Missouri statutes, rules and regulations common to all lines

How long can an individual who moves to Missouri must apply for a license?

90 days

Interstate Insurance Product Regulation Compact

Formed to help states jointly regulate designated insurance products.

Rebates include

o Rebates of premiums payable on the policy o Special favors or services o Advantages in the dividends or other benefits o Stocks, bonds, securities, and their dividends or profits

How long are producer licenses issued?

2 years

Insurance producers must complete 16 hours of CE every __ years prior to license renewal?

2; 3 of 16 hours must be completed in courses related to ethics, state law and producer duties

Records of all agreements must be maintained by both the company and the producer for

3 years

Records must be maintained for how many years? And must be available for inspection?

3 years; Director

When can a producer's license be renewed? How much does it cost

A producer's license must be renewed biennially on the anniversary date of issuance. The biennial fee is $100 per license.

Certificate of Authority

Acknowledges that the requirements of the insurance laws have been met, and authorizes the company to transact insurance. Must be renewed annually by July 1

Director of Insurance

Chief officer of the Department of Insurance, Financial Institutions and Professional Registration. Appointed by the Governor with the consent of the senate and holds until a new governor is appointed.

Rebating

Any inducement offered to the insured in the sale of insurance products that is not specified in the policy. Both the offer and acceptance of a rebate are illegal.

How can a business entity obtain an insurance producer license?

By using the uniform business entity application. The business entity must pay a license fee of $100 and must designate a licensed individual insurance producer to be responsible for the entity's compliance with the insurance laws, rules, and regulations.

The Missouri Life and Health Guaranty Association

Created to protect policyholders, insureds, and beneficiaries of life insurance policies, health insurance policies, annuity contracts and supplemental contracts when insurers fail to perform contractual obligations due to financial impairment

What is the role of the director

Director's role is to enforce insurance laws and protect the public from unfair trade practices. Director can hold a hearing if suspects that an insurer or its agent has committed a violated or is engaged in unfair trade practices.

Every producer in Missouri must notify who in how many days of a change in address?

Director, in writing; 30 days

What happens for a person who transacts insurance without certificate of authority?

Guilty of class C felony

Unauthorized/Non-admitted certificate

Insurers who haven't been approved to do business in the state.

Authorized/Admitted certificate

Insurers who meet the state's financial requirements and are approved to do business in the state

Producers MUST

Maintain complete records for each insurance policy unless it is the responsibility of the insurer.

Before insurers may transact business in a specific state

Must apply and be granted for license or Certificate of Authority from the state department of insurance.

All premiums associated with personal insurance policies...?

Must be remitted within 30 days of the receipt.

How many times can a director conduct a financial exam?

Must conduct a financial examination of any domestic insurance company at least once every 5 years, but may conduct exams as often as deemed necessary. Company being examined pays examination fees and expenses

Profit sharing

Permitted. The amount of commission paid to an insurance producer may vary with the loss experience of the policies written by the producer

Retrospective commisions

Prohibited. Insurers in Missouri are prohibited from using any payment plans to insurance producers which would allow the company to receive an agreed portion of its earned premium free from normal claims. Or allow insurance producers to pay all normal claims from the remainder and retain money not paid to claimants as compensation

How is an insurance producer license not required of any officer, director, or employee of an insurer/organizations employed by insurers,

They aren't directly/indirectly involved with the actual sale of an insurance contract and don't receive an commission

Coercion

To require, as a condition to a loan, that the applicant purchase insurance from a specified insurer

Business entity may also reinstate its producer license..?

Within 12 months of the due date of the renewal by paying the required license renewal fee plus a $25 per month that the license was expired

Every producer of CE coursed authorized in Missouri should?

Within 30 working days of a licensed producer completing its approved course, provide certification of completion to the Director

It is unlawful to pay, offer or accept any of the following an an inducement to buy insurance

o Any special favor or advantage in dividends or benefits o Any stocks, bonds, securities, or accrued dividends or profits o Anything of value not specified in the insurance market

Before the Director will issue a license, a person must meet the following qualifications

o Be at least 18 o File an application with Director o Pay the $100 license fee, submitted with the application o Pass each exam which is required for the license being sought o Have not committed any act that is grounds for license denial, suspension, or revocation

Producer may reinstate the same license without passing a written exam within 12 months from the due date of the renewal fee; if a producer allows their license to expire?

o Must provide proof that continuing education requirements met, pay a penalty of $25 per month that the license was expired o Renewal fees that would've been paid had it been renewed on time

Purpose of the Compact

o Promote and protect consumers of individual and group annuities, life and long-term care insurance and disability income products o Develop uniform standards for insurance products o Establish a central clearinghouse to receive and provide review of insurance products o Approve product filings and advertisements o Improve coordination of regulatory resources and expertise between states o Perform any other related functions that are consistent with the state regulation of the business of insurance

Director has power and authority to make all reasonable rules and regulations for the following purposes

o Regulate the internal affairs of the Department of Insurance o Prescribe forms and procedures to be followed in proceedings before the Department o Aid in the interpretation of any state insurance law o Withdraw or amend any rule or regulation

the Director may grant an extension of time for CE not to exceed 1 year. May grant an individual waiver if the licensee shows reasonable cause prior to the due date for CE. Waivers may be granted for

o Serious physical injury or illness o Active duty in the armed services for an extended period of time o Residence outside the United States o The licensee is at least 70 years old

False or deceptive advertising specifically includes misrepresenting any of the following

o Terms, benefits, conditions, or advantages of any insurance policy o Any dividends to be received from the policy, or previously paid out o Financial condition of any person or the insurance company o The true purpose of an assignment or loan against a policy