Missouri Statutes, Rules, and Regulations Common to All Lines

Which type of insurers will be held liable for their actions in court?

All companies: authorized and unauthorized

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

A licensee age 65 or older

All of the following actions could be grounds for the Director to suspend or revoke an insurance license EXCEPT a. A producer uses poor judgment in binding a risk b. A producer is convicted of a felony c. A producer has their license suspended or revoked in another state d. A producer demonstrates a lack of trustworthiness or competence

A producer uses poor judgment in binding a risk

Which of the following would be required to be licensed as an insurance producer?

A salaried employee who advertises and solicits insurance

It would be considered unfair discrimination to ask an insurance applicant about which of the following and then use that information as a rating factor to determine insurability?

Sexual orientation

Which of the following describes the duties of an insurance producer?

Soliciting, negotiating, or delivering insurance policies

Which of the following is an example of a producer being involved in an unfair trade practice of rebating?

Telling a client that his first premium will be waived if he purchases the insurance policy today

16 hours

continuation of education required every 2 years

3 hours

continuation of education required in ethics, state law and producer duties

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 a Certificate of Authority from the Director

Paul is a producer in Kansas and wants to become a producer in Missouri. The Department will waive certain examination requirements, provided that Kansas would waive these same requirements if a Missouri producer sought licensure in Kansas. What term is used to describe this phenomenon?

Reciprocity

To legally transact insurance in this state, an insurer must obtain which of the following?

Certificate of Authority

In Missouri, it is illegal o receive a commission from the sale of insurance UNLESS

The payee holds a valid insurance producer license

Within how many days of a final disposition must a producer provide all legal documentation to the Director?

30 days

How is the Director selected for the office?

Appointed by the Governor

The Director, or his designated examiner, may examine the conduct of any insurance company operating in Missouri. The Director must conduct a financial examination of every insurer licenses in Missouri at least

every 5 years

$100

license application fee & biennial license renewal fee

1 year

maximum extension of continuation of education compliance period

12 months

to reinstate expired license without taking examination

How often are insurance producers in this state required to fulfill continuing education hours?

Every 2 years

$1000

Maximum fine per violation for unfair trade practices

2 years

Producer licenses in effect

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

What is the maximum amount a person guilty of an unfair method of competition or an unfair or deceptive act or a prohibited practice may be fined in any 12 month period?

$100,000

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 will this producer need to complete in order to renew her license the next term?

12

Which of the following is the closest term to an authorized insurer?

Admitted

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

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

Authorized insurer

In insurance, producers are permitted to share or split commissions if

Both are properly licensed for the line of insurance

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

Which of the following authorities is required to conduct a financial examination of the state's insurers?

Director

Which of the following authorities may issue a Cease and Desist Order if an insurer is violating the Insurance Code?

Director

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

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

A producer has submitted a new application to his insurer; however, 30 days later there was still no coverage available for the applicant. What must the producer do?

Inform the applicant in writing

The Missouri Life and Health Insurance Guaranty Association was created to protect all of the following EXCEPT a. Insurers b. Policy owners c. Beneficiaries d. Insureds

Insurers

Whenever it appears that a producer or an insurer is violating an insurance law of Missouri, the Director will do which of the following?

Issue a cease and desist order

In order to conduct an examination of an admitted insurance company in Missouri, the Director may

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

In which of the following situations is it legal to limit coverage based on marital status?

It is never legal to limit coverage based on marital status

Which of the following is NOT true regarding a Certificate of Authority? a. It is issued by the state department of insurance b. It is issued group insurance participants c. It may be necessary for transacting business in a specific state d. It is equivalent to an insurance license

It issued to group insurance participants

The Director can revoke an insurance producer license for any of the following causes, EXCEPT a. Licensee fails to comply with an administrative or court order imposing a child support obligation b. Licensee providing materially incorrect or untrue information in the license application c. Licensee is charged with bank robbery d. Violation of any insurance law in another state

Licensee is charged with bank robbery (if convicted, it is grounds for revocation)

