MO L&H - Chapter 11: Missouri Statutes, Rules and Regulations Pertinent to Life Only

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance? Replacement rule Reinstatement rule Conversion rule Disclosure rule

Replacement rule

Group life insurance policies delivered in this state must contain all of the following provisions EXCEPT Statements of the applicant are considered warranties. A grace period of 31 days. Incontestability period of 2 years. A copy of the application is considered part of the policy.

Statements of the applicant are considered warranties.

What is the time limit to contest life insurance policies in Missouri? 3 years 5 years 1 year 2 years

2 years

Which of the following is NOT required on an application for a variable life insurance policy? A statement explaining the use of separate accounts in variable insurance A statement that the death benefit may be variable or fixed A statement that cash values may increase or decrease based on the separate account Questions designed to assist the insurer in determining suitability of the insurance

A statement explaining the use of separate accounts in variable insurance

How often must an insurer who delivers variable life insurance policies in Missouri determine any changes in variable death benefits? Quarterly Annually Biannually Biennially

Annually

The act of trying to discourage a policyholder from dropping his/her existing policy is called Bargaining. Conservation effort. Dissuasive effort. Baiting.

Conservation effort.

Which of the following would be the beneficiary in credit life insurance? Company Borrower Creditor Insured

Creditor

Which of the following is TRUE about credit life insurance? Debtor is the annuitant. Creditor is the insured. Debtor is the policy beneficiary. Creditor is the policyowner.

Creditor is the policyowner.

An insured has a life insurance policy with graded death benefits. In the first year of the policy, the death benefit is less than 50% of the face amount on the policy. What amount must the policy contain in accidental death benefits during the graded death benefit period? The same amount as the general death benefits There is no requirement Full face amount of the policy Half the face amount of the policy

Full face amount of the policy

Which of the following provisions in universal life policies stipulates that a written notice of the termination of coverage must be sent to the policyowner? Illustrations Periodic disclosure Grace period and lapse Policy guarantees

Grace period and lapse

The initial amount of credit life insurance may NOT exceed The amount to be repaid under the contract. An amount set by statute and adjusted regularly for inflation. The borrower's monthly income. The borrower's annual income.

The amount to be repaid under the contract.

When does credit life insurance coverage take effect? The date the policy is delivered 30 days after the first payment is received The date the application is completed The date the debtor becomes obligated to the creditor

The date the debtor becomes obligated to the creditor

Which of the following is NOT allowed in credit life insurance? Creditor requiring that a debtor buys insurance from a certain insurer Creditor having a collateral assignment on the policy Creditor requiring that a debtor has life insurance Creditor becoming a policy beneficiary

Creditor requiring that a debtor buys insurance from a certain insurer

What is required of an insurer should an insured commit suicide prior to one year elapsing under a life insurance policy? Full death benefits will be paid out to the beneficiary. All paid premiums must be returned. Half the paid premiums must be returned. No premiums are to be refunded, but half the death benefits will be given to the beneficiary.

All paid premiums must be returned.

Insurers that issue individual variable contracts in this state are required to mail the policyowner a statement of the investments. How often must they mail the statement? Quarterly Upon request from the policyowner Annually Monthly

Annually

No insurance policy form can be issued, delivered, or used in this state unless it has been Developed by the Director. Filed with and approved by the Guaranty Association. Approved by the Department of Insurance. Reviewed by the Department and approved by the Governor.

Approved by the Department of Insurance.

All of the following statements are correct regarding credit life insurance EXCEPT Benefits are paid to the borrower's beneficiary. The amount of insurance permissible is limited per borrower. Premiums are usually paid by the borrower. Benefits are paid to the creditor.

Benefits are paid to the borrower's beneficiary.

Which of the following provisions in group life policies prevents the insurer from denying a claim due to statements on the application after a certain period of time? Waiver of premium Grace period Payment of claims Incontestability

Incontestability

An individual obtained a life insurance policy in March, but 3 months later was deemed clinically insane by the state of Missouri. Five months later the insured takes his own life. What type of death benefits will the policy beneficiaries receive? No benefits will be received because the insured was deemed clinically insane by a high court. If the insured had not been declared insane, the beneficiary would have received full death benefits. No death benefits are ever received for deaths that are ruled as suicides. No benefits will be received because the policy was not in effect for at least one year; however, all premium payments will be returned. Since her policy was only in effect for 2/3 of a year, the beneficiary will receive exactly 2/3 of the death benefits.

No benefits will be received because the policy was not in effect for at least one year; however, all premium payments will be returned.

During replacement of life insurance, a replacing insurer must do which of the following? Send a copy of the Notice Regarding Replacement to the Department of Insurance Obtain a list of all life insurance policies that will be replaced Guarantee a replacement for each existing policy Designate a new producer for a replaced policy

Obtain a list of all life insurance policies that will be replaced

R has a life insurance policy that specifically excludes his death from being covered should it occur in an act of war. Where must this be spelled out in the policy? In the excluded provisions section On the convertible coverage page On the face of the policy In the binder of the policy under exclusions

On the face of the policy

Life insurers are prohibited from including any of following in advertisements EXCEPT A guarantee of company earnings. Policy appraisals and analyses. Endorsements by government entities. Explanations that premiums may be withdrawn.

Policy appraisals and analyses.

Variable life insurance policies, as well as any riders, endorsements and other documents attached to them, must be approved by The NAIC The State The Director The Guaranty Association

The Director

The premium for a group life insurance policy was due on March 1. The policyowner was not able to pay the premium until March 31. What will happen to the coverage under the policy during the 30 days the premium was due but was not paid? The coverage will be suspended until the premium is paid. The coverage will continue in force. The policy will be cancelled due to nonpayment of premium. The coverage will be limited.

The coverage will continue in force.

Which of the following is TRUE regarding the insurance amount in a credit life policy? Allowable amount of coverage is determined by the State Insurance Commissioner. The amount of coverage can be greater than the amount owed. The creditor can only insure the debtor for the amount owed. The creditor may insure the debtor for an unlimited amount of coverage.

The creditor can only insure the debtor for the amount owed.

Assignability provision in a life insurance policy relates to The company's right to add new riders to the policy. The insured's right to designate a new beneficiary. The insured's right to convert from group to individual policy. The company's right to replace a policy.

The insured's right to designate a new beneficiary.

What is the purpose of the insurability provision in group life policies issued in this state? To automatically renew coverage for a new policy term To require the insurer to provide certificates of insurance to individual insured To guarantee insurability for all eligible applicants To allow the insurer to require proof of insurability from individual insured

To allow the insurer to require proof of insurability from individual insured