On February 2, 1999, at 0900 central standard time, a Cessna 152, N67568, operated by a commercial pilot with an instructor rating, and a dual student pilot, sustained substantial damage following, a loss of power, and forced landing near Odessa, Missouri. The instructor reported no injuries. The dual student reported minor injuries. The instructional flight was operating under 14 CFR Part 91, in visual meteorological conditions. The local flight departed Warrensburg, Missouri, about 0800. In his written statement, the instructor pilot said that he intended to instruct the dual student in emergency procedures. He said that during a simulated loss of power, the engine actually did quit and the propeller stopped. He said that he took over control of the airplane and attempted to re-start the engine with negative results. He then conducted a forced landing where on touchdown the nosewheel dug into rough terrain and resulted in substantial damage to the airplane. An examination of the airplane after the accident failed to reveal any mechanical problems with the engine. There was continuity throughout, and the was fuel in the tanks and fuel lines. The engine control continuity was verified. The engine was test run after the accident and operated.