Missouri practice test
An insured decides to surrender his $100,000 Whole Life policy. The premiums paid into the policy added up to $15,000. At policy surrender, the cash surrender value was $18,000. What part of the surrender value would be income taxable?
$3,000
A health insurance policy that covers a family member of the insured must also offer coverage for child health supervision services until what age?
12
What is the maximum first-year commission that a producer may receive for the sale of a Medicare supplement policy?
200% of the commission paid for the servicing of the policy in the second year
All of the following are true about group disability Income insurance EXCEPT
Coverage applies both on and off the job
Which of the following authorities is required to conduct a financial examination of the state's insurers?
Director
Two attorneys operate their practice as a partnership. They want to start a program through their practice that will provide retirement benefits for themselves and three employees. They would likely choose
HR-10 (keogh plan)
An insured is covered by a disability income policy that contains an accidental means clause. The insured exits a bus by jumping down the steps and breaks an ankle. What coverage will apply?
No coverage will apply, since the injury could have been foreseen
A rider attached to a life insurance policy that provides coverage on the insured's family members is called the
Other-insured rider
A long-term care shopper's guide must be presented at what point?
Prior to the time of application
Health insurance policies are required to provide coverage for general anesthesia for dental care provided to all of the following EXCEPT
Senior citizens above age 65
Which of the following special policies covers unusual risks that are NOT normally included under Accidental Death and Dismemberment coverage?
Special Risk Policy
Which of the following riders is often used in business life insurance policies when the policyowner needs to change the insured under the policy?
Substitute insured rider
Which of the following would basic medical expense coverage NOT cover?
Surgeon's services
Which of the following is NOT covered under Plan A in Medigap insurance?
The Medicare Part A deductible
Which of the following does NOT have to be disclosed in a long-term care (LTC) policy?
The aggregate amount of premiums due
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
Missouri law requires that the records of insurance transactions kept by producers must be orderly. What does that mean?
The records must be retrievable within 5 days upon request.
A 71 year old female recently purchased a life insurance policy with graded death benefits. If the policy has graded death benefits for three years, which of the following must be true?
The third year of the policy must have a death benefit equal to 65% of the total face amount.
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%
In order to maintain coverage under COBRA, how soon from termination of employment must an employee exercise extension of benefits?
60 days
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
Which types of insurance companies marketing long-term care insurance coverage must establish procedures to assure that any comparison of policies by its agents will be fair and accurate?
Every company is required to establish marketing procedures.
All of the following are dividend options EXCEPT
Fixed period installments
Which of the following is correct regarding credit life insurance?
It insured the life of a debtor
All of the following are TRUE statements regarding the accumulation at interest option EXCEPT
The interest is not taxable since it remains inside the insurance policy
Which of the following statements is true regarding coinsurance?
The larger the percentage that is paid by the insured, the lower the required premium will be
All of the following information about a customer must be used in determining annuity suitability EXCEPT
beneficiary's age
An insured makes regular contributions to his Health Savings Account. How are those contributions treated in regards to taxation?
They are tax deductible
Which of the following documents must be provided to the policyowner or applicant during policy replacement?
Notice Regarding Replacement
What is a definition of a unilateral contract?
One-sided: only one party makes an enforceable promise
Which of the following documents provides a disclosure of a Medicare supplement policy?
Outline of coverage
Under which of the following organizations are the practicing providers compensated on a fee-for-service basis?
PPO
All of the following are among the Director's broad powers EXCEPT
Have interest in insurance companies regulated by the Department
If a company has transacted insurance in this state without a Certificate of Authority, which of the following is true of its obligations for the policies sold?
The company can still be liable for its policies in any court of this state
The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called
Credit Life
Which of the following is TRUE about credit life insurance?
Creditor is the policyowner.
A partnership buy-sell agreement in which each partner purchases insurance on the life of each of the other partners is called a
Cross purchase plan
Which of the following best describes what the annuity period is?
The period of time during which accumulated money is converted into income payments