P&C - Missouri State Laws
How long do you have to notify the director when legal name or address has changed?
30 days (failure to notify could cause a fine of 10$ per month)
How often does a producer license renew?
every 2 years (biennially)
Upon acceptance of the FAIR policy, it will be issued ___ business days at _:__ o'clock.
12:00 PM (noon)
How many days before any proposed rule or regulation is adopted?
15 days.
How many hours of continuing education during each 2 year renewable period is needed?
16 hours
How long are insurance policy records kept after a policy is terminated?
2 years
How long are claims files kept after a claim is closed?
3 years
Penalties and forfeitures ordered by director- Level 2 violations:
$1,000 per violation, up to $50,000 per year
Penalties and forfeitures ordered by director- Level 4 violations:
$10,000 per violation, up to $250,000 per year
Penalties and forfeitures ordered by director- Level 3 violations:
$5,000 per violation, up to $100,000 per year
Penalties and forfeitures ordered by director- Level 5 violations:
$50,000 per violation, up to $250,000 per year
What are the maximum amounts of coverage available for the FAIR plan?
- $200,000 on a habitation dwelling policy - $1 million on a commercial policy
If a risk is declined but the facility is willing to issue it after specific conditions were corrected, the Facility will promptly advise both applicant and Director in writing: (2)
- What improvements need to be done - That the facility will conduct a re-inspection to confirm completion of changes.
How often do surplus lines licenses renew?
biennially (2 years)
If a producer fails to notify the Director of a change in address within ____ days of the change, and such failure results in the inability for a complaint to be served to the producer, the Director may revoke the producers license immediately.
30 days
When canceling or non renewing, the FAIR plan must send written notice to the insured at least ___ days before the date of cancellation
30 days (and if the insured wants to appeal, they have to send it in writing 30 days from the plans decision)
What are the qualifications to become a licensed producer?
-At least 18 years old -Not have committed any act that is grounds for license denial, suspension, or revocation. -Pay the required $100 license fee -Pass the examinations for the lines of authority for which the person has applied.
The FAIR plan may only cancel policies for what reasons? (4)
-Evidence that the insured has committed arson -Non-payment -Fraud or material misrepresentation -Based on evidence, changes in physical condition renter the property uninsurable.
What must happen in order to obtain a surplus lines license?(4)
-Have a P&C License -Pay an initial fee of $100 -Submit the required license application -Pass an exam (those licensed before July 1987 are exempt)
If an insurer commits any of unfair/deceptive practices, it will be deemed unfair trade practice IF: (2)
-It is committed in conscious disregard of Missouri's Unfair Trade Practice Act. -It has been committed with such frequency it indicates a regular business practice to engage in that type of conduct.
Under what grounds will the Director extend time to get continuing ed hours in?
-Serious physical injury/illness -Active duty in the armed services for an extended period. -Residence outside the United States. -The licensee is 70 years old or older.
Any resident who is not a Missouri resident may be issued a nonresident producer license in MO for the same lines of authority that appear on the license of their home state under the following conditions: (3)
-The home state must award nonresident producer licenses to MO residents on the same basis. -The person is in good standing in his/her home state. -The Director may verify the licensing status of an applicant requesting a nonresident producer license through the NAIC producer registry.
If the producer provides substantial grounds, how long can the Director extend time to get continuing education hours completed?
1 calendar year
How many days must a hearing be held after a notice has been served?
10 days
If the director chooses to examine someone, how long does the person have to provide any requested documents?
10 days.
How much does the renewal fee cost?
100$
If the Department denies license application, the applicant may request a hearing within _____ days. If the department takes no action within ___ days, the application will be automatically approved.
30 days, 25 working days
At least __ hours of instruction must be devoted to the topics of ________ ,___________ , and ____________.
3hours ethics, Missouri law, and duties/responsibilities.
How long must a final examination report must be filed after an examination is completed?
60 days.
When is re-examination not required for reinstating license?
All required renewal fees are paid, A $25 penalty is paid for each month it was expired, The producer submits proof of compliance with CE requirements.
Making any false or maliciously critical statement regarding the financial condition of another insurer with intent to injure that insurer is known as:
Defamation (libel or slander)
All paperwork disclosed during an examination must be treated as ______________ and are not subject to ________________?
confidential, subpoena
Who appoints the Director of Insurance?
Governor - with the consent of Senate.
If a person is moving to Missouri and is wanting to get licensed, how long do they have to get that done?
In order to avoid taking the exam, they have to get it done in 90 days.
If the director finds an entity has engaged in an unfair method of competition or deceptive practices, what actions may the director take (4)?
Issue a cease and desist order, Issue a curative order, Order a civil penalty/forfeiture, Award a reasonable costs of the investigation.
What does the director need to be notified of when changed?
Legal name or address
What is called when a producer makes false or fraudulent statements on an insurance application for the purpose of securing a fee, commission, money, or other benefit from any insurance entity?
Misrepresentation in Insurance Applications
Penalties and forfeitures ordered by director- Level 1 violations:
No penalty or forfeitures
True or False - The director may examine the affairs of any person engaged in the insurance business.
True
True or false Insurers are prohibited from paying any commission for producer services to any person or business entity not licensed as an insurance producer.
True
What is a summary order?
a civil action that allows disposition of a matter without legal proceedings because the facts are not in dispute.
Violation of a cease and desist order by the director is punishable by..........
a fine up to $100,000 imprisonment for up to 1o years. or BOTH
Who do consumers/businesses go to when wanting to apply for FAIR plan?
any licensed property and casualty producer. However, they can not accept payment to issue the policy.
How often must the director conduct a financial examination of licensed Missouri insurers?
at least once every 5 years
Each insurance office should have at least how many licensed producers?
at least one
If the party affected by the summary order does not request a hearing and the director does not request a hearing within 30 days, what comes of the summary order?
it becomes the final order.
FAIR policies are issued for terms of one year and do NOT include coverage for:
liability or the perils of theft, earthquake, flood, and sewer back up.
A surplus lines licensee is licensed to place insurance with ______________ authorized to transact insurance in the state in which the producer or broker is licensed.
non admitted insurers
How often is a Certificate of Authority renewed?
on an annual basis. However, they remain in effect until renewed or refused by Director. All certificates expire on the last day of June in each year.
What does the Missouri Property and Casualty Insurance Guaranty Association do?
provides limited protection to Missouri resident policyholders and claimants in the event certain insurers become insolvent.
What happens with excess hours accumulated during any 2 year period?
they may be carried over to the license renewal period immediately following the license period during which the course was held.
What is the director's primary responsibility?
to protect the public by enforcing the laws with specified and applied powers.
What is the purpose of the Missouri FAIR plan?
to serve as a last resort to obtain property insurance.
How long do you have to reinstate?
within 12 months of the date the renewal fee was due.
If a producer's license expires, the producer may apply for reinstatement. How long does the producer have to reinstate in order to avoid taking a new exam?
within 12 months of the date the renewal fee was due.