Missouri Law and Rules
Which of the following is a standard provision of the conversion privileges in a Group life policy?
Group life coverage can be converted to an individual policy at regular rates on an attained-age basis
Which of the following is a requirement to be eligible for a group life policy in Missouri?
Group must be formed for a purpose other than obtaining insurance
__________ can be defined as "making an unfair comparison of two insurance policies"
Misrepresentation
T the producer is replacing a client's existing insurance policy with a new one. Prior to policy delivery, which form must the client be provided with?
Notice Regarding Replacement
What must a producer sign when an existing life insurance policy is being reissued with a reduction in cash value?
Notice Regarding Replacement
Jasmine is a salaried employee of an insurance company. Which of the following duties would require her to be licensed as an insurance producer?
Soliciting insurance policies
Which of the following may NOT be issued after the Director of Insurance finds an insurance finds an insurance code of violation committed by a licensee?
Warrant for arrest
An example of unfair discrimination would be
When an insurer charges a higher rate for insurance based on an insured's race, religion , or national origin
A hearing must be held before a producer's license can be suspended or revoked. Prior to hearing , the Director is required to give
Written notice to producer
A foreign insurance company CANNOT conduct business in Missouri without
a certification of authority to transact business in Missouri
Life insurance and annuity replacement can be BEST described as
exchanging an existing policy for a new policy
Life insurance replacement regulation protects the interest of
the policy owner
Group Life policies in Missouri are required to contain a conversation privilege that allows for conversation
to an individual policy for a stated period time
An example of false advertising would be
An insurer exaggerating its dividends in a magazine advertisement
How often must the director examine each domestic insurance company?
Every 5 years
How often must an insurance producer 's license in Missouri be renewed ?
Every Two Years
A group life insurance policy can be converted to an individual whole life policy under which circumstances ?
Employment Termination
What is the purpose of the Missouri Life and Health Insurance Guaranty Association ?
Ensures that claims filed against insolvent insurance companies will be paid
Which of these individuals may NOT be compensated from an insurance company?
A license producer bot appointed by the company
Which of the following is considered to be misrepresentation?
A producer guaranteeing a policy's dividends
As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of?
Coercion
In Missouri, which of the following is considered an Unfair Trade Practice?
Coercion
J is a producer who recently told a claimant that his rights might be impaired if he does not complete a release form within a specified time. What could this producer be found guilty of?
Coercion
Which of the following is a requirement for a producer's license renewal?
Completing the required continuing education
Which of these is NOT a duty of Director?
Create new insurance laws
Insurance issued on a debtor to cover outstanding balances on installment loans is called
Credit life
In a life insurance contract , the policy , application , and riders or endorsements are considered to be the
Entire Contract
Who may assign benefits from a group life insurance policy?
Insured
During an insurance transaction, who does the producer represent?
Insurer
Which licensee faces possible license revocation by the Director of Insurance?
Licensee who commingles monies belonging to policyholders with personal funds
A producer is circulating incorrect information about the benefits of a policy. This producer may be found guilty of
Misrepresentation
Which Unfair Trade Practice involves a producer suggesting that an insurance policy is like a share of stock?
Misrepresentation
Defamation occurs when an agent makes a false statement intended to
malign another insurer
Convincing a prospective insured to buy an insurance policy based on exaggerations is called
misrepresentation
Which Unfair Trade Practice involves a producer telling prospective client that a policy's dividends are guaranteed ?
misrepresentation
P is a producer who is licensed in Missouri but a resident of Nebraska. P is a(n) ________producer.
nonresident
ABC Insurance company failed to to accept a valid proof of loss statement. This is considered to be a(n)
unfair claims practice
Insureds in the same risk classification are being charged different premiums by an insurance company. This insurer is committing the illegal act of
unfair discrimination
The Director of Insurance is authorized
enforce state laws relating to insurance
If an insurer receives a cash payment in excess of ________, it must report this act as stated by the USA Patriot Act
$10,000
An example of life insurance policy replacement would be ?
Cash surrender an existing whole life policy and purchasing a new whole life policy
When an unfair trade practice has been discovered, the Director may issue a
Cease and desist order
A credit life insurance policy covers the life of the
Debtor
A(n) _______ sells, solicits or negotiates insurance on behalf of insurance companies for compensation
Producer
A(n) ________ is an individual who is appointed by an insurance company to transact insurance
Producer
An individual who has a contract with an insurance company to represent it is called a(n)
Producer
Which of the following is a requirement to attain a nonresident producer license?
Producer 's state of residence must have reciprocity with this state
Who signs a " Notice Regarding Replacement" form when an application is taken for a new life insurance policy that replaces an existing one ?
Producer and Applicant
Which of these is a TRUE statement regarding how Missouri law recognize eligible for group coverage?
