Missouri Health Insurance

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

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

0%

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

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

2 years

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

30 days

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

Which of the following does the Insuring Clause NOT specify?

A list of available doctors

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

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

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

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

Current assumption life

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

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

Fixed amount

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.

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

In an institutional setting

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 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.

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

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

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.

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

Reduced paid-up

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.

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.

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.

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 is TRUE for both equity indexed annuities and fixed annuities?

They have a guaranteed minimum interest rate.

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.

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.

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.