Guarantee Exam
For a producer to share his commission with another producer, which must be true?
Both must be currently licensed for the same line of authority as the transaction
When may HIV-related test results be provided to the MIB?
Only if the individual isn't identified
HMO's are known as what type of plans?
Service
Who would be a likely candidate to purchase a deferred annuity?
Someone who wants to grow retirement funds tax deferred
How long is the grace period for an individual life insurance policy?
1 month
In a noncontributory group policy: How many/what kind of employees must participate?
100% of elgible employees must participate
What is the maximum age that a disabled insured worker may receive Social Security disability benefits?
65
When does coverage for a newborn begin, and within what period of time must the insurer be notified in order for the newborn's coverage to be continued?
From moment of birth, and insurer must be notified within 31 days
All of the following are features of catastrophic plans EXCEPT a. OOP costs b. high deductibles c. essential benefits d. high premiums
High premiums
A variable life policyholder who owns a scheduled premium policy experiences many months of negative returns in the policy's sub accounts. In regards to the minimum death benefit,
It will be equal to or greater than the initial face amount
What does an annuity protect the contract owner against?
Living longer than expected
Cash Value guarantees in a whole life policy are called
Nonforfeiture values
M's life insurance policy prevents his beneficiaries from receiving death benefits should he die while flying his private jet. Where must this be stated in the policy?
On the face of the policy
Which of the following is a provision found in life insurance policies? A. Payor benefit B. reinstatement c. return of premium d. guaranteed insurability
Reinstatement
the underlying assets of a Variable Life policy issued by an admitted company must be:
Reported to the policyholders annually
All of the following statements about indexed whole life insurance are correct EXCEPT A. the cash value depends on the performance of the equity index B. The death benefit is not guaranteed C. The premium is fixed D. There is a guaranteed minimum interest rate
B
Which of the following is a correct statement about annuities? A. Fixed annuitites have the annuitant assume the risks of investment B. Fixed annutities don't provide protection against inflation C. Variable annuities provide minimum guaranteed rate of interest D. Variable annuitities place the funds into the company's general account
B
The corridor deductible apples between:
Basic and major medical coverage
Key person insurance can provide protection for all of the following economic losses EXCEPT A. provide deferred compensation retirement benefit if the insured key person survives to retirement B. fund the expense of finding a suitiable replacement following death of employee C. Fund cost of training a current employee to perform duties of Key deceased employee D. Pay the death benefit to the estate of the insured
D
An insurer mails an insurance policy to a new policyowner. When the insurer relinquishes control of the policy, the policy is considered:
Delivered
In this state the owner gets a "free look" of a specified number of days from:
Delivery of policy
The Uniform Provision Law that prevents an insurance company from altering its agreement with a policyholder by referring to documents or other items not contained in the policy is the
Entire Contract Provision
Your client wants to provide a retirement income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guaranteed an income for life. What settlement option should he select?
Joint and survivor
Which of the following is NOT a required coverage in health insurance policies in Missouri? A. Chemical dependency B. Mental retardation C. Immunization D. Bone marrow transplants
Mental retardation
Which statement best describes agreement as it relates to insurance contracts?
One party accepts the exact terms as the other party's offer
Insurance will pay majority of covered expenses if you choose provider in plan's list. If treated by provider not on list, portion of bill would be higher
Preferred Provider Plan
On an Accidental Death and dismemberment policy, the death benefit payable is known as the:
Principal sum
If a life insurance company uses HIV testing as a part of its underwriting, when must an applicant be notified of the procedure?
Prior to performance of the test
What is the purpose of requiring licenses for persons who transact insurance?
Protect the general public
What does the appication of contract of adhesion mean?
Since the insured doesn't participate in preparing the contract, any ambiguitites would be resolved in favor of the insured
What won't be included in the buyer's guide?
Specific information about the policy
An agency's top variable life insurance producer shows prospects actual product performance results. However, the performance results are several years old. the producer is:
Using inaccurate information
The insurer of a credit life policy requires evidence of insurability from the debtor. The debtor becomes obligated to the credit on March 1st, and the evidence of insurability is provided to the insurer on March 30th. when will the term of insurance begin?
Whenever the insurer finds the evidence of insurability satisfactory
When an insured terminates membership in the insured group, the insured can convert to
Whole life without proof of insurability
If an insured isn't entirely satisfied with a policy issued, the insured may return it to the insurance company and receive a refund of the entire premium paid, at which of the following times?
Within 10 days of when the policy was delivered
Under the mandatory uniform provision "Notice of Claim", written notice of a claim must be submitted to the insurer within what time parameters?
Within 20 days
An employee that becomes ineligible because of termination of employment or change in status, must exercise extension of benefits under COBRA:
Within 60 days
Which of the following types of care could be provided at a community center? A. skilled care B. adult day care C. respite care D. intermediate care
adult day care
An insured and his spouse recently had a child. What rider would allow the couple to insure the child for a limited period of time at a specific amount?
children's term rider
Employee dies having 6 quarters of coverage during the previous 13-quarter period. What status of coverage does the employee have under Social Security?
currently insured
The guaranteed purchase option is also referred to as the
future increase option
If insured submits written proof of loss, What is the max amount of time after submittal that the insured has to initiate legal action?
