MY MO L H and A Exam
An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. This agent is guilt of:
Rebating
NOT specifically prohibited by state law as unfair trade practices
Reducing the premiums paid by employers for group insurance based on loss experience
When a health carrier uses retrospective review procedures, within how many days of receipt of information must the carrier make the determination?
30 working days
In the event a policy lapses due to nonpayment of premium, within how many days would the policy be automatically reinstated once the outstanding premium is paid?
45
What is the typical deductible for basic surgical expensive insurance?
$0
If a life policy allows the PO to make periodic additions to the face amount at standard rates, without providing insurability, the policy includes a
Guaranteed insurability rider
Which of the following is NOT a requirement for companies that issue variable contracts in MO?
Have a surplus of at least $3 million
All of the following are among the Director's broad powers EXCEPT
Have interest in insurance companies regulated by the Department
An insured is covered under 2 group health plans - under his own and his spouse's. He had suffered a loss of $2,000. After the insured paid the total of $500 in deductibles and coinsurance, the primary insurer covered $1,500 of medical expenses. What amount, if any, would be paid by the secondary insurer?
$500
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 max amount that L will have to pay?
$900 (deductible + 20% of the bill after the deductible [20% of $2000])
What percentage of a company's employees must take part in a noncontributory group life plan?
100 percent
If an individuals producer's license expires and the producer doesn't want to pass a written exam, the license must be reinstated within what time period from the renewal date?
12 months
A producer completed an insurance transaction in 2007. When can the producer dispose of the records for this transaction?
2010
What is the time limit to contest life insurance policies in MO?
3 years
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?
6
A child with phenylketonuria (PKU) will have its physician-recommended foods covered by a health insurance policy, provided the child is under what maximum age?
6 Years old
What is the waiting period on a Waiver of Premium rider in life insurance policies?
6 months
The Director may waive the continuing education reporting requirements for any of the following, EXCEPT
A licensee age 65 or older
Which of the following licensees could be exempt from renewing their license biennially on the anniversary of the date of issuance?
A licensee called to active duty with the US Armed Forces
Which is NOT required on an application for a variable life insurance policy?
A statement explaining the use of separate accounts in variable insurance
What is NOT considered a misrepresentation as it pertains to unfair trade practices?
Making comparisons between different policies
NOT covered under LTC policy?
Acute care in a hospital
In reference to the standard Medicare Supplement benefits plan, what does the term standard mean?
All providers will have the same coverage options and conditions for each plan
Who can make a fully deductible contribution to a tradition IRA?
An individual not covered by an employer-sponsored plan who has earned income
All of the following are examples of third-party ownership of a life insurance policy EXCEPT
An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan
the LEAST expensive 1st year premium is found in which of the following policies?
Annually Renewable Term
The death protection component of a universal life policy is expressed as what type of coverage?
Annually renewable term
In an annuity, the accumulated money is converted into a stream of income during which time period?
Annuitization Period
How is the Director selected for the office?
Appointed by the governor
No insurance policy form can be issued, delivered, or used in this state unless is has been
Approved by the Department of Insurance
An agent is ready to deliver a policy to an applicant but has not yet received payment. Upon delivery, the agent collects the applicant's premium check, answers any questions the applicant may have, and then leaves. What did he forget to do?
Ask her to sign a statement of good health
All of the following are TRUE of the federal tax advantages of a qualified plan EXCEPT:
At distribution,, all amounts received by the employee are tax free
When twin brothers applied for life insurance from Company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. Because of this, the company charged him a higher rate for his insurance. This practice is considered
Discrimination
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
Elimination Period
Invest on an aggressive basis in order to yield higher premiums Similar to a Fixed Annuity, have a guaranteed minimum Interest rate Insurance company often keeps a predetermined percentage of the return and pays the rest to the annuity owner. Less risky than variable annuities and earn higher interest rates than fixed annuities
Equity Indexed Annuities
Which of the following entities has the authority to make changes to an insurance policy?
Insurer's executive officer
Who makes up the Medical Information Bureau?
Insurers
When a reduced paid up nonforfeiture option is chosen, what happens to the face amount of the policy?
It is reduced to the amount of what the cash value would buy as a single premium
Which of the following statements is TRUE concerning the Accidental Death Rider?
It will pay 2x or 3x the face amount within 90 days of accident
Which of the following is true of a PPO?
Its goal is to channel patients to providers that discount services
Which of the following settlement options in life insurance is known as straight life?
Life income
A long-term care insurance shopper's guide must be provided in the format developed by which of the following?
NAIC
Which renewal provision(s) must be included in a LTC policy issued to an individual?
Noncancelable and guaranteed renewable
During replacement of life insurance, a replacing insurer must do which of the following?
Obtain a list of all life insurance policies that will be replaced
No insurance company may transact insurance business in Missouri unless it first
Obtains from the Director a Certificate of Authority
Which of the following documents provides a disclosure of a Medicare supplement policy?
