sarah study thingWhen funds are shifted straight from one IRA to another IRA, what percentage of the tax is withheld?

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

Arthritis

What is considered to be a characteristic of an immediate annuity?

Benefit payments start within one payment period of purchase

The difference between group insurance and blanket health policies is

Blanket health policies do not issue certificates

G is an accountant who has ten employees and is concerned about how the business would survive financially if G became disabled. The type of policy which BEST addresses this concern is

Business Overhead Expense

Which rider provides coverage for a child under a parent's life insurance policy?

Child term rider

Which of the following violations is considered an unfair trade practice?

Coercion

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

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

Which of the following organizations would make reimbursement payments directly to the insured individual for covered medical expenditures?

Commercial insurer

What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's death?

Face amount plus the policy's cash value. contract that promises to pay at the insured's death the face amount of the policy plus a sum equal to the policy's cash value.

P is looking to purchase a life insurance policy that will pay a stated monthly income to his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that 20 year period. What type of policy should P purchase?

Family Maintenance policy

Which of these is considered a true statement regarding Medicaid?

Funded by both state and federal governments

An insurance company may NOT reject a prospective insured's life application on the basis of which of the following factors?

Gender

Which of the following provisions specifies how long a policyowner's health coverage will remain in effect if the policyowner does not pay the premium when it is due?

Grace period

Which type of renewability best describes a Disability Income policy that covers an individual until the age of 65, but the insurer has the right to change the premium rate for the overall risk class?

Guaranteed Renewable

Bryce purchased a disability income policy with a rider that guarantees him the option of purchasing additional amounts of coverage at predetermined times without requiring to provide evidence of insurability. What kind of rider is this?

Guaranteed insurability rider

W is a 39-year old female who just purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices, EXCEPT a(n)

Immediate annuity

Which Medicare product requires use of specific hospitals and sometimes physicians for nonemergency care, and failure to use the specific hospital or physician will result in the insured paying some, if not all, of what Medicare does not pay, and may be more economical than other Medicare products?

Medicare Select policies

If a retiree on Medicare required five hospital stays in one year, which policy would provide the best insurance for excess hospital expenses?

Medicare Supplement

Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a contributory group Term Life plan to all its eligible employees?

Portion of the premiums paid for by the employer may be a tax deduction. the employer may file a tax deduction for its share of the premium costs.

The individual who provides general medical care for a patient as well as the referral for specialized care is known as a:

Primary Care Physician

A Medical Information Report (MIB) report may disclose which of the following

Prior use of marjuana

K failed to pay a renewal premium within the time granted by the insurer. K then sends in a payment which the insurer subsequently accepts. Which policy provision specifies that coverage may be restored in this situation?

Reinstatement

T has a term policy that allows him to continue the coverage after expiration of the initial policy period. What type of term coverage is this?

Renewable

T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary?

Request of the change will be refused

R had received full disability income benefits for 6 months. When he returns to work, he is only able to resume half his normal daily workload. Which provision pays reduced benefits to R while he is not working at full capacity?

Residual Disability

Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take?

Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company

What is Old Age and Survivors Health Insurance (OASDHI) also known as?

Social Security

The percentage of an individual's Primary Insurance Amount (PIA) determines the benefits paid in which of the following programs?

Social Security Disability Income

The insuring clause

States the scope and limits of the coverage

Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party?

Subrogation

What would the Medical Information Bureau (MIB) identify?

Testing positive for marijuana use from a previous screening

B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, stated amounts of

additional Whole Life coverage at specified times

When making a recommendation to a consumer to purchase an annuity, the producer must make reasonable efforts to obtain suitability information. Suitability information includes

age, annual income, financial experience

A Medicare Supplement policy would cover

allowable amounts under Medicare Part B

All of the following provisions are required in a group life policy EXCEPT

an Accidental Death and Dismemberment provision

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

applicants physician

What action will an insurer take if an interest payment on a policy loan is not made on time?

automatically add the amount of interest due to the loan balance

Variable Whole Life Insurance can be described as

both an insurance and securities product

A major medical plan (including an HMO) that covers prescription drugs must

charge a single month's copay in any case where a prescribed dosage is not actually manufactured, and multiple separate manufactured dosages must be dispensed to satisfy a one-month supply of the prescription

A producer license is renewed by paying a renewal fee and completing

continuing education

A policy summary must be given for all of the following policies EXCEPT

credit life

A credit life insurance policy covers the life of the

debtor

Making false statements about the financial condition of another insurance company is called

defamation

A Business Disability Buyout plan policy is designed:

to pay benefits to the Corporation or other shareholders

When the Director of Insurance finds that a licensee has violated the insurance code, the Director may NOT issue a

warrant

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

whole life

Before holding a hearing that may lead to suspension or revocation of a producer's license, the Director of Insurance MUST give

written notice to the producer

Before holding a hearing that may lead to suspension or revocation of a producer's license, the Director MUST give

written notice to the producer. Before holding a hearing that may lead to suspension or revocation of a producer's license, the Director MUST give written notice to the producer.

