased beyond the amount stated in the policy. d) The guarantee to renew coverage usually applies until the insured reaches certain age.

b) The insurer may terminate the contract only at renewal for certain conditions.

#36. The expense for an autopsy covered under the physical exam and autopsy provision is paid by a) The estate of the insured. b) The insurer. c) The state's autopsy fund. d) The limits of coverage under the health insurance policy.

b) The insurer.

#71. A policy with a 31-day grace period implies a) The policy benefits must be paid within 31 days after a claim is submitted. b) The policy will not lapse for 31 days if the premium is not paid when due. c) The policyholder may return the policy for a full refund within 31 days. d) The policy is incontestable after 31 days of delivery.

b) The policy will not lapse for 31 days if the premium is not paid when due.

#86. Which of the following provides coverage on a first-dollar basis? a) Supplementary major medical b) Limited major medical c) Basic expense d) Accident expense

c) Basic expense

#103. Under an extended term nonforfeiture option, the policy cash value is converted to a) A higher face amount than the whole life policy. b) The same face amount as in the whole life policy. c) The face amount equal to the cash value. d) A lower face amount than the whole life policy.

b) The same face amount as in the whole life policy.

#49. An insured is upset that her new health insurance policy was delivered to her by certified mail and not through her agent. Which of the following is true? a) The policy will not be legal until it is delivered by an agent. b) There is nothing wrong with this form of policy delivery. c) The insured should complain to the insurer. d) The insured should ask for a new policy to be delivered.

b) There is nothing wrong with this form of policy delivery.

#104. Which of the following statements is most correct concerning the changing of an irrevocable beneficiary? a) They may be changed only on the anniversary date of the policy. b) They can be changed only with the written consent of that beneficiary. c) They may be changed at any time. d) They can never be changed.

b) They can be changed only with the written consent of that beneficiary.

#150. What do long-term care policies offer to policyholders to account for inflation? a) They pay a dividend that increases every 7 years. b) They offer the option of purchasing coverage that raises benefit levels accordingly. c) They do not account for inflation. d) They automatically increase premiums to account for inflation.

b) They offer the option of purchasing coverage that raises benefit levels accordingly.

#131. When a group health policy is being replaced with another group health policy, what will happen with the ongoing claims? a) They will not be covered if there is a pre-existing condition. b) They will be covered regardless of pre-existing conditions. c) They will be limited to the amount of insurance in the new policy. d) They will not be covered under the new plan.

b) They will be covered regardless of pre-existing conditions.

#77. What is the purpose of key person insurance? a) To maintain an account that insures the owner of a company remains solvent b) To lessen the risk of financial loss because of the death of a key employee c) To provide health insurance to the families of key employees d) To insure retirement benefits are available to all key employees

b) To lessen the risk of financial loss because of the death of a key employee

#38. An absolute assignment is a a) Change of insurer. b) Transfer of all ownership rights in a policy. c) Transfer of some ownership rights in a policy. d) Change of beneficiary.

b) Transfer of all ownership rights in a policy.

#100. If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it? a) A legal (but unethical) contract b) Unilateral c) Adhesion d) Conditional

b) Unilateral

#87. In a survivorship life policy, when does the insurer pay the death benefit? a) If the insured survives to age 100 b) Upon the last death c) Upon the first death d) Half at the first death, and half at the second death

b) Upon the last death

#6. If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant a) Prior to filling out an application for insurance. b) With the policy. c) Upon issuance of the policy. d) Within 30 days after the first premium payment was collected.

b) With the policy.

#128. When can a Long-Term Care policy deny a claim for losses incurred because of a pre-existing condition? a) At no time b) Within 6 months of the effective date of coverage c) Within 12 months of the effective date of coverage d) At any time

b) Within 6 months of the effective date of coverage

#8. What is NOT a benefit of a POS plan? a) With the Point-Of-Service plan the employees do not have to make a decision between the HMO or PPO plans that lock them in. b) It allows guaranteed acceptance of all applicants. c) It allows the employee to use an HMO provided doctor. d) It allows the employee to use a doctor not covered under the HMO.

b) It allows guaranteed acceptance of all applicants.

#7. In which of the following instances would the premium be tax deductible? a) Premiums paid by an employer on the life of a key person b) Premiums paid by an employer on a $30,000 group term life insurance plan for employees c) Premiums paid by an individual on his/her own life insurance d) Premiums paid by a mother on her son's policy

b) Premiums paid by an employer on a $30,000 group term life insurance plan for employees

#116. An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy? a) $20,000 b) $25,000 c) $50,000 d) The face amount will be determined by the insurer.

c) $50,000

#50. An insured had a $10,000 term life policy. The annual premium of $200 was due on February 1; however, the insured failed to pay the premium. He died on February 28. How much would the beneficiary receive from the policy? a) $0 b) $200 c) $9,800 d) $10,000

c) $9,800

#42. L has a major medical policy with a $500 deductible and 80/20 coinsurance. L is hospitalized and sustains a $2,500 loss. What is the maximum amount that L will have to pay? a) $1,000 (deductible + 20% of the entire bill) b) $2,500 (the entire bill) c) $900 (deductible + 20% of the bill after the deductible [20% of $2,000]) d) $500 (amount of deductible)

c) $900 (deductible + 20% of the bill after the deductible [20% of $2,000])

#143. A licensed life insurance producer in Missouri completed 20 hours of continuing education credits in order to renew her license. How many hours of continuing education credit will this producer need to complete in order to renew her license the next term? a) 10 b) 0 c) 12 d) 16

c) 12

#160. Within what period of time are unintentional misrepresentations grounds for contestability of a policy? a) Unintentional misrepresentations are contestable at any time. b) 1 year c) 2 years d) There is no specific time period; unintentional misrepresentations are never contestable.

