Exam Stiumulator- Missouri Life and Health Exam

A catastrophic illness would be best covered by which of the following health insurance plans?

Major Medical

What type of plan normally includes hospice benefits

Managed care plans

which of the following are not managed care organizations

Medical Information Bureau (MIB)

Health Insurance Coverage of autism spectrum disorder treatments may be limited in which way?

Medically necessary treatment in accordance with a treatment plan.

Which medicare product requires use of specific hospitals and physicians for non-emergency care?

Medicare Select

Which of the following activities may not be granted as credit for continuing education units?

Meeting sales quotas

All of these insurance products require an agent to have proper FINRA securities registration in order to sell them, EXCEPT for

Modified Whole Life

Which of the following characteristics is associated with a large group disability income policy?

No medical underwriting

J has a Disability Income Policy that does NOT provide benefits for losses occuring as the result of his employment. What kind of coverage is this?

Nonoccupational coverage

In a life insurance policy, which provision states who may select policy options, designate and name a beneficiary and be the recepients of any financial benefits from the policy?

Owner's rights

P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability?

P will still receive declared dividends

Which of the following is a requirement for obtaining a resident producer license in Missouri?

Pay $100 license fee

Which of these statements concerning an individual straight life annuity is accurate?

Payments are made to an annuitant for life

What type of insurance offers permanent life coverage which premiums that are payable for life?

Whole Life

When a group accident and health policy is issued to an employer

a policy is issued to the employer and a certificate is issued to each employee

A term life rider offers the insured

additional life coverage

An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the

applicant's physician

In life insurance, the needs approach is used mostly to establish

how much life insurance a client should apply for

When determining the monthly benefit amount for a disability income policy, the factor that limits the amount a prospective insured may purchase is:

income

When third party owner ownership is involved, applicants who also happen to be the stated primary benificiary are required to have

insurable interest in the proposed insured

Credit Life Insurance is

issued in an amount not to exceed the amount of the loan

Life Insurance and annuity replacement can be best described as

exchanging an existing policy for a new policy

An insurer may exclude pre-existing conditions coverage on a medicare supplement policy for up to

6 months

T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive?

$0

______ of personal life insurance premiums is usually deductible for federal income tax purposes.

0%

In Missouri an A&H policy that is paid on a monthly basis requires a grace period of at least

10 days

Which of the following types of Term life policies most likely contains a renewability feature

10 year convertible Term

G purchased a Family Income policy at age 40, The policy has a 20-year rider period. If G were to die at age 50, how long would G's family receive an income?

10 years

What is the minimum benefit period that must be offered by a long-term care policy issued in Missouri

12 months

After a life insurance policy has been in force for a Maximum of ____ years, it becomes incontestable

2

Within ______ days after policy deliver, a medicare supplement policy can be returned for a 100% premium refund

30 days

S buys a 50000 whole life policy with a 50000 accidental death and dismemberment rider. S dies 1 year later of natural causes. How much will the insurer pay the beneficiary?

50000

What is the maximum fixed interest rate for life insurance policy loans

8%

In a Key Employee life Insurance policy, the third-party owner can be all of the following EXCEPT

Insured

All of the following statements regarding group health insurance is true, EXCEPT:

An individual policy is given to each member

When a policyowner cash surrenders a Universal Life Insurance policy in its early years, this may be considered a red flag for a(n):

Anti-Money laundering violation

What is the initial source of underwriting for an insurance policy

Application containing statements from the insured

Which of the following medical expenses does Cancer insurance NOT cover?

Arthritis

When is a group health policy required to provide coverage for a newborn child?

At the moment of birth

G is an accountant who has 10 employees and is concerned about how the business would survive financially if G becomes disabled. The type of policy which best addresses this conncern is?

Business Overhead Expense

Which of the following policy features allows an insured to defer current health charges to the following year's deductible instead of the current year's deductible?

Carryover provision

Which statement about a whole life policy is true?

Cash value may be borrowed against

What type of employee welrfare plans are not subject to ERISA regulations?

Church plans

Which of the following is considered a producer's fiduciary responsibility

Collect premiums and remit to the insurance company as soon as reasonably possible.

Chemical dependency coverage is required in which type of policy

Comprehensive major medical

An insurance company receives E's application for an individual health policy. E did not complete all of the medical history questions because she could not remember the exact dates. E signed the policy and submitted it to the insurance company anyway. A few weeks later, E suffers a heart attack and is hospitalized without completing the medical history questions and paying the initial premium. E is not insured. Which of the following clauses details the conditions that E did not meet?

Consideration Clause

Credit Life Insurance is typically issues with which of the following types of coverage?

Decreasing Term

An insurer may not transact insurance UNLESS authorized by the

Director of Insurance

What provision in a life insurance policy that states that the application is considered part of the contract?

Entire Contract Provision

When an individual is planning to protect his family with life insurance, one method of doing so is called needs analysis. What exactly does needs analysis involve?

