Missouri Life Insurance Practice Exam Free - 2026

• A. $400,000 in death benefits and $150,000 in cash value
• B. $500,000 in death benefits and $250,000 in cash value
• C. $300,000 in death benefits and $150,000 in cash value
• D. $300,000 in death benefits but not more than $100,000 in net cash surrender value

Correct answer: D. $300,000 in death benefits but not more than $100,000 in net cash surrender value

Explanation: RSMo § 376.717 caps the association's liability for any one life at $300,000 in life insurance death benefits, but not more than $100,000 in net cash surrender and net cash withdrawal values for life insurance. Options A and C exceed the cash-value cap, and option B exceeds both caps; the $500,000 figure applies only to health benefit plans, not life insurance. See RSMo § 376.717.

• A. $250,000 in present value of annuity benefits
• B. $300,000 in present value of annuity benefits
• C. $325,000, the full present value
• D. $100,000 in present value of annuity benefits

Correct answer: A. $250,000 in present value of annuity benefits

Explanation: RSMo § 376.717 limits the association's obligation for annuities to $250,000 in the present value of annuity benefits, including net cash surrender and withdrawal values, per contract owner (and per payee of a structured settlement annuity). $300,000 is the life death-benefit cap, not the annuity cap; the association never pays the full amount above its limits; and $100,000 is the cap that applies to certain health coverages, not annuities. See RSMo § 376.717.

• A. A right to continue the group coverage for 18 months at group rates
• B. A right to an individual life policy without evidence of insurability if she applies and pays the first premium within 31 days
• C. A right to an individual policy only if she passes a medical examination within 60 days
• D. A right to convert only if she had been insured under the group policy for five years

Correct answer: B. A right to an individual life policy without evidence of insurability if she applies and pays the first premium within 31 days

Explanation: RSMo § 376.697(8) requires group life policies to provide that a person whose coverage ends because of termination of employment or membership may obtain an individual life policy without evidence of insurability, provided application is made and the first premium paid within thirty-one days after termination. Option A describes continuation, not conversion; option C wrongly adds a medical exam; and the five-year requirement in option D applies only under subdivision (9) when the group policy itself terminates, not to an individual leaving employment. See RSMo § 376.697.

• A. 6 percent per annum
• B. 8 percent per annum
• C. 9 percent per annum
• D. 10 percent per annum

Correct answer: C. 9 percent per annum

Explanation: 20 CSR 100-1.050(1)(H) provides that for death benefit claims on life policies, consistent with RSMo § 408.020, interest accrues at nine percent per annum from the date of death until the claim is paid if the insurer fails to pay within thirty days of submission of proof of death and all necessary proofs of loss, unless the policy specifies a different rate. Six, eight, and ten percent are not the rate stated in the rule. See 20 CSR 100-1.050.

• A. A provision that waives premiums once the insured reaches age 65
• B. A provision that pays a monthly income if the insured becomes disabled
• C. A provision that waives the policy's surrender charges after 10 years
• D. A provision that waives premiums if the insured becomes disabled

Correct answer: D. A provision that waives premiums if the insured becomes disabled

Explanation: The waiver of premium rider allows premium payments to be waived if the insured becomes totally disabled for a specified period. The policy remains in force without premium payments during the disability.

• A. A provision allowing early access to death benefit if terminally ill
• B. A provision allowing the beneficiary to collect proceeds before the insured's death
• C. A provision that pays the death benefit within 30 days of proof of loss
• D. A provision allowing the sale of the policy to a third party for a lump sum

Correct answer: A. A provision allowing early access to death benefit if terminally ill

Explanation: An accelerated death benefit rider allows the insured to receive a portion of the death benefit early if diagnosed with a terminal illness. This provides funds for medical expenses or other needs while still living.

• A. The right to convert term coverage to permanent coverage without proof of insurability
• B. The right to purchase additional coverage at specified times without proof of insurability
• C. The right to reinstate a lapsed policy at any time without proof of insurability
• D. The right to increase coverage at any time with the insurer's approval of new evidence of health

Correct answer: B. The right to purchase additional coverage at specified times without proof of insurability

Explanation: The guaranteed insurability rider (also called guaranteed purchase option) allows the insured to purchase additional coverage at specified future dates or events without having to prove insurability again.

• A. A provision that waives future premiums if the insured is injured in an accident
• B. A provision that pays a monthly income if an accident leaves the insured disabled
• C. A provision that pays an additional benefit if death results from an accident
• D. A provision that pays the full face amount only if death results from an accident

Correct answer: C. A provision that pays an additional benefit if death results from an accident

Explanation: The accidental death benefit rider (sometimes called 'double indemnity') pays an additional death benefit, often equal to the face amount, if the insured dies as a result of an accident.

• A. The time the insurer has to review the application and issue the policy
• B. The time after the due date to pay a premium without the policy lapsing
• C. The time the applicant is covered at no cost before the first premium is due
• D. The time to review the policy and return it for a full refund

Correct answer: D. The time to review the policy and return it for a full refund

Explanation: The free look period (typically 10-30 days depending on state) allows the policyholder to review the policy after delivery. If unsatisfied, they can return the policy for a full refund of premiums paid.

• A. The person(s) first entitled to receive the death benefit
• B. The person who owns the policy and controls its rights
• C. The person who receives proceeds if the named beneficiary has died
• D. The person whose life is covered under the policy contract

Correct answer: A. The person(s) first entitled to receive the death benefit

Explanation: A primary beneficiary is the person or persons first in line to receive the death benefit when the insured dies. Only if the primary beneficiary predeceases the insured or is otherwise disqualified from taking does the benefit pass to the contingent (secondary) beneficiary; if the primary beneficiary is alive but cannot be found, the insurer holds the proceeds and ultimately reports them as unclaimed property under state law.

• A. A beneficiary who shares the proceeds equally with the primary beneficiary
• B. A backup beneficiary who receives proceeds if the primary is deceased
• C. A beneficiary who receives proceeds only if the insured dies by accident
• D. A beneficiary whose designation cannot be changed without written consent

Correct answer: B. A backup beneficiary who receives proceeds if the primary is deceased

Explanation: A contingent (or secondary) beneficiary receives the death benefit proceeds if the primary beneficiary predeceases the insured or is otherwise unable to receive the benefit.

• A. A beneficiary that can be changed only with the beneficiary's consent
• B. A beneficiary that the insurer can remove if premiums go unpaid
• C. A beneficiary that the policyowner can change at any time
• D. A beneficiary that may revoke the policy's settlement option

Correct answer: C. A beneficiary that the policyowner can change at any time

Explanation: A revocable beneficiary can be changed by the policyowner at any time without the beneficiary's consent. This is the most common type of beneficiary designation.