Chapter 10. Missouri Statutes, Rules and
Regulations Common to All Lines
___________and _________ — to stop or discontinue - CORRECT ANSWER cease and desist
payment to the agent by the insurance company for placing insurance, usually a percentage of the policy
premium - CORRECT ANSWER Commission
not subject to an obligation - CORRECT ANSWER exempt
______ state — insurer's headquarters, principal place of business - CORRECT ANSWER home
_________________ — an offer that attempts to influence the other party - CORRECT ANSWER
inductment
,conduct that is contrary to community standards of justice, honesty or good morals - CORRECT
ANSWER Moral turpitude
_____________ — a mutual interchange of rights and privileges - CORRECT ANSWER Reciprocity
a formal written law enacted by legislature; insurance statutes can be found in the state Insurance code
- CORRECT ANSWER Statute
___________ lines — insurance not available from authorized insurers; placed with Non admitted
insurers who specialize in offering insurance to the high-risk market - CORRECT ANSWER surplus
The ________________ is a chief officer of the Department of Commerce and Insurance (in this course,
the Department). - CORRECT ANSWER Director
T or F:
The Director cannot hold any position as officer, agent or employee of any insurance company, or be
directly or indirectly interested in any insurance company, except as a policyholder. - CORRECT
ANSWER true
T or F:
The Director can hold any position as officer, agent or employee of any insurance company, or be
directly or indirectly interested in any insurance company, except as a policyholder. - CORRECT
ANSWER FALSE; cannot
, The purpose of the ___________________________ is to ensure that the companies remain solvent and
conduct business of insurance in compliance with state laws and regulations pertaining to licensing,
policy forms, rates, claims, and market conduct. - CORRECT ANSWER examination
The Director or a designated examiner must conduct a financial examination of any domestic insurance
company at least once every ____ years, but may conduct examinations as often as deemed necessary -
CORRECT ANSWER 5
T or F:
The Director or a designated examiner may conduct examinations as often as deemed necessary -
CORRECT ANSWER true
T or F:
The Director or a designated examiner may NOT conduct examinations as often as deemed necessary -
CORRECT ANSWER false; they may
Whenever it appears that any person is violating an insurance law of Missouri or any other insurance
rules or regulations, the Director may issue this order, requiring the person to stop committing the
violation. - CORRECT ANSWER cease and desist
A hearing resulting from a cease and desist order may not be held sooner than ___ days after the notice
of hearing is served. - CORRECT ANSWER 10
Regulations Common to All Lines
___________and _________ — to stop or discontinue - CORRECT ANSWER cease and desist
payment to the agent by the insurance company for placing insurance, usually a percentage of the policy
premium - CORRECT ANSWER Commission
not subject to an obligation - CORRECT ANSWER exempt
______ state — insurer's headquarters, principal place of business - CORRECT ANSWER home
_________________ — an offer that attempts to influence the other party - CORRECT ANSWER
inductment
,conduct that is contrary to community standards of justice, honesty or good morals - CORRECT
ANSWER Moral turpitude
_____________ — a mutual interchange of rights and privileges - CORRECT ANSWER Reciprocity
a formal written law enacted by legislature; insurance statutes can be found in the state Insurance code
- CORRECT ANSWER Statute
___________ lines — insurance not available from authorized insurers; placed with Non admitted
insurers who specialize in offering insurance to the high-risk market - CORRECT ANSWER surplus
The ________________ is a chief officer of the Department of Commerce and Insurance (in this course,
the Department). - CORRECT ANSWER Director
T or F:
The Director cannot hold any position as officer, agent or employee of any insurance company, or be
directly or indirectly interested in any insurance company, except as a policyholder. - CORRECT
ANSWER true
T or F:
The Director can hold any position as officer, agent or employee of any insurance company, or be
directly or indirectly interested in any insurance company, except as a policyholder. - CORRECT
ANSWER FALSE; cannot
, The purpose of the ___________________________ is to ensure that the companies remain solvent and
conduct business of insurance in compliance with state laws and regulations pertaining to licensing,
policy forms, rates, claims, and market conduct. - CORRECT ANSWER examination
The Director or a designated examiner must conduct a financial examination of any domestic insurance
company at least once every ____ years, but may conduct examinations as often as deemed necessary -
CORRECT ANSWER 5
T or F:
The Director or a designated examiner may conduct examinations as often as deemed necessary -
CORRECT ANSWER true
T or F:
The Director or a designated examiner may NOT conduct examinations as often as deemed necessary -
CORRECT ANSWER false; they may
Whenever it appears that any person is violating an insurance law of Missouri or any other insurance
rules or regulations, the Director may issue this order, requiring the person to stop committing the
violation. - CORRECT ANSWER cease and desist
A hearing resulting from a cease and desist order may not be held sooner than ___ days after the notice
of hearing is served. - CORRECT ANSWER 10