The association must NOT have been organized for the purpose of obtaining insurance
When making a recommendation to a consumer to purchase an annuity, the producer must make reasonable efforts to obtain suitability information. Suitability information includes
age, annual income , financial experience
Which of the following is considered a producer's fiduciary responsibility ?
collect premiums and remit to the insurance company as soon as reasonably possible
A license may be denied , suspended , or revoked if the licensee
is found guilty of misrepresentation or fraud in obtaining the license
An example of rebating would be
offering a client something of value not stated in the contract in exchange for their business
An example of unfair discrimination would be
offering different terms of coverage for different policy owners having the same risk classification
After a life insurance policy has been in force for a MAXIMUM of ________ year(s), it becomes incontestable
2
A group life insurance policy insured may assign up to ______of the insured's coverage
100%
Missouri requires that an insurance producer must complete _____ hours of continuing education to the subject of law and ethics every reporting period
3
Jay's application for a producer's license has been denied. He may request a hearing within ___ days after receipt of the denial.
30
Within how many days must a licenses notify the Director of a change in address?
30 days
The grace period for group life policies is _______ days.
31
A life policy loan in Missouri cannot charge a fixed rate of interest higher than
8%
What is the MAXIMUM fixed interest rate for life insurance policy loans?
8%
Which of the following is NOT a required provision in a group life policy?
Accidental Death and Dismemberment
At what point may a producer sell insurance for an insurer?
After being properly appointed by the insurer
Which of the following is a requirement to attain an Missouri resident producer license?
At least 18 years old
When must a producer deliver a Notice Regarding Replacement of Life Insurance?
At the time of the appointment
One definition of replacement is "the act of replacing an existing insurance policy with another". Replacement is
Closely regulated and requires full disclosure
Which of the following is a requirement to attain a nonresident producer license ?
Be licensed as an producer in the producers state of domicile
Each life insurance applicant in Missouri is expected to be provided with a(n)
Buyer's Guide and Policy Summary
A(n) ___________ of authority permits an insurance company to transact business in Missouri.
Certification
What does the Missouri life and Health Insurance Guaranty Association provide?
Claims payment of admitted , insolvent insurance companies
Which Unfair Trade Practice involves making a false statements about the financial condition of another insurance company?
Defamation
Which of the following unfair trade practice involves a producer who makes malicious statements about another person's financial condition?
Defamation
A ________ ________ is the signed document that starts the free-look period.
Delivery Receipt
An insurer may not transact insurance UNLESS authorized by the
Director of Insurance
Which of the following is a requirement for obtaining a resident producer license in Missouri?
Pay $100 license fee
Whose interest is being protected by the enactment of "The Replacement of Life Insurance and Annuities" regulation?
Policy Owner
Which of the following is NOT a reason for the Director to revoke a producers license?
Producer is insolvent
Which of the following actions by a producer would NOT result in a license suspension or revocation?
Producer sells a replacement policy that causes an insured lapsed an existing policy
No one may be denied coverage by an insurance company due to
Race
_________ is the act of offering an applicant something of value as an inducement to purchase an insurance policy
Rebating
A producer has influenced an existing policy owner to convert an existing whole life policy to Reduced Paid-Up insurance. The producer then sells the policy owner a new universal life policy. This transition is called
Replacement
Which of these individuals would require continuing education?
Resident producer
Which of the following is NOT an example of "conducting insurance business"?
Selling shares of stocks
In order to terminate a producer's appointment , the insurer MUST
Send notice of the termination to the Director
Which of the following is NOT considered rebating ?
Sharing commission with a producer licensed in the same line of business
All of these statements concerning a licensee's responsibility for premiums received are true EXCEPT
The licensee must hold them in a separate account before transmitting them to the insurance company
Why would the Director of Insurance examine the records of an insurance company?
To determine the solvency of the company
Which of the following types of life insurance policies involves an investment account that is separate from the insurer's general account?
Variable Life
An applicant for a nonresident producer license MUST
be a producer in good standing in their home state
An example of an unfair claims practice would be
failing to effectuate prompt ,fair, and equitable settlements of a claim
The Missouri Life and Health Insurance Guaranty Association is
funded by insurance companies through assessment
Credit Life insurance is
issued in an amount not to exceed the amount of indebtness
The suicide provision for life policies would apply to
subsequent increases in benefits
When making a recommendation to a consumer to purchase an annuity, the producer must make reasonable efforts to obtain
suitability information
Michael the insurance producer is acting in a fiduciary capacity when conducting business with all of these principals EXCEPT
the Director
T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the right to convert
to an individual policy upon employment termination
An example of an unfair claims settlement practice is
turning down a claim without providing the basis of denial
