Mo property and casualty practice exam 2 questions with answers

Mo property and casualty practice exam 2
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questions with answers |\ |\




The Director of the department of commerce and
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insurance is responsible for what duties? - CORRECT
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ANSWERS ✔✔- Amending, or withdrawing rules and
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regulations
- Issue a certificate of authority to insurers
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- Maintaining a competitive insurance market
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The Director is appointed to office not elected
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The Director may audit an insurance company whenever
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necessary, but must audit at least every - CORRECT
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ANSWERS ✔✔Five years |\ |\




The examination fees charged when the department
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conducts an audit are paid by - CORRECT ANSWERS
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✔✔The party being examined or audited
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The primary reason insurers are examine regularly by the
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department is - CORRECT ANSWERS ✔✔To verify their
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financial stability |\

,Which of the following is true about a cease and desist
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order?
A. It is a temporary injunction, requiring the targeted
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party to stop their current behavior.
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B. Maximum fine for violating a cease and desist order is
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$15,000
C. It is legally not as strong as a cease and desist letter. -
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CORRECT ANSWERS ✔✔A. It is a temporary injunction, |\ |\ |\ |\ |\ |\ |\ |\



requiring the targeted party to stop their current |\ |\ |\ |\ |\ |\ |\ |\



behavior.


Sandy is beginning a new job at utmost insurance. She
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will be an underwriter. Which of the following is true about
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her licensing?
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A. The state requires that she gets a limited lines license.
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B. She will need to obtain an insurance producer license.
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C. Sandy does not need to be licensed. - CORRECT
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ANSWERS ✔✔C. Sandy does not need to be licensed |\ |\ |\ |\ |\ |\ |\ |\ |\




This is because employees not involved in the selling or
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telling of coverages or benefits with consumers do not
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need a license. |\ |\




All of the following require a limited lines license, except:
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A. Boat insurance.
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,B. Crop hail insurance.
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C. Travel insurance.
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D. Credit life. - CORRECT ANSWERS ✔✔A. Boat insurance
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What is surplus lines coverage? - CORRECT ANSWERS
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✔✔Surplus lines coverage covers people who cannot find |\ |\ |\ |\ |\ |\ |\ |\



coverage from any of the admitted insurers in the state. |\ |\ |\ |\ |\ |\ |\ |\ |\ |\



Surplus lines coverage will cover something that isn't
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typically covered such as a plane |\ |\ |\ |\ |\




Missouri license insurance producers must complete 16
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hours of approved, continuing education. How many
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hours of ethics must be met? - CORRECT ANSWERS ✔✔3
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hours


If an insurance producer dies, the deceased spouse may
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get a temporary license without taking the test. How long
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is the license good? - CORRECT ANSWERS ✔✔90 days
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The Director may suspend, revoke, refuse to issue, or
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refuse to renew an insurance producers license for any
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one of the following causes, except:
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A. Violating any insurance laws
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B. Signing an application for an applicant.
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C. Being convicted of a felony.
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, D. Providing documents requested by the Director. -
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CORRECT ANSWERS ✔✔D. Providing documents |\ |\ |\ |\ |\



requested by the Director. |\ |\ |\




What is rebating? - CORRECT ANSWERS ✔✔In order to sell
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a policy, you make a promise, such as paying for three
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months of a clients premium |\ |\ |\ |\




What does fiduciary mean? - CORRECT ANSWERS ✔✔a
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person placed in a position of TRUST and CONFIDENCE.
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What is the Missouri Guaranty Association? - CORRECT
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ANSWERS ✔✔They pay the claims of policyholders of an |\ |\ |\ |\ |\ |\ |\ |\ |\



insolvent company. Such as if an insurance office shuts
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down, the Missouri guaranty association steps in to pay
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off the claims.|\ |\




How is the money obtained for the Missouri insurance
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guaranty association? - CORRECT ANSWERS ✔✔All |\ |\ |\ |\ |\ |\



authorized insurer's in Missouri are assessed fees to fund |\ |\ |\ |\ |\ |\ |\ |\ |\



the money to pool to pay valid claims
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What does binding coverage mean? - CORRECT ANSWERS
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✔✔It refers to the moment an insurance policy becomes
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effective. This can be verbal or written. An exact date and
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time is needed.
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