MO State laws Insurance
The Director may conduct a financial examination of an insurer whenever necessary but no less often than every _____ years. 3 5 7 10
The Director or any authorized examiners may conduct an examination of any company as often as is deemed appropriate, but a fi nancial examination of every insurer licensed in Missouri must be conducted at least once every 5 years.
Within how many days of notification of a claim must an insurer provide the insured assistance in the claim process? A 10 B 20 C 14 D 30
10 Every insurer, upon receiving notification of claim, must within 10 working days provide necessary claim forms, instructions and reasonable assistance so that first-party claimants can comply with the policy conditions and the insurer's requirements.
Within how many days must an insurer notify the Director of the appointment of an agent? A 60 B 45 C 30 D 15
30
Within how many days must an employee report a workplace injury to the employer? 2 10 30 180
30 Employees must report workplace injuries within 30 days or risk not having the injury be covered by Workers' Compensation insurance.
An employer required to provide Workers' Compensation in Missouri has a MINIMUM of how many employees? 5 10 15 20
5 In Missouri, an employer must provide Workers' Compensation coverage if it has 5 or more employees; an exception exists for employers who exist
An insurer can pay commissions to any agent, except: A Agent receiving varied commissions based on loss experience B Agent who has a written agreement with the insured to be paid a certain commission C Licensed producer who negotiates an insurance contract D Agent who assumes less than 5% of the insurance risk
Agent who assumes less than 5% of the insurance risk An insurer may not use a compensation arrangement that transfers any portion of the insurance risk to the producer, but it may vary commissions based on the loss experience of the policies the producer has written.
Which of the following is NOT considered proof of financial responsibility in Missouri? An insurance agent's verbal statement An insurance ID card issued by an insurer A bond filed with the state A certificate of self-insurance
An insurance agent's verbal statement In Missouri, acceptable proof of financial responsibility is an insurance certificate or ID card issued by an admitted insurer, a bond or certificate of deposit with the state, and a certificate of self-insurance.
Before cancelling a property insurance policy for non-payment of premium, an insurer must give the insured how many days' written notice? 10 30 45 60
An insurer terminating a property insurance policy for non-payment of premium, or because the insured committed arson, must give the insured 10 days' notice.
How often does a producer's license renew? A Biennially (once every 2 years) B Quinquennially (once every 5 years) C Triennially (once every 3 years) D Annually (once a year)
Biennially (once every 2 years)
A producer is guilty of what unfair trade practice when making a derogatory statement about a competing insurer's financial condition? Intimidation Defamation Coercion Twisting
Defamation is making a false or maliciously critical statement regarding the financial condition of any person, with the intent to injure such person.
A producer's license will not be revoked for which of the following? A Convicted of a crime of moral turpitude B Knowledge of misappropriation of money C Knowingly violate a state insurance law D Licenses suspended in another state
Knowledge of misappropriation of money In order to have a license suspended, the producer must be personally guilty of misappropriating money belonging to an insured or insurer.
A producer's license may be revoked for all of the following reasons, except: Knowingly violating a state insurance law Being convicted of a crime involving moral turpitude Learning another producer stole money Having an insurance license suspended in another state
Learning another producer stole money In order to have a license suspended, the producer must be personally guilty of misappropriating money belonging to an insured or insurer.
When must a producer notify the Director of any change in legal address? Never Within 15 days Within 30 days Within 90 days
Within 30 days
Which of the following employees is EXEMPT from the Missouri Workers' Compensation Law, unless an employer elects to insure him/her? A landscaper A mechanic A car salesman A butler
butler Domestic employees who work in private households, such as chauffeurs and butlers, are exempt from WC law.
What are the maximum limits of coverage provided under a policy issued by the Missouri Medical Malpractice Joint Underwriting Association? $5 million per occurrence $3 million per occurrence $1 million per claimant and $3 million for all claimants in a policy year $1 million per claimant and $1 million for all claimants in a policy year
$1 million per claimant and $3 million for all claimants in a policy year The maximum policy limits offered by the JUA are $1 million per claimant in a policy year and an aggregate of $3 million for all claimants in a policy year.
Within how many days must an insurer notify a claimant it is either accepting or denying the claim? 10 15 21 30
15 Within 15 working days of receiving all necessary documentation that establishes the nature and extent of a claim, insurers must notify the claimant whether the claim accepted or denied.
How many hours of approved continuing education must Missouri insurance producers complete during a license renewal period? 10 12 14 16
16
What are the minimum limits of financial responsibility required by the state of Missouri? A 25/50/10 B 50/100/25 C 10/20/40 D 5/10/10
25/50/10
In order to self-insure professional liability risks, at least how many medical professionals must apply to the Director? A 10 B 5 C 3 D 1
3 At least three duly licensed medical professionals residing in Missouri may associate in order to apply to the Director for a license to self-insure its professional liability risks by designating a registered agent, provide a plan of operation, and advise if the bylaws will be incorporated into the association's policies.
