A standard homeowners policy generally excludes which of the following perils, requiring the homeowner to purchase a separate policy or endorsement for coverage?
A. Flood
B. Fire
C. Windstorm
D. Theft
Show answer and reasoning
Correct answer: A. Flood
Correct. Flood damage is a standard exclusion under typical homeowners policies; coverage for flood generally must be obtained separately, such as through the National Flood Insurance Program or a private flood policy.
- B: Fire is a covered peril under standard homeowners forms, not an excluded one.
- C: Windstorm is generally a covered peril under standard homeowners forms (though some coastal or high-risk areas may have separate wind deductibles or requirements); it is not a universal exclusion the way flood is.
- D: Theft is a covered peril under standard homeowners forms like the HO-3, not an excluded peril requiring a separate policy.
Source: General insurance product knowledge
Under Missouri law, which line of authority must a producer hold before selling, soliciting, or negotiating homeowners or auto insurance in the state?
A. Property and casualty
B. Life only
C. Accident and health only
D. No license is required for property and casualty products
Show answer and reasoning
Correct answer: A. Property and casualty
Correct. Mo. Rev. Stat. § 375.014 requires a producer license for the property and casualty line of authority before selling, soliciting, or negotiating products such as homeowners and auto insurance in Missouri.
- B: A life line of authority covers life insurance and annuities, not property/casualty products like homeowners or auto insurance.
- C: Accident and health authority covers health-related products, not property and casualty lines.
- D: Missouri requires licensure to transact property and casualty insurance business just as it does for other lines; there is no blanket exemption.
Source: Mo. Rev. Stat. § 375.014
A Missouri resident property and casualty producer license must be renewed how often?
A. Every year
B. Every two years
C. Every five years
D. It never needs to be renewed
Show answer and reasoning
Correct answer: B. Every two years
Correct. Missouri issues resident producer licenses, including property and casualty, for a two-year term under Mo. Rev. Stat. §§ 375.014-.016.
- A: Missouri's license term is not annual.
- C: Five years overstates Missouri's two-year license term.
- D: The license requires active renewal on the two-year cycle; it is not a permanent, non-expiring credential.
Source: Mo. Rev. Stat. § 375.016
A Missouri property and casualty producer must complete how many hours of continuing education every two-year license period, and how many of those hours must specifically be on ethics, Missouri law, and producer duties?
A. 16 total hours, including 3 hours of ethics/law
B. 6 total hours, including 0 hours of ethics/law
C. 40 total hours, including 10 hours of ethics/law
D. 16 total hours, with the ethics/law hours being optional
Show answer and reasoning
Correct answer: A. 16 total hours, including 3 hours of ethics/law
Correct. Missouri requires 16 hours of CE every two years, with 3 of those hours dedicated to ethics, Missouri law, and producer duties to the department for lines under Mo. Rev. Stat. § 375.018.1(1)-(6), per 20 CSR 700-3.200.
- B: 6 total hours with no ethics component understates both the total CE requirement and omits the mandatory ethics/law hours.
- C: 40 total hours with 10 hours of ethics/law overstates Missouri's actual CE requirements.
- D: The 3-hour ethics/law component is mandatory, not optional, within the 16-hour total.
Source: Mo. Rev. Stat. § 375.020; 20 CSR 700-3.200
When an insurer terminates its appointment of a Missouri producer for one of the reasons listed in Mo. Rev. Stat. § 375.141, what must the insurer generally do within 30 days of the termination's effective date?
A. Notify the director of the reason for termination and update its register of appointed producers
B. Nothing; only the producer is required to report the termination
C. Immediately revoke the producer's license itself
D. Wait one full year before reporting the termination
Show answer and reasoning
Correct answer: A. Notify the director of the reason for termination and update its register of appointed producers
Correct. Under Mo. Rev. Stat. § 375.022, an insurer that terminates a producer for one of the reasons in § 375.141 must, within 30 days of the effective termination date, notify the director of the reason and update its register of appointed producers with the termination date.
- B: The insurer, not just the producer, has an affirmative reporting obligation to the department in this situation.
- C: An insurer cannot itself revoke a producer's state-issued license; only the department has that licensing authority, though the insurer's report can inform a department investigation.
- D: The reporting deadline is 30 days, not one year.
Source: Mo. Rev. Stat. § 375.022
