Missouri Statutes, Rules and Regulations Pertinent to Life Only: Practice Questions

In order for a life insurance policy with graded death benefits to be issued to an individual over the age of 76, the first year death benefit must be at least what percentage of the total face amount of the policy? a-50% b-75% c-100% d-graded death benefits cannot be issued to someone over the age of 75

50%

Which of the following is true about credit life insurance? a-Creditor is the policy owner b-debtor is the annuitant c-creditor is the insured d-debtor is the policy beneficiary

Creditor is the policy owner

Which of the following provisions in Group life policy's prevents the insurer from denying a claim due to statements on the application after a certain period of time? a-Incontestability b-waiver of premium c-grace period d-Payment of claims

Incontestability

Which of the following producer designations may be used in life insurance advertisements? a-Seller b-financial planner c-consultant d-agent

agent

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

approved by the Department of Insurance

All the following information about a customer must be used in determining annuity suitability EXCEPT a-beneficiaries age b-tax status c-financial experience d-annual income

beneficiaries age

The act of trying to discourage a policy Holder from dropping his/her existing policy is called a-conservation effort b-dissuasive effort c-baiting d-bargaining

conservation effort

The type of insurance sold to a debtor and design to pay the amount due on a loan if the debtor dies before the loan is repaid is called a-multiple protection insurance b-credit life c-credit health d-decreasing whole life

credit life

Credit life insurance is usually issued as what type of policy's? a-Variable life b-annuity c-term life d-whole life

term life

Which of the following documents must be provided to the policy owner or applicant during the policy replacement? a-Notice regarding replacement b-disclosure authorization form c-buyers guide and policy summary d-policy illustrations

Notice regarding replacement

How must is replacing producer respond to an applicant wishing to replace existing life insurance? a-The producer must collect the existing policy's and turn them over to the replacing insurer b-the producer must request the permission of the existing insurer c-the producer has no specific duties d-the producer must provide the applicant with a notice regarding replacement

the producer must provide the applicant with a notice regarding replacement

A 71 year old female recently purchased a life insurance policy with graded death benefits. If the policy has graded death benefits for three years, which of the following must be true? a-The third year of the policy must have a death benefit equal to 95% of the total face amount b-the third year of the policy must have a death benefit equal to 50% of the total face amount c-the third year of the policy must have a death benefit equal to 80% of the total face amount d-the third year of the policy must have a death benefit equal to 65% of the total face amount

the third year of the policy must have a death benefit equal to 65% of the total face amount

Which of the following is NOT required on an application for a variable life insurance policy? a-A statement explaining the use of separate accounts in variable insurance b-a statement that the death benefit may be variable or fixed c-a statement that cash values may increase or decrease based on the separate account d-questions designated to assist the insurer in determining suitability of the insurance

A statement explaining the use of separate accounts in variable insurance

A policy owner would like to replace an existing policy with a new one. After having compared the two policies, the insurer has advised the policy owner not to continue the replacement process. What is the insurers action called? a-Conversation b-coercion c-retaining d-intervening cause

Conversation

How often must an insurer who delivers variable life insurance policy's in Missouri determine any changes in variable death benefits? a-Quarterly b-annually c-biannually d-biennially

annually

Which of the following types of insurance policies is the most commonly used in credit life insurance? a-Increasing term b-whole life c-equity indexed life d-decreasing term

decreasing term

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 an 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

full face amount of the policy

Which of the following is correct regarding credit life insurance? a-It insures the life of a creditor b-it has a maximum term of 20 years c-it ensures the life of a debtor d-it is purchased on an installment basis

it ensures the life of a debtor

The premium for a group life insurance policy was due on March 1. the policy owner 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

the coverage will continue in force

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

10%

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

2 years

Which of the following provisions in universal life policy's stipulates that a written notice of the termination of coverage must be sent to the policy owner? a-Policy guarantees b-illustrations c-periodic disclosure d-grace period and laps

grace period and laps

R has a life insurance policy that specifically includes his death from being covered should it occur in an act of war. Where must this be spelled out in the policy? a-In the excluded provision section b-on the convertible coverage page c-on the face of the policy d-in the binder of the policy under exclusions

on the face of the policy

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-Assignability b-right to choose c-replacement d-accelerated death benefit

