Missouri Specific State Laws

Question 1

Director appointed by the ________

Answer 1

Governor

Question 2

The Director Regulate the internal affairs of the Department, financial institutions, and professional
registration:

Hearings must be held at least ____ days before any proposed rule or regulation is adopted.

Answer 2

15

Question 3

The Director or any authorized examiners may conduct an examination as often as appropriate but must conduct a financial examination of every licensed Missouri insurer at least once every ____ years.

Answer 3

5

Question 3

With respect to foreign or alien insurers, the Director may accept a financial examination report
prepared by its parent insurance department or other appropriate agency in lieu of conducting a
financial examination. However, such report may only be accepted if the person issuing the report is
accredited by the ________.

Answer 3

NAIC

Question 3

Any person being examined must make all documents and records available to examiners. If a requested document is not available, it must be provided within _____ calendar days.

Answer 3

10

Question 3

A final examination report must be filed no later than ____ days after an examination is completed. The
examined insurer will have ____ days to file any submissions or rebuttals about any matter discussed in the
report. Within ____ days after the rebuttal period, the Director must either accept the report or initiate any legal action deemed necessary.

Answer 3

60
30
30

Question 3

All insurance policy records must be maintained during the term of the policy and for at least ____ years after the policy terminates. All claim files must be maintained during the calendar year in which they are closed and for at least ____ years afterward.

Answer 3

2
3

Question 4

The Director must provide notice of intent to initiate administrative action, and serve that notice
personally or by certified mail, to any person subject to Department proceedings. The notice must direct
the person named in the notice to show good cause why a cease and desist order or other relief should
not be issued. A hearing must be held no fewer than ____ days after the notice is served.

Answer 4

10

Question 4

In some situations, the Director may issue a summary order, which is civil action that allows disposition of a matter without legal proceedings because the facts are not in dispute. If the persons affected by the summary order do not request a hearing, and the Director does not order a hearing within ___ days, the summary order becomes the final order.

Answer 4

30

Question 4

In addition to any other penalty provided by law, willful violation of a cease-and-desist order issued by
the Director is punishable by a fine up to __________, imprisonment for up to ____ years, or both.

Answer 4

$100,000
10

Question 5

Nonresident producers:
Must notify the Director within ____ days of any change in legal residence

Answer 5

30

Question 5

A ___________ ____________ producer is licensed to place insurance with non-admitted insurers authorized to
transact insurance in the state in which the producer or broker is licensed.

Answer 5

Surplus Lines

Question 5

Surplus lines licenses renew _______ on the producer’s _________ ________ and remain in effect until
refused, revoked, or suspended by the Director. Failure to pay the biennial license renewal fee of
_____ when due results in termination of the license.

Answer 5

Biennially
Birth Date
$100

Question 5

A business entity that acts as an insurance producer must obtain an insurance producer license.
Business entities must also comply with the following requirements:

Disclose any change of information or termination of a producer within ____ business days.

Answer 5

20

Question 6

If an applicant was previously licensed in another state for the same lines of authority for which a
Missouri producer license is being sought, the examination requirement is waived, but only if received within ______ days of establishing residency in new state.

Answer 6

90

Question 7

If a producer license expires, it may be reinstated within ____ months of the date the renewal fee was due.

Answer 7

12

Question 8

Producers must notify the Director of a change in legal name or address within ___ days of the
change. Failure to provide the required notice within ___ days may result in a fine up to ___ per
month.

Answer 8

30
30
$10

Question 9

A producer must report any administrative action taken against them in any jurisdiction or by any
governmental agency, including a copy of the order, consent order, or other related legal documents.
Written notice must be made within ___ days of the final disposition of the matter.

Answer 9

30

Question 10

A producer must also report any criminal prosecution for a felony, or a crime involving moral
turpitude, in any jurisdiction, including a copy of the indictment and any other related legal
document. Written notice must be made within ___ days of the initial pretrial hearing date.

Answer 10

30

Question 11

If the Department denies a license application, the applicant may request a hearing within ___ days
of receiving the denial. If the Department has taken no action within ___ working days of receiving a producer license application, the application will be approved automatically.

Answer 11

30
25

Question 12

After a hearing held for a licensee violating any of the state’s insurance laws, the Director may impose a civil penalty or forfeiture as prescribed by law, which must be paid within ___ days.

Answer 12

10

Question 13

Each insurer must maintain a register of all producers it appoints to sell, solicit, or negotiate insurance on its behalf. New appointees must be added to the register within ___ days of appointment. Terminated appointments must also be removed from the register within ___ days.

Answer 13

30
30

Question 14

A producer must maintain a complete record, for at least ____ years, of all written complaints
received. A complaint is any written communication that has as its primary purpose the expression of
a grievance.

Answer 14

3

Question 15

The agent, broker, or consultant must retain a copy of all such agreements for no fewer than ___ years after all services have been completed and make them available to the Director upon request.