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

Under the USA Patriot Act, insurers are required to report receipt of cash payments in excess of

$10,000

S buys a $50,000 whole life policy with a $50,000 Accidental Death and Dismemberment rider. S dies 1 year later of natural causes. How much will the insurer pay the beneficiary?

$50,000

P purchases a $50,000 whole life insurance policy in 2005. One of the questions on the application asks if P engages in scuba diving, to which P answers "No". The policy is then issued with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba-related accident in 2011. What will the insurer pay to P's beneficiary?

$50,000 minus any outstanding policy loans. the beneficiary will receive $50,000 less any outstanding loans and interest. At the time of the insured's death, the policy is beyond the contestable period.

Prior to a universal life insurance policy being terminated, written notice must be given to the policyowner at least

30 days of termination date

For an individual disability policy that is paid for on a monthly premium basis, the Grace Period provision has a MINIMUM of how many days?

10

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

What is the maximum Social Security Disability benefit amount an insured can receive?

100% of the insured's Primary Insurance Amount (PIA)

A small employer group is an employer that employs how many?

2-50 employees

J is 35-years old and looking to purchase a whole life insurance policy. Which of the following types of policies will provide the most rapid growth of cash value?

20-pay Life. The shorter the pay period, the faster the cash value growth.

A person whose application for a license was denied may request a hearing within a MAXIMUM of how many days after receipt of the denial

30

Within how many days after policy delivery can a Medicare Supplement policy be returned for a 100% premium refund?

30

Within how many days of a pre-trial hearing must a producer report to the Director any felony charges or crimes of moral turpitude?

30 days

An IRA owner can start making withdrawals and NOT be subjected to a tax penalty beginning at what age?

59 1/2

Life policies must contain a provision limiting the fixed interest rate on policy loans to a

8%

Which of the following annuities pays benefits based on units rather than specific dollar amounts?

A Variable annuity

Individual and group health insurance policies must provide coverage for administration of general anesthesia and hospital charges for dental care provided to which of the following?

A child under the age of five

Which of these is an element of a Variable Life policy?

A fixed, level premium

Which of the following statements about a group A&H policy issued to an employer is correct?

A policy must be issued to the employer and a certificate must be issued to each employee

Which of these is considered an unfair trade practice?

A producer stating that a policy's dividends are guaranteed

P is blinded in an industrial accident. Which provision of his life insurance policy will pay a stated benefit amount?

Accidental Death and Dismemberment clause. An AD&D clause provides benefits for death due to an accident or for the loss of one or more hands, feet, arms, legs, or loss of sight.

A "reimbursement policy" pays what amount of covered Long-Term Care expenses?

Actual covered expenses up to the daily maximum

When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a(n):

Anti-Money Laundering violation

Which of the following is the MOST important factor when deciding how much Disability Income coverage an applicant should purchase?

Applicant's monthly income

An incomplete life insurance application submitted to an insurer will result in which of these actions?

Application will be returned to the writing agent

Under a Renewable Term policy,

the renewal premium is calculated on the basis of the insured's attained age

Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it?

Decreasing Term

What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time?

Decreasing term. A decreasing term policy has a death benefit that adjusts periodically and is written for a specific period of time.

A characteristic of Preferred Provider Organizations (PPOs) would be:

Discounted fees for the patient

An employee requested that the balance of her 401(k) account be sent directly to her in one lump sum. Upon receipt of the distribution, she immediately has the funds rolled over into an IRA. What is the tax consequence of the distribution sent to this employee?

Distribution is subject to federal income tax withholding

In a Disability Income policy, which of these clauses acts as a deductible?

Elimination Period

Under a trustee group life policy, who would be eligible for a certificate of coverage?

Employee

Which of the following health policy provisions states that the producer does NOT have the authority to change the policy or waive any of its provisions?

