Life and Health Insurance Missouri

The Employer

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

When an insurer's underwriter approves coverage

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

The completed application is submitted

In insurance, an offer is usually made when

Credit life insurance can be issued as

Individual or group term plan

On a class basis only

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

During the open enrollment period

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

Funds exceeding the premium paid are taxable as ordinary income.

TRUE about the cash surrender nonforfeiture option?

Credit life insurance is usually issued as what type of policies

Term Life

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

A policy that uses the accidental bodily injury definition will

Subrogation

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

Aplicant

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?

Consideration Clause.

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

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

The Federal Fair Credit Reporting Act

The policy application must contain a notice of

The Graded Death Benefit

Circumstance where an insurer would pay accelerated death benefits

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

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

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?

non-taxed return of unused premiums

Dividends

A capital amount in a lump sum

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?

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

Annually

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

Annually

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

Approved by the Department of Insurance

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

At least 96 hours

15-day waiting period / 10-year benefit period

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

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.

COBRA requires

An insurer cannot transact business until it obtains

Certificate of Authority

The employer is the owner and the beneficiary

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

Insures the life of a debtor

Credit Insurance

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

Creditor can only insure the debtor for the amount owed

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

2 years

How long must insurance transaction records be kept

3 years

Maximum policy loan interest rate in Missouri

8%

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

$2,500

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

Admitted

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

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

30 days

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

The purpose of a managed health care insurance plan is to

To control health insurance claims expenses

Relief for a major care giver

What type of care is Respite Care?

Legal Actions

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

Monthly

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

Unlimited

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?

90 days

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

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

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

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

Guaranteed Renewable

Usual, customary and reasonable.

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

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

Allow the insurer to require proof of insurability of individual insured

WIthin 90 days or as soon as reasonably possible

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

If the insured lives to age 100

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

During which illness-related disabilities are excluded from coverage.

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

Limitations, benefits, and exclusions

In a replacement situation all of the following must be considered

10%

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

Alzheimer's Disease

Long-term care policies MUST cover

It occurs in during the probationary period

Loss by illness is not covered if

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

Mandatory provisions for group health policies in the state of Missouri

Dependents

Most policies include coverage for

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

Policy owners, Insureds, and beneficiaries

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

Premium Reciept

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

Required on an application for variable life insurance policy

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

Residual Disability

In an institutional setting

Skilled care is almost always

Specified dollar amount beyond which the insured no longer participates

Stop-loss Limit

When does credit life insurance take into effect

The date the debtor becomes obligated to the creditor

Annually Renewable Term

The death protection component of Universal Life Insurance is always

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

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

Taxable

The interest earned on policy dividends is

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

The paid-up addition option uses the dividend

The death benefit can be increased by providing evidence of insurability

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

Attained Age

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

A non qualified annuity plan

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

The Death Benefit

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

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

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

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

Totally tax deductable

The Director

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

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

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

To allow the consumer to compare the costs of different policies

What is the purpose of the buyer's guide?

Application

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?

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

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

Interest only

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

Preferred Provider Organization (PPO)

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

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

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

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

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

It is level term insurance

Which of the following best describes annually renewable term insurance?

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

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

The insured is not required to pay a deductible

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

Third-Party Ownership

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?

Benefits are offered by the insured

Which of the following is NOT true regarding Workers Compensation?

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

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

Universal Life Option A

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

The Fair Credit Reporting Act

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

Automatic premium loan

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

Option B

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

Time of Payment of Claims

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

2 years

Within what period of time are unintentional misrepresentations grounds for contestability