Missouri Health Insurance

An individual purchased a $100,000 Joint Life policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wife receive from the policy?

$100,000

What is the maximum amount a person guilty of an unfair method of competition or an unfair or deceptive act or a prohibited practice may be fined in any 12 month period?

$100,000

An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?

$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?

$50,000

If an individual producer's license expires and the producer doesn't want to pass a written exam, the license must be reinstated within what time period from the renewal date?

12 months

How long is the free look period on a Medicare supplement policy?

30 days

Which of the following does the Insuring Clause NOT specify?

A list of available doctors

Under the mandatory uniform provision Notice of Claim, the first notice of injury or sickness covered under an accident and health policy must contain

A statement that is sufficiently clear to identify the insured and the nature of the claim.

While a claim is pending, an insurance company may require

An independent examination as often as reasonably required.

All of the following are examples of third-party ownership of a life insurance policy EXCEPT

An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan.

No insurance policy form can be issued, delivered, or used in this state unless it has been

Approved by the Department of Insurance.

An agent is ready to deliver a policy to an applicant but has not yet received payment. Upon delivery, the agent collects the applicant's premium check, answers any questions the applicant may have, and then leaves. What did he forget to do?

Ask her to sign a statement of good health

The premium charged for exercising the Guaranteed Insurability Rider is based upon the insured's

Attained age.

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be

Authorized

The provision which states that both the policy and a copy of the application form the contract between the policyowner and the insurer is called the

Entire contract.

When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?

Equal to the original policy for as long as the cash values will purchase.

When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?

Fixed amount

Which of the following riders would not cause the death benefit to increase?

Payor Benefit Rider

Which of the following types of policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover the premium ammount?

Universal life

What is the name of a clause that is included in a policy that limits or eliminates the death benefit if the insured dies as a result of war or while serving in the military?

War or military service

Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE?

Withdrawals are not taxable.

What is the number of credits required for fully insured status for Social Security disability benefits?

40

What is the waiting period on a Waiver of Premium rider in life insurance policies?

6 months

A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium?

If the father is disabled for more than 6 months

An IRA purchased by a small employer to cover employees is known as a

Simplified Employee Pension plan.

Group life insurance policies delivered in this state must contain all of the following provisions EXCEPT

Statements of the applicant are considered warranties.

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?

The Fair Credit Reporting Act

All of the following entities regulate variable life policies EXCEPT

The Guaranty Association.

The annual contribution limit of a dependent care flexible spending account is set by

The IRS

Which of the following does NOT have to be disclosed in a long-term care (LTC) policy?

The aggregate amount of premiums due

A couple owns a life insurance policy with a Children's Term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide for proof of insurability?

Proof of insurability is not required.

Insurers may change which of the following on a guaranteed renewable health insurance policy?

Rates by class

Which nonforfeiture option provides coverage for the longest period of time?

Reduced paid-up

A domestic insurer issuing variable contracts must establish one or more

Separate accounts.

All of the following statements concerning workers compensation are correct EXCEPT

A worker receives benefits only if the work related injury was not his/her fault.

What phase begins after a new policy is delivered?

Free-look period

What percentage of individually-owned disability income benefits is taxable?

0%

Within what period of time are unintentional misrepresentations grounds for contestability of a policy?

2 years

If the insured under a disability income insurance policy changes to a more hazardous occupation after the policy has been issued, and a claim is filed, the insurance company should do which of the following?

Adjust the benefit in accordance with the increased risk

An insured misstated her age on an application for an individual health insurance policy. The insurance company found the mistake after the contestable period had expired. The insurance company will take which of the following actions regarding any claim that has been issued?

Adjust the claim benefit to reflect the insured's true age

Contracts that are prepared by one party and submitted to the other party on a take it or leave it basis are cassifed as:

Contracts of adhesion.

The purpose of the Missouri Life and Health Guaranty Association is to

Help protect policyowners and beneficiaries against financial loss caused by the insolvency of an insurance company.

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the

Other-insured rider

In which of the following situations would an individual be permitted to exercise conversion privileges in a group health insurance policy?

The individual's employment was terminated.

Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to

The insured

According to the rights of renewability rider for cancellable policies, all of the following are correct about the cancellation of an individual insurance policy EXCEPT

Unearned premiums are retained by the insurance company.

In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe?

Unilateral

Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?

Universal Life - Option A

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?

Universal life

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

Cash option

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?

Consideration

Which of the following is NOT among the lines of authority for which an insurance producer may qualify in the state of Missouri?

Group health insurance

All of the following are differences between individual and group health insurance EXCEPT

Individual insurance does not require medical examinations, while group insurance does require medical examinations.

