17 Free Missouri Life & Health Practice Questions: Life Provisions, Riders and Options (2026)
How to Use This Set
This set covers the life provisions, riders, options and exclusions section of the Missouri Life & Health exam. On the Life single-line outline it carries 15 items, and the combined exam's general-knowledge portion lists the same 15 under its second section.
It is the section where vocabulary does the work: reinstatement, beneficiary types, settlement options, nonforfeiture options, assignment and the riders that attach to a base policy. The questions below are scenarios, so for each one name the provision first and then read the options.
These 17 questions have answers and explanations behind each one. Try each question before you open the explanation.
Practice Questions 1-6: Reinstatement, Beneficiaries and Riders
Covered here: reinstatement requirements, the common disaster clause, payor and other-insureds riders, irrevocable beneficiaries and the straight life settlement option. Work each question before you open the explanation.
Question 1 (Chapter 2)
A policyowner’s life insurance policy lapsed two years ago due to nonpayment of premium. The owner now wishes to restore the original coverage. Under the Reinstatement provision, which of the following is NOT typically required?
- A) Payment of all back premiums plus interest
- B) Evidence of insurability
- C) Repayment of any outstanding policy loans plus interest
- D) Payment of a reinstatement penalty fee to the Missouri DCI
Show answer & explanation
Answer: D
Reinstatement requires the insured to provide proof of insurability, pay back premiums plus interest, and repay loans. There is no requirement to pay a penalty fee to the Department of Commerce and Insurance (DCI) for reinstating a private contract.
Question 2 (Chapter 2)
Robert is the primary beneficiary and his daughter, Sarah, is the contingent beneficiary of a life insurance policy. Robert and the insured are in a fatal accident. Robert survives the insured by only 48 hours. If the policy contains a Common Disaster Clause (typically 30-90 days), who receives the proceeds?
- A) Robert's estate
- B) The insured's estate
- C) The Missouri Life and Health Insurance Guaranty Association
- D) Sarah
Show answer & explanation
Answer: D
Under the Common Disaster Clause, if the primary beneficiary dies within a specified timeframe (e.g., 30 days) after the insured, the proceeds are paid as if the primary beneficiary had died before the insured. This ensures the money goes to the contingent beneficiary (Sarah) rather than the primary beneficiary's estate.
Question 3 (Chapter 2)
A father purchases a life insurance policy for his 10-year-old daughter and adds a Payor Benefit rider. If the father becomes totally disabled, what happens to the policy premiums?
- A) The insurer waives the premiums until the daughter reaches a specified age, such as 21.
- B) The daughter must begin paying the premiums immediately.
- C) The policy is converted to a paid-up term policy.
- D) The insurer pays the daughter a monthly disability income.
Show answer & explanation
Answer: A
The Payor Benefit rider functions like a waiver of premium for juvenile policies. If the payor (the adult) dies or becomes disabled, the premiums are waived until the child reaches a certain age (usually 21 or 25).
Question 4 (Chapter 2)
A policyowner adds an 'Other Insureds' rider to their whole life policy to cover their spouse. Which of the following best describes the type of coverage usually provided by this rider?
- A) Level term insurance on the spouse until age 65 or 70.
- B) Whole life insurance on the spouse.
- C) Decreasing term insurance that matches the primary insured's cash value.
- D) Variable universal life insurance with separate account options.
Show answer & explanation
Answer: A
The Other Insureds rider (often called a Spouse Rider) typically provides level term insurance for a specified period or up to a certain age. It is a cost-effective way to add coverage for a family member without a separate policy.
Question 5 (Chapter 2)
A policyowner named their spouse as an irrevocable beneficiary. The policyowner now wishes to take out a policy loan to pay for home repairs. What must the policyowner do to obtain the loan?
- A) Obtain written consent from the irrevocable beneficiary.
- B) Nothing; the owner has the absolute right to take a loan.
- C) Change the beneficiary to 'Estate' first, then take the loan.
- D) Wait until the policy has been in force for at least 10 years.
Show answer & explanation
Answer: A
An irrevocable beneficiary has a vested interest in the policy. The policyowner cannot exercise ownership rights that affect the beneficiary's interest (like taking a loan or surrendering the policy) without the beneficiary's written consent.
Question 6 (Chapter 2)
A beneficiary selects the 'Life Income - Straight Life' settlement option. If the beneficiary dies after receiving only three monthly payments, what happens to the remaining balance of the death proceeds?
