MO Life and Health

An IRA owner who is 57 years old wants to make a withdrawal from her traditional IRA. What penalty will be imposed?

10%

In order for a business partner to be eligible for a Keogh plan, he/she must work full-time and own at least how much of the business?

10%

Group life insurance policies issued in this state must offer a grace period of at least

31 days

In which Medicare supplemental policies are the core benefits found?

All plans

In credit life insurance, who is responsible for paying the policy premiums?

Borrower only

Which of the following would be TRUE of both the fixed-period and fixed-amount settlement options?

Both guarantee that the principal and interest will be fully paid out

An employee dies having 6 quarters of coverage during the previous 13-quarter period. What status of coverage does the employee have under Social Security?

Currently insured

An insurer mails an insurance policy to a new policyowner. When the insurer relinquishes control of the policy, the policy is considered

Delivered

In policy replacement, the term "conservation effort" means

Discouraging policyholders from dropping existing policies

J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did J choose?

Fixed amount

In order for an alumni association to be eligible to purchase group health insurance for its members, all of these statements must be true EXCEPT when the association

Has been active for 5 years minimum

Who would be allowed to catch up contributions into an IRA plan?

Individuals age 50 or older

Which of the following is NOT a Medicaid qualifier?

Insurability

Which of the following statements describes one of the reasons individuals purchase life insurance?

It creates an immediate estate

Under the affordable care act, when would pregnancy be considered a pre-existing condition?

Never

Which statement best describes agreement as it relates to insurance contracts

One party accepts the exact terms of the other party's offer

On an Accidental Death and Dismemberment (AD&D) insurance policy, the death benefit payable is known as the

Principal Sum

All of the following are true of annually renewable term insurance EXCEPT

Proof of insurability must be provided at each renewal

Which of the following answers does NOT describe the principal goal of a Preferred Provider Organization

Provide medical services only from physicians in the network

The guaranteed insurability rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following EXCEPT

Purchase of a new home

Which of the following is NOT one of the three types of term coverage based on what happens to the face amount during the policy term?

Renewable

An applicant for a disability insurance policy has a heart condition of which they are unaware and therefore they answer no to the questions pertaining to heart problems on their application. Their answer is considered to be a

Representation

Which of the following terms relates to disability income insurance?

Residual benefit

An insured was diagnosed with kidney cancer. She was treated with surgeries and chemotherapy and is now in remission. She also has a 30-year smoking history. The insured is now healthy enough to work and has just started a full-time job. Which describes the health insurance that she will most likely receive?

She would be covered under her employer's group health insurance plan, without higher premiums

Upon policy delivery, the producer may be required to obtain any of the following EXCEPT

Signed waiver of premium

Which two terms are associated directly with the way an annuity is funded?

Single payment or periodic payment

What happens to the face amount of a whole life policy if the insured reaches age 100?

The face amount is paid to the insured

All of the following are characteristics of group health insurance plans EXCEPT

The parties that hold a group health insurance contract are the employees and the employer

Which of the following is true regarding a joint life annuity?

The payments stop at the first death

The elimination period in a disability income policy is better known as

The period of time an insured must wait after the onset of an illness or injury before benefits begin

Two weeks prior to committing suicide on Feb. 29th, insured Z was found to be clinically insane by a municipal court. If the insured received life insurance coverage in January of the previous year, which of the following would be true?

The policy beneficiaries will receive full death benefits regardless of the insured's mental state since the suicide occurred after one year of the policy coverage

What must be included in the notice of an insurer's intention to nonrenew a health insurance policy?

The reason for nonrenewal

What is the purpose of the impairment rider in a health insurance policy?

To exclude coverage for a specific impairment

What is the purpose of a benefit schedule?

