MO L&H - Chapter 10: Missouri Statutes, Rules and Regulations Common to All Lines

A producer completed an insurance transaction in 2007. When can the producer dispose of the records for this transaction? 2008 2009 2010 2012

2010

The Director may waive the continuing education reporting requirements for any of the following, EXCEPT A licensee who resides outside the United States. A licensee on active duty in the U.S. Armed forces. A licensee age 65 or older. A licensee with serious physical injury or illness.

A licensee age 65 or older.

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? $1,000 $250,000 $100,000 $25,000

$1,000

All of the following would be considered rebating EXCEPT An agent misrepresents policy benefits to convince a policyowner to replace policies. An agent offers the use of his lake house to a client as an inducement to buy an insurance policy from him. An agent offers to share his commission with a policyholder. An agent offers tickets to a baseball game as an inducement to buy insurance.

An agent misrepresents policy benefits to convince a policyowner to replace policies.

An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an Local insurer. Certified insurer. Self-insurer. Authorized insurer.

Authorized insurer.

To legally transact insurance in this state, an insurer must obtain which of the following? Certificate of Insurance Certificate of Authority Power of Attorney Business entity license

Certificate of Authority

Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance? Defamation Undercutting Twisting Slandering

Defamation

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 CE requirement may be extended for up to 1 year. Excess CE credits may not be applied toward the next requirement period. Each licensee is required a minimum of 16 hours every two years. Required CE hours must be divided between the producer's lines of authority.

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

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

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

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? Receive approval from the state legislature Nothing, they automatically qualify to transact insurance in the state. Obtain approval from the National Association of Insurance Companies Receive a Certificate of Authority from the Director

Receive a Certificate of Authority from the Director

If a company has transacted insurance in this state without a Certificate of Authority, which of the following is true of its obligations for the policies sold? The company cannot be sued in this state. The company is only liable for policies sold within the scope of the Certificate of Authority. The company can still be liable for its policies in any court of this state. The company's financial obligations will be transferred to the Guaranty Association.

The company can still be liable for its policies in any court of this state.

Which of the following persons is required to hold a producer license? A person who administers employee benefits A person who negotiates insurance contracts A person who creates insurance advertisements A person who takes messages related to claims.

A person who negotiates insurance contracts

Which of the following would be considered an illegal inducement to purchase insurance? Mailing an agency brochure to a prospective client Listing the insurance companies the agency represents in a letter Inviting prospective clients to the grand opening of the producer's new office Confirming future dividends in a life insurance proposal

Confirming future dividends in a life insurance proposal

All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT An offer of employment. Stocks, securities, or bonds. An offer to share in commissions generated by the sale. Dividends from a mutual insurer.

Dividends from a mutual insurer.

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

Obtains from the Director a Certificate of Authority.