1/16/2023

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% (first year, then increases to appropriate age)

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

The Director may waive the continuing education reporting requirements for any of the following, EXCEPT

A licensee age 65 or older.

Individual and group health policies in this state will cover which of the following procedures for women?

A mammogram every year for women age 50 and over

Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as

Rebating.

When an insurer combines two periods of disability into one, the insured must have suffered a

Recurrent disability.

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 Reduction of Premium option allows the policyholder to apply policy dividends toward the next year's premium. The dividend is subtracted from the premium amount, yielding the new premium due for the next year.

Which of the following is NOT provided by an HMO?

Reimbursement

An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?

$50,000

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 maximum amount that L will have to pay?

$900 (deductible + 20% of the bill after the deductible [20% of $2,000])

Which of the following would NOT be an acceptable interest rate on a policy loan?

10%

Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be

Adjusted to the insured's age at the time of renewal.

Which of the following long-term care benefits would provide coverage for care for functionally impaired adults on a less than 24-hour basis?

Adult day care

A Universal Life Insurance policy is best described as a/an

Annually Renewable Term policy with a cash value account.

What does "liquidity" refer to in a life insurance policy?

Cash values can be borrowed at any time.

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT

Conditions.

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?

Conservation

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?

Consideration

Which of the following is TRUE about credit life insurance?

Creditor is the policyowner.

Which of the following is NOT allowed in credit life insurance?

Creditor requiring that a debtor buys insurance from a certain insurer

Which of the following is NOT an example of a valid insurable interest?

Debtor in the life of the creditor

Long-term care coverage may be available as any of the following options EXCEPT

Endorsement to a health policy.

When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?

Equal to the original policy for as long as the cash values will purchase.

To maintain an insurance license, all Missouri producers must successfully complete the required continuing education. All of the following statements concerning continuing education are correct, EXCEPT

Excess CE credits may not be applied toward the next requirement period.

When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?

Fixed amount

What required provision protects against unintentional lapse of the policy?

Grace period

To be eligible for a Health Savings Account, an individual must be covered by a

High-deductible health plan.

Which of the following types of LTC is NOT provided in an institutional setting?

Home health care

The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?

Interest only option

A Health insurance policy lapses but is reinstated within an acceptable timeframe. How soon from the reinstatement date will coverage for accidents become effective?

Immediately

What type of insurance would be used for a Return of Premium rider?

Increasing Term

A guaranteed renewable disability insurance policy

Is renewable at the insured's option to a specified age.

What is the benefit of choosing extended term as a nonforfeiture option?

It has the highest amount of insurance protection.

Which of the following is NOT true regarding a nonqualified retirement plan?

It needs IRS approval.

Which statement is NOT true regarding a Straight Life policy?

Its premium steadily decreases over time, in response to its growing cash value.

In a group health policy, a probationary period is intended for people who

Join the group after the effective date. - The probationary period is the waiting period new employees must satisfy before becoming eligible for benefits.

Which of the following is considered a presumptive disability under a disability income policy?

Loss of two limbs

Which of the following statements is NOT correct regarding Medicare?

Medicare Advantage must be provided through HMOs.

When an insured under a life insurance policy died, the designated beneficiary received the face amount of the policy, as well as a refund of all of the premiums paid. Which rider is attached to the policy?

Return of premium

The Director has just finished examining a domestic insurer. When is the Director next required to examine that insurer?

No later than 5 years from now

Part 2 of the application for life insurance provides questions regarding all of the following EXCEPT

Other insurance coverages.

Life insurers are prohibited from including any of following in advertisements EXCEPT

Policy appraisals and analyses.

A guaranteed renewable health insurance policy allows the

Policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class.

In which of the following instances would the premium be tax deductible?

Premiums paid by an employer on a $30,000 group term life insurance plan for employees

All of the following long-term care coverages would allow an insured to receive care at home EXCEPT

Skilled care.

Which of the following applicants would NOT qualify for a Keogh Plan?

Someone who works 400 hours per year

Group life insurance policies delivered in this state must contain all of the following provisions EXCEPT

Statements of the applicant are considered warranties.

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

Term life

All of the following entities regulate variable life policies EXCEPT

The Guaranty Association.

An insured who has an Accidental Death and Dismemberment policy loses her left arm in an accident. What type of benefit will she most likely receive from this policy?

The capital amount in a lump sum

How do employer contributions to a Health Savings Account affect the insured's taxes?

The employer contributions are not included in the individual insured's taxable income.

Who chooses a primary care physician in an HMO?

The individual member

In which of the following situations would an individual be permitted to exercise conversion privileges in a group health insurance policy?