c) 2 years

#147. A producer completed an insurance transaction in 2007. When can the producer dispose of the records for this transaction? a) 2008 b) 2009 c) 2010 d) 2012

c) 2010

#158. A producer completed an insurance transaction in 2007. When can the producer dispose of the records for this transaction? a) 2008 b) 2009 c) 2010 d) 2012

c) 2010

#133. How long must an insurer retain an advertisement for its long-term care policies? a) 1 year b) 2 years c) 3 years d) 5 years

c) 3 years

#164. If a health carrier providing prescription drug coverage makes any deletions in its health benefit plan's prescription drug formulary, within how many days of the deletion must it notify the affected enrollees? a) 7 days b) 15 days c) 30 days d) 45 days

c) 30 days

#87. In order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years? a) 1 b) 3 c) 5 d) 10

c) 5

#3. If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? a) 10 days b) 3 days c) 5 days d) 7 days

c) 5 days

#57. To sell variable life insurance policies, an agent must receive all of the following EXCEPT a) A securities license. b) A life insurance license. c) A SEC registration. d) A FINRA registration.

c) A SEC registration.

#83. If the owner of a whole life policy who is also the insured dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary? a) 50% of the death benefit b) The face amount minus the premiums that would have been collected until the insured reached the age of 100 c) A full death benefit d) A death benefit equal to the cash value of the policy

c) A full death benefit

#116. Which of the following does the Insuring Clause NOT specify? a) The insurance company b) The name of the insured c) A list of available doctors d) Covered perils

c) A list of available doctors

#53. Which of the following would best describe total disability? a) A person's total loss of income. b) A person's inability to qualify for insurance coverage. c) A person's ability to work is significantly reduced or eliminated for the rest of his/her life. d) A person's inability to perform one of the regular duties of his/her occupation.

c) A person's ability to work is significantly reduced or eliminated for the rest of his/her life.

#73. An insurer has made all of the decisions regarding the provisions included in the insured's policy. The insured finds an objectionable provision and wants to negotiate it with the insurer but is not allowed to do so. Her only options are to reject the policy or accept it as is. Which contract feature does this describe? a) Conditional b) Personal c) Adhesion d) Unilateral

c) Adhesion

#18. Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be a) Based on the issue age of the insured. b) Discounted. c) Adjusted to the insured's age at the time of renewal. d) Determined by the health of the insured.

c) Adjusted to the insured's age at the time of renewal.

#153. What is required of an insurer should an insured commit suicide prior to one year elapsing under a life insurance policy? a) No premiums are to be refunded, but half the death benefits will be given to the beneficiary. b) Full death benefits will be paid out to the beneficiary. c) All paid premiums must be returned. d) Half the paid premiums must be returned.

c) All paid premiums must be returned.

#26. Under which of the following circumstances would an insurer pay accelerated benefits? a) An insured is looking for a way to put her daughter through college. b) A couple wants to build a house and would like to make a larger down payment. c) An insured is diagnosed with cancer and needs help paying for her medical treatment. d) A couple is nearing retirement and needs a steady stream of income.

c) An insured is diagnosed with cancer and needs help paying for her medical treatment.

#124. How often must an insurer who delivers variable life insurance policies in Missouri determine any changes in variable death benefits? a) Biennially b) Quarterly c) Annually d) Biannually

c) Annually

#64. All of the following qualify for Medicare Part A EXCEPT a) Anyone who is at the end stage of renal disease. b) Anyone who is over 65, not covered by Social Security, and is willing to pay premium. c) Anyone who is willing to pay a premium. d) Anyone that qualifies through Social Security.

c) Anyone who is willing to pay a premium.

#97. An insurer wants to begin underwriting procedures for an applicant. What source will it consult for the majority of its underwriting information? a) State records b) Medical records c) Application d) Interviews

c) Application

#141. No insurance policy form can be issued, delivered, or used in this state unless it has been a) Developed by the Director. b) Filed with and approved by the Guaranty Association. c) Approved by the Department of Insurance. d) Reviewed by the Department and approved by the Governor.

c) Approved by the Department of Insurance.

#170. When the designated beneficiary on a life insurance policy died, the insured needed to designate a new beneficiary. Which provision allows for this change? a) Replacement b) Accelerated Death Benefit c) Assignability d) Right to Choose

c) Assignability

#167. G is a commercial airline pilot who also flies his own twin piper aircraft for recreational purposes. What type of provision in a life insurance policy prevents his life from being covered under the policy should he die in a recreational plane crash? a) Aviation Disaster Clause b) Recreational Disaster Clause c) Aviation Exclusion Cause d) Recreational Exclusion Clause

c) Aviation Exclusion Cause

#32. What license or licenses are required to sell variable annuities? a) Only a securities license b) No license is required c) Both a life insurance license and a securities license d) Only a life insurance license

c) Both a life insurance license and a securities license

#39. The provision that provides for the sharing of expenses between the insured and the insurance company is a) Deductible. b) Divided cost. c) Coinsurance. d) Stop-loss.

c) Coinsurance.

#99. The provision that provides for the sharing of expenses between the insured and the insurance company is a) Deductible. b) Divided cost. c) Coinsurance. d) Stop-loss.

c) Coinsurance.

#61. Which of the following includes information regarding a person's credit, character, reputation, and habits? a) Insurability report b) Agent's report c) Consumer report d) Consumer history

c) Consumer report

#20. Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as a) Aleatory contracts. b) Binding contracts. c) Contracts of adhesion. d) Unilateral contracts.

c) Contracts of adhesion.

#119. This arrangement specifies who will purchase a disabled partner's interest in the event he or she becomes disabled. a) Business overhead expense b) Key-person insurance c) Employee benefit plan d) Disability buyout

c) Cross-purchase plan.

#120. A partnership buy-sell agreement in which each partner purchases insurance on the life of each of the other partners is called a a) Split-dollar plan. b) Stock redemption plan. c) Cross-purchase plan. d) Key person plan.

c) Cross-purchase plan.