Underwriting a group health insurance plan that is paid for by the employer requires all of the following EXCEPT

Individual members of the group may select the level of benefits for their own coverage.

A producer has submitted a new application to his insurer; however, 30 days later there was still no coverage available for the applicant. What must the producer do?

Inform the applicant in writing

Which of the following statements is NOT true concerning Medicaid?

It consists of 3 parts: Part A: hospitalization, Part B: doctor's services, Part C: disability income.

Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?

Life income with period certain

A group health policy providing coverage on an expense-incurred basis will also offer coverage for the necessary care and treatment of what?

Loss or impairment of speech or hearing

A 65 year old enrolls for benefits under Medicare Part B and submits an application for a Medicare supplement policy two months later. For which of the following reason may the insurer deny the application?

Material misrepresentation

If a life insurance policy develops cash value faster than a seven-pay whole life contract, it becomes a/an

Modified endowment contract.

When does credit life insurance coverage take effect?

The date the debtor becomes obligated to the creditor

If an insured withdraws a portion of the face amount in the form of accelerated benefits because of a terminal illness, how will that affect the payable death benefit from the policy?

The death benefit will be smaller.

Under an extended term nonforfeiture option, the policy cash value is converted to

The same face amount as in the whole life policy.

Which of the following is TRUE for both equity indexed annuities and fixed annuities?

They have a guaranteed minimum interest rate.

Which of the following is TRUE for both equity indexed annuities and fixed annuities?

They have a guaranteed minimum intrest rate

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called

Joint and survivor.

Life insurers are prohibited from including any of following in advertisements EXCEPT

Policy appraisals and analyses.

Which of the following will be included in a policy summary?

Premium amounts and surrender values

Upon policy delivery the producer may be required to obtain any of the following EXCEPT

Signed waiver of premium

When an insurer issues an individual health insurance policy that is guaranteed renewable, the insurer agrees

To renew the policy until the insured has reached age 65.

The provision in a health insurance policy that ensures that the insurer cannot refer to any document that is not contained in the contract is the

Entire contract clause.

Which of the following statements regarding Business Overhead Expense policies is NOT true?

Benefits are usually limited to six months.

An applicant for an individual health policy failed to complete the application properly. Before being able to complete the application and pay the initial premium, she is confined to a hospital. This will not be covered by insurance because she has not met the conditions specified in the

Consideration Clause.

which of the following is NOT an exclusion in medical expense insurance policies

Coverage for dependants

What is another name for interest-sensitive whole life insurance?

Current assumption life

An individual has just borrowed $10,000 from his bang on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation.

Decreasing Term

What is an important feature of a dental expense insurance plan that is NOT typically found in a medical expense insurance plan?

Diagnostic and preventive care

In which of the following locations would skilled care most likely be provided?

In an institutional setting

Which type of a hospital policy pays a fixed amount each day that the insured is in a hospital?

Indemnity

Which of the following is TRUE regarding the accumulation period of an annuity?

It is a period during which the payments into the annuity grow tax deferred.

Which of the following is NOT true regarding a Certificate of Authority?

It is issued to group insurance participants.

Which of the following is true about the premium on the children's rider in a life insurance policy?

It remains the same no matter how many children are added to the policy.

Which of the following is NOT true regarding the accumulation period of an annuity

It would not occur in a deferred annuity

A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that.

Joint life policy

Under an individual disability policy, the MINIMUM schedule of time in which claim payments must be made to an insured is

Monthly

An applicant for a health insurance policy returns a completed application to her agent, along with a check for the first premium. She receives a conditional receipt two weeks later. Which of the following has the insurer done by this point?

Neither approved the application nor issued the policy

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 policy was not in effect for at least one year; however, all premium payments will be returned.

What must a health carrier do within 72 hours of receiving a request for an expedited review?

Notify the requesting enrollee of the carrier's determination

During replacement of life insurance, a replacing insurer must do which of the following?

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

An insured has a life policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called

Paid-up additions.

All of the following statements about equity index annuities are correct EXCEPT

The annuitant receives a fixed amount of return.

An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. 5 days later the applicant had to submit to a medical exam. If the policy is issued, what would the policy's effective date?

The date of the medical exam

A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?

The insured's premiums will be waived until she is 21.

Which of the following is NOT a feature of a noncancellable policy?

The insurer may terminate the contract only at renewal for certain conditions.

Which of the following best describes what the annuity period is?

The period of time during which accumulated money is converted into income payments

All of the following are true about variable products EXCEPT

The premiums are invested in the insurer's general account.

All of the following are requirements for life insurance illustrations EXCEPT

They must be part of the contract.

What is the purpose of the insurability provision in group life policies issued in this state?

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

what is the purpose of establishing the target premium for a universal life policy?

To keep the policy in force