The individual's employment was terminated.

Which provision states that the insurance company must pay Medical Expense claims immediately?

Time of Payment of Claims

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

The paid-up addition option uses the dividend

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

What document describes an insured's medical history, including diagnoses and treatments?

Attending Physician's Statement

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

If a policyholder declines the nonforfeiture benefit, what must the insurer provide to the client upon the lapse of the policy?

A contingent benefit

All of the following would be considered rebating EXCEPT

An agent misrepresents policy benefits to convince a policyowner to replace policies.

All of the following are legitimate reasons for a group health insurance policy nonrenewal EXCEPT

Any misrepresentation by the plan sponsor on the application for insurance.

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?

As of the application date

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

What license or licenses are required to sell variable annuities?

Both a life insurance license and a securities license - Agents are required to have both a life insurance license and a securities license to sell variable annuities.

The provision that provides for the sharing of expenses between the insured and the insurance company is

Coinsurance.

Which of the following statements about occupational vs. nonoccupational coverage is TRUE?

Disability insurance can be written as occupational or nonoccupational.

Which of the following is considered a qualifying event under COBRA?

Divorce

Which of the following entities has the authority to make changes to an insurance policy?

Insurer's executive officer

Every insurer marketing Long-Term Care insurance must establish marketing procedures to ensure all of the following EXCEPT

LTC policies are marketed effectively to prospective insureds.

The provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as

Legal actions. - This mandatory provision requires that no legal action to collect benefits may be started sooner than 60 days after the proof of loss is filed with the insurer. This gives the insurer time to evaluate the claim.

Under workers compensation, which of the following benefits are NOT included?

Legal benefits

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

How often must a health carrier provide a certificate of compliance to the Department of Insurance indicating that the carrier has established grievance procedures for each of its health benefit plans?

Once a year

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the

Other-insured rider. - The other-insureds rider is useful in providing insurance for more than one family member. The type of insurance offered by this rider is usually term insurance, with the right to convert to permanent insurance.

Prior to purchasing a Medigap policy, a person must be enrolled in which of the following?

Parts A and B of Medicare

An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident, and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?

Pay a reduced death benefit

Which of the following riders would NOT cause the Death Benefit to increase?

Payor Benefit Rider

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

All of the following statements about equity index annuities are correct EXCEPT

The annuitant receives a fixed amount of return.

The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following EXCEPT

The insured's age at death.

Which of the following is NOT a feature of a guaranteed renewable provision?

The insurer can increase the policy premium on an individual basis.

Which of the following is NOT a feature of a noncancellable policy?

The insurer may terminate the contract only at renewal for certain conditions.

What is the advantage of reinstating a policy instead of applying for a new one?

The original age is used for premium determination.

All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT

The policy is owned by the company.

Which of the following best defines the "owner" as it pertains to life settlement contracts?

The policyowner of the life insurance policy

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.

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

The same face amount as in the whole life policy. - Under this option the insurer uses the policy cash value to convert to term insurance for the same face amount as the former permanent policy.

All of the following are requirements for life insurance illustrations EXCEPT

They must be part of the contract.

When an insurer issues an individual health insurance policy that is guaranteed renewable, the insurer agrees

To renew the policy until the insured has reached age 65.

When an insurer issues an individual health insurance policy that is guaranteed renewable, the insurer agrees

To renew the policy until the insured has reached age 65. - The guaranteed renewable provision is similar to the noncancellable provision, with the exception that the insurer can increase the policy premium on the policy anniversary date. As with the noncancellable policy, coverage is generally not renewable beyond the insured's age 65.

G is a commercial airline pilot who 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 Cause

Under the Physical Exam and Autopsy provision, how many times can an insurer have the insured examined, at its own expense, while a claim is pending?

Unlimited

In forming an insurance contract, when does acceptance usually occur?

When an insurer's underwriter approves coverage - In insurance, the offer is usually made by the applicant in the form of the application. Acceptance takes place when an insurer's underwriter approves the application and issues a policy.

Social Security Supplement (SIS) or Social Security Riders would provide for the payment of income benefits in each of the situations below EXCEPT

When the amount payable under Social Security is more than the amount payable under the rider.

When can a Long-Term Care policy deny a claim for losses incurred because of a pre-existing condition?

Within 6 months of the effective date of coverage

Under the mandatory uniform provision Notice of Claim, the first notice of injury or sickness covered under an accident and health policy must contain

A statement that is sufficiently clear to identify the insured and the nature of the claim.

Occasional visits by which of the following medical professionals will NOT be covered under LTC's home health care?

Attending physician

Whose responsibility is it to determine if all of the questions on an application have been answered?

The agent