#144. Which of the following types of insurance policies is most commonly used in credit life insurance? a) Whole life b) Equity indexed life c) Decreasing term d) Increasing term

c) Decreasing term

#169. The Director may suspend, revoke, refuse to renew an insurance producer license for any one or more of the following causes, EXCEPT a) Improperly withholding or converting money received in the course of doing insurance business. b) Failing to comply with any administrative or court order directing payment of state or federal income tax. c) Failing to notify the Director of a change of address. d) Violating any insurance law or regulation.

c) Failing to notify the Director of a change of address.

#9. All of the following are dividend options EXCEPT a) Reduction of premium. b) Paid-up additions. c) Fixed-period installments. d) Accumulated at interest

c) Fixed-period installments.

#111. What phase begins after a new policy is delivered? a) Elimination period b) Grace period c) Free-look period d) Insurability period

c) Free-look period

#165. Which of the following provisions in universal life policies stipulates that a written notice of the termination of coverage must be sent to the policyowner? a) Illustrations b) Periodic disclosure c) Grace period and lapse d) Policy guarantees

c) Grace period and lapse

#86. Most LTC plans have which of the following features? a) Variable premiums b) Open enrollment c) Guaranteed renewability d) No elimination period

c) Guaranteed renewability

#22. Which of the following statements is correct? a) Medicare Advantage is Medicare provided by an approved Health Maintenance Organization only. b) All HMOs and PPOs charge premiums beyond what is paid by Medicare. c) HMOs may pay for services not covered by Medicare. d) HMOs do not pay for services covered by Medicare.

c) HMOs may pay for services not covered by Medicare.

#105. What are the 2 types of Flexible Spending Accounts? a) Medical Savings Accounts and Dependent Care Accounts b) Medical Savings Accounts and Health Reimbursement Accounts c) Health Care Accounts and Dependent Care Accounts d) Health Care Accounts and Health Reimbursement Accounts

c) Health Care Accounts and Dependent Care Accounts

#43. Under the Privacy Rule for HIPAA, protected information includes all individually identifiable health information a) Held in a computer format. b) Held or transmitted in paper form. c) Held or transmitted in any form. d) Transmitted electronically only.

c) Held or transmitted in any form.

#169. A producer has submitted a new application to his insurer; however, 30 days later there was still no coverage available for the applicant. What must the producer do? a) Submit a complaint to the Department of Insurance b) Submit a request for coverage to the insurer c) Inform the applicant in writing d) Nothing: producer has no further obligations once the application is submitted to the insurer.

c) Inform the applicant in writing

#95. The Medical Information Bureau (MIB) was created to protect a) Insureds from unreasonable underwriting requirements by the insurance companies. b) Medical examiners that perform insurance physical examinations. c) Insurance companies from adverse selection by high risk persons. d) Insurance departments from lawsuits by policyowners.

c) Insurance companies from adverse selection by high risk persons.

#81. Which of the following entities can legally bind coverage? a) Federal Insurance Board b) Agent c) Insurer d) The insured

c) Insurer

#57. During partial withdrawal from a universal life policy, which portion will be taxed? a) Principal b) Loan c) Interest d) Cash value

c) Interest

#85. During partial withdrawal from a universal life policy, which portion will be taxed? a) Principal b) Loan c) Interest d) Cash value

c) Interest

#58. Which of the following is true of a children's rider added to an insured's permanent life insurance policy? a) The policy covers only the natural children of the insured. b) Each child covered must show evidence of insurability. c) It is term coverage that is convertible to permanent insurance at or prior to the child reaching the maximum coverage age. d) It is permanent insurance.

c) It is term coverage that is convertible to permanent insurance at or prior to the child reaching the maximum coverage age.

In the underwriting process, it was determined that the applicant for life insurance is in poor health and has some dangerous habits. Which of the following is true concerning the policy premium? a) The applicant's habits and health do not affect the premiums. b) It will likely be lower because the applicant is a preferred risk. c) It will likely be higher because the applicant is a substandard risk. d) It will likely be the average premium issued to standard risks.

c) It will likely be higher because the applicant is a substandard risk.

#65. Which of the following statements is TRUE concerning the Accidental Death Rider? a) This rider is only available to insureds over the age of 65. b) It is only available in group insurance. c) It will pay double or triple the face amount. d) It is also known as a triple indemnity rider.

c) It will pay double or triple the face amount.

#21. In a group health policy, a probationary period is intended for people who a) Have additional coverage through a spouse. b) Want lower premiums. c) Join the group after the effective date. d) Have a pre-existing condition at the time they join the group.

c) Join the group after the effective date.

#61. Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die? a) Whole Life b) Ordinary Life c) Joint Life d) Decreasing Term

c) Joint Life

#156. Every insurer marketing Long-Term Care insurance must establish marketing procedures to ensure all of the following EXCEPT a) Excessive insurance will not be sold. b) Every reasonable efforts is made to identify an applicant's other insurance. c) LTC policies are marketed effectively to prospective insureds. d) Comparisons of policies are fair and accurate.

c) LTC policies are marketed effectively to prospective insureds.

#114. The provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as a) Payment of claims. b) Proof of loss. c) Legal actions. d) Time limit on certain defenses.

c) Legal actions.

#51. Variable Life insurance is based on what kind of premium? a) Decreasing b) Graded c) Level fixed d) Increasing

c) Level fixed

#19. Which two terms are associated directly with the premium? a) Term or permanent b) Renewable or convertible c) Level or flexible d) Fixed or variable

c) Level or flexible

#147. A 65 year old enrolls for benefits under Medicare Part B and submits an application for a Medicare supplement policy two months later. For which of the following reason may the insurer deny the application? a) Claims experience b) Medical condition c) Material misrepresentation d) Health status

c) Material misrepresentation

#99. Which of the following programs expands individual public assistance programs for people with insufficient income and resources? a) Social Security b) Unemployment compensation c) Medicaid d) Medicare

c) Medicaid

#33. All of the following statements concerning Medicaid are correct EXCEPT a) Individuals claiming benefits must prove they do not have the ability or means to pay for their own medical care. b) Persons, at least 65 years of age, who are blind or disabled and financially unable to pay, may qualify for Medicaid Nursing Home Benefits. c) Medicaid is a state funded program that provides health care to persons over age 65, only. d) Individual states design and administer the Medicaid program under broad guidelines established by the federal government.

c) Medicaid is a state funded program that provides health care to persons over age 65, only.

