17 Free Missouri Life & Health Practice Questions: Missouri Laws Pertinent to Life Insurance (2026)

Question 1 (Chapter 8)

A producer in Missouri is discussing the assignment of a life insurance policy with a client. Which statement accurately reflects Missouri law regarding the assignability of life insurance policies?

• A) Life insurance policies in Missouri cannot be assigned under any circumstances.
• B) Only the policyowner can assign the policy, and the insurer's consent is always required.
• C) Assignments are only permitted for business-owned life insurance policies (BOLI).
• D) Life insurance policies are assignable unless the policy contains a specific prohibition against assignment.

Question 2 (Chapter 8)

A Missouri resident purchases a variable life insurance policy. Which statement is true regarding the regulation of this product under Missouri law?

• A) Variable life insurance is regulated solely as a security under Missouri law, and the producer needs only a securities license to sell it.
• B) Variable life insurance products are not permitted for sale in Missouri.
• C) The cash value of a variable life insurance policy in Missouri is guaranteed by the Missouri Insurance Guaranty Association.
• D) Variable life insurance is regulated as both insurance and a security, requiring the producer to hold both a life insurance license and be registered with FINRA.

Question 3 (Chapter 8)

Which statement accurately describes a key feature of a universal life insurance policy as regulated under Missouri law?

• A) The policy offers flexibility in premium payments and death benefit amounts, subject to the policy terms and sufficient cash value.
• B) The death benefit and premium are fixed and cannot be changed after the policy is issued.
• C) The policy accumulates cash value based on the performance of a separate investment account chosen by the policyholder.
• D) Universal life policies in Missouri are exempt from the state's policy replacement regulations.

Question 4 (Chapter 8)

A producer in Missouri completes a life insurance application for a client. The client asks if they can change the beneficiary designation later. What is the correct response based on Missouri law and standard policy provisions?

• A) Yes, the policyowner can change the beneficiary designation at any time, unless the beneficiary designation has been made irrevocable with the beneficiary's consent.
• B) No, the beneficiary designation is irrevocable once the policy is issued.
• C) Yes, but only if the beneficiary is a blood relative of the insured.
• D) Yes, but the producer must approve any beneficiary change.

Question 5 (Chapter 8)

A Missouri resident purchases a single-premium immediate annuity. Later, they decide to surrender the annuity contract. According to Missouri's regulation on annuity replacements (20 CSR 400-5.400), which of the following statements is true regarding the producer's responsibilities?

• A) The producer must provide a Notice Regarding Replacement because surrendering an annuity to purchase another annuity or life insurance is considered a replacement under Missouri law.
• B) The producer must provide a Notice Regarding Replacement only if the annuity is being exchanged for another annuity.
• C) The replacement rules in 20 CSR 400-5.400 do not apply to annuity contracts; they apply only to life insurance policies.
• D) The producer's only responsibility is to obtain the client's signature on the surrender form; no replacement notice is required.

Question 6 (Chapter 8)

A Missouri resident with a whole life policy takes a policy loan of $15,000. The policy's cash value is $25,000. According to Missouri law, how is the maximum interest rate that may be charged on this policy loan determined?

• A) It is a flat rate set annually by the Missouri Department of Commerce and Insurance for all policies.
• B) It is the rate specified in the policy contract, subject to a maximum rate established under Missouri insurance law.
• C) It floats freely at the insurer's discretion, with no statutory maximum.
• D) It is tied to the 10-year Treasury rate and adjusts automatically each quarter.

Question 7 (Chapter 8)

A Missouri life insurance policy is issued with an aviation exclusion. The insured dies while flying as a passenger on a commercial airline flight that crashes due to mechanical failure. Is the death benefit payable under the policy?

• A) No, because the aviation exclusion applies to all air travel, regardless of the type of aircraft or passenger status.
• B) Yes, but only if the insured had purchased an aviation endorsement rider.
• C) No, because Missouri law requires all life insurance policies to include an aviation exclusion.
• D) Yes, because aviation exclusions typically do not apply to fare-paying passengers on licensed commercial airlines.

Question 8 (Chapter 8)

A Missouri employer offers a group life insurance plan to its employees. The employer pays 100% of the premium for a basic amount of coverage. Employees can purchase additional voluntary coverage at their own expense. According to Missouri law, which statement is true regarding the tax treatment of the employer-paid premium for the basic coverage?

• A) The employer-paid premium for the basic coverage is not considered taxable income to the employee for the first $50,000 of coverage, pursuant to federal tax law that Missouri follows.
• B) The employer-paid premium for the basic coverage is always considered taxable income to the employee.
• C) The employer-paid premium for the basic coverage is only tax-free if the employee has been employed for at least 5 years.
• D) Missouri law requires the employer to include the premium paid for basic coverage in the employee's W-2 as taxable wages.

Question 9 (Chapter 8)

Under Missouri law, which of the following is true regarding the suicide exclusion period that a life insurer may include in a life insurance policy?