Entire Contract

Which of the following policy provisions prohibits an insurance company from incorporating external documents into an insurance policy?

Entire Contract

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 statements describe a Modified Endowment Contract (MEC)?

Exceeds the maximum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract

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

Individual Retirement Account (IRA)

Which of the following BEST describes Credit Life insurance?

Insurance issued on a debtor to cover outstanding balances on installment loans

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 Act?

Insured's contingent beneficiary

Which of the following claims are typically excluded from Medical expense policies?

Intentionally self-inflicted injuries

A policyowner would like to change the beneficiary on a Life insurance policy and make the change permanent. Which type of designation would fulfill this need?

Irrevocable

A policyowner would like to change the beneficiary on an Accidental Death and Dismemberment (AD&D) insurance policy and make the change permanent. Which type of designation would fulfill this need?

Irrevocable

Which type of life insurance beneficiary requires his/her consent when a change of beneficiary is attempted by the policyowner?

Irrevocable beneficiary

Which of the following statements is CORRECT concerning the time limit on certain defenses provision in a cancer insurance policy?

It allows the insurer to deny the amount of a claim for misstatements on the application occurring prior to the expiration of the first two policy years

On January 8, an applicant filled out an application for a life insurance policy but did not include the initial premium. The insurance company approved the application on January 14 and issued the policy January 15. The producer delivered the policy on January 26 and collected the first premium. When did the coverage become effective?

January 26

Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of the following contractual elements?

Legal Purpose (Insurable Interest)

Under Missouri law, which of the following provisions is NOT required in a Medicare Supplement policy?

Limitation on pre-existing conditions for up to 12 months

M purchases a $70,000 Life Insurance Policy with premium payments of $550 a year for the first 5 years. At the beginning of the sixth year, the premium will increase to $800 per year but will remain level thereafter. The face amount will remain at $70,000 throughout the life of the policy. The type of policy that M has purchased is

Modified Premium Life, Modified whole life policies are distinguished by premiums that are lower than typical whole life premiums during the first few years (usually five) and then higher than typical thereafter.

Which of the following BEST describes how a Preferred Provider Organization (PPO) is less restrictive than a Health Maintenance Organization (HMO)?

More physicians to choose from

Which of the following is TRUE about a qualified retirement that is "top heavy"?

More than 60% of plan assets are in key employee accounts

An applicant for a nonresident producer license MUST meet which of the following requirements?

Must be a producer in good standing in their home state

What type of renewability guarantees premium rates and renewability?

Noncancellable

Which statement is true regarding a minor beneficiary?

Normally, a guardian is required to be appointed in the Beneficiary clause of the contract

P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to

P only

Which of these is considered a mandatory provision?

Payment of Claims

Which of these statements concerning an Individual Straight Life annuity is accurate?

Payments are made to an annuitant for life

Which of the following provisions guarantees that premiums will be waived if a Juvenile Life policyowner becomes disabled?

Payor clause

Which of these do NOT constitute policy delivery?

Policy issued with a rating

The underwriting process involves all of these, EXCEPT for:

Policy loan

On delivery of a policy, a signed statement of good health is typically requested if

The application was submitted without the initial premium

Which of the following statements about a Guaranteed Renewable Health Insurance policy is CORRECT?

The correct answer is "Premiums normally increase at time of renewal". A Guaranteed Renewable Health Insurance policy can have increasing premiums at time of renewal.

When applied to Whole Life insurance, the word "straight" denotes

The duration of premium payments

What is the underlying concept regarding level premiums?

The early years is changed more than what is needed

Which of the following is NOT included in the policy face?

The exclusions section is NOT included in the policy face (first page of an insurance policy).

T was insured under an individual Disability Income policy and was severely burned in a fire. As a result, T became totally disabled. The insurer began making monthly benefit payments, but later discovered that the fire was set by T in what was described as arson. What actions will the insurer take?

The insurer will rescind the policy, deny the claim, and recover all payments made

Which of the following statements BEST defines usual, customary, and reasonable (UCR) charges?

The maximum amount considered eligible for reimbursement by an insurance company under a health plan

A 42-year-old executive wants to purchase life insurance that will allow for increases or decreases to coverage as his/her needs change. Which of the following policies will best meet this need?

Universal Life. Universal life insurance is characterized by flexible premiums and an adjustable death benefit.

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

Variable Life

What kind of life policy either pays the face value upon the death of the insured or when the insured reaches age 100?