#46. An applicant for a health insurance policy returns a completed application to her agent, along with a check for the first premium. She receives a conditional receipt two weeks later. Which of the following has the insurer done by this point? a) Approved the application b) Issued the policy c) Neither approved the application nor issued the policy d) Both approved the application and issued the policy

c) Neither approved the application nor issued the policy

#134. During replacement of life insurance, a replacing insurer must do which of the following? a) Designate a new producer for a replaced policy b) Send a copy of the Notice Regarding Replacement to the Department of Insurance c) Obtain a list of all life insurance policies that will be replaced d) Guarantee a replacement for each existing policy

c) Obtain a list of all life insurance policies that will be replaced

#157. No insurance company may transact insurance business in Missouri unless it first a) Applies for membership in the National Association of Insurance Commissioners. b) Appoints an adequate number of resident producers to service policies written in the state. c) Obtains from the Director a Certificate of Authority. d) Establishes a regional office in the state.

c) Obtains from the Director a Certificate of Authority.

#47. A rider attached to a life insurance policy that provides coverage on the insured's family members is called the a) Juvenile rider. b) Payor rider. c) Other-insured rider. d) Change of insured rider.

c) Other-insured rider.

#46. Which of the following applies to partial disability benefits? a) Payment is based on termination of employment. b) Benefits are reduced once an insured is no longer under a doctor's care. c) Payment is limited to a certain period of time. d) An insured is entitled to a principal sum benefit for the partial loss of a limb.

c) Payment is limited to a certain period of time.

#56. With respect to the Consideration Clause, which of the following would be considered consideration on the part of the applicant for insurance? a) Providing warranties on the application b) Notice of policy cancellation c) Payment of premium d) Promise to renew the policy at the end of the policy period

c) Payment of premium

#22. In which of the following instances would the premium be tax deductible? a) Premiums paid by a mother on her son's policy b) Premiums paid by an employer on the life of a key person c) Premiums paid by an employer on a $30,000 group term life insurance plan for employees d) Premiums paid by an individual on his/her own life insurance

c) Premiums paid by an employer on a $30,000 group term life insurance plan for employees

#126. Paul is a producer in Kansas and wants to become a producer in Missouri. The Department will waive certain examination requirements, provided that Kansas would waive these same requirements if a Missouri producer sought licensure in Kansas. What term is used to describe this phenomenon? a) Fair exchange b) Equanimity c) Reciprocity d) Equality

c) Reciprocity

#139. Which of the following is NOT specifically prohibited by state law as an unfair trade practice? a) Using incomplete comparisons of policies to induce uncalled-for action by the insured b) Failing to disclose that the solicitations of an insurance contract are the result of a marketing method c) Reducing the premiums paid by employers for group insurance based on loss experience d) Using misleading representations to induce uncalled-for action by the insured

c) Reducing the premiums paid by employers for group insurance based on loss experience

#91. What is the best way to change an application? a) White-out the previous answer b) Draw a line through the incorrect answer and insert the correct one. c) Start over with a fresh application d) Erase the previous answer and replace it with the new answer

c) Start over with a fresh application

#4. Which of the following policies would be classified as a traditional level premium contract? a) Universal Life b) Variable Universal Life c) Straight Life d) Adjustable Life

c) Straight Life

#84. A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as a) Survivorship insurance b) Juvenile protection provision c) Survivor protection d) Life planning

c) Survivor protection

#84. The premiums paid by the employer in a business life insurance policy are a) Always taxable to the employee. b) Never taxable to the employee. c) Tax deductible by the employer. d) Tax deductible by the employee.

c) Tax deductible by the employer.

#151. Credit life insurance is usually issued as what type of policies? a) Variable life b) Annuity c) Term life d) Whole life

c) Term life

#88. Which of the following information will be stated in the consideration clause of a life insurance policy? a) The time period allowed for the payment of premium b) The conditions for insurability c) The amount of premium payment d) The parties to the contract

c) The amount of premium payment

#121. Which is true regarding obtaining underwriting sources? a) The insurer only needs to inform the applicant of how the information is being gathered; it is not necessary to disclose the sources. b) It is illegal to obtain information from outside sources in order to determine an applicant's insurability. c) The applicant must be informed of the sources contacted and how the information is being gathered. d) The insurer does not need to inform the applicant of how the information is gathered; informing only of the source is sufficient.

c) The applicant must be informed of the sources contacted and how the information is being gathered.

#18. Which of the following is true about the requirements regarding HIV exams? a) Prior informed oral consent is required from the applicant. b) HIV exams may not be used as a basis for underwriting. c) The applicant must give prior informed written consent. d) Results may be disclosed to the agent and the underwriter.

c) The applicant must give prior informed written consent.

#29. Which of the following is true about the requirements regarding HIV exams? a) Prior informed oral consent is required from the applicant. b) HIV exams may not be used as a basis for underwriting. c) The applicant must give prior informed written consent. d) Results may be disclosed to the agent and the underwriter.

c) The applicant must give prior informed written consent.

#141. When does credit life insurance coverage take effect? a) 30 days after the first payment is received b) The date the application is completed c) The date the debtor becomes obligated to the creditor d) The date the policy is delivered

c) The date the debtor becomes obligated to the creditor

#106. Who is the owner and who is the beneficiary on a Key Person Life Insurance policy? a) The key employee is the owner and beneficiary. b) The key employee is the owner and the employer is the beneficiary. c) The employer is the owner and beneficiary. d) The employer is the owner and the key employee is the beneficiary.

c) The employer is the owner and beneficiary.

