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