- A) It is forfeited to the insurance company.
- B) It is paid to the contingent beneficiary.
- C) It is paid to the beneficiary's estate.
- D) It is used to pay for the beneficiary's funeral expenses.
Show answer & explanation
Answer: A
The Life Income (Straight Life) option provides payments for the life of the beneficiary. However, if the beneficiary dies early, there are no further payments and no refund of the remaining balance to anyone else. This option provides the highest monthly payment but carries the most risk.
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Practice Questions 7-12: Policyowner Rights, Nonforfeiture and Exclusions
Covered here: premium mode, family term riders, the extended term option in two scenarios, hazardous activity exclusions and assignment. Work each question before you open the explanation.
Question 7 (Chapter 2)
A policyowner has a $100,000 whole life policy and decides they no longer wish to pay premiums annually. They contact the insurer to switch to a monthly bank draft. Which policyowner right allows for this change?
- A) The Right to Change the Premium Mode
- B) The Right of Reinstatement
- C) The Right of Assignment
- D) The Right of Conversion
Show answer & explanation
Answer: A
The 'Premium Mode' refers to the frequency of premium payments (annual, semi-annual, quarterly, or monthly). Policyowners have the right to change this mode, though switching to more frequent payments often increases the total annual cost due to administrative fees.
Question 8 (Chapter 2)
A 35-year-old father wants to ensure that if his wife dies, there is coverage to help with childcare, but he doesn't want to buy a separate policy. Which rider would allow him to add term coverage for his spouse to his own permanent policy?
- A) Payor Rider
- B) Guaranteed Insurability Rider
- C) Return of Premium Rider
- D) Family Term Rider
Show answer & explanation
Answer: D
A Family Term Rider (or Other Insured Rider) allows the primary insured to add level term coverage for a spouse or children as a rider to their own base policy, usually at a lower cost than a separate policy.
Question 9 (Chapter 2)
A policyowner chooses the 'Extended Term' non-forfeiture option for their $50,000 Whole Life policy. What is the face amount of the new term coverage?
- A) $50,000
- B) $25,000
- C) The amount of the accumulated cash value.
- D) The amount of the original face value minus the cash value.
Show answer & explanation
Answer: A
Under the Extended Term non-forfeiture option, the insurer uses the cash value to purchase term insurance with the same face amount as the original policy. The duration of the term depends on how much cash value was available.
Question 10 (Chapter 2)
During the underwriting of a life insurance policy, the insurer discovers the applicant is a professional skydiver. The insurer issues the policy but excludes coverage for death resulting from skydiving. This is an example of a(n):
- A) Impaired Risk Rating
- B) Hazardous Occupation/Hobby Exclusion
- C) Standard Issue with a Lien
- D) Incontestability Waiver
Show answer & explanation
Answer: B
Insurers may use exclusions to manage risks associated with dangerous occupations or hobbies. If the insured dies from the excluded activity, the insurer only returns premiums; if they die from any other cause, the full benefit is paid.
Question 11 (Chapter 2)
An insured decides to stop paying premiums on their $100,000 whole life policy after 15 years. They choose the 'Extended Term' non-forfeiture option. Which of the following best describes the resulting coverage?
- A) The insured has a $100,000 term policy for as long a period as the cash value will purchase.
- B) The insured has a permanent policy with a reduced face amount, such as $40,000, for life.
- C) The insurer returns the cash value to the insured and the coverage terminates immediately.
- D) The policy continues as a whole life policy, but the insurer takes a loan against the cash value to pay premiums.
Show answer & explanation
Answer: A
Under the Extended Term non-forfeiture option, the insurer uses the existing cash value to purchase level term insurance with the same face amount as the original policy ($100,000) for the maximum duration possible. Option B describes Reduced Paid-Up insurance.
Question 12 (Chapter 2)
A policyowner wants to transfer all of their rights in a life insurance policy—including the right to change the beneficiary and the right to cash surrender—to their child as a gift. Which type of assignment is required?
- A) Collateral Assignment
- B) Partial Assignment
- C) Absolute Assignment
- D) Revocable Assignment
Show answer & explanation
Answer: C
An Absolute Assignment is a permanent transfer of all policy ownership rights. A Collateral Assignment (A) is a temporary transfer of specific rights, usually to a creditor as security for a debt.
