- | Page
MISSOURI LIFE INSURANCE
EXAM PRACTICE QUESTI ONS &
ANSWERS!!
Question :Insurance policies are considered aleatory
contracts because:
1)they are take it or leave it contracts 2)both parties consent to the contract 3)performance is conditioned upon a future occurence 4)the contract is voidable upon proof of fraud
Correct answer:Performance is conditioned upon a future
occurence, because there is an element of chance and potential for unequal exchange of value
Question :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?1)free-look 2)reinstatement
- | Page
3)grace period 4)consideration
Correct answer:Reinstatement
Question :What type of contract liquidates an estate
through recurrent payments?1)Universal life insurance 2)Whole life insurance 3)Annuity 4)401k
Correct answer:Annuity
Question :An insured pays premiums on an annual basis
for an individual health insurance policy. What is the MINIMUM number of days for the Grace Period provision?1)7 2)10 3)20
- | Page
4)31
Correct answer:31
The grace period is a minimum of 31 days for policies hat are paid for on an annual basis.
Question :Nursing home benefits must be provided for at
least 12 consecutive months in which of the following types of policies?1)blanket custodial 2)long term care 3)critical illness 4)Medicare supplements
Correct answer:long term care
Question :T would like to be assured $10,000 is available
in 10 years to replace a roof on his house. What kind of $10,000 policy should T purchase?1)Interest Sensitive Whole Life 2)Ten Year Endowment 3)Variable Universal Life
- | Page
4)Ten Year Renewable Term
Correct answer:Ten Year Endowment
Question :An insured recently took out a cancer insurance
policy. The time limit on certain defenses provision in this policy allows the insurer to 1)to cancel a policy for any reason for up to 5 years 2)to reduce the benefit for a loss occurring after two years due to misstatements 3)to deny the amount of a claim for statements on the application 4)to deny the amount of a claim for misstatements occurring prior to the expiration of the first 2 policy years
Correct answer:to deny the amount of a claim for
misstatements occurring prior to the expiration of the first
- policy years
Question :Medicare Part B does not cover
1)occupational therapy 2)inpatient hospital services