Missouri Statutes, Rules and Regulations Pertinent to Life Only Chapter 11

Question 13 of 15 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 designed to assist the insurer in determining suitability of the insurance

A statement explaining the use of separate accounts in variable insurance

Question 14 of 15 Which of the following producer designations may be used in life insurance advertisements? A. Consultant B. Agent C. Seller D. Financial planner

Agent

Question 11 of 15 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

Annually

Question 9 of 15 How often must an insurer who delivers variable life insurance policies in Missouri determine any changes in variable death benefits? A. Quarterly B. Annually C. Biannually D. Biennially

Annually

Question 7 of 15 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.

Question 2 of 15 Which of the following would NOT be an acceptable interest rate on a policy loan? A. 6% B. 8% C. 10% D. 4%

10%

Question 12 of 15 What is the time limit to contest life insurance policies in Missouri? A. 5 years B. 1 year C. 2 years D. 3 years

2 years

Question 12 of 15 All of the following information about a customer must be used in determining annuity suitability EXCEPT A. Financial experience. B. Annual income. C. Beneficiary's age. D .Tax status.

Beneficiary's age.

Question 14 of 15 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 creditor.

Question 5 of 15 The act of trying to discourage a policyholder from dropping his/her existing policy is called A. Bargaining. B. Conservation effort. C. Dissuasive effort. D. Baiting.

Conservation effort.

Question 3 of 15 Which of the following documents must be provided to the policyowner or applicant during policy replacement? A. Notice Regarding Replacement B. Disclosure Authorization Form C. Buyer's Guide and Policy Summary D. Policy illustrations

Notice Regarding Replacement

Question 3 of 15 During 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

Question 1 of 15 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? A. In the binder of the policy under exclusions B. In the excluded provisions section C. On the convertible coverage page D. On the face of the policy

On the face of the policy

Question 11 of 15 Credit life insurance is usually issued as what type of policies? A. Whole life B .Variable life C. Annuity D. Term life

Term life

Question 4 of 15 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? A. 50% B. 75% C. 100% D. Graded death benefits cannot be issued to someone over the age of 75

50%

Question 9 of 15 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. Monthly B. Quarterly C. Upon request from the policyowner D. Annually

Annually

Question 10 of 15 No insurance policy form can be issued, delivered, or used in this state unless it has been A. Filed with and approved by the Guaranty Association. B. Approved by the Department of Insurance. C. Reviewed by the Department and approved by the Governor. D. Developed by the Director.

Approved by the Department of Insurance.

Question 13 of 15 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? A. Intervening cause B. Conservation C. Coercion D. Retaining

Conservation

Question 8 of 15 Which of the following would be the beneficiary in credit life insurance? A. Borrower B. Creditor C. Insured D. Company

Creditor

Question 1 of 15 Which of the following is TRUE about credit life insurance? A. Debtor is the annuitant. B. Creditor is the insured. C. Debtor is the policy beneficiary. D. Creditor is the policyowner.

Creditor is the policyowner.

Question 7 of 15 Which of the following is NOT allowed in credit life insurance? A. Creditor having a collateral assignment on the policy B. Creditor requiring that a debtor has a life insurance C. Creditor becoming a policy beneficiary D. Creditor requiring that a debtor buys insurance from a certain insurer

Creditor requiring that a debtor buys insurance from a certain insurer

Question 8 of 15 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

Decreasing term

Question 4 of 15 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

Full face amount of the policy

Question 10 of 15 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. Policy guarantees B. Illustrations C. Periodic disclosure D. Grace period and lapse

Grace period and lapse

Question 2 of 15 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? A. On the convertible coverage page B. On the face of the policy C. In the binder of the policy under exclusions D. In the excluded provisions section

On the face of the policy

Question 6 of 15 Life insurers are prohibited from including any of following in advertisements EXCEPT A. Explanations that premiums may be withdrawn. B. A guarantee of company earnings. C. Policy appraisals and analyses. D. Endorsements by government entities.

Policy appraisals and analyses.

Question 15 of 15 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? A. Disclosure rule B. Replacement rule C. Reinstatement rule D. Conversion rule

Replacement rule

Question 15 of 15 The initial amount of credit life insurance may NOT exceed A. An amount set by statute and adjusted regularly for inflation. B. The borrower's monthly income. C. The borrower's annual income. D. The amount to be repaid under the contract.

The amount to be repaid under the contract.

Question 6 of 15 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.

The coverage will continue in force.

Question 5 of 15 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.