Mo Life Accident and Health Insurance Producer

An employee who owns an individual disability income policy is injured in an automobile accident and files proof of loss with the insurance company. Under the payment of claims provision in the policy, the company will likely pay the policy benefits to the

Insured

Which of the following statements is CORRECT about beneficiary designations?

By naming an irrevocable beneficiary, a policy owner forfeits the right to change the beneficiary

Which of the following statements is CORRECT about medicare?

It is a hospital and medical expense insurance program

An insured is injured while robbing a bank. If the insured's Accident and Health policy contains an illegal occupation provision, the policy will pay

The full benefits

Which of the following statements is CORRECT about an individual disability income policy?

It often contains an Elimination period

Which of the following statements is correct about statements a proposed insured makes on a life insurance application?

They are representations and deemed true to the best of the applicant's knowledge

If an insured fails to pay the premium when due, the insured's health policy will remain in force for a specified period of time under which of the following provisions?

Waiver of premium

Which of the following statements is CORRECT about benefits provided by a basic hospital and surgical policy?

They are lower than the actual expenses incurred

On May 14, a prospect completes an application for insurance. The producer collects the initial premium and issues a conditional receipt. The insurance company determines that the prospect is insurable and issues a standard policy on May 26. If the producer delivers the policy to the insured on June 1, the effective date of coverage is

May 26

Which of the following statements is required by Long-Term care insures when referring to inflation protection in qualified Long Term care policies?

All policies must include inflation protection

Which of the following sections of an insurance contract limits coverage?

Conditions

On July 1, a producer accepts an application and the annual premium for a health policy. On July 15, the insurance company issues the policy, but the producer does not deliver it until August 15. If the insured decides not to accept the policy and returns it to the producer on August 24, the company will:

Refund the premium minus a prorated amount for the forty days of coverage

J owns a disability income policy. Before purchasing the policy, J suffered a major back injury that is specifically for coverage under the policy. The clause in J's policy that EXCLUDES back injury claims is found in the

Impairment rider

S applies for an individual major medical policy and the insurance company issues a standard policy. When S receives the policy, S notices that the application is attached to the policy. Which of the following policy elements makes the application, if attached, part of the contract between S and the insurance company?

Entire contract provision

The time of payment of claims provision requires that an insurance company pay disability income benefits no less frequently than

Monthly

Which of the following provisions can an insured use to put a policy in force that has lapsed as a result of non-payment?

Reinstatement

An insured becomes disabled on March 1 and submits a claim statement to the insurance company on March 31, while still disabled. The company fails to remit payment promptly and the insured decides to seek legal advice. The earliest date the attorney may take legal action against the insurance company is

May 31

The primary purpose of the coordination of benefits provision found in most group major medical policies is to perform which of the following functions?

Permitting an insurance company to pay benefits directly to providers of medical services

A disability buyout policy is designed to provide benefits to

The healthy stockholders

Which of the following reports has the primary purpose to inform an insurance company about a prospect's previous medical insurance history?

Medical Information Bureau (MIB)

An insurance company must furnish claim forms to an insured so that the insured can file

Proof of a loss

A policy owner may change a revocable beneficiary at which of the following times?

At any time

The insurance clause in an Accident & Health policy states which of the following information?

The insurance company's obligations

Which of the following statements is CORRECT about medicare?

It is a hospital and medical expense insurance program

Which of the following statements is CORRECT about beneficiary designations?

By naming an irrevocable beneficiary, a policy owner forfeits the right to change the beneficiary

An employee who owns an individual disability income policy is injured in an automobile accident and files proof of loss with the insurance company. Under the payment of claims provision in the policy, the company will likely pay the policy benefits to the

insured

A primary beneficiary would be named for which of the following types of accident and health policies?

Travel accident

An insurance company notifies an insured that $50 of the insured's physician's charge is above the usual, customary, and reasonable limits covered by the major medical policy in this situation, the excess amount would be

Applied to the deductible

All of the following entities are managed care organizations EXCEPT

POS

The recurrence of a disabling illness would most likely be defined as a recurrent disability unless the insured had been disabled and then returned to work for a minimum of how many months before suffering the relapse?

6

Which of the following statements BEST describes the purpose of a disability income policy?

