Missouri Property & Casualty Insurance License Exam — All Questions
3 questions
Which agency licenses resident property and casualty insurance producers in Missouri?
- a.Missouri Department of Revenue
- b.Missouri Department of Commerce and Insurance (DCI)✓
- c.Missouri Secretary of State
- d.Missouri Department of Public Safety
Missouri regulates insurers and licenses producers through the Department of Commerce and Insurance (DCI), which houses the Division of Insurance and the Director of Insurance. The Department of Revenue handles vehicle registration and proof of insurance but does not license producers.
A Missouri producer offers a prospective client a portion of the commission as an inducement to buy a policy. Under Missouri's unfair trade practices law this is:
- a.Permitted if disclosed to the insurer
- b.Permitted for new clients only
- c.Prohibited rebating✓
- d.Required to be reported but otherwise lawful
Giving any part of the premium or commission, or other valuable consideration not stated in the policy, as an inducement to buy is prohibited rebating under Missouri's unfair trade practices law and can bring fines and license action by the Missouri Department of Commerce and Insurance.
After a Missouri personal auto or homeowners policy is past its initial underwriting period, mid-term cancellation by the insurer is generally permitted only:
- a.For specific statutory grounds such as nonpayment of premium, fraud, or a substantial increase in the hazard, with required advance written notice✓
- b.For any reason with no notice
- c.Only in the first week after issuance
- d.Never, under any circumstances
Missouri limits mid-term cancellation of seasoned personal-lines policies to defined grounds such as nonpayment, fraud, or a material increase in the insured hazard, and requires advance written notice so the insured can replace coverage. The exact notice day-counts are set by statute; verify current figures with the Missouri Department of Commerce and Insurance.