Whole Life

According to Missouri's rules on disclosure, a life insurance applicant is expected to be provided with

a Buyer's Guide and Policy Summary

A foreign insurance company CANNOT conduct business in Missouri without

a certificate of authority to transact business in Missouri

A major medical plan (including an HMO) must cover formula and low protein modified food products for treatment of PKU or any inherited disease of amino and organic acids for

a child covered under the policy and less than six years of age

A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid

ever paying income taxes on the distributions

The life insurance and annuity replacement regulation defines replacement as

exchanging an existing policy for a new policy

K has a health policy that must be renewed by the insurer and the premiums can only be increased if applied to the entire class of insureds. This type of policy is considered:

guaranteed renewable

Which of the following will a Long Term Care plan typically provide benefits for?

home health care

An insurer receives proof of loss for an acceptable medical expense claim under an Individual Health Insurance Policy. Under the Time of Payment of Claims provision, the insurer MUST pay the benefits

immediately

An insurance company may compensate all of the following people EXCEPT

licensed producer not appointed by the company

Which of the following is NOT a limited benefit plan?

life insurance policies

The Director of Insurance may revoke the license of any licensee who

misappropriates monies belonging to policyholders

Periodic health claim payments MUST be made at least:

monthly

The Notice of Claims provision requires a policyowner to

notify an insurer of a claim within a specified time

Whole Life insurance policies are contractually guaranteed to provide each of the following, EXCEPT:

partial withdrawal features beyond a surrender charge period

The Replacement of Life Insurance and Annuities regulation is designed to protect the interest of the

policyowner

A producer has influenced an existing policyowner to convert an existing whole life policy to Reduced Paid-up insurance. The producer then sells the policyowner a new universal life policy. This transaction is called a(n)

replacement

An immediate annuity consists of a

single premium

The premiums paid by an employer for his employee's group life insurance are usually considered to be

tax-deductible to the employer

Which of the following is a CORRECT statement regarding association group coverage? Missouri law recognizes an association as an authorized group for purposes of the sale of group insurance when

the association shall have been organized and maintained in good faith for purposes other than that of obtaining insurance

A level premium indicates:

the premium is fixed for the entire duration of the contract

J has an Accidental Death and Dismemberment policy with a principal sum of $50,000. While trimming the hedges, J cuts off one of his fingers. What is the MAXIMUM J will receive from his policy?

$25,000

Continuing education (CE) providers must report to the director a licensee's earned credit hours within

30 days of course completion

The co-payment for a chiropractic service cannot exceed how much of the total cost of providing the service?

50% The co-payment for a chiropractic service cannot exceed 50% of the total cost of providing the service.

A Loss-Purchase Buy and Sell agreement among three partners, funded with individual life insurance, would require how many policies?

6. Each partner owns, is the beneficiary of and pays the premiums for life insurance on the other partners equal to his or her share of the purchase price.

Qualified Long-Term Care policies may take into consideration an applicant's pre-existing conditions for a maximum of not more than __ month(s) prior to the effective date of coverage.

6. If a pre-existing condition waiting period applies, the policy must not exclude coverage for any pre-existing conditions that occurred more than 6 months prior to the effective date of coverage. These conditions cannot be excluded beyond 6 months after the policy is issued.

Which statement is TRUE regarding a Variable Whole Life policy?

A minimum guaranteed Death benefit is provided

The Consideration clause in a life insurance contract contains what pertinent information?

Amount of premium payments and when they are due

When can a policyowner change a revocable beneficiary?

Anytime. With a revocable beneficiary designation, the policyowner may change the beneficiary at any time without notifying or getting permission from the beneficiary.

Before a life insurance policy is issued, which of these components of the contract is required?

Applicant's signature on application

When does a Probationary Period provision become effective in a health insurance contract?

At the policy's inception. The probationary period begins when a policy goes into effect. During this period, no benefits will be paid under the policy.

T applies for a life insurance policy and is told by the producer that the insurer is bound to the coverage as of the date of the application or medical examination, whichever is later. Assuming that T is an acceptable risk, what item is given to T?

Conditional receipt. A conditional receipt binds the insurer to coverage as of the date of the application or medical exam, provided the proposed insured is determined to be an acceptable risk.

If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have?

Contributory. Employees share in the premium costs with contributory plans

The Universal Life Policy is called an unbundled Life Policy because the policyholder can see the expense charges, the interest earned, and the

Cost of insurance

Which of the following BEST desscribes a Hospital Indemnity policy?