If the Department of Insurance denies a producer license application, the applicant may request a hearing within how many days of the denial? 15 30 45 60
30
Within how many days must an insurer notify the Director it has appointed a producer? 15 30 45 60
30
If disciplinary action against a producer resulted in monetary relief of $200 or less, the producer's record will be expunged after _____ years. 3 5 7 10
5, All records of disciplinary actions against an insurance producer that result in forfeiture or other monetary relief of $200 or less, and place no other legal duty upon the producer, will be expunged after 5 years.
The coverage period for a wedding present floater may not exceed how many days after the wedding day? A 30 B 60 C 120 D 90
90
Which of the following binders WAS issued legally? A 3-day binder for which no premium was charged A binder that was replaced by a policy with a different effective date A binder that was not replaced by a policy; the binder fee of $50 was waived A binder that was not replaced by a policy; the binder fee of $10 was waived
A binder that was not replaced by a policy; the binder fee of $10 was waived When a binder is issued and is not replaced by a policy, the insurer may waive the binder fee if it is $20 or less.
The Missouri Automobile Insurance Plan provides auto coverage to which of the following individuals? A A person under the age of 18 who owns a car B A person who is not able to obtain auto insurance through ordinary markets C A person who has been cancelled three times for nonpayment of premium D A person who needs only the basic state limits
A person who is not able to obtain auto insurance through ordinary markets The Missouri Automobile Insurance Plan provides basic coverage for individuals who have been unable to obtain auto insurance through normal markets, and all insurers selling auto insurance in Missouri must participate.
Which of the following is true about the Missouri insurance cease or desist order? A Any collected fine provides relief to mistreated consumers B It is the only recourse to stop an insurance unfair trade practice C Violation may result in a minimum fine of $100,000 D An alternative to a cease or desist order is federal court action
Any collected fine provides relief to mistreated consumers Money received from the Director's enforcement proceeding and imposition of penalties is placed in a 'Consumer Restitution Fund,' used to provide relief to aggrieved consumers.
Which of the following is NOT a penalty for refusing to testify in a Department hearing? Being held in contempt Being required to appear before the Director Being assessed a civil penalty up to $5,000 per violation Being ordered to testify in circuit court
Being assessed a civil penalty up to $5,000 per violation The circuit court may impose a civil penalty up to $50,000 for each violation.
Which of the following is not true about binders? A A binder charge of $20 or less may be made at the insurer's option B Binders that replace policies must provide coverage from the date of coverage under the binder C Binders provide a rate advantage D A binder charge must be made if it is not replaced by an insurance policy
Binders provide a rate advantage The use of binders written to cover property or casualty risks may not result in a rate advantage to any party.
Anyone who owns and operates an auto in Missouri must be able to show proof of financial responsibility by providing which of the following? A Copy of the insurance policy B Bond C Insurance agent's name and phone number D Insurance bill
Bond Proof of financial responsibility includes a certificate of insurance, such as an insurance ID card provided by the insurer, a bond or certificate of deposit of money or securities, or a certificate of self-insurance.
The Association covers existing claims prior to the determination of insolvency or that are submitted within how many days after the determination of insolvency? 10 30 60 90
Covered claims must be submitted no later than 30 days after the determination of an insurer's insolvency.
Which of the following is NOT a duty of the Director of Insurance? A Conduct hearings B Create Missouri insurance laws C Prescribe forms and procedures D Regulate the Department of Insurance affairs
Create Missouri insurance laws
Under Missouri law, what standard of care and conduct is required of producers when receiving money from, or on behalf of, insurers or policyholders? A Legal capacity B Care of a trustee C Fiduciary responsibility D Financial duty
Fiduciary responsibility Producers have fiduciary responsibilities to both their insurers and clients under Missouri insurance code.
Choose the false statement about the FAIR Plan policy. A An inspection of the property will be made B If the insured has 2 losses within a 12-month period, the policy will be non-renewed C The policy term is 12 months and renews automatically D The policy provides coverage up to $200,000 for a dwelling
If the insured has 2 losses within a 12-month period, the policy will be non-renewed If there are 2 losses within a 12-month period, a higher deductible will be imposed, and if there are no losses for 5 consecutive years, the deductible may be reduced.
Which of the following is NOT true about the Missouri FAIR Plan? All admitted property insurers in Missouri must participate in the FAIR plan Property to be insured must meet reasonable underwriting standards Perils covered under the FAIR Plan are normally limited to fire and extended coverage Licensed producers may bind coverage and accept premium payments
Licensed producers may bind coverage and accept premium payments Producers are not contracted by the FAIR Plan and do not have the authority to bind coverage of accept premium payments on behalf of the FAIR Plan.