#127. In which of the following situations would an individual be permitted to exercise conversion privileges in a group long-term care policy? a) The individual was covered by the group policy for 2 months. b) The individual's group policy was replaced with another policy. c) The individual's employment was terminated. d) The individual failed to make premium payments.

c) The individual's employment was terminated.

#98. A man works for Company A and his wife works for Company B. The spouses are covered by health plans through their respective companies that also cover the other spouse. If the husband files a claim, a) The insurance plans will split the coverage evenly. b) Both plans will pay the full amount of the claim. c) The insurance through his company is primary. d) The insurance through his wife's company is primary.

c) The insurance through his company is primary.

#10. Insured Z's health insurance policy year begins in January. His policy contains a carry-over provision. In November, he has a small claim which is less than his deductible. Which of the following is true? a) The insured is now eligible for an integrated deductible until the new policy year. b) The insured must satisfy this year's deductible, but next year's deductible will begin when or if he makes a claim in the following calendar year. c) The insured may carry over the amount of this year's expenses to next year, which will help satisfy next year's deductible. d) The deductible will be waived.

c) The insured may carry over the amount of this year's expenses to next year, which will help satisfy next year's deductible.

#76. The sole beneficiary of a life insurance policy dies before the insured. If the policyowner fails to change the beneficiary before the insured's death, the proceeds of the policy will go to a) The state. b) The beneficiary's estate. c) The insured's estate. d) Probate.

c) The insured's estate.

#137. Assignability provision in a life insurance policy relates to a) The company's right to replace a policy. b) The company's right to add new riders to the policy. c) The insured's right to designate a new beneficiary. d) The insured's right to convert from group to individual policy.

c) The insured's right to designate a new beneficiary.

#11. An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen? a) The insurer will pay the death benefit minus one month's premium. b) The insurer will pay nothing because the employee has terminated his group insurance and hasn't started the individual one. c) The insurer will pay the full death benefit from the group policy to the beneficiary. d) The insurer will pay a reduced death benefit to the beneficiary.

c) The insurer will pay the full death benefit from the group policy to the beneficiary.

#44. Which of the following is true regarding elimination periods and the cost of coverage? a) The longer the elimination period, the higher the cost of coverage b) Elimination periods have no effect on the cost of coverage. c) The longer the elimination period, the lower the cost of coverage d) The shorter the elimination period, the lower the cost of coverage

c) The longer the elimination period, the lower the cost of coverage

#39. What is the advantage of reinstating a policy instead of applying for a new one? a) The face amount can be increased b) The cash values have gained interest while the policy was lapsed c) The original age is used for premium determination d) Proof of insurability is not required

c) The original age is used for premium determination

#138. What must contain a notice of the graded death benefit in a life insurance policy with graded death benefits? a) The policy's provisions section b) The policy's exclusions section c) The policy application d) The policy underwriting explanation

c) The policy application

#96. If an insured continually uses the automatic premium loan option to pay the policy premium, a) The cash value will continue to increase. b) The insurer will increase the premium amount. c) The policy will terminate when the cash value is reduced to nothing. d) The face amount of the policy will be reduced by the automatic premium loan amount.

c) The policy will terminate when the cash value is reduced to nothing.

#89. Under an extended term nonforfeiture option, the policy cash value is converted to a) A lower face amount than the whole life policy. b) A higher face amount than the whole life policy. c) The same face amount as in the whole life policy. d) The face amount equal to the cash value.

c) The same face amount as in the whole life policy.

#51. On a health insurance application, a signature is required from all of the following individuals EXCEPT a) The policyowner. b) The agent. c) The spouse of the policyowner. d) The proposed insured.

c) The spouse of the policyowner.

#104. Under a SIMPLE plan, which of the following is TRUE regarding taxation on both contributions and earnings? a) Employer's matching contribution can be 50% of employee's salary. b) 75% of employee's contributions are taxed. c) They are tax deferred until withdrawn. d) Taxes must be paid in full.

c) They are tax deferred until withdrawn.

#27. Why should the producer personally deliver the policy when the first premium has already been paid? a) To find out how the family has been doing since the initial presentation b) To make sure the policy is not stolen or lost c) To help the insured understand all aspects of the contract d) To ensure the producer gets paid commission

c) To help the insured understand all aspects of the contract

#81. The paid-up addition option uses the dividend a) To reduce the next year's premium. b) To accumulate additional savings for retirement. c) To purchase a smaller amount of the same type of insurance as the original policy. d) To purchase a one-year term insurance in the amount of the cash value.

c) To purchase a smaller amount of the same type of insurance as the original policy.

#93. An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have? a) Term life b) Limited pay c) Universal life d) Adjustable life

c) Universal life

#162. Which of the following provisions is NOT mandatory for health insurance policies in this state? a) Reinstatement b) Legal actions c) Unpaid premiums d) Claim forms

c) Unpaid premiums

#155. In individual health insurance coverage, the insurer must cover a newborn from the moment of birth, and if additional premium payment is required, how many days should be allowed for payment? a) Within 10 calendar days b) Within 15 working days c) Within 31 days of birth d) Within a reasonable period of time

c) Within 31 days of birth

#43. Workers compensation insurance covers a worker's medical expenses resulting from work related sickness or injuries and covers loss of income from a) Plant or office closings. b) Temporary job layoffs. c) Work-related disabilities. d) Job termination.

c) Work-related disabilities.