Establishes the needs of the individual and his dependents

Which of these is NOT a source of funding for social Secuirty benefits?

Federal Government

In Missouri, a health insurance policy that is not exempt from state-mandated benefits must cover childhood immunizations and shall not charge deductible or copayment. The EXCEPTION to this would be

HMO's that exclude coverage subscribers who obtain services by a non-participating provider

Which of these is NOT a reason for purchasing life insurance on the life of a minor?

If both parents were to die, it would provide death benefits to the child

All of the following statements regarding a Tax Sheltered Annuity (TSA) are true EXCEPT:

Income derived from the TSA is received income tax-free

Which of the following actions require a policyowner to provide proof of insurability in an adjustable life policy?

Increase face amount

Which of these retirement plans can be started by an employee, even if another plan is in existence?

Individual Retirement Account (IRA)

If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, where are the death proceeds to be directed under the Uniform Simultaneous Death Actt?

Insured's contingent beneficiary

The ________ clause identifies which losses resulting from an accident or sickness are insured by the policy.

Insuring

D needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. What kind of policy is needed?

Level term

Which licensee faces possible license revocation by the director of insurance?

Licensee who commingles monies belonging to policyholders with personal funds

An insurance company would most likely pay benefits under an Accidental Death and Dismemberment policy for which of the following losses?

Loss of eyesight due to an accidental injury

What is the purpose of the time of payment of claims provision?

Prevents delayed claim payments made by the insurer

What is the consideration given by an insurer in the consideration clause of a life policy?

Promise to pay a death benefit to a named beneficiary

Which of the following is an example of a nonforfeiture option?

Reduced paid-up option

When a person returns to work after a period of total disability but cannot earn as much as he or she did before the disability, this situation is called which of the following

Residual disability

M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the beneficiary designation at anytime. What type of beneficiary is his son?

Revocable

Which mode of payment is NOT used by health insurance policies?

Single premium

Which mode of payment is not used by the health insurance policies?

Single premium

Which of the following BEST describes a warranty?

Statement guaranteed to be true

Why must an insurance applicant answer all questions on the application?

Statements and representations on the application are part of the consideration for issuing a policy

The insuring clause

States the scope and limits of the coverage

Which of the following costs would a basic Hospital/Surgical policy likely cover?

Surgically removing a facial birthmark

What type of life policy covers two people and pays upon the death of the last insured?

Survivorship

Which of these is a TRUE statement regarding the regulatory authority of the director?

The Director may establish guidelines for continuing education

What is the eliminiation period of an individual disability policy

Time period a disabled person must wait before benefits are paid

S Age 40 is looking to buy a Life Insurance policy that will allow for increases or decreases in coverage as his needs change. The policy best suited would be

Universal Life

Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options?

Variable Life

Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling?

Variable Life

Which type of life policy contains a monthly mortality charge as well as self-directed investment choices?

Variable Universal Life

What is the face amount of whole life policy paid?

When the insured dies or at the policy's maturity date, whichever happens first.

Medicaid was designed to assist individuals who are

below a specific income limit

T is the policy for a Life Insurance policy with an Irrevocable beneficiary designation. If T wishes to change the beneficiary, T must obtain permission from the

beneficiary

T is receiving 3000 month from a disability income policy in which T's employer had paid the premiums. How are the 3,000 benefit payments taxable?

benefits are taxable to T

Variable Whole Life Insurance can be described as

both an insurance and securities product

A company that owns a life insurance policy on one of its key employees may do all of the following EXCEPT:

change the policy's interest rate

Health coverage for the administration of general anesthesia and hospital charges for dental care must be provided to a

child under the age of 5

For the treatment of PKU, a health plan must cover formula and low protein modified food products for

covered children less than 6 years of age

A credit life insurance policy covers the life of the

debtor

A variable insurance policy

does not guarantee a return on its investment accounts

Rick recently died and left behind an individual IRA account in his name. His widow was forwarded the balance of the IRA. The widow qualifies for the the

marital deduction

What type of renewability gurantees premium rates and renewability?

noncancellable

If the sale of a Medicare Supplement involves replacement, all of these actions must be performed by the producer EXCEPT

notify the replaced insurance company

An accident policy will most likely pay a benefit for a

off the job accident

Insurance policies are considered aleatory contracts because

performance is conditioned upon a future occurrence

A limited- pay life policy has

premium payments limited to a specified number of years

J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used?

revocable

Which of the following services is NOT included under hospitalization expense coverage?

surgical fees

Michael the insurance producer is acting in a fiduciary capacity when conducting business with all of these principals EXCEPT

the Director

The advantage of reinstating an original life policy is

the premiums are based on a younger age

Under Missouri Law, when one group health plan's contract replaces an existing group health plan with similar benefits

the succeeding carrier shall give credit for satisfaction of any deductibles or waiting periods satisfied or partially satisfied under the prior carrier's plan