It is used to pay for an insured's normal living expenses if the insured becomes disabled

The intent of the notice of claim provision in an accident and health policy is to

Instruct policy owners that they are responsible for notifying insurance companies of claims

Which of the following statements BEST describes the primary difference between a health maintenance organization (HMO) and a preferred provider organization (PPO)?

Under a PPO the insured may use any medical provider whereas providers are restricted with HMOs

A coinsurance provision may be included in which of the following types of policies?

Major Medical

Accidental Death and Dismemberment (AD&D) coverage provides benefits for death or dismemberment due to

Unexpected injury only

A characteristic NOT found in a group disability income policy is

Benefits based on an employee's income

Because health insurance policies are offered on a "take it or leave it" basis, they are referred to as which of the following types of contracts?

Contracts of Adhesion

When completing an insurance application, a producer should

Request that the applicant review the completed application before signing it

If an insured commits suicide when a suicide clause is in effect, an insurance company will

Deny the claim and return the premiums paid

Dividends paid on a life insurance policy are:

Guaranteed at the prime rate

In a life insurance contract, the consideration given by the applicant in exchange for the promises of the insurance company consists of the insured's statement in the application and which of the following items?

A Written Promise to pay all premiums when due

Under the Internal Revenue Code, a portion of the employer-paid premium of group Term Life insurance is taxable for an employee whose coverage is what minimum amount?

$25,000

All of the following options are examples of Nonforfeiture options EXCEPT:

Renewability

Which of the following statements is CORRECT regarding Variable Whole Life Insurance?

It is insurance and a securities product

When an employer provides noncontributory group Term life insurance, which of the following statements is CORRECT?

The employer pays the entire cost of the plan

Traditional Individual Retirement Account (IRA) withdrawals are generally subject to a tax penalty if they are made before the insured reaches what minimum age?

59 1/2

Which of the following statements is CORRECT regarding Variable Whole Life Insurance?

It is insurance and a securities product.

Which of the following features is typical of Term insurance?

The policy expires at the end of the policy period

An Adjustable Life policyholder may take all of the following actions without providing proof of insurability EXCEPT:

Increase the face amount

The premium mode that results in the lowest premium outlay is:

Annually

Which of the following provisions could double the face amount of insurance if an insured's death occurred as the result of an unintended and unforeseen event?

Accidental Death and Dismemberment (AD&D) provision.

An Accelerated Death Benefit of a life insurance policy is also known as:

Living Benefit

If an insured purchases an Annuity from which income is received, the insured is the:

Annuitant

If an insured dies during the Contestable period of a life insurance policy, the insurance company will NOT pay the policy to proceed in which of the following situations?

There was a material misrepresentation in the application

On May 8, a prospect filled out an application for a life insurance policy but paid no premium. The insurance company approved the application on May 14 and issued the policy on May 15. The producer delivered the policy on May 26 and collect the first premium. The coverage becomes effective on

May 26

An agent receives an unsolicited call from a prospective client who wants to purchase a large single premium life policy. When advised about early withdrawal penalties, the client does not seem concerned and is evasive when the agent inquires about the source of the funds. In this situation, the agent should take which of the following actions?

Contact the insurance company compliance officer to a red flag

If a forty-five-old individual bought an annuity to provide income for life beginning at age sixty-five, the insured did NOT buy:

An Immediate Annuity

Which of the following features of a life policy is used to restrict coverage?

An exclusion

An insured, age 30, wants to purchase a Whole life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of the following statements would be the producer's most appropriate response?

“20 pay life will accumulate cash value faster."

Which of the following policy features permits an insured to pay premiums MORE than once every year?

Mode of Premium provision

Which of the following policies insures two individuals and is designed to pay a benefit at the second death?

Joint Life

Which of the following persons has the right to change the beneficiary designation on a life insurance policy?

The policy owner

A Guaranteed Insurability provision is best described as a

Guarantee to keep a policy in force if the premium is paid

Which of the following statement is CORRECT about a policy loan against a life insurance contract?

Interest on a loan which is not paid when due is added to the total debt

M understates her age in an application for a life insurance policy. At M's death, the company will MOST likely:

Pay an amount based on what M's premium payment would have purchased if M had given her true age

Which of the following parts of a life policy is guaranteed to be CORRECT?

A warranty

A 30-year-old prospective insured is considering the purchase of a life insurance policy. If all of the following policies have the same face amount, which would require the largest annual premium?