3 years
A distribution from an employer-sponsored retirement plan or from an IRA is eligible for a tax-free rollover if it's reinvested in an IRA within:
60 days
Under the mandatory provision Legal Actions, an insured is prevented from bringing a suit against the insurer to recover on a health policy prior to:
60 days after written proof of loss has been submitted
Under the mandatory uniform provision Proof of Loss, the claimant must submit proof of loss within what time period after loss?
90 days
What is an example of a policy replacement?
A policy is reissued with a reduction in cash value
LTC policies provdide necessary coverage at all of the following levels EXCEPT A. Acute B. Custodial C. Intermediate D. Skilled
Acute
If an insured dies, and it is discovered that the insured misstated their age or gender, the life insurance company will:
Adjust the death benefit to what the premium would have purchased at the actual age or gender
What pays a beneficiary a death benefit that is double or triple the face amount if the insured's death was caused by an accident as defined in the policy?
An accidental death rider
In whole life insurance, when is the policy cash value scheduled to equal the face amount?
As the insured's age 100
All of the following are true of the survivorship life policy EXCEPT: A. it can insure more than 2 lives B. The premium is based on the age of each insured C. The death benefit is not paid until the last death D. The premium would be lower than in a joint life policy
B
All life and health policies must provide a clear and conspicuous disclaimer regarding the Insurance Guaranty Association on the face page of the policy. This disclaimer must do all of the following EXCEPT: A. Warn the policyholder that the Guaranty Association may not cover the policy B. State the name and address of the Life and Health Insurance Guaranty Association and insurance department C. State that the insurer and its agents are protected by the Guaranty Association in case of insolvency D. State that the insurer is prohibited by law from using the existence of the Guaranty Association for the purpose of solicitation or inducement of insurance
State that the insurer and its agents are protected by the Guaranty Association in case of insolvency
When a whole life policy is surrendered for its non-forfeiture value, what is the automatic option?
Extended term
Where would information about a policy's graded death benefits be located in the policy?
Face and the back of the policy
J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. What settlement option did J choose?
Fixed amount
A non-Medicaid health carrier plan issued in Missouri must provide coverage for early intervention services for children of what age?
From birth to age 3
How would a producer be allowed to obtain insurance through an unauthorized insurer?
If there are no authorized insureres for a specific type of coverage in this state
who would be allowed catch-up contributions?
Individuals 50 or older
If an insurance company issues a policy even though some questions on the application were unanswered, when can the insurer get the answers to those questions?
Never; the insurer has waived its right to answer those answers by issuing the policy
The reduction of premium option uses the dividend to reduce:
Next year's premium
What is a specific requirements regarding the number of employees in a SIMPLE plan?
No more than 100 employees
An insured has an illness diagnosed through video-conferencing between insured's doctor and a doctor in another city. What type of medical practce?
Telehealth
What would be appropriate for an individual with a low income and high insurance needs?
Term insurance
An applicant misstates his age on his app for a health insurance policy. He states that that he is 39, but is actually 49. When he files a cliam, what most likely will happen?
Benefits paid will be those that would have been purchased at the correct age
All of the following are required provisions in group life insurance policies in Missouri EXCEPT A. misstatement of age B. conversion to individual life insurance C. warranties made by the applicants D. beneficiaries
C
Which of the following would NOT trigger the payment of Accelerated Death Benefits? A. requiring an organ transplant for the insured to survive B. Being permanently institutionalized C. Being permanently disabled D. terminal illness
C
An agent delivers a policy to an applicant, who pays the initial premium but refuses to submit a statement of good health. What has the applicant violated?
Consideration
A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new policy will:
Continue to increase
All of the following are true of credit life EXCEPT A. The death benefit cannot exceed the amount of the loan B. The premium payment is included in the loan payment C. The creditor is the policyowner D. The insured names the beneficiary
D
In a replacement situation, all of the following are prohibited practices EXCEPT A. Not listing an existing policy that will be surrendered on the new policy application B. Submitting a list of replaced policies only after the new policy is delivered C. Not providing the client with the sales materials used in the solicitation D. Borrowing 50% of a policy's cash value to fund a new life insurance contract
D
What scenario would require that an insured be provided with a conversion option from group to individual LTC coverage?
The insured had continuous coverage under the policy
Who must maintain control and responsibility over all dissemination of an insurer's advertising?
The insurer
In health insurance, the length of the grace period varies according to :
The mode of premium payment
The elimination period in a disability income policy is better known as
The period of time an insured must wait after the onset of an illness or injury before benefits begin
In regards to copayment and coinsurance for services provided by a physical therapist:
They must be the same as for the services of a primary care physician
What is the purpose of the impairment rider in a health insurance policy?
To exclude coverage for a specific impairment
What is the purpose of a benefit schedule?
To state what and how much is covered in the plan
If the policy summary for life insurance policy is not given when the app is taken, when must the policy summary be given to the policyowner?
When the policy is delivered