Making a false statement about the benefits or the nature of an insurance policy is what unfair trade practice? Misrepresentation Defamation Twisting Unfair discrimination
Making any false statement about the benefits or true nature of an insurance policy is misrepresentation.
The Association's funds are divided into 4 separate accounts. Which of the following is NOT one of those accounts? A Automobile insurance account B Homeowner insurance account C Workers' Compensation insurance account D Missouri mutual and extended Missouri mutual insurance company account
No homeowners insurance account exists.
The Association's funds are divided into 4 separate accounts. Which of the following is NOT one of those accounts? Homeowner insurance account Workers' Compensation insurance account Automobile insurance account Missouri mutual and extended Missouri mutual insurance company account
No homeowners insurance account exists.
The FAIR Plan provides property insurance to which of the following persons? One who owns a vacant home One who is unable to obtain property insurance through the standard market One who owns property with unrepaired fire damage One who owns a business building in very poor physical condition
One who is unable to obtain property insurance through the standard market The FAIR Plan provides insurance for applicants who are unable to purchase basic property insurance through the standard market; property that is vacant, in poor condition, or with unrepaired loss damage are specifically ineligible for coverage.
Which of the following is NOT a qualification for obtaining an insurance producer license? Being at least 18 years old Paying a $200 license fee Passing a licensing exam Not committing a prohibited act
Paying a $200 license fee The producer license fee is $100.
Under Missouri law, what standard of care and conduct is required of producers when receiving money from, or on behalf of, insurers or policyholders? Legal capacity Care of a trustee Fiduciary responsibility Financial duty
Producers have fiduciary responsibilities to both their insurers and clients under Missouri insurance code
An insurer is permitted by law to pay commissions to each of the following individuals, except: A Licensed producer who negotiates an insurance contract B Licensed producer with a compensation agreement based on loss experience C Property and casualty producer for the sale of life insurance D P&C producer for the sale of surplus lines insurance
Property and casualty producer for the sale of life insurance Commission may only be paid to a producer who is duly licensed, at the time of sale, for the line of insurance sold.
Which of the following statements about producer licenses is TRUE? Resident producer licenses renew every 2 years Resident and nonresident producer licenses renew every 3 years Surplus lines licenses renew every year Nonresident surplus lines licenses are not issued in Missouri
Resident producer licenses renew every 2 years in Missouri.
Which of the following employees is EXEMPT from the Missouri Workers' Compensation Law unless his employer elects to insure him? A Tim, a car salesman B Ted, a butler C Mike, a landscaper D Don, a mechanic
Ted, a butler
Which cancellation reason regarding the commercial line of business requires 90 days' notice? A Violation of policy terms B Insurer's insolvency C Loss of reinsurance D Termination of a line of business
Termination of a line of business An insurer may terminate an entire line or class of commercial casualty insurance by giving the Director 90 days' notice before mailing notices to the insured(s). The other choices require only 60 days' notice to the insured.
An auto insurer may non-renew an auto insurance policy for all of the following reasons, except: A Non-payment of premium B The named insured's chauffeur's license was suspended C The named insured driver's license was revoked D The driver's license of the named insured's resident son was revoked
The driver's license of the named insured's resident son was revoked An insurer cannot non-renew because of the license revocation of a household member; however, it may issue an operator exclusion endorsement.
Choose the statement about automobile subrogation that is false. A Expenses cannot be deducted from a recovery B An outside attorney may collect expenses from the recovery C The insured's deductible is not considered in the subrogation demands D Recovery is shared proportionately with the first-party claimant
The insured's deductible is not considered in the subrogation demands Upon the claimant's request, insurers will include the first-party claimant's deductible, if any, in subrogation demands.
All of the following are true about personal insurance transactions, except: The producer must inform the applicant within 30 days if no insurer can be found to issue coverage The producer may use any professional designation to instill confidence about the sale of insurance to seniors The producer must handle every application and request for amendment as soon as possible The producer must inform the insured if the insurer needs information prior to renewal/policy change
The producer may use any professional designation to instill confidence about the sale of insurance to seniors It is a dishonest or unethical practice for a producer to use a professional designation that implies that the insurance producer has special certifi cation in advising a client in connection with the solicitation, sale, or negotiation of an insurance product.
In Missouri, what is the weekly rate of compensation under WC law? 100% of the average weekly wage 66 2/3% of the average weekly wage 33 2/3% of the actual weekly wage 25% of the actual weekly wage
The weekly rate of compensation under Missouri WC law is 66 2/3% of the employee's average weekly wage.``