To state what and how much is covered in the plan

An employee that becomes ineligible for group coverage because of termination of employment or change in status, must exercise extension of benefits under COBRA

Within 60 days

The director has the power and authority to perform all of the following EXCEPT

Write insurance statutes

Medicare part B covers all of the following EXCEPT

long term care services

An individual is approaching retirement and is concerned about having proper coverage should he have to be placed in a LTC facility. His agent told him that LTC policies would provide necessary coverage at all of the following levels EXCEPT

Acute

All of the following are features of a health insurance plan purchased on the health insurance marketplace EXCEPT

Dollar limits on essential benefits

Circulating deceptive sales material to the public is what type of Unfair Trade Practice?

False advertising

Which of the following types of insurance products would be appropriate for an individual with a low income and high insurance needs?

Term insurance

Level 2 violations of unfair insurance trade practices may result in a monetary penalty of up to

$50,000

If an insured pays a health insurance premium each month, how long would the grace period be under the policy?

10 days

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 will this producer need to complete in order to renew the license the next term?

12

If a person is disabled at age 27 and meets Social Security's definition of total disability, how many work credits must he/she have earned to receive benefits?

12 credits

Which of the following would NOT be considered a limited coverage policy?

Major medical expense insurance

Which of the following is NOT true of life settlements?

The seller must be terminally ill

The entire contract includes all of the following EXCEPT

A buyer's guide

A whole life policy is surrendered for a reduced paid up policy. The cash value in the new policy will

Continue to increase

A core medicare supplement policy (Plan A) will cover all of the following EXCEPT

Part A deductible

Who chooses a primary care physician in an HMO plan?

The individual member

With Adjustable Life, the owner can change all of the following EXCEPT

The insured

Under an extended term nonforfeiture option, the policy cash value is converted to

The same face amount as in the whole life policy

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?

Within 31 days of birth

How long may a temporary producer's license be in effect?

90 days

Which of the following is a feature of a disability buyout plan?

A lump-sum benefit payment option

Which of the following provides coverage on a first-dollar basis

Basic expense

Which of the following would NOT trigger the payment of Accelerated Death Benefits

Being permanently disabled

In addition to participation requirements, how does an insurer guard against adverse selection when underwriting group health?

By requiring that the insurance be incidental to the group

A major medical expense policy would exclude coverage for all of the following treatments EXCEPT

Drug addiction

An agent delivers a life policy. He explains a policy change was made and asks the applicant to sign a statement acknowledging the changes were explained. The agent says the premium has not been paid and must be paid before the policy goes into effect. He collects a statement of good health, relinquishes the policy, and leaves. What did he do wrong?

He left the policy with the insured without collecting the premium

Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?

Life income with period certain

Which of the following documents provides a disclosure of a Medicare supplement policy?

Outline of coverage

Insureds have the right to do which of the following if they have NOT received the proper claim forms within 15 days of their notice to the insurer of a covered loss under a major medical policy?

Submit the description in their own words on a plain sheet of paper

If an insured continually uses the automatic premium loan option to pay the policy premium,

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

Which of the following best defines target premium in a universal life policy?

The recommended amount to keep the policy in force throughout its lifetime

A 71 year old female recently purchased a life insurance policy with graded death benefits. If the policy has graded death benefits for 3 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

Which of the following is true regarding taxation of accelerated benefits paid under a life insurance policy?

They are received tax free

Which of the following types of policies allows for a flexible premium and a variable investment component?

Variable universal life insurance

All of the following are required provisions in group life insurance policies in this state EXCEPT

Warranties made by the applicants

Which of the following is a statement that is guaranteed to be true and if untrue may breach an insurance contract

Warranty

An annuitant pays the annuity premium on the 14th of each month. Which of the following best describes this arrangement?

Level

All of the following are excluded from coverage in an individual health insurance policy EXCEPT

Mental illness

Which of the following is NOT a required coverage in health insurance policies in Missouri?

Mental retardation

Policy loan requests, except for loan requests for payment of due premium, may be deferred for a period of up to

6 months

Which of the following statements is NOT true regarding health insurance policy provisions?

All additional provisions written by insurers are cataloged by their respective states

In disability income insurance, the time between the onset of an injury or sickness and when the benefits begin is known as the

Elimination period

LTC coverage may be available as any of the following options EXCEPT

Endorsement to a health policy

When an employee terminates coverage under a group insurance policy, coverage continues in force

For 31 days

If a loan request is for payment of due premiums on the policy, how soon must the insurer issue a loan?

