Missouri Statutes, Rules and Regulation Common to All lines Chapter 10

Question 7 of 15 A producer completed an insurance transaction in 2007. When can the producer dispose of the records for this transaction? A. 2008 B. 2009 C. 2010 D. 2012

2010

Question 13 of 15 What is the fine, per violation, when found guilty by the Director of unfair method of competition or an unfair or deceptive act or a prohibited practice? A. $1,000 B. $250,000 C. $100,000 D. $25,000

$1,000

Question 1 of 15 A licensed life insurance producer in Missouri completed 20 hours of continuing education credits in order to renew her license. How many hours of continuing education credit will this producer need to complete in order to renew her license the next term? A. 16 B. 10 C. 0 D. 12

12

Question 3 of 15 Which of the following is another term for an authorized insurer? A. Legal B. Admitted C. Certified D. Licensed

Admitted

Question 7 of 15 Which of the following is another term for an authorized insurer? A. Licensed B. Legal C. Admitted D. Certified

Admitted

Question 1 of 15 If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be A. Certified. B. Qualified. C. Approved. D. Authorized.

Authorized.

Question 3 of 15 In insurance, producers are permitted to share or split commissions if A. The insurance department knows of the arrangement. B. There is a written agreement between the agents. C. Both are properly licensed for the line of insurance. D. The insured knows and agrees to the arrangement.

Both are properly licensed for the line of insurance.

Question 8 of 15 To legally transact insurance in this state, an insurer must obtain which of the following? A. Certificate of Authority B. Power of Attorney C. Business entity license D. Certificate of Insurance

Certificate of Authority

Question 10 of 15 Which of the following is NOT a punishment for violating the Director's cease and desist order? A. Suspension or revocation of license B. A monetary fine C. Imprisonment D. Community service

Community service

Question 12 of 15 When a producer was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. The producer could be found guilty of A. Discrimination. B. Nothing, unless the remarks were in writing C. Defamation. D. Misrepresentation.

Defamation.

Question 14 of 15 Which of the following authorities may issue a Cease and Desist Order if an insurer is violating the Insurance Code? A. MIB B. Director C. NAIC D. State Insurance Board

Director

Question 4 of 15 Which of the following authorities may issue a Cease and Desist Order if an insurer is violating the Insurance Code? A. NAIC B. State Insurance Board C. MIB D. Director

Director

Question 11 of 15 Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called? A. Adverse selection B. Discrimination C. Law of large numbers D. Misrepresentation

Discrimination

Question 5 of 15 How often are insurance producers in this state required to fulfill continuing education hours? A. Every 3 years B. Only if a license has lapsed C. Annually D. Every 2 years

Every 2 years

Question 14 of 15 To maintain an insurance license, all Missouri producers must successfully complete the required continuing education. All of the following statements concerning continuing education are correct, EXCEPT A. Required CE hours must be divided between the producer's lines of authority. B. CE requirement may be extended for up to 1 year. C. Excess CE credits may not be applied toward the next requirement period. D. Each licensee is required a minimum of 16 hours every two years.

Excess CE credits may not be applied toward the next requirement period.

Question 9 of 15 To maintain an insurance license, all Missouri producers must successfully complete the required continuing education. All of the following statements concerning continuing education are correct, EXCEPT A. Excess CE credits may not be applied toward the next requirement period. B. Each licensee is required a minimum of 16 hours every two years. C. Required CE hours must be divided between the producer's lines of authority. D. CE requirement may be extended for up to 1 year.

Excess CE credits may not be applied toward the next requirement period.

Question 8 of 15 An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of? A. False advertising B. Unfair claims C. Twisting D. Defamation

False advertising

Question 2 of 15 The purpose of the Missouri Life and Health Guaranty Association is to A. Encourage Life insurers to write substandard business. B. Allow producers to continue to solicit insurance, even if the company they represent is financially impaired. C. Protect the reputation of the Insurance Department if they issue a Certificate of Authority to a company that becomes insolvent. D. Help protect policyowners and beneficiaries against financial loss caused by the insolvency of an insurance company.

Help protect policyowners and beneficiaries against financial loss caused by the insolvency of an insurance company.

Question 4 of 15 An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act? A. Legal, provided that the other insurers are paid royalties for the usage of their names B. Illegal under any circumstances C. Legal, provided that the information can be verified D. Illegal until endorsed by the Guaranty Association

Illegal under any circumstances

Question 11 of 15 The Missouri Life and Health Insurance Guaranty Association was created to protect all of the following EXCEPT A. Policyowners. B. Beneficiaries. C. Insureds. D. Insurers.

Insurers.

Question 5 of 15 The Missouri Life and Health Insurance Guaranty Association was created to protect all of the following EXCEPT A. Beneficiaries. B. Insureds. C. Insurers. D. Policyowners.

Insurers.

Question 6 of 15 In order to conduct an examination of an admitted insurance company in Missouri, the Director may A. Issue subpoenas only to employees of the home office. B. Administer oaths to executive officers concerning financial matters. C. Issue subpoenas and administer oaths to anyone on any matter that is relevant. D. Issue subpoenas only to any insurance company executive officer.

Issue subpoenas and administer oaths to anyone on any matter that is relevant.

Question 15 of 15 Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices? A. Making comparisons between different policies B. Stating that the insurance policy is a share of stock C. Exaggerating the benefits provided in the policy D. Stating that the competitors will arbitrarily increase their premiums each year

Making comparisons between different policies

Question 12 of 15 On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of A. Rebating. B. Misrepresentation. C. Concealment. D. Unfair claim practice.

Misrepresentation.

Question 10 of 15 No insurance company may transact insurance business in Missouri unless it first A. Applies for membership in the National Association of Insurance Commissioners. B. Appoints an adequate number of resident producers to service policies written in the state. C. Obtains from the Director a Certificate of Authority. D. Establishes a regional office in the state.

Obtains from the Director a Certificate of Authority.

Question 13 of 15 What must an insurance company that is organized in, and has its home office in Missouri, do in order to legally transact insurance in the state? A. Receive a Certificate of Authority from the Director B. Receive approval from the state legislature C. Nothing, they automatically qualify to transact insurance in the state. D. Obtain approval from the National Association of Insurance Companies

Receive a Certificate of Authority from the Director

Question 9 of 15 A producer in another state wants to become a producer in Missouri. The other state gives the same privileges to Missouri producers wanting to be licensed in that state as it does its own producers. Missouri therefore extends the privileges of its producers to the prospective producer of the other state. What is this called? A. Equal privilege B. Reciprocity C. Fair exchange D. Equanimity

Reciprocity

Question 15 of 15 The chief officer of the Department of Insurance is the Director. All the following statements concerning the Director are true EXCEPT A. The Director must be experienced in matters of insurance. B. The Director must be a citizen of the state of Missouri. C. The Director is appointed by the Governor. D. The Director may serve as an officer or director for an unauthorized insurer.

The Director may serve as an officer or director for an unauthorized insurer.

Question 2 of 15 Who is responsible for covering the expenses associated with the examination of domestic insurers? A. The Department of Insurance B. The Insurance Guaranty Association C. The examined insurer D. The Director

The examined insurer

Question 6 of 15 Missouri law requires that the records of insurance transactions kept by producers must be orderly. What does that mean? A. The records must be kept in storage. B. The records must be properly alphabetized. C. The records must be ready for examination at the producer's home office. D. The records must be retrievable within 5 days upon request.

The records must be retrievable within 5 days upon request.