3 years

Maintain complete records for each individual insurance policy

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

Making comparisons between different policies

No insurance company may transact insurance business in Missouri unless it first

Obtains from the Director a Certificate of Authority

Which of the following may NOT be included in an insurance company's advertisement? a. Policies issued by the company are protected by the state Guaranty Association b. Some of the company policies may have limitation and exclusions c. Policies may include conditions under which the insurer may require evidence of insurability d. Policies may include illustrations of nonguaranteed benefits

Policies issued by the company are protected by the state Guaranty Association

The chief officer of the Department of Insurance is the Director. All of the following statements concerning the Director are true EXCEPT a. The Director must be a citizen of the state of Missouri b. The Director is appointed by the Governor c. The Director may serve as an officer or director for an unauthorized insurer d. The Director must be experiences in matters of insurance

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

Who is responsible for covering the expenses associated with the examination of domestic insurers?

The examined insurer

In Missouri, it is illegal to receive a commission from the sale of insurance UNLESS a. The payor holds a valid insurance producer license b. The insured gives written consent allowing the commission to be split c. The payor and payee both hold a valid insurance producer licenses d. The payee holds a valid insurance producer license

The payee holds a valid insurance producer license

Missouri law requires that the records of insurance transactions kept by producers must be orderly. What does that mean?

The records must be retrievable within 5 days upon request

30 days

To reports change of address or legal name, report and administrative action against producer to Director, and to remit premiums collected on the policies

Which of the following is NOT among the actions that the Director could take after determining that an insurer has engaged in an unfair trade practice? a. Seek civil action b. Revoke the insurer's license c. Suspend the insurer's certificate of authority d. Void any applicable policies

Void any applicable policies

What is a requirement for notifying the Director of any change of address?

Within 30 days, in writing

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be

authorized

How many days does a producer have to report to the Director any administrative action taken against the producer?

30 days

Every producer licensed in Missouri must notify the Director of a change in his/her residence address within

30 days and the notice must be in writing

18

Age to apply for producer license

Circulating deceptive sales material to the public is what type of Unfair Trade Practice?

False Advertising

If an individual producer's license expires and the producer doesn't want to pass a written exam, the license must be reinstated within what time period from the renewal date?

12 months

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

2010

$100,000

Maximum fine per year for unfair trade practices & maximum fine for violation of cease and desist order

How many hours of continuing education must be completed in ethics and Missouri law each licensing period?

3

Albert Jones, CPCU, has prepared an insurance course and obtained approval for the course for 6 hours of continuing education credits. Al presented this course to various agent groups during the continuing education term on four different occasions. How many continuing education credit hours may Al claim for his own renewal?

6

5 years

Director conducts financial examination of domestic insurers

Which of the following will NOT be considered unfair discrimination by insurers?

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

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

Dividends from a mutual transfer

The Director may suspend, revoke, refuse to renew an insurance producer license for any one or more of the following causes, EXCEPT a. Failing to notify the Director of a change of address b. Violating any insurance law or regulation c. Improperly withholding or converting money received in the course of doing insurance business d. Failing to comply with any administrative or court order directing payment of state or federal income tax

Failing to notify the Director of a change of address

A person who receives or collects money to be forwarded to the principal is said to have what kind of responsibility?

Fiduciary

Which of the following is NOT among the lines of authority for which an insurance producer may qualify in the state of Missouri? a. Surplus lines b. variable life and annuities c. Personal lines d. Group health insurance

Group health insurance

All of the following are among the Director's broad powers EXCEPT a. Have interest in insurance companies regulated by the Department b. Regulate the internal affairs of the Department c. Withdraw or amend any rule or regulation d. Issue certificates of authority or suspend licenses

Have interest in insurance companies regulated by the Department

The purpose of the Missouri Life and Health Guaranty Association is to

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

On its advertisement, a company claims that is has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of

Misrepresentation

The Director has just finished examining a domestic insurer. When is the Director next required to examine that insurer?

No later than 5 years from now