Life and Health Insurance Missouri

Individuals who itemize deductions can claim deductions for medical expenses not covered by health insurance that exceed what percent of their adjusted gross income?

10%

Which of the following disability income policies would have the highest premium?

15-day waiting period / 10-year benefit period

Within what period of time are unintentional misrepresentations grounds for contestability

2 years

How long is the free look period on a medicare supplement policy?

30 days

Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within

90 days

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?

A capital amount in a lump sum

Guaranteed Renewable

A medicare supplement plan must have at least which of the following provisions

The president of a manufacturing company has offered one of the company's officers a special individual annuity plan that is unavailable to lower-echelon employees. This plan would be funded with before-tax corporate dollars, and it does not meet government approval standards. This annuity plan is

A non qualified annuity plan

Long-term care policies MUST cover

Alzheimer's Disease

Certificate of Authority

An insurer cannot transact business until it obtains

The death protection component of Universal Life Insurance is always

Annually Renewable Term

An agent makes a mistake on the application and then corrects his mistake by physically entering the necessary information. Who must then initial that change?

Aplicant

What is the term used for an applicant's written request to an insurer for the company to issue a contract, based on the information provided?

Application

The premium charged for exercising the Guaranteed Insurability Rider is based upon the insured's

Attained Age

Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium?

Automatic premium loan

Which of the following is NOT true regarding Workers Compensation?

Benefits are offered by the insured

What is true of benefits provided in a health insurance policy for insureds that are diagnosed with diabetes

Benefits may be subject to deductibles and co-payments not greater to those applied to any other covered illness.

Which of the following best describes fixed-period settlement option?

Both the principal and interest will be liquidated over a selected period of time.

Mandatory provisions for group health policies in the state of Missouri

Certificate of Insurance, Misstatement of Age, Claims Provisions; including proof of loss

An insured is diagnosed with cancer and needs help paying for medical treatment

Circumstance where an insurer would pay accelerated death benefits

An applicant for an individual health policy failed to complete the application properly. Before being able to complete the application and pay the initial premium, she is confined to a hospital. This will not be covered by insurance because she has not met the conditions specified in the

Consideration Clause.

Individual or group term plan

Credit life insurance can be issued as

Term Life

Credit life insurance is usually issued as what type of policies

Most policies include coverage for

Dependents

Other than for a qualified life event, when can a change be made in benefits for a Flexible Spending Account (FSA)?

During the open enrollment period

In a disability policy, the probationary period refers to the time

During which illness-related disabilities are excluded from coverage.

TRUE about the cash surrender nonforfeiture option?

Funds exceeding the premium paid are taxable as ordinary income.

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

Grace period of 31 days, Incontestability of 2 years, A copy of the application must be attached to the policy

The term "fixed" in a fixed annuity refers to all of the following

Guaranteed rate of interest, Equal annuity payments, and amount and length of payments

3 years

How long must insurance transaction records be kept

At least 96 hours

How many hours of inpatient care must be provided to a mother after a delivery by caesarian section

Annually

How often must an insurer who delivers variable life insurance policies in variable death benefits

How will the insured be able to receive the full amount of their whole life policy?

If the insured lives to age 100

Skilled care is almost always

In an institutional setting

Annually

Insurers that issue individual variable contracts in this state are required to mail policy owners a statement of the investments, How often?

Credit Insurance

Insures the life of a debtor

When a beneficiary receives payments consisting of both principal and interest portions, which parts are taxable as income?

Interest only

What is the purpose of a free-look period in insurance policies?

It allows the insured to reject the policy with a full refund.

Which of the following best describes annually renewable term insurance?

It is level term insurance

Loss by illness is not covered if

It occurs in during the probationary period

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

In a replacement situation all of the following must be considered

Limitations, benefits, and exclusions

8%

Maximum policy loan interest rate in Missouri

Under an individual disability policy, the MINIMUM schedule of time in which claim payments must be made to an insured is

Monthly

Approved by the Department of Insurance

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

On a guaranteed renewable health insurance policy, the insurer may increase premiums

On a class basis only

Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?

