Missouri Personal Lines Insurance License Exam — All Questions

What are the minimum auto liability limits a personal auto policy must carry to satisfy Missouri's financial-responsibility law?

• a.$15,000 per person / $30,000 per accident bodily injury and $10,000 property damage
• b.$25,000 per person / $50,000 per accident bodily injury and $25,000 property damage✓
• c.$50,000 per person / $100,000 per accident bodily injury and $50,000 property damage
• d.$30,000 per person / $60,000 per accident bodily injury and $25,000 property damage

Missouri sets minimum auto liability limits of 25/50/25 — $25,000 per person / $50,000 per accident for bodily injury, and $25,000 for property damage. Producers should quote at least these limits and offer higher coverage. Source: RSMo 303.190; verify current figures with the Missouri Department of Commerce and Insurance.

How does Missouri handle liability for auto accidents?

• a.It is a pure no-fault state; each driver's own insurer pays regardless of fault
• b.It is an add-on no-fault state requiring mandatory PIP on every policy
• c.It is a traditional at-fault (tort) state; the at-fault driver is responsible for the other party's injuries and damage✓
• d.It bars all lawsuits between drivers and routes claims through a state fund

Missouri is a traditional at-fault (tort) state: the driver responsible for a crash is liable for the other party's injuries and property damage, which is why liability limits matter. It does not use a no-fault/PIP system. Source: Missouri DCI (https://insurance.mo.gov/).

Which coverage does Missouri REQUIRE on every auto policy, in addition to liability?

• a.Uninsured motorist (UM) coverage, at limits not less than the state minimum bodily-injury limits of 25/50✓
• b.Collision coverage on the insured's own vehicle
• c.Personal injury protection (PIP), because Missouri is a no-fault state
• d.Roadside assistance and rental reimbursement

Missouri requires uninsured motorist (UM) coverage on every auto policy at limits not less than the state minimum bodily-injury limits (25/50). Underinsured motorist (UIM) coverage is available but generally optional. Source: RSMo 379.203; verify current rules with the Missouri Department of Commerce and Insurance.

How are cancellation and nonrenewal of a personal auto or homeowners policy regulated in Missouri?

• a.An insurer may cancel any personal policy at any time for any reason with no notice
• b.Only the policyholder may ever cancel; insurers can never cancel mid-term
• c.There are no notice rules; cancellation is governed solely by the contract
• d.State law limits the reasons an insurer may cancel or nonrenew and requires advance written notice to the insured; confirm the exact notice period with the Missouri Department of Commerce and Insurance✓

Missouri, like other states, restricts mid-term cancellation of personal auto and homeowners policies to specified reasons (such as nonpayment or material misrepresentation) and requires advance written notice of cancellation or nonrenewal. The exact number of days varies by reason and line — verify the current Missouri notice periods with the Missouri Department of Commerce and Insurance.

Which best describes the body that writes and enforces Missouri's insurance regulations affecting personal lines policies?

• a.The Missouri Department of Commerce and Insurance (DCI), a state agency led by a Director✓
• b.A private trade association of insurers with no government authority
• c.The federal Department of Insurance in Washington, D.C.
• d.The county recorder of deeds where the policy is issued

Insurance in Missouri is regulated at the state level by the Missouri Department of Commerce and Insurance (DCI). There is no federal department of insurance; each state (including Missouri) supervises its own market, licenses producers, and enforces cancellation, rating, and coverage rules. Source: Missouri DCI (https://insurance.mo.gov/).