Law Supplement Flashcards
Who appoints the DOI (director of insurance) to serve?
The governor, with the advice and consent of the Senate.
Who does the director concurrently hold office with until a successor is appointed?
The governor
Who has the authority to remove the director and appoint a replacement?
The governor.
What are the directors duties?
- Keep all files and books required by law
- Issue certificates of authority to transact insurance business in Missouri
- Furnish certified copies of papers, reports or documents on file to anyone who requests them
- Establish a consumer affairs division with the the department of insurance
- Perform required duties in the best interest of the general public, policyholders p, insurance companies and offices
- Refuse, revoke or suspend licenses or certificates of authority in accordance with state law
- Withdraw or amend any rule or regulation
The director or his appointed agent has the authority to do what?
- Summon and compel attendance of witnesses
- Administer oaths
- Require the production of documents
Who pays examination fees and expenses?
The company being examined.
Who should the director refer any discovered violations of law to?
The state attorney general for criminal prosecution.
Self incriminating evidence given under compulsion by an insurance producer may not be used to prosecute in a criminal case except for what reason?
Perjury.
How often must a director conduct a financial examination of every insurer licensed in Missouri?
At least once every 5 years (or more if deemed necessary).
If anyone refuses to testify or produce records as required by the director what rights does the director hold?
The right to revoke, suspend or refuse to license that person. The director also has the right to:
- Hold the person in contempt
- Order the person to appear before the director
- Order the person to testify about the matter under investigation or in question
- Order the production of records
- Grant injunctive relief
- Impose a civil penalty of up to $50,000 for each violation
Records of disciplinary action against an insurance producer that involve a monetary sum of $200 or less and place no other legal duty upon the producer are removed or erased after how many years from the date the director executes the disciplinary order?
5 years.
Domestic insurer
An insurer incorporated or formed in Missouri
Foreign insurer
Organized under the authority of a state other than Missouri
Alien insurer
Organized under the laws of any country other than the U.S.
A producer who is unable to comply with license renewal procedures due to military service may request what?
A waiver.
What are the license contents?
- Name
- Address
- Date of issuance
- Id # if the insurance producer
- Lines of authority
- Expiration date
The insurance producer has how many days to inform the director of a change of address?
Within 30 days of the change
Failure to notify the director of a change in address results in what?
If it causes the director inability to serve the insurance producer with a complaint, the director may IMMEDIATELY revoke the producers license until service may be obtained.
Any bank or trust company in the sale or issuance of insurance products or services are subject to what?
To the insurance laws and rules adopted by the department of insurance.
The minimum limit for self insurance for motor vehicle liability is?
$115,000.00
What is NOT an example of misrepresentation?
Inflating the value of property to be insured under a policy.
When a policy is cancelled for nonpayment of premium, how many days before cancellation is the INSURER required to give notice?
10 days notice.
An insurer is prohibited from refusing to insure a policyholder based solely on what?
Claims activity by the insured
When an insurance company becomes impaired, the organization that responds to policyholder claims is who?
Missouri property and casualty insurance Guaranty association.
The director may issue a temporary insurance producer license for up to how many days?
90 days
When an insurer receives notification of a claim from an insured, it must acknowledge the claim with how many days?
10 days
When an insurance company wishes to NONRENEW a policy, how many days before renewal must it provide in advance notice of NONRENEWAL to the insured?
30 days
When a company terminates a producer, it must notify the director within how many days?
30 days
When provided under an automobile policy, coverage for loss of use of a motor vehicle that has been stolen must what?
Provide an aggregate (or whole) limit of at least $300
An individual who commits a fraudulent insurance act can be?
Convicted of a felony
An insurance producer must send a written explanation of his/ her privacy protection measures to all clients how often?
Every year
If a producer changes his/her place of residence, they are required to notify the director in writing within how many days?
30 days
A person who accepts a rebate may what?
Be fined up to $500
The all industry placement facility may cancel a property insurance policy without the approval of the governing committee EXCEPT…..?
Conviction of a misdemeanor
The Missouri all industry placement facility must advise an applicant of acceptance or denial of coverage within how many days?
5 days
To renew an agent or broker (uni-line license), an individual must complete how many hours of continuing education?
10 hours every two years
When insurer wishes to cancel a policy that has been in effect for more than 60 days for a reason other than non payment of premium, how many days advance notice of cancellation must it provide?
30 days
The guaranty association will pay on most covered claims up to a limit of
$300,000
In Missouri, the burial allowance benefit under workers compensation has a limit of
$5,000
Under Missouri law, a private passenger auto policy must contain each of the following provisions EXCEPT:
Coverage while the vehicle is operated in the U.S., it’s territories, Canada and Mexico
* Mexico is an exception in this case*
Commercial insurance may be cancelled by the insurer by providing how many days advance notice?
60 Days. Same as non renewal of commercial policy
The commissioner may issue a temporary license an an insurance agent or broker for a period not to exceed:
90 days
In order to help carry out the duties of office, the head of the insurance depart may appoint a
Deputy
The limit of any property insurance is
The value of the property
If a statute of limitations may limit the claimants recovery, the insurer must give such notice at least how many days before the limit expires?
30 days for first party claimants