Answer 15

3

Question 16

No insurer is permitted to transact insurance in Missouri until it has been granted a __________ ____ ___________ from the Director. It certifies the insurer has complied with the insurance laws in this state with respect to conducting the business of insurance.

Answer 16

Certificate of
Authority

Question 17

A Certificate of Authority does not include transactions involving one or more industrial insureds, meaning an insured:

□ Whose aggregate annual premium total ______ dollars, excluding Workers’ Compensation
□ Has at least ___ employees

Answer 17

$100,000
25

Question 18

Certificates of authority are renewed on an annual basis on _______ ___; however, they remain in effect until
renewed or refused by the Director.

Answer 18

July 1

Question 18

If no insurer willing to provide coverage has been found within ___ days of the date of an original insurance application, the producer must inform the applicant of this fact, in writing, immediately

Answer 18

30

Question 19

Producers must provide all insureds with written evidence of coverage at the time coverage is bound or a policy is issued, whichever occurs earlier, and no later than ___ days after the effective date of coverage

Answer 19

30

Question 20

Insurers and producers must retain copies of their compensation agreements for ___ years and make them available for the Director’s inspection.

Answer 20

3

Question 21

The Missouri _______ _______ _______ _______ Act establishes the standards for the investigation,
adjustment, and settlement of claims under insurance contracts.

Answer 21

Unfair Claims Settlement Practices

Question 22

The Director has the authority to examine and investigate any insurer to determine if it is engaging in or has engaged in any improper claim’s practices.
□ Within ___ working days of receiving a notice of claim from any first-party claimant.
□ Within ___ working days of receiving any communication from any claimant that infers or states a reply is expected, make an appropriate reply
□ Within ___ working days of receiving a notice of claim, provide to a first-party claimant all necessary claim forms, instructions, and reasonable assistance so the claimants can comply with policy conditions and insurer requirements

Answer 22

10
10
10

Question 23

The Director has the authority to examine and investigate any insurer to determine if it is engaging in or has engaged in any improper claim’s practices. Unfair claims practices include the following: Failing to provide necessary claim forms, including reasonable explanations about how to use them, within ___ calendar days of a request

Answer 23

15

Question 24

Within ___ working days of receiving all necessary documentation that establishes the nature and extent
of a claim, the insurer must notify the claimant whether the claim has been accepted or denied.

Answer 24

15

Question 25

If the insurer’s investigation remains incomplete, the insurer must, within ___ days from the date of the initial notification and every ___ days thereafter, send the claimant a letter, explaining in detail why additional time is needed for further investigation.

Answer 25

45
45

Question 26

When a claimant’s rights may be affected by a statute of limitations or the time limits under an insurance
policy, the insurer must give the claimant a notice of that fact. The notice must be given within the following periods of time before the expiration of statute of limitations or time limits:
ƒ To first-party claimants, at least ___ days’ advance notice
ƒ To third-party claimants, at least ___ days’ advance notice

Answer 26

30
60

Question 27

Insurers must complete their claims investigations within ___ days after receiving notice of a claim unless the investigation cannot reasonably be completed within ___ days.

Answer 27

30
30

Question 28

A nonprofit legal entity created to provide limited protection to Missouri resident policyholders and
claimants in the event certain insurers become insolvent.

Answer 28

Missouri Property and Casualty Insurance Guaranty Association

Question 29

A covered claim if the claim filed by the insured of an insolvent insurer, if the insured has a net worth of more than ____ _________ dollars.

Answer 29

25 million

Question 29

A covered claim is a claim submitted under a policy with a deductible or self-insured retention of $_______ or
more

Answer 29

$300,000

Question 30

The Association is obligated to pay covered claims that exist prior to a determination of insolvency if they are submitted:
ƒ Within ___ days after the determination of insolvency
ƒ Before the policy expiration date, if less than ___ days after the determination of insolvency
ƒ Before the insured replaces or cancels the policy, if doing so within ___ days of the determination
of insolvency

Answer 30

30
30
30

Question 31

The Association’s obligation to pay a covered claim is satisfied by paying the following amounts:
ƒ An amount not exceeding $_______ per policy for the return of unearned premium
ƒ An amount not exceeding $_______ per claimant for all other covered claims

Answer 31

$25,000
$300,000

Question 32

The Director must notify the
Association within ___ days of receiving notice of a member insurer’s insolvency.

Answer 32

3

Question 33

This state’s fair access to insurance requirements - an association of all admitted property insurance companies doing business in this state and was created to make available basic property insurance to applicants who cannot obtain it through standard markets. Its purpose is to serve as a last resort to obtain basic property insurance.

Answer 33

The Missouri Basic Property Insurance Inspection and Placement Program (referred to as the Program or the FAIR Plan)

Question 34

Property is eligible for coverage under the FAIR Plan:
Commercial dwellings that are ____% or more unoccupied
Residential dwellings that are ____% or more unoccupied

Answer 34

70%
50%

Question 35

Upon receipt of an application, the FAIR Plan will order an inspection of the property for which insurance is being requested. Inspection reports must be submitted to the Facility, along with any photos, within ___ business days after the inspection is conducted.

