Missouri Statutes, Rules and Regulations Pertinent to Life Only

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

What is required of an insurer should an insured commit suicide prior to one year elapsing under a life insurance policy?

All paid premiums must be returned

How long must an insurer maintain advertisements used in the sale of life insurance?

5 years

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%

What is the maximum policy loan interest rate in Missouri?

8%

Which of the following is correct regarding credit life insurance?

It insures the life of a debtor

Which of the following is TRUE regarding the insurance amount in a credit life policy?

The creditor can only insure the debtor for the amount owed

When does credit life insurance coverage take effect?

The date the debtor becomes obligated to the creditor

Assignability provision in a life insurance policy relates to

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 graded death benefits?

The policy application

How must a replacing producer respond to an applicant wishing to replace existing life insurance?

The producer must provide the applicant with a Notice Regarding Replacement

What is the time limit to contest life insurance policies in Missouri?

2 years

The act of trying to discourage a policyholder from dropping his/her existing policy is called

Conversation effort

Credit life insurance is usually issued as what type of policies?

Term life

Which of the following would be the beneficiary in credit life insurance?

Creditor

The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called

Credit life

Which of the following is TRUE about credit life insurance?

Creditor is the policyowner

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

A statement explaining the use of separate accounts in variable insurance

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?

Annually

No insurance policy form can be issued, delivered or used in this state unless it has been

Approved by the Department of Insurance

When the designated beneficiary on a life insurance policy died, the insured needed to designate a new beneficiary. Which provision allows for this change?

Assignability

G is a commercial airline pilot 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?

Aviation Exclusion Clause

All of the following information about a customer must be used in determining annuity suitability EXCEPT a. Tax status b. Financial experience c. Annual income d. Beneficiary's age

Beneficiary's age

All of the following statements are correct regarding credit life insurance EXCEPT a. Benefits are paid to the borrower's 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 borrower's beneficiary

R has a life insurance policy that specifically excludes his death from being covered should it occur in an act of war. Where must this be spelled out in the policy?

On the face of the policy

Life insurers are prohibited from including any of the following in advertisements EXCEPT a. Endorsements by government entities b. Explanations that premiums may be withdrawn c. A guarantee of company earnings d. Policy appraisals and analyses

Policy appraisals and analyses

Which of the following documents must be provided to the policyowner or applicant during policy replacement?

Notice Regarding Replacement

The initial amount of credit life insurance may NOT exceed?

The amount to be repaid under the contract

An individual obtained a life insurance policy in March, but 3 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?

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

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?

Replacement Rule

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 death benefit equal to 65% of the total face amount

A policyowner would like to replace an existing policy with a new one. After having compared the two policies, the insurer has advised the policyowner not to continue the replacement process. What is the insurer's action called?

Conversation

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

Creditor requiring that a debtor buys insurance from a certain insurer

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?

Full face amount of the policy

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

Have a surplus of at least $3,000,000

Which of the following provisions in a group life policies prevents the insurer from denying a claim due to statements on the application after a certain period of time?

Incontestability

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

Statements of the applicant are considered warranties

Variable life insurance policies, as well as any riders, endorsements and other documents attached to them, must be approved by

The Director

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?

Grace period and lapse

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?

The coverage will continue in force

What is the purpose of the insurability provision in group life policies issued in this state?

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