#5. What is the purpose of a conditional receipt? a) It serves as proof that the agent has determined the applicant to be fully insurable for coverage by the insurance company. b) It is given by the agent only to applicants who fully prepay all scheduled premiums in advance of policy issue. c) It is intended to provide coverage on a date earlier than the date of the issuance of the policy. d) It guarantees the applicant that a policy will be issued in the amount applied for in the application.

c) It is intended to provide coverage on a date earlier than the date of the issuance of the policy

#37. A man is injured while robbing a convenience store. How does his major medical policy handle the payment of his claim? a) 50% of claim will be paid. b) If the man is not convicted, he will get 75% of his claim paid. c) The claim is paid in full. d) Claim is denied if his policy contains the Illegal Occupation provision.

d) Claim is denied if his policy contains the Illegal Occupation provision.

#9. Which is NOT a characteristic of group health insurance? a) Group coverage may be converted to individual coverage if the group contract is ended. b) The actual policy is called the "master contract". c) A policy is issued to each insured individual. d) Dependents of insureds can be covered under group health plans.

c) a policy is issued to each insured individual

All of the following are Nonforfeiture options EXCEPT a) Extended term b) Reduced paid-up c) Interest only d) Cash surrender

c) interest only

#10. If a settlement option is not chosen by the beneficiary or policyowner, which option will be used? a) Fixed period b) Fixed amount c) Lump sum d) Life income

c) lump sum

#79. According to the Entire Contract provision, a policy must contain a) A declarations page with a summary of insureds. b) Buyer's guide to life insurance. c) Listing of the insured's former insurer(s) for incontestability provisions. d) A copy of the original application for insurance.

d) A copy of the original application for insurance.

#19. Which is NOT a characteristic of group health insurance? a) Dependents of insureds can be covered under group health plans. b) Group coverage may be converted to individual coverage if the group contract is ended. c) The actual policy is called the "master contract". d) A policy is issued to each insured individual.

d) A policy is issued to each insured individual.

#16. Who is a third-party owner? a) An insurer who issues a policy for two people b) An employee in a group policy c) An irrevocable beneficiary d) A policyowner who is not the insured

d) A policyowner who is not the insured

#54. A deductible is a) A percentage of the medical bill the insured must pay before services will be rendered. b) An insurer's obligation to the service provider. c) A nominal fee for the use of an insurer's services. d) A specified dollar amount that the insured must pay first before the insurance company will pay the policy benefits.

d) A specified dollar amount that the insured must pay first before the insurance company will pay the policy benefits.

#156. An individual who is a resident of another state may obtain a Missouri nonresident license without testing provided a) He is currently licensed in the state where he is domiciled. b) He obtained that license by passing a test suitable to the Missouri Department. c) The state where he lives affords the same privilege to residents of Missouri. d) All of these requirements are met.

d) All of these requirements are met.

#102. The equity in an equity index annuity is linked to a) The returns from the insurance company's separate account. b) The annuitant's individual stock portfolio. c) The insurance company's general account investments. d) An index like Standard & Poor's 500.

d) An index like Standard & Poor's 500.

#89. A Universal Life Insurance policy is best described as a/an a) Variable Life with a cash value account. b) Whole Life policy with two premiums: target and minimum. c) Flexible Premium Variable Life policy. d) Annually Renewable Term policy with a cash value account.

d) Annually Renewable Term policy with a cash value account.

#122. What is the term used for an applicant's written request to an insurer for the company to issue a contract, based on the information provided? a) Policy Request b) Insurance Request Form c) Request for Insurance d) Application

d) Application

#110. What is the maximum period of time during which an insurer may contest fraudulent misstatements made in a health insurance application? a) 90 days after the effective policy date b) 6 months after the effective policy date c) 1 year after the effective policy date d) As long as the policy is in force

d) As long as the policy is in force

#12. What is the maximum period of time during which an insurer may contest fraudulent misstatements made in a health insurance application? a) 90 days after the effective policy date b) 6 months after the effective policy date c) 1 year after the effective policy date d) As long as the policy is in force

d) As long as the policy is in force

#108. The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective? a) As of the policy delivery date b) As of the first of the month after the policy issue c) As of the policy issue date d) As of the application date

d) As of the application date

#126. When the designated beneficiary on a life insurance policy died, the insured needed to designate a new beneficiary. Which provision allows for this change? a) Right to Choose b) Replacement c) Accelerated Death Benefit d) Assignability

d) Assignability

#41. The premium charged for exercising the Guaranteed Insurability Rider is based upon the insured's a) Assumed age. b) Average age. c) Issue age. d) Attained age.

d) Attained age.

#40. What document describes an insured's medical history, including diagnoses and treatments? a) Physician's Review b) Individual Medical Summary c) Comprehensive Medical History d) Attending Physician's Statement

d) Attending Physician's Statement

#150. A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. This is an example of a) Loading. b) Defamation. c) Twisting. d) Coercion.

d) Coercion.

#133. Which of the following is NOT a punishment for violating the Director's cease and desist order? a) Suspension or revocation of license b) A monetary fine c) Imprisonment d) Community service

d) Community service

#59. When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following? a) Legal purpose b) Contract of adhesion c) Acceptance d) Consideration

d) Consideration

#118. An agent is in the process of replacing the insured's current health insurance policy with a new one. Which of the following would be a proper action? a) There should be at least a 10-day gap between the policies. b) Policies must overlap to cover pre-existing conditions. c) The old policy must be cancelled before the new one can be issued. d) The old policy should stay in force until the new policy is issued.

d) Disability buyout

#59. An insured is hospitalized with a back injury. Upon checking his disability income policy, he learns that he will not be eligible for benefits for at least 30 days. This indicates that his policy is written with a 30-day a) Blackout period. b) Probationary period. c) Waiver of benefits period. d) Elimination period.

d) Elimination period.

#83. The insurance policy, together with the policy application and any added riders form what is known as a) Certificate of coverage. b) Contract of adhesion. c) Whole life policy. d) Entire contract.

d) Entire contract.

#77. If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT a) Draw a line through the first answer, record the correct answer, and have the applicant initial the change. b) Note on the application the reason for the change. c) Destroy the application and complete a new one. d) Erase the incorrect answer and record the correct answer.

d) Erase the incorrect answer and record the correct answer.