Practice Questions 13-17: Consideration, Settlement Options, Loans and Riders
Covered here: the insurer's consideration, joint and survivor settlements, policy loan interest, the reduced paid-up option and the disability income rider. Work each question before you open the explanation.
Question 13 (Chapter 2)
An applicant submits a life insurance application and the initial premium. In the 'Consideration' clause of the resulting policy, what is the insurer's consideration?
- A) The statements made in the application
- B) The payment of the initial premium
- C) The promise to pay the death benefit according to the policy terms
- D) The delivery of the policy to the owner
Show answer & explanation
Answer: C
In an insurance contract, consideration is the exchange of value. The applicant's consideration is the premium and the statements in the application. The insurer's consideration is the legally binding promise to pay the death benefit (the insuring clause).
Question 14 (Chapter 2)
A husband and wife are beneficiaries of a 'Joint and Survivor' settlement option on a life insurance policy. If the husband dies first, what happens to the payments?
- A) Payments cease immediately
- B) The remaining balance is paid to the husband's estate in a lump sum
- C) Payments continue to the wife for the remainder of her life
- D) Payments are diverted to the contingent beneficiary
Show answer & explanation
Answer: C
The Joint and Survivor option guarantees income to two or more recipients. When one dies, the survivor continues to receive payments (sometimes at a reduced amount like 2/3 or 1/2) for the rest of their life.
Question 15 (Chapter 2)
A policyowner wants to take a loan against their whole life policy. Which of the following is true regarding policy loan interest rates?
- A) The rate must be fixed at 10%
- B) The rate must be 0% for the first year
- C) Policies may feature an adjustable maximum interest rate tied to an index like Moody's Corporate Bond Yield
- D) Insurers are prohibited from charging interest on loans of less than $1,000
Show answer & explanation
Answer: C
Life insurance policies may feature either a fixed maximum loan interest rate or an adjustable rate tied to a published index such as Moody's Corporate Bond Yield Average.
Question 16 (Chapter 2)
A policyowner decides they no longer need their $250,000 whole life policy and want to stop paying premiums immediately. They want the maximum amount of permanent, fully paid-up coverage possible using their existing $40,000 in cash value. Which non-forfeiture option should they select?
- A) Cash Surrender
- B) Extended Term
- C) Reduced Paid-Up
- D) One-Year Term Option
Show answer & explanation
Answer: C
The Reduced Paid-Up non-forfeiture option uses the policy's cash value as a single premium to purchase a permanent policy with a lower (reduced) face amount than the original. This new policy is fully paid-up for life and continues to grow cash value.
Question 17 (Chapter 2)
An insured has a Disability Income rider attached to their life insurance policy. They become totally disabled and remain so for one year. Which of the following is the primary benefit provided by this specific rider?
- A) The insurer pays the policy's premiums and provides a monthly income to the insured.
- B) The insurer pays the full death benefit to the insured while they are still alive.
- C) The insurer doubles the cash value accumulation during the period of disability.
- D) The insurer waives the premiums only, with no cash payout to the insured.
Show answer & explanation
Answer: A
A Disability Income rider goes beyond a standard Waiver of Premium. It not only waives the premiums during total disability but also provides a regular monthly income payment to the insured based on a percentage of the policy's face amount.
The Mistakes That Cost Marks
Mixing up extended term and reduced paid-up. Extended term keeps the original face amount and uses the cash value to buy as much time as it can. Reduced paid-up keeps coverage for life at a smaller face amount. Questions 9, 11 and 16 test exactly this contrast.
Forgetting the irrevocable beneficiary. An irrevocable beneficiary has a vested interest, so actions that affect that interest, such as a loan, need written consent (question 5).
Treating straight life as a guarantee. A life-income option with no refund stops paying at death and returns nothing (question 6), while joint and survivor continues to a second person (question 14).
Confusing similar riders. The payor benefit rider protects a juvenile policy, the other-insureds and family term riders add term coverage, and the disability income rider pays a monthly income as well as waiving premium. Match the rider to the person and the benefit.
Mixing up assignment types. An absolute assignment transfers every ownership right, while a collateral assignment is a temporary transfer to secure a debt (question 12).
Your Next Step
Score yourself on the three groups and note which ones went worst, then return to that part of the outline. The course preview lets you try the audio lessons and quiz format, and our free practice question hub has the full list of topic sets for the Missouri Life & Health exam.
For the format and difficulty, read how many questions are on the exam and whether the exam is hard.
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