Immediately

A typical Accidental Death & Dismemberment policy covers all of the following losses EXCEPT

Income

Which of the following is correct regarding selecting a primary care physician in a PPO plan?

The insured may choose medical providers not found on the preferred list

Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company?

Aleatory

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

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 INCORRECT concerning the taxation of disability income benefits?

If paid by the individual, the premiums are tax deductible

When comparing a joint-life policy to two individual life policies of the same amount on the same insureds, which condition is true?

Joint life has a lower premium than the total amount of the two individual policies

All of the following information needs to be included on an application for life insurance EXCEPT

Health insurance policies in force

All of the following statements are true regarding an ordinary (straight) life policy EXCEPT

It does not have a guaranteed life benefit

Which of the following best describes annually renewable term insurance

It is level term insurance

Which of the following best describes annually renewable term insurance?

It is level term insurance

Which of the following are true regarding pure life annuity settlement options?

It provides the highest monthly benefit

Once the initial benefit limit in Medicare Part D is reached, how is the beneficiary affected?

The beneficiary is then responsible for a portion of prescription drug costs

Employer contributions made to a qualified plan

Are subject to vesting requirements

An insured commits suicide 18 months after obtaining a life insurance policy. How does this affect the policy's death benefits the insurance company must pay?

The insurance company will pay full death benefits

Which of the following scenarios would require that an insured is provided with a conversion option to individual health insurance coverage?

The insured had continuous coverage under the policy

What is necessary in order to be eligible to receive benefits from a LTC policy?

The insured must be unable to perform some activities of daily living

All of the following statements about indexed whole life insurance are correct EXCEPT

The policy face amount remains level throughout the life of the policy

Which of the following is true regarding copayment and coinsurance for services provided by a physical therapist under a health benefit plan?

They must be the same as for the services of a primary care physician

All of the following are true regarding the guaranteed insurability rider EXCEPT

This rider is available to all insureds with no additional premium

An employee is covered under COBRA. His previous payment was $100 per month. His employer collects $102 each month. Why does the employer collect an extra $2?

To cover the employer's administration cost

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

Cash Option

What is the period of coverage for events such as death or divorce under COBRA

36 months

The minimum number of credits required for partially insured status for Social Security disability benefits is

6 credits

Which of the following statements is INCORRECT?

The insurer does not have the right to conduct an autopsy

The paid-up addition option uses the dividend

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

Which type of insurance policy allows the policyowner to pay more or less than the planned premium?

Universal Life

What is the maximum age that a disabled insured worker may receive social security benefits?

65

A life insurance policy qualifies as a Modified Endowment Contract (MEC). If the amount of premium paid exceeds the amount that would have provided paid-up insurance in how many years?

7 Years

Which nonforfeiture option has the highest amount of insurance protection?

Extended term

An agent selling variable annuities must be registered with

FINRA

A new insured is looking through her life insurance policy for the description of the policy's graded death benefits. Where would this information be located within the policy?

Face and the back of the policy

All of the following are features of catastrophic plans EXCEPT

Out of pocket premiums

If an insurer transacts insurance without first having received a certificate of authority, the insurer is guilty of a

Felony

What type of premium do both Universal Life and Variable Universal Life policies have?

Flexible

All of the following are among the minimum maternity benefits required in health insurance policies in the state of Missouri EXCEPT

3 post-discharge visits by a physician

The benefits received by the business in a Disability Buy-Sell policy are

Income tax free

Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?

Insuring clause

Which of the following is NOT true regarding the life with guaranteed minimum annuity settlement option?

It does not guarantee that the entire principal amount will be paid out

Your client wants to provide a retirement income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guaranteed an income for life. Which settlement option should this policyowner select?

Joint and survivor

When may HIV-related test results be provided to the MIB?

Only if the individual is not identified

The part of Medicare that helps pay for inpatient hospital care, inpatient care in a skilled nursing facility, home health and hospice care, is known as

Part A