#148. Circulating deceptive sales material to the public is what type of Unfair Trade Practice? a) Defamation b) Coercion c) Misrepresentation d) False advertising

d) False advertising

#55. Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid a) Until the policyowner's age 65. b) For 20 years. c) Until the policyowner's age 100, when the policy matures. d) For 20 years or until death, whichever occurs first.

d) For 20 years or until death, whichever occurs first.

#103. When an employee terminates coverage under a group insurance policy, coverage continues in force a) For 60 days. b) Until the employee can obtain coverage under a new group plan. c) Until the employee notifies the group insurance provider that coverage conversion policy is issued. d) For 31 days.

d) For 31 days.

#74. As it pertains to group health insurance, COBRA stipulates that a) Retiring employees must be allowed to convert their group coverage to individual policies. b) Terminated employees must be allowed to convert their group coverage to individual policies. c) Group coverage must be extended for terminated employees up to a certain period of time at the employer's expense. d) Group coverage must be extended for terminated employees up to a certain period of time at the former employee's expense.

d) Group coverage must be extended for terminated employees up to a certain period of time at the former employee's expense.

#7. Which of the following statements is correct? a) HMOs do not pay for services covered by Medicare. b) Medicare Advantage is Medicare provided by an approved Health Maintenance Organization only. c) All HMOs and PPOs charge premiums beyond what is paid by Medicare. d) HMOs may pay for services not covered by Medicare.

d) HMOs may pay for services not covered by Medicare.

#112. Health Savings Accounts (HSAs) are designed to a) Increase individual interest income. b) Insure against catastrophic losses. c) Provide duplicate coverage for health care expenses. d) Help individuals save for qualified health expenses.

d) Help individuals save for qualified health expenses.

#69. A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium? a) If the father is disabled for at least a year b) If the daughter is disabled for more than 3 months c) If the daughter is disabled for any length of time d) If the father is disabled for more than 6 months

d) If the father is disabled for more than 6 months

#120. What type of insurance would be used for a Return of Premium rider? a) Level Term b) Decreasing Term c) Annually Renewable Term d) Increasing Term

d) Increasing Term

#67. What statement best describes the free look provision? a) It allows the proposed insured to carefully look over the application prior to filling it out. b) It allows the company to obtain an inspection and medical examination on the proposed insured prior to issuing the policy. c) It allows for the proposed insured to carefully look over the policy before applying for it. d) It allows the insured to return the policy within 10 days for a full refund of premiums if dissatisfied for any reason.

d) It allows the insured to return the policy within 10 days for a full refund of premiums if dissatisfied for any reason.

#60. What is the benefit of choosing extended term as a nonforfeiture option? a) It matures at age 100. b) It allows for coverage to continue beyond maturity date. c) It can be converted to a fixed annuity. d) It has the highest amount of insurance protection.

d) It has the highest amount of insurance protection.

#152. Which of the following is NOT true regarding a Certificate of Authority? a) It may be necessary for transacting business in a specific state. b) It is equivalent to an insurance license. c) It is issued by the state department of insurance. d) It is issued to group insurance participants.

d) It is issued to group insurance participants.

#52. In a group health policy, a probationary period is intended for people who a) Have a pre-existing condition at the time they join the group. b) Have additional coverage through a spouse. c) Want lower premiums. d) Join the group after the effective date.

d) Join the group after the effective date.

#100. Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client? a) Interest-sensitive whole life b) Life annuity with period certain c) Increasing term d) Limited pay whole life

d) Limited pay whole life

#85. The corridor deductible derives its name from the fact that it is applied between the basic coverage and the a) Comprehensive expense coverage. b) Interval expense coverage. c) Limited coverage. d) Major medical coverage.

d) Major medical coverage.

#94. Which of the following would NOT be considered a limited coverage policy? a) Accident insurance b) Cancer insurance c) Credit insurance d) Major medical expense insurance

d) Major medical expense insurance

#135. Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices? a) Stating that the insurance policy is a share of stock b) Exaggerating the benefits provided in the policy c) Stating that the competitors will arbitrarily increase their premiums each year d) Making comparisons between different policies

d) Making comparisons between different policies

#2. Which of the following programs expands individual public assistance programs for people with insufficient income and resources? a) Medicare b) Social Security c) Unemployment compensation d) Medicaid

d) Medicaid

#44. Under an individual disability policy, the MINIMUM schedule of time in which claim payments must be made to an insured is a) Within 45 days. b) Weekly. c) Biweekly. d) Monthly.

d) Monthly.

#32. The primary eligibility requirement for Medicaid benefits is based upon a) Whether the claimant is insurable on the private market. b) Age. c) Number of dependents. d) Need.

d) Need.

#123. Bethany studies in England for a semester. While she is there, she is involved in a train accident that leaves her disabled. If Bethany owns a general disability policy, what will be the extent of benefits that she receives? a) Full b) 50% c) 25% d) None

d) None

#160. Fred and Jody are covered under a group health insurance plan at his place of employment. When Jody gave birth to their first child, what must he do in order to have coverage for their child? a) Notify the insurer on the anniversary date of the plan b) Notify the employer within 10 days c) Notify the insurer immediately and provide proof of insurability d) Notify the insurer within 31 days in order for coverage to continue without any evidence of insurability

d) Notify the insurer within 31 days in order for coverage to continue without any evidence of insurability

#64. In long-term care insurance, what type of care is provided with intermediate care? a) Nonmedical daily care b) Daily care, but not nursing care c) Intensive care d) Occasional nursing or rehabilitative care

d) Occasional nursing or rehabilitative care

#91. Which of the following applies to partial disability benefits? a) An insured is entitled to a principal sum benefit for the partial loss of a limb. b) Payment is based on termination of employment. c) Benefits are reduced once an insured is no longer under a doctor's care. d) Payment is limited to a certain period of time.

d) Payment is limited to a certain period of time.

