MO Life Insurance Practice Questions
Term life, Credit life insurance can be issued only as an individual or group term plan.
Credit life insurance is usually issued as what type of policies?
On the face of the policy
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?
Payor Benefit
Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled
Issuing sales material with exaggerated statements about policy benefits
Which of the following best describes a misrepresentation?
Both the principal and interest will be liquidated over a selected period of time.
Which of the following best describes fixed-period settlement option?
30 days
Within how many days of a final disposition must a producer provide all legal documentation to the Director?
3 days
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
Upon conversion, the death benefit of the permanent policy will be reduced by 50%.
All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT
Have interest in insurance companies regulated by the Department.
All of the following are among the Director's broad powers EXCEPT
The plan must provide an offset for social security benefits.
All of the following are general requirements of a qualified plan EXCEPT
The performance of the policy portfolio
What determines the cash value of a variable life policy?
The third year of the policy must have a death benefit equal to 65% of the total face amount.
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?
Collateral assignment
A business owner was trying to obtain a bank loan to fund the purchase of a new business facility, but the bank required proof of additional assets to secure the loan. The business owner then decided to use her $250,000 life insurance policy to secure the loan. Which provision makes this possible?
Joint life
A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments. What type of annuity did the couple buy?
Cost of living rider.
A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called
Attend an approved prelicensing course, Be at least 18 years of age, Be of good moral character. Prelicensing education is not a licensing requirement in Missouri.
All of the following are requirements to obtain an insurance producer license in Missouri
The premiums are invested in the insurer's general account.
All of the following are true about variable products EXCEPT
Dividends from a mutual insurer.
All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT
Beneficiary's age.
All of the following information about a customer must be used in determining annuity suitability EXCEPT
Obtain a list of all life insurance policies that will be replaced
During replacement of life insurance, a replacing insurer must do which of the following?
Ancestry.
If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information EXCEPT the applicant's
It is never legal to limit coverage based on marital status.
In which of the following situations is it legal to limit coverage based on marital status?
Adjusted to the insured's age at the time of renewal.
Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be
Policy appraisals and analyses.
Life insurers are prohibited from including any of following in advertisements EXCEPT
Obtains from the Director a Certificate of Authority.
No insurance company may transact insurance business in Missouri unless it first
That the cash value will not be lost
Nonforfeiture values guarantee which of the following for the policyowner?
Licensee is charged with bank robbery, Being charged with a felony is not sufficient grounds for revocation of a license; however, conviction of a felony is grounds.
The Director can revoke an insurance producer license for any of the following causes, EXCEPT
Failing to notify the Director of a change of address.
The Director may suspend, revoke, or refuse to renew an insurance producer license for any of the following causes EXCEPT
One-year term option.
The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the
6 credits
To attain currently insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters?
Ownership
What is the major difference between a stock company and a mutual company?
The policy application
What must contain a notice of the graded death benefit in a life insurance policy with graded death benefits?
Increasing Term
What type of insurance would be used for a Return of Premium rider?
Consideration
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
10% , Policy loan interest rates may not exceed 8% per year.
Which of the following would NOT be an acceptable interest rate on a policy loan?
At distribution, all amounts received by the employee are tax free.
All of the following are TRUE of the federal tax advantages of a qualified plan EXCEPT
The annuitant receives a fixed amount of return.
All of the following statements about equity index annuities are correct EXCEPT
Name of the insurer(s) represented by the licensee.
An insurance producer license contains all of the following information EXCEPT
It will increase because the insured will be 5 years older than when the policy was originally purchased.
An insured buys a 5-year level premium term policy with a face amount of $10,000. The policy also contains renewability and convertibility options. When the insured renews the policy in 5 years, what will happen to the premium?
Universal life
An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?
$50,000
An insured purchased a variable life insurance policy with a face amount of $50,000. Over the life of the policy, stock performance declined and the cash value fell to $10,000. If the insured dies, how much will be paid out?
Consideration
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
When the application is signed and a check is given to the agent
When is the earliest a policy may go into effect?
Exchange of unequal values
Which of the following best describes the aleatory nature of an insurance contract?
The application given to a prospective insured
Which of the following is NOT the consideration in a policy?
They earn lower interest rates than fixed annuities.
Which of the following is NOT true regarding Equity Indexed Annuities?
Annuity certain
Which of the following is a short-term annuity that limits the amounts paid to a specific fixed period or until a specific fixed amount is liquidated?
Premiums are not tax deductible as a business expense.
Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy?
Rebating.
Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as
Consumer report
Which of the following reports will provide the underwriter with the information about an insurance applicant's credit?
Decreasing term
Which of the following types of insurance policies is most commonly used in credit life insurance?
