Free Missouri Life practice questions

Answer: B. $8,400, the greater of the scheduled and actual balances

Sec. 385.030(1) caps the initial amount of credit life at the total repayable under the contract and, for a debt repayable in substantially equal installments, provides that the amount of insurance may at no time exceed the scheduled or actual unpaid indebtedness, whichever is greater. Here the greater figure is the actual balance of $8,400. The $12,000 figure limits only the initial amount and does not govern once the unpaid balance is lower; $8,000 is the lesser of the two balances, and the statute does not use an average.

Answer: A. Rule 1 only, and that rule takes effect only if it complies with chapter 536

Subsection 4 of Sec. 379.402 lets the director adopt rules that "exempt, but not restrict" more categories of products or services from the rebate and inducement prohibitions of Sec. 379.356 and Sec. 375.936(9). A rule adding an exempt category is authorized, while a rule restricting permitted services is not, which rules out every answer that includes Rule 2. The subsection also makes a rule created under it effective only if it complies with chapter 536, so a rule cannot take effect on publication while bypassing that chapter.

Answer: B. March 31

An insurer must keep a register of appointed producers and enter a newly authorized producer's name and license number within thirty days of authorizing that producer. Thirty days from March 1 is March 31. March 11 would allow only ten days, which is shorter than the statute sets. April 30 and May 30 both fall outside the thirty-day window.

Answer: C. Defining which persons are eligible for dependents' benefits

Section 375.995(4) states that nothing in the section prohibits an insurer from taking an insured's marital status into account to define the persons eligible for dependents' benefits. The same subsection forbids restricting the type of coverage or denying riders solely on the basis of marital status, and its list of prohibited practices includes limiting the amount of coverage a person may buy based on marital status unless the limit serves to define who is eligible for dependents' benefits.

Answer: A. He may not solicit or procure borrowers for the coverage unless the director licenses him as an agent, agency or broker

Missouri bars any person from soliciting, negotiating or procuring debtors for credit insurance unless the director has licensed that person as an agent, agency or broker. The bar covers individual, group and any other form of policy, so a group plan is not exempt. Neither the insurer's authority nor the bank's status as group policyholder cures the problem, because the licensing requirement attaches to the person doing the soliciting.

Answer: D. It reaches radio and television as well as print and any other medium

Sec. 375.936(4) makes it an unfair practice to place before the public an untrue, deceptive or misleading advertisement or statement about the business of insurance or about an insurer. The provision names newspapers, magazines, notices, circulars, pamphlets, letters, posters, radio and television, and then adds any other way of reaching the public, so an untrue radio advertisement is covered. The provision is not limited to print or to statements handed to an applicant, and its wording does not make a completed purchase part of the practice.

Answer: C. Judicial review as provided in sections 536.100 to 536.140 of Missouri law

Section 375.037 provides that any party aggrieved by the director's decision is entitled to judicial review as provided in sections 536.100 to 536.140. The choice calling the decision final contradicts that entitlement. The NAIC committee and arbitration choices name routes the section does not provide; the review it grants is judicial review under those sections.

Answer: C. If it is not paid within ten days, the director may file a civil action, brought in the director's name, to recover it.

Missouri law lets the director, after a hearing, order a civil penalty or forfeiture payable to the state. If it is not paid within ten days, the director may recover it through a civil action brought by the director and in the director's name. The section provides for collection by a civil suit, so a criminal referral by a prosecutor, a deduction from commissions and a garnishment order by the state treasurer are not the recovery route it describes. The thirty-day and ninety-day periods also do not match the ten days the section states.

Answer: B. A collection of unrelated individuals who came together only to buy the insurance

Missouri's eligible-group statute allows a group life policy to be delivered in the state only to the listed types of group, apart from the separate special-group route: an employer or the trustees of an employer fund; a creditor; a labor union or similar employee organization; a trust or fund set up by two or more employers, by one or more labor unions or similar employee organizations, or by employers and unions together; an association; and a credit union. A labor union insuring its members, a creditor insuring debtors up to the scheduled debt, and a multiple-employer trust are all on that list. A group of individuals formed only to obtain insurance is not, and even the association category requires a group organized and maintained in good faith for purposes other than obtaining insurance.

Answer: A. One year from issue, whether the insured was sane or insane

Missouri permits a life insurance policy, rider, endorsement, amendment or certificate delivered in the state to exclude or restrict liability for suicide when the insured dies by suicide within one year from the date of issue. The statute applies to an insured 'while sane or insane,' so an exclusion limited to a sane insured misstates the rule. The statute's permission runs for one year, so a two-year or three-year window reaches beyond the period it allows. Any such exclusion must also be clearly stated in the policy or certificate.