#82. What describes the specific information about a policy? a) Illustrations b) Buyer's guide c) Producer's report d) Policy summary

d) Policy summary

#14. A guaranteed renewable health insurance policy allows the a) Policyholder to renew the policy to a stated age and guarantees the premium for the same period. b) Policy to be renewed at time of expiration, but the policy can be canceled for cause during the policy term. c) Insurer to renew the policy to a specified age. d) Policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class.

d) Policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class.

#135. Health insurance policies are specifically required to provide lead poisoning coverage for which of the following? a) Children under age 16 b) Senior citizens over age 65 c) A severely disabled person d) Pregnant women

d) Pregnant women

#36. Under the Accidental Death and Dismemberment (AD&D) coverage, what type of benefit will be paid to the beneficiary in the event of the insured's accidental death? a) Capital sum b) Double the amount of the death benefit c) Refund of premiums d) Principal sum

d) Principal sum

#101. Insurers may change which of the following on a guaranteed renewable health insurance policy? a) Coverage b) Individual rates c) No changes are permitted. d) Rates by class

d) Rates by class

#98. Methods used to pay the death benefits to a beneficiary upon the insured's death are called a) Designation options. b) Beneficiary provisions. c) Death benefit options. d) Settlement options.

d) Settlement options.

#128. Which of the following describes the duties of an insurance producer? a) Procuring insurance from an unauthorized insurer b) Soliciting or negotiating insurance contracts on behalf of clients c) Providing advice or counsel regarding insurance policies for a fee d) Soliciting, negotiating or delivering insurance policies

d) Soliciting, negotiating or delivering insurance policies

#113. What is the best way to change an application? a) Erase the previous answer and replace it with the new answer b) White-out the previous answer c) Draw a line through the incorrect answer and insert the correct one. d) Start over with a fresh application

d) Start over with a fresh application

#48. Which of the following terms describes the specified dollar amount beyond which the insured no longer participates in the sharing of expenses? a) Out-of-pocket limit b) First-dollar coverage c) Corridor deductible d) Stop-loss limit

d) Stop-loss limit

#71. Which of the following, when attached to a permanent life insurance policy, allows the policyowner to customize the policy to provide an additional amount of temporary insurance on the insured, or allows amounts of temporary insurance to cover other family members? a) Accidental death and dismemberment rider b) Guaranteed insurability rider c) Change of insured rider d) Term rider

d) Term rider

#75. If a life insurance policy has an irrevocable beneficiary designation, a) The beneficiary cannot be changed for at least 2 years. b) The owner can always change the beneficiary at will. c) The beneficiary cannot be changed. d) The beneficiary can only be changed with written permission of the beneficiary.

d) The beneficiary can only be changed with written permission of the beneficiary.

#82. An applicant signs an application for a $25,000 life insurance policy, pays the initial premium, and receives a conditional receipt. If the applicant is killed in an automobile accident the next day, a) The premium would be returned to the insured's estate because the policy was not issued. b) The company could reject the death claim because the underwriting process was never completed. c) The company could reject the application on the basis that the insured's death was not caused by an ongoing medical problem. d) The beneficiary would receive $25,000 if it was determined that the insured qualified for the policy applied for.

d) The beneficiary would receive $25,000 if it was determined that the insured qualified for the policy applied for.

#149. When does credit life insurance coverage take effect? a) The date the policy is delivered b) 30 days after the first payment is received c) The date the application is completed d) The date the debtor becomes obligated to the creditor

d) The date the debtor becomes obligated to the creditor

#105. Which of the following describes the tax advantage of a qualified retirement plan? a) Distributions prior to age 59½ are tax deductible. b) Employer contributions are deductible as a business expense when the employee receives benefits. c) Employer contributions are not taxed when paid out to the employee. d) The earnings in the plan accumulate tax deferred.

d) The earnings in the plan accumulate tax deferred.

#66. Hospital indemnity/hospital confinement indemnity policy will provide payment based on a) The type of illness. b) The premiums paid into the policy. c) The medical expense incurred. d) The number of days confined in a hospital.

d) The number of days confined in a hospital.

#54. In a life settlement contract, whom does the life settlement broker represent? a) The insurer b) The beneficiary c) The life settlement intermediary d) The owner

d) The owner

#125. In Missouri, it is illegal to receive a commission from the sale of insurance UNLESS a) The payor holds a valid insurance producer license. b) The insured gives written consent allowing the commission to be split. c) The payor and payee both hold valid insurance producer licenses. d) The payee holds a valid insurance producer license.

d) The payee holds a valid insurance producer license.

#12. An insured makes regular contributions to his Health Savings Account. How are those contributions treated in regards to taxation? a) They are considered after-tax contributions. b) They are not deductible. c) They are taxed as income. d) They are tax deductible.

d) They are tax deductible.

#121. What is the purpose of establishing the target premium for a universal life policy? a) To accumulate cash value faster b) To pay up the policy faster c) To cover all policy expenses d) To keep the policy in force

d) To keep the policy in force

#15. What is the purpose of key person insurance? a) To provide health insurance to the families of key employees b) To insure retirement benefits are available to all key employees c) To maintain an account that insures the owner of a company remains solvent d) To lessen the risk of financial loss because of the death of a key employee

d) To lessen the risk of financial loss because of the death of a key employee

#28. The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called a) Guaranteed insurability. b) Waiver of cost of insurance. c) Payor benefit. d) Waiver of premium.

d) Waiver of premium.

#35. When is the earliest a policy may go into effect? a) When the first premium is paid and the policy has been delivered b) When the insurer approves the application c) After the underwriter reviews the policy d) When the application is signed and a check is given to the agent

d) When the application is signed and a check is given to the agent

#6. What is an important feature of a dental expense insurance plan that is NOT typically found in a medical expense insurance plan? a) A broad coverage area b) A low monthly premium c) Low cost deductibles d) Diagnostic and preventive care

d) diagnostic and preventative care