Option B

When health care insurers negotiate contracts with health care providers or physicians to provide health care services for subscribers at a favorable cost, it is called

Preferred Provider Organization (PPO)

Totally tax deductable

Premiums paid by self employed, sole proprietors, and partners for medical insurance are

The Federal Fair Credit Reporting Act

Regulates Consumer Reports, also known as consumer investigative reports, or credit reports.

What type of care is Respite Care?

Relief for a major care giver

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

Respite Care, Adult Day Care, Home health care, Custodial Care

Stop-loss Limit

Specified dollar amount beyond which the insured no longer participates

Required on an application for variable life insurance policy

Statement that the death benefit is variable or fixed Statement that cash values may increase or decrease based of the separate account Questioned designed to assist the insurer in determining suitability of insurance

A provision found in insurance policies which prevents the insured from collecting twice for the same loss is called

Subrogation

The interest earned on policy dividends is

Taxable

The term "fixed" in a fixed annuity does not refer to

The Death Benefit

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

The Director

If a business wants to buy a disability income policy on a key employee, which of the following is considered the applicant?

The Employer

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?

The Fair Credit Reporting Act

Policy owners, Insureds, and beneficiaries

The Missouri Life and Health Insurance Guaranty association was created to protect.

In insurance, an offer is usually made when

The completed application is submitted

The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?

The death benefit can be increased by providing evidence of insurability

Who is the owner and who is the beneficiary in a key person life insurance policy

The employer is the owner and the beneficiary

The insuring clause on a disability policy usually states all of the following

The identity of the insurance company and the insured, The types of losses covered, That insurance against loss is provided

Which of the following best describes the "first-dollar coverage" principle in basic medical insurance?

The insured is not required to pay a deductible

An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?

The insured may renew for another 10 years but at a higher premium rate

Which of the following is true regarding health insurance underwriting for a person with HIV?

The person may not be declined for medical coverage solely for HIV

The Graded Death Benefit

The policy application must contain a notice of

To control health insurance claims expenses

The purpose of a managed health care insurance plan is to

When the reduced option is written as "Joint and 2/3 Survivor"

The surviving beneficiary receives 2/3 of what was received when both beneficiaries were alive

Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policy owner?

Third-Party Ownership

Which provision states that the Insurance company must pay Medical Expense immediately

Time of Payment of Claims

What is the purpose of the buyer's guide?

To allow the consumer to compare the costs of different policies

The paid-up addition option uses the dividend

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

Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?

Universal Life Option A

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

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.

How soon following the occurrence of a covered loss must an insured submit written proof of such loss to the insurance company?

WIthin 90 days or as soon as reasonably possible

$2,500

What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act

Allow the insurer to require proof of insurability of individual insured

What is the purpose of the insurability provision in group life policies

2 years

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

Creditor can only insure the debtor for the amount owed

What is true regarding the insurance amount in a credit life policy

Premium Reciept

When an agent collects the initial premium from the applicant the agent should issue the applicant a

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

When an insurer's underwriter approves coverage

The date the debtor becomes obligated to the creditor

When does credit life insurance take into effect

When may an insured deduct unreimbursed medical expenses paid under a long-term care policy?

When the expenses exceed a certain percentage of the insured's adjusted gross income

Admitted

Which of the following is the closets term to a an authorized insurer

Residual Disability

Will pay an amount to make up the difference for what the insured would have made before the loss

COBRA requires

employers with 20 or more employees to continue group medical insurance for terminated workers and dependents for up to 18 months to 36 months. The employee can be required to pay up to 102% of the coverage's premium.

Dividends

non-taxed return of unused premiums

A policy that uses the accidental bodily injury definition will

provide broader coverage than a policy that uses the accidental means definition