Coverage that pays a stated amount per day of a covered hospitalization

Credit life insurance is typically issued with which of the following types of coverage?

Decreasing Term. The type of insurance used for Credit life is typically decreasing term, with the term matched to the length of the loan period.

Which of the following statements does NOT accurately describe the tax treatment of premiums and benefits of individual Accident and Health insurance?

Disability income policy premiums are tax-deductible

M becomes disabled and is unable to work for six months. M dies soon after from complications arising from this disability. M has a Disability Income policy that pays $2,000 a month. Which of the following statements BEST describes what is owed to her estate?

Earned, but unpaid benefits

In a life insurance policy, which feature states that the policy will not cover certain risks?

Exclusion

N is a student pilot with a large life insurance policy. Which of these features would limit the insurer's obligation in the event N was killed while flying as a student pilot?

Exclusions are specified hazards listed in a policy for which benefits will not be paid.

S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?

Full benefits are payable under the Master contract

What is considered a valid reason for small businesses to insure the lives of its major shareholders?

Fund a buy-sell agreement. in the event of the death of a major shareholder in a business.

Which of the following policies MUST provide coverage for human leukocyte antigen testing for bone marrow transplantation?

Group comprehensive health insurance

The clause identifying which losses resulting from an accident or sickness are insured by the policy is called the

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

A policyowner's rights are limited under which beneficiary designation?

Irrevocable, An irrevocable beneficiary designation requires the consent and signature of that named beneficiary before a change of beneficiary occurs.

What is the purpose of a Policy Summary?

It highlights the critical parts of the policy issued. A Policy Summary highlights the critical parts of the policy issued and describes the coverages, riders, and exclusions.

Which of the following statements is CORRECT about the conversion provision in a group health insurance policy?

It is mandated by state requirements

Which of the following statements is CORRECT about the period in which a Term Policy can be converted?

It varies according to the contracts

An engineering firm that would suffer financially from the death of a project manager should purchase a

Key Person Life Policy

K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable?.

Level

Which of these is an element of a Single Premium annuity?

Lump-sum payment

Which of the following limits may be applied to coverage of treatment of autism spectrum disorders?

Medically necessary treatment in accordance with a treatment plan

When an existing life insurance policy is being reissued with a reduction in cash value, the producer must sign the

Notice Regarding Replacement of Life Insurance or Annuity. policy has been reissued with any reduction in cash value, that is considered a replacement. A Notice Regarding Replacement must be signed by both the producer and applicant.

All of the following statements are true regarding a policy's Grace period EXCEPT

Past due premiums are waived

The provision that defines to whom the insurer will pay benefits to is called

Payment of Claims

A father who dies within 3 years after purchasing a life insurance policy on his infant daughter can have the policy premiums waived under which provision?

Payor provision. provides that in the event of death or disability of the adult premium payor, the premiums on a juvenile policy will be waived until the insured child reaches a specified age or the maturity date of the contract.

Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation?

Policy was returned within the free-look period, premium will be fully refunded

On an Accidental Death and Dismemberment (AD&D) insurance policy, who is qualified to change the beneficiary designation?

Policyowner. has the right to change the beneficiary designation. However, consent may needed by the current beneficiary if designated as irrevocable.

Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy?

Reimbursement

S recently received a $500,000 lump sum retirement buyout from her employer. She would like to buy an annuity that will immediately furnish her with a guaranteed income for life. What type of annuity is best suited for her situation?

Single Premium

Which of the following would be considered misrepresentation by an insurance producer?

Stating that dividends are guaranteed

What should an insured do if the insurer does not send claims forms within the time period set

Submit the claim in any form

Which of the following statements is INCORRECT about a licensee's responsibility for premiums received?

The licensee must hold them in a separate account at a commercial bank or established financial institution before transmitting them to the insurance company

What type of life insurance are credit policies issued as?

The type of insurance used is decreasing term, with the term matched to the length of the loan period (though usually limited to 10 years or less) and the decreasing insurance amount matched to the declining loan balance.

T files a claim on his Accident and Health policy after being treated for an illness. The insurance company believes that T misrepresented his actual health on the initial insurance application and is, therefore, disputing the claim's validity. The provision that limits the time period during which the company may dispute a claim's validity is called

Time Limit on Certain Defenses

A Business Overhead Expense policy would cover which of the following if a business owner becomes disabled?

Utilities and office rent

A(n) ______ Life policy offers the owner investment in products such as money-market funds, long-term bonds and equities.