20-Pay Life

In order for a company to make a contributory group life insurance plan available to its employees, what minimum percentage of the eligible employees must participate in the plan?

75%

A client should know that the indexed annuity differs from the fixed annuity in that the indexed annuity:

May receive credited interest based on the fluctuations of the linked index

Under a unilateral life insurance policy, which of the following parties makes the legally enforceable promises?

The insurance company

Which of the following statement is CORRECT about the amount of group life death benefit that the beneficiary report?

The beneficiary does not need to report the amount

A policy that is overfunded, according to I.R.S. tables, is classified as which of the following types of policy:

Modified Endowment Contract

An applicant for life insurance must be informed of their rights under the Fair Credit Reporting

When the producer makes the initial appointment to see the insured

An annuity that allows an individual to choose the annual premium payment amount is

Flexible Premium

Which of the following sections of a life insurance contract states that the application is part of the contract?

Entire Contract Provision

An application for a life insurance policy that is submitted with the initial premium is legally considered to be

An Offer

The primary purpose of including a Suicide Provision in a life insurance policy is to

Protect the insurer against the purchase of a policy in contemplation of suicide

Which of the following features of a group Term Life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability?

Conversion Privilege

The premium mode that results in the lowest premium outlay is

Annually

A beneficiary who must consent to a change in the beneficiary designation in a life insurance policy is referred to as

An irrevocable beneficiary

The applicant's signature is required on a life insurance application for which of the following reasons?

To represent that the statements on the application are true to the best of the applicant's knowledge

One of the basic concepts of insurance underwriting is that a life insurance policy owner must be the insured, a blood relative of the insured, or someone who would suffer an economic loss if the insured died. The concept is known as

Insurable interest

Able Construction Company wants to take out an insurance policy on its president to offset the cost of replacing the president if the president should die prematurely. The type of policy the company should buy is called

Key Employee

S and W are business partners. Each takes out a $100,000 life insurance policy on the other, naming himself as the primary beneficiary. S and W eventually dissolve their business, and two months later S dies. Although S was married at the time of death, the primary beneficiary is still W. However, an insurable interest no longer exists. The proceeds from S's life insurance policy will go to

W

Which of the following items binds the insurer to coverage as of the date of the application or medical examination, whichever is later, provided that the proposed insured is determined to be an acceptable risk?

An absolute assignment

In order for a company to make a non-contributory group life insurance plan available to its employees, what minimum percentage of eligible employees must participate in the plan?

100%

Which of the following statements is CORRECT about a Whole Life policy?

The policy owner may borrow against the cash value of the policy

Which of the following statement about a settlement Option provision in a life insurance policy is correct?

It describes various methods of distributing Death Benefits to beneficiaries

Which of the following contracts is purchased with a lump sum and pays a guaranteed income?

A level Premium Annuity

Which of the following provision of life insurance will pay a stated amount to an insured if the insured is blinded in an accident?

Impairment Rider

The accelerated death benefit in a life insurance contract can be accessed by which of the following methods?

Having an authorized physician diagnose a terminal illness to the carrier with a prognosis of less than one-year life expectancy

On January 3, an insured accepts delivery of a whole life policy that has an effective date of December 22 of the previous year. The policy contains a six-month Waiver of Premium provision. If the insured becomes disabled on January 6 as the result of an accident, and the disability continues beyond July 6, the insurance company will

Continue the coverage and refund the premiums paid during the period of disability.

The USA Patriot Act was signed into law in response to

September 11, 2001 Attack

An Adjustable Life policyholder may take all of the following actions without providing proof of insurability EXCEPT

Increase the face amount

J, a 30-year-old proposed insured, plans to retire at age 60 and wants to purchase life insurance that offers level premiums and life-long protection. If J also wants the policy to be paid up when J retires, J should buy

30-Pay Life

In a life insurance contract, the consideration given by the applicant in exchange for the promises of the insurance company consists of the insured's statement in the application and which of the following items?

A Written Promise to pay all premiums when due

In a third-party ownership arrangement, which of the following individuals is a party to the contract?

The applicant

An insurer's underwriter uses medical information obtained on an application to determine:

Risk classification

An insurance producer who engages in the sale of annuity products shall complete a one-time training course of how many hours prior to engaging in the sale?

8

When attempting to sell a participating life policy to a client, a producer MUST do which of the following activities?

Notify the existing policy's producer about the replacement