Outline of coverage
Traditional IRA contributions are tax deductible based on:
Owner's income
A participating insurance policy may do which of the following?
Pay dividends to the owner based upon actual mortality cost, interest earned and costs
If the policyowner, the insured, and the beneficiary under a life insurance policy are three different people, who has the ownership rights?
Policyowner
All are required provisions in group health policies in MO EXCEPT
Pre-existing conditions exclusions
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?
Principal sum
The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?
Reduction of Premium
the Federal Fair Credit Reporting Act
Regulates consumer reports
What type of care is Respite care?
Relief for a major care giver
Which of the following is NOT one of the three basic types of coverages that are available, based on how face amount changes during term policy?
Renewable
Under FCRA, if consumer challenges the accuracy of information in report, the reporting agency must
Respond to the consumer's complaint
Group life policies inMO must contain all of the following provisions EXCEPT
Statements of the applicant are considered warranties
Which, when attached to a permanent life insurance policy, allows the PO to customized the policy to provide an addition amount of temporary insurance on the insured, or allows amounts of temporary insurance to cover other family members?
Term rider
Who is responsible for covering the expenses associated with the examination of domestic insurers?
The Examined Insurer
What of the following would provide an underwriter with information regarding an applicant's health history?
The Medical Information Bureau
Which of the following information will be stated in the consideration clause of a life insurance policy?
The amount of premium payment
Under a health insurance policy, benefits otehr the DB's, that have not otherwise been assigned, will be paid to
The insured
Which of the following is NOT a feature of a guaranteed renewable provision?
The insurer can increase the policy premium on an individual basis
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?
The insurer will pay the full DB from the group policy to the beneficiary
Which of the following statements is true regarding coinsurance?
The larger percent paid by insured, the lower the required premium will be
Which is trye regarding optional benefits with LTC policies?
They are available for an additional premium
Which of the following is NOT true regarding Equity Indexed Annuities?
They earn lower interest rates than fixed annuities
All of the following are requirements for life insurance illustrations EXCEPT
They must be part of the contract.
Which of the following is NOT true regarding partial disability?
This is a form of insurance that covers part-time workers
What is the purpose of the insurability provision in group life policies issued in MO?
To allow the insurer to require proof of insurability from individual insured
Characteristic that does NOT describe managed care?
Unlimited access to providers
Interest earned on policy dividends is
taxable
A petitions for adoption must be filed within how many days of birth in order for health coverage to extend to the adopted child>
30 days
All individual health policies issued in MO which provide coverage for hospital treatment mist also provide coverage for treatment of alcoholism, which may be limited to how many days?
30 days
An insurer cannot transact business until it obtains a/an
Certificate of Authority
NOT a punishment for violating the Director's cease and desist order?
Community service
Which of the following types of insurance policies is most commonly used in credit life insurance?
Decreasing term
When a producer was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. The producer could be found guilty of
Defamation
NOT true regarding Underwriting group health insurance?
The group is assessed individually for insurability
How long does the insurer or reporting agency have to comply with a consumer request of addition information regarding an investigative consumer report?
5 days
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 on the policy?
50 percent
All of the following information about a customer must be used in determining annuity suitability EXCEPT
Beneficiary's age
All true about group disability Income insurance EXCEPT
Coverage applies both on and off the job
The Director, or his designated examiner, may examine the conduct of any insurance company operating in Missouri. The Director must conduct a financial examination of every insurer licensed in Missouri at least
Every 5 years
In a direct rollover, how is the money transferred from one plan to the new one?
From trustee to trustee
The automatic premium loan provision is activated at the end of the
Grace Period
Which of the following provisions in universal life policies stipulates that a written notice of the termination of coverage must be sent to the PO?
Grace period and lapse
NOT among the lines of authority for which an insurance producer may qualify in MO?
Group health insurance
Upon the death of the insured, the primary beneficiary discovers that the insured chose the interest only settlement option. What does this mean?
The beneficiary will only receive payments of the interest earned on the death benefit.
The PO of an Adjustable Life Policy wants to increase the DB. Which statement is true?
The death benefit can be increased by providing evidence of insurability.
Which statement is NOT true regarding underwriting group health insurance?
The group is assessed individually for insurability
Which of the following is true regarding elimination periods and the cost of coverage?
The longer the elimination period, the lower the cost of coverage
What will vary the length of the grace period in health insurance policies?
The mode of the premium Payment
What must contain a notice of the graded death benefit in a life insurance policy with graded death benefits?
The policy's application
Which of the following provisions is NOT mandatory for health insurance policies in the state?
Unpaid premiums
A medical expense policy that establishes the amount of benefit paid based upon the prevailing charges which fall within the standard range of fees normally charged for a specific procedure by a doctor of similar training and experience in that geographic area is known as
Usual, customary and reasonable
What does "liquidity" refer to in a life insurance policy?
Cash Values can be borrowed at any time
An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision?
Common Disaster
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?
The third year of the policy must have a DB equal to 65 percent of the total face amount