Variable

Which of these is considered a statement that is assured to be true in every respect?

Warranty. A warranty is a statement that is considered guaranteed to be true.

When must insurable interest be present in order for a life insurance policy to be valid?

When the application is made

Replacement is involved in all of the following situations EXCEPT when

a Term policy is converted to a permanent plan with the same insurance company

The guarantee of insurability option provides a long-term care policyowner the ability to

buy additional coverage at a later date. the guarantee of insurability option provides the insured with the ability to purchase additional insurance at a later date without evidence of insurability.

What type of group insurance plan involves employees sharing the cost?

contributory plan

Under Missouri law, a state regulated health benefit plan must

cover, with no prior authorization necessary, childhood immunization services whether provided in a medical physician's regular office or a qualified hospital emergency room

Medicare Part A and Part B do NOT pay for

dental work

The Director of Insurance may examine the records of an insurance company in order to

determine the solvency of the company. The Director or a designated examiner may conduct an examination of any domestic insurance company at the discretion of the Director, and must conduct a financial examination of every insurance company licensed in Missouri at least once every 5 years.

The Director of Insurance is empowered to

enforce state laws relating to insurance

The purpose of the Insurance Guaranty Fund is to

ensure that claims filed against insolvent insurance companies will be paid. insureds, and beneficiaries of life insurance policies, health insurance policies, annuity contracts and supplemental contracts when insurers fail to perform contractual obligations due to financial impairment.

A CORRECT statement about the regulatory authority of the Director is that the Director may

establish guidelines for continuing education as a part of the producer's license renewal procedure.The Director has the authority to establish guidelines for continuing education as a part of the producer's license renewal procedure.

A health plan in Missouri that is not exempt from state mandated benefits must cover childhood immunizations, and shall not charge any deductible or copayments

except that an HMO may exclude coverage for services rendered by non- participating providers

Health benefit plans may not impose a copay or co-insurance for physical therapy visits that are

greater than the copay or coinsurance for primary care office visits

All of the following statements about health coverage for physically handicapped dependents of insureds are correct EXCEPT that the dependent must

have been over ten years of age when the handicap was incurred

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

increase face amount

The first portion of a covered Major Medical insurance expense that the insured is required to pay is called the

initial deductible, A provision that requires the insured to pay the first portion of covered expenses before Major Medical coverage applies is called an initial deductible.

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

insurable interest in the proposed insured

A warranty

is a statement guaranteed to be true

Credit Life insurance is

issued in an amount not to exceed the amount of indebtedness

Which of the following is NOT allowed

issuing an additional Medigap policy to ensure no out of pocket exposure for the insured

An employer that offers a qualified retirement plan to its employees is eligible to

make tax-deductible contributions to the plan

A person who circulates inaccurate information about the benefits of a policy may be found guilty of

misrepresentation

When funds are shifted straight from one IRA to another IRA, what percentage of the tax is withheld?

none. There is no tax withheld on an IRA transfer.

The Coordination of Benefits provision

prevents an insured covered by two health plans from making a profit on a covered loss

When an application is taken for a new life insurance policy that replaces an existing one, a "Notice Regarding Replacement" form must be signed by the

producer and applicant. A copy must be left with the applicant.

A major medical policy typically

provides benefits for reasonable and necessary medical expenses, subject to policy limits

With Optionally Renewable Health policies, the insurer may

review the policy annually and determine whether or not to renew it

Under Missouri law, a health carrier shall have expedited grievance review procedures for

situations in which the standard time frames for grievance procedures could seriously jeopardize the enrollee's life or health

A salaried employee of an insurance company MUST be licensed as an insurance producer if the employee's duties include

soliciting insurance policies

The suicide provision for life policies would apply to

subsequent increases in benefits. if the suicide was committed within 1 year from the date of the policy issue, whether the insured is deemed sane or insane. Any subsequent increases in benefits applied for in the future would start a new suicide clause period for the amount applied for.

A health plan in Missouri may deny enrollment for a child on the basis that

the child is no relation to, and is not placed for adoption or adopted by the plan member

A noncontributory group term life plan is characterized by

the entire cost of the plan is paid for by the employer. the employer pays the entire cost of the plan.

The Consideration clause in a life insurance policy indicates that a policyowner's consideration consists of a completed application and

the initial premium

Under Missouri law, when one group health plan's contract replaces a plan of similar benefits of another group health plan,

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