Answer 35

5

Question 36

The maximum amounts of coverage available from the FAIR plan are:
ƒ $________ on a habitational dwelling policy
ƒ $________ on a commercial policy

Answer 36

$200,000
$1 million

Question 37

When cancelling or nonrenewing coverage, the FAIR Plan must send written notice to the insured at least ___ days before the date of cancellation or nonrenewal.

Answer 37

30

Question 38

If appealing a decision of the FAIR Plan concerning the conditions for the acceptance of coverage, the insured must submit the appeal in writing within ___ days from the FAIR Plan’s decision.

Answer 38

30

Question 39

When the renewal premium is received by the FAIR Plan, the renewal policy will be issued automatically so long as there is no change in the risk. Insured property will be re-inspected every ____ years.

Answer 39

4

Question 40

Policies written for terms longer than 1 year, or that do not have an expiration date, must be considered written for successive policy periods of 1 year; such policies may be cancelled by the insurer at the end of any annual policy period by providing the insured with ___ days’ advance notice.

Answer 40

30

Question 41

If a binder is not replaced by an insurance policy, the insurer must charge a binder premium that does not exceed the pro rata premium that would have applied had a policy been issued; an insurer is permitted to waive the binder charge if it is $____ or less

Answer 41

$20

Question 42

Unless a policy is a renewal, it cannot be cancelled after it has been in effect for ____ days or more for any reason other than:
ƒ Nonpayment of premium
ƒ Fraud or material misrepresentation
ƒ For a change in risk that substantially increases the hazard originally insured by the policy
ƒ The named insured or any occupant of the insured dwelling is convicted of a crime arising out of acts that increase the hazard insured against

Answer 42

60

Question 43

When cancelling or nonrenewing a Homeowner’s policy, an insurer must give the insured ___ days’ advance written notice before cancellation.

Answer 43

30

Question 44

If the reason for cancellation of a Homeowner’s policy is nonpayment of premium, the insurer must give ___ days’ advance written notice.

Answer 44

10

Question 45

An insurer may cancel, non-renew, reduce, or modify a property insurance policy by providing the insured ___ days’ written notice; an exception exists for two circumstances, where only ___ days’ notice is required:
□ Nonpayment of premium
□ The insured commits arson

Answer 45

30
10

Question 46

Any application premium refund must be refunded within ___ days of the date of the notice

Answer 46

30

Question 47

A Missouri personal auto policy may not insure more than ___ autos.

Answer 47

4

Question 48

Comprehensive coverage must include coverage for loss of use due to the total theft of a covered auto. The waiting period for such loss of use coverage cannot be more than ___ hours.

Answer 48

48

Question 49

An insured must be given at least ___ days to notify the insurer of any newly acquired or replacement auto.

Answer 49

30

Question 50

Created to provide auto insurance for Personal and Commercial Auto insurance applicants who are unable to secure coverage in the voluntary market. All auto insurers in the state must participate in the Plan.

Answer 50

The Missouri Automobile Insurance Plan (the Plan)

Question 51

After a person’s suspension of driving privileges has ended, they must maintain proof of insurance for ___ years to avoid the Director suspending the person’s license again.

Answer 51

3

Question 52

Form _____ is issued by the auto insurer and filed with the state after a person’s license has been suspended; the insurance company charges a fee to issue the form, which is formal proof that a person has auto insurance that meets requirements of state law.

Answer 52

SR22

Question 53

Missouri requires SR22 filings as
follows:
ƒ ___ years from the date of suspension for a motor vehicle accident
ƒ ___ years from the date of suspension for:
□ Failure to show proof of insurance
□ Failure to maintain liability insurance
□ Providing proof of false insurance to a police officer

Answer 53

2
3

Question 54

Form _____ is issued by an insurer to state that a person no longer has an SR22 on file with the insurer.

Answer 54

SR26

Question 55

The Director must suspend the driver’s license and all registrations of such uninsured owner or operator if that person does not deposit with the Director, within ___ days of the Director’s receipt of the accident report.

Answer 55

90

Question 56

When suspending the driver’s license and registrations, the Director must send at least ___ days’ notice, along with the amount of the sum to be paid.

Answer 56

10

Question 57

If any person provides incorrect information to the Director with respect to any matter concerning an accident caused by an uninsured motorist, the Director must take corrective action within ____ days of receiving the correct information.

Answer 57

45

Question 58

When renewing auto insurance, an insurer must send written notice of renewal at least ____ days before the policy’s renewal date via first class mail.

Answer 58

15

Question 59

An insurer may cancel an auto policy— subject to requirements of insurance code —for any reason during the first ____ days.

Answer 59

60

Question 60

Once a certified policy has been issued, an insurer may not cancel or terminate it until ____ days after filing an SR26 form with the Director of Revenue.

Answer 60

10

Question 61

The SR26 is considered filed ___ days after it has been mailed.

Answer 61

3