Missouri Statues, Rules, and Regulations Common to All Lines

What is the minimum required number of continuing education credits in ethics every licensing period? A. 2 hours B. 3 hours C. 5 hours D. 12 hours

3 hours

Who is considered a nonresident agent? A. An agent who is not a U.S. citizen B. An agent whose license has been revoked C. An agent who does not earn commission in the state D. An agent who resides in another state, but is licensed to write insurance in this state

An agent who resides in another state, but is licensed to write insurance in this state

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

Be retrievable within 5 days upon request

How is the Missouri Insurance Guaranty Association funded? A. By NAIC B. By the taxpayers C. By the state Department of Insurance D. By member insurers

By member insurers

An insurer cannot transact business until it obtains a/an A. Certificate of Authority B. Insurer's License C. Certificate of Insurance D. Department of Insurance Affidavit

Certificate of Authority

All of the following are potential penalties for violating the Director's cease and desist order EXCEPT A. Suspension or revocation of license B. Monetary fine C. Imprisonment D. Community service

Community service

An insurer who deliberately makes a malicious statement about another insurance company is guilty of an illegal trade practice called A. Discrimination B. Defamation C. Misrepresentation D. False advertising

Defamation

All else being equal, which of the following will NOT be considered unfair discrimination by an insurer? A. Charging applicants with similar health histories different premium rates B. Cancelling individual coverage based on the insured's martial status C. Discriminating in benefits based on the insured's habits and lifestyle D. Assigning different risk classifications to applicants based on ethnicity

Discriminating in benefits based on the insured's habits and lifestyle

How often must producers licenses be renewed? A. Annually B. Every 2 years C. Every 3 years D. Licenses do not need to be renewed; they are perpetual

Every 2 years

What is the main purpose of requiring licenses for persons who transact insurance? A. To generate income for the Department of Insurance B. To protect the general public C. To be able to collect commissions D. To protect insurance companies from incompetent producers

To protect the general public

When producers change the address of the residence or office, the Insurance Department must be notified within A. 10 days B. 15 days C. 30 days D. 45 days

30 days

Which of the following producers could be exempt from renewing their license? A. A producer who attains age 60 B. A producer whose appointment with an insurer has been terminated C. A producer called to active duty with the U.S. armed forces D. A producer who has not written any insurance business in this state in the past year

A producer called to active duty with the U.S. armed forces

A producer who offers a cash reward to a prospect for buying a policy is guilty of A. Twisting B. Misrepresentation C. Rebating D. Fraud

Rebating

The Director of Insurance is responsible for all of the following actions EXCEPT A. Issuing or suspending insurance licenses B. Enforcing the Insurance Code C. Issuing cease and desist orders D. Setting premium rates

Setting premium rates

If the Director issues a cease and desist order, that means the insurer must A. Stop committing a particular violation B. Surrender if certificate of authority C. Terminate all producer appointments D. Suspend all insurance transactions in this state

Stop committing a particular violation