Assignability

Which of the following is NOT allowed in credit life insurance? a-Credit are requiring that a debtor buys insurance from a certain insurer b-creditor having a collateral assignment on the policy c-creditor requiring that a debtor has a life insurance d-credit are becoming a policy beneficiary

Credit are requiring that a debtor buys insurance from a certain insurer

Which of the following would be the beneficiary in credit life insurance? a-Borrower b-creditor c-insured d-company

creditor

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

all paid premiums must be returned

Insurers that issue individual variable contracts in this state are required to Mail the policy owner a statement of the investment. How often must they Mail the statement? a-Quarterly b-upon request from the policy owner c-annually d-monthly

annually

G is a commercial airline pilot who also flies his own twin Piper aircraft for recreational purposes. What type of provisions 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 clause d-recreational exclusion clause

aviation exclusion clause

All of the following statements are correct regarding credit life insurance EXCEPT a-benefits are paid to the borrowers beneficiary b-the amount of insurance permissible is limited per borrower c-premiums are usually paid by the borrower d-benefits are paid to the creditor

benefits are paid to the borrowers beneficiary

The initial amount of credit life insurance may NOT exceed a-borrowers annual income b-the amount to be repaid under the contract c-an amount set by statue and adjusted regularly for inflation d-the borrower's monthly income

the amount to be repaid under the contract

Which of the following is TRUE regarding the insurance amount in a credit life policy? a-Allowable amount of coverage is determined by the state insurance commissioner b-the amount of coverage can be greater than the amount owed c-the creditor can only insure that debtor for the amount owed d-the creditor may insure the debtor for an unlimited amount of coverage

the creditor can only insure that debtor for the amount owed

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

the date the debtor becomes obligated to the creditor

Variable life insurance policy's, as well as any riders, endorsements and other documents attached to them, must be approved by a-the Guaranty Association b-the NAIC c-the state d-the director

the director

What is the purpose of the insurability provision in Group life policy's issued in this state? a-To automatically renew coverage for a new policy term b-to require the insurer to provide certificates of insurance to individual insured c-to guarantee insurability for all eligible applicants d-to allow the insurer to require proof of insurability from individual insured

to allow the insurer to require proof of insurability from individual insured

During a replacement of life insurance, a replacing insurer must do which of the following? a-Send a copy of the notice regarding replacement to the Department of Insurance b-obtain a list of all life insurance policies that will be replaced c-guarantee a replacement for each existing policy d-designate a new producer for a replaced policy

obtain a list of all life insurance policies that will be replaced

Life insurers are prohibited from including any of the following in advertisements EXCEPT a-policy appraisals and analyses b-endorsements by government entities c-explanations that premiums may be withdrawn d-a guarantee of company earnings

policy appraisals and analyses

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

the insured's right to designate a new beneficiary

What must contain a notice of the graded death benefit in a life insurance policy with a graded death benefit? a-The policy's exclusion section b-the policy application c-the policy underwriting explanation d-the policy's provisions selection

the policy application

An individual obtained a life insurance policy in March, but three months later was deemed clinically insane by the state of Missouri. Five months later the insured takes his own life. What type of death benefits will the policy beneficiaries receive? a-No benefits will be received because the insured was deemed clinically insane by a High Court. If the insured had not been cleared insane, the beneficiary would receive their full death benefits b-no death benefits are ever received for deaths that are ruled as suicides c-no benefits will be received because the policy was not in effect for at least one year; however, all premium payments will be returned d-since her policy was only in effect for 2/3 of a year, the beneficiary will receive exactly 2/3 of the death benefits

no benefits will be received because the policy was not in effect for at least one year; however, all premium payments will be returned

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

obtain a list of all life insurance policies that will be replaced

Group life insurance Policy is delivered in this state must contain all the following provisions EXCEPT a-statements of the applicant are considered warranties b-a grace period of 31 days c-incontestability period of two years d-a copy of the application is considered part of the policy

statements of the applicant are considered warranties