• A) The suicide exclusion period is set at the insurer's sole discretion and is not subject to any statutory maximum.
• B) The suicide exclusion period is prohibited in Missouri.
• C) The suicide exclusion applies for the entire life of the policy, with no time limit.
• D) Missouri law caps the suicide exclusion period at a maximum length stated in the policy, after which the full death benefit is payable even if death is by suicide.

Question 10 (Chapter 8)

A Missouri life insurance policy includes a war exclusion clause. According to Missouri law and standard policy provisions, under which condition is this war exclusion most likely to be enforceable?

• A) If the insured dies as a result of any act of war, whether declared or undeclared.
• B) Only if the insured is a civilian who dies in a declared war involving the United States.
• C) War exclusions are prohibited in Missouri life insurance policies.
• D) If the insured dies while serving in the military of any country during a time of war.

Question 11 (Chapter 8)

A Missouri producer is explaining the features of a life insurance policy to a client. The policy includes a return of premium (ROP) rider attached to a term life insurance policy. According to Missouri law, which statement is true regarding this rider?

• A) The return of premium rider guarantees that the policyholder will receive back all premiums paid if they outlive the term, regardless of whether a claim was made.
• B) The return of premium rider is considered a form of cash value accumulation similar to permanent life insurance.
• C) The return of premium rider reduces the death benefit during the term period to fund the return of premium feature.
• D) The return of premium rider is prohibited in Missouri term life insurance policies under 20 CSR 400-5.400.

Question 12 (Chapter 8)

A Missouri life insurance policy is issued to a 60-year-old applicant. The policy includes a long-term care (LTC) acceleration rider that allows the death benefit to be used to pay for qualified long-term care expenses. According to Missouri law, which statement is true regarding this rider?

• A) The long-term care acceleration rider is considered a form of health insurance and must be filed separately with the Missouri DCI under health insurance regulations.
• B) Using the long-term care acceleration rider reduces the policy's death benefit and cash value on a dollar-for-dollar basis.
• C) The long-term care acceleration rider requires the insured to be permanently confined to a nursing home to qualify for benefits.
• D) The long-term care acceleration rider is prohibited in Missouri life insurance policies under 20 CSR 400-5.900.

Question 13 (Chapter 8)

A Missouri producer is discussing policy replacement with a client who owns an existing life insurance policy. The client asks what the producer must do first when a replacement is being considered. According to Missouri regulation 20 CSR 400-5.400, what is the producer's initial responsibility?

• A) Submit the replacement notice to the replacing insurer for approval before proceeding.
• B) Provide the applicant with a Notice Regarding Replacement and obtain a signed acknowledgment of receipt.
• C) Immediately notify the existing insurer of the proposed replacement to allow them to conserve the policy.
• D) File a copy of the replacement notice with the Missouri Department of Commerce and Insurance within 5 business days.

Question 14 (Chapter 8)

A Missouri producer is explaining the incontestability clause to a client. The client asks what happens if the insurer discovers a material misrepresentation on the application after the policy has been in force for three years. According to Missouri law, what is the correct response?

• A) The insurer can void the policy and deny the death benefit, but must return all premiums paid.
• B) The insurer can only adjust the death benefit based on the correct age or health information, but cannot deny the claim.
• C) The insurer has no remedy and must pay the claim as if the application was accurate.
• D) The insurer can void the policy and retain all premiums paid as compensation for the fraud.

Question 15 (Chapter 8)

A Missouri life insurance policy includes a guaranteed insurability rider that allows the policyholder to purchase additional coverage at specified intervals without evidence of insurability. According to Missouri law, which statement is true regarding this rider?

• A) The rider must be offered at no additional cost to the policyholder.
• B) The additional coverage purchased under the rider is subject to the same suicide exclusion period as the base policy.
• C) Missouri law prohibits the use of guaranteed insurability riders in life insurance policies.
• D) The policyholder can only exercise the rider if they have experienced a qualifying life event, such as marriage or birth of a child.

Question 16 (Chapter 8)

A Missouri resident purchases a variable life insurance policy. The producer explains that the policy's death benefit is guaranteed not to fall below a specified minimum amount regardless of the performance of the separate accounts. According to Missouri law and standard variable life insurance provisions, which statement is accurate regarding this guarantee?

• A) The death benefit is always guaranteed to be at least the face amount shown in the policy, regardless of investment performance.
• B) Missouri law requires all variable life policies to guarantee a minimum death benefit equal to the total premiums paid.
• C) The death benefit guarantee, if offered, is a feature of the specific policy contract and not a universal requirement under Missouri law for all variable life policies.
• D) The cash value in a variable life policy is guaranteed by the Missouri Insurance Guaranty Association against market loss.

Question 17 (Chapter 8)

A Missouri life insurance policy is issued to a 50-year-old applicant. The policy includes a war exclusion clause. The insured dies while serving as a civilian employee of the U.S. Department of Defense in a combat zone during a declared war. According to Missouri law and standard policy provisions, is the death benefit payable?

• A) Yes, because the insured was a civilian, not a military combatant.
• B) No, because the war exclusion applies to any death resulting from war, regardless of the insured's status as military or civilian.
• C) Yes, but only if the insured had purchased a war risk rider at an additional premium.
• D) No, unless the insured can prove the death was not directly caused by an act of war.