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 A. An agent who is not a U.S. citizen B. An agent whose license has been revoked C. An agent who does not earn commission in the state D. An agent who resides in another state, but is licensed to write insurance in this state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