17 Free Missouri Life & Health Practice Questions: Missouri Laws Common to All Lines (2026)
How to Use This Set
This set covers Missouri laws common to all lines. On the single-line outlines this block carries 20 items, and on the combined exam it carries 15. It is a scored block of its own, and it is where national study material does not help.
The outline cites RSMo Chapter 374 on the powers of the Director of Commerce and Insurance, Chapter 375 on producer licensing, marketing practices, fiduciary responsibilities, commissions and the guaranty association, 20 CSR 700-1 on licensing and 20 CSR 700-3.200 on continuing education. This set mixes those subjects, so expect licensing, discipline, fiduciary duty, unfair practices and the guaranty association.
These 17 questions have answers and explanations behind each one. Try each question before you open the explanation.
Practice Questions 1-6: Licensing, Commissions, Continuing Education and Discipline
Covered here: certifications for nonresident licensing, commissions, renewal and CE, nonresident licensing, twisting and suspension hearings. Work each question before you open the explanation.
Question 1 (Chapter 7)
A Missouri resident applies for a nonresident insurance producer license in another state. That state requires Missouri to provide a certification of the applicant's license status and disciplinary history. Which Missouri statute authorizes the Director of Commerce and Insurance to issue such certifications for nonresident licensing purposes?
- A) RSMo § 375.018
- B) RSMo § 375.020
- C) RSMo § 375.017
- D) RSMo § 375.022
Show answer & explanation
Answer: C
RSMo § 375.017 specifically addresses nonresident producers and authorizes the Director to issue certifications of license status and disciplinary history to other states for licensing purposes. RSMo § 375.018 deals with license renewal, § 375.020 with continuing education, and § 375.022 with license denial, suspension, or revocation grounds.
Question 2 (Chapter 7)
An insurance producer in Missouri is appointed by an insurer to sell its policies. The producer receives a commission for each policy sold. Which statement accurately reflects Missouri law regarding the payment of commissions to producers?
- A) Commissions must be paid by the insurer to the producer, and it is unlawful for the producer to receive any compensation from the policyholder for the same transaction.
- B) Commissions must be paid directly to the producer by the policyholder to avoid conflicts of interest.
- C) Commissions may only be paid to the producer if the producer is also a licensed insurance adjuster.
- D) Commissions are prohibited entirely; producers may only earn fees for service.
Show answer & explanation
Answer: A
RSMo § 375.116 governs commissions and compensation. It stipulates that commissions must be paid by the insurer to the producer, and it is unlawful for a producer to receive any compensation, consideration, or gift from the policyholder or any other party in connection with the transaction for which the commission is paid. This prevents conflicts of interest and ensures the producer's loyalty is to the insurer they represent in that transaction. Options B, C, and D misstate the law: commissions are not paid by the policyholder, adjuster licensure is irrelevant, and commissions are not prohibited.
Question 3 (Chapter 7)
An insurance producer in Missouri has not completed their required continuing education (CE) hours by the license renewal date. What is the most accurate statement regarding the producer's ability to renew their license?
- A) The producer cannot renew the license until the deficient CE hours are completed and submitted.
- B) The producer can renew the license but will be fined double the renewal fee.
- C) The producer's license is automatically extended to complete the CE requirements.
- D) The producer can renew the license if they pay an additional fee, regardless of CE completion.
Show answer & explanation
Answer: A
Under RSMo § 375.020 and 20 CSR 700-3.200, completing the required continuing education hours is a mandatory condition for license renewal in Missouri. If the CE requirements are not met by the renewal date, the license cannot be renewed until the deficient hours are completed, verified, and submitted. There is no automatic extension (C), no option to pay a fee in lieu of CE (D), and no provision for doubling the renewal fee for this specific violation (B). The license simply remains inactive until compliance is achieved.
Question 4 (Chapter 7)
A nonresident insurance producer seeks to obtain a license to sell insurance in Missouri. Which of the following is a requirement for nonresident licensing under RSMo § 375.017?
- A) The applicant's home state must grant a reciprocal licensing privilege to Missouri residents.
- B) The applicant must maintain a physical office in Missouri.
- C) The applicant must pass the Missouri insurance producer examination for the desired line(s) of authority.
- D) The applicant must be a resident of a state that borders Missouri.
Show answer & explanation
Answer: A
RSMo § 375.017 governs nonresident producer licensing. It states that the Director may issue a nonresident license if the applicant's home state (state of residence) grants a reciprocal licensing privilege to Missouri residents. There is no requirement to maintain a physical office in Missouri (B), to pass the Missouri examination (C) — though some states may require it reciprocally, it is not a Missouri statutory requirement under this section — or to be from a bordering state (D). Reciprocity is the key requirement.
Question 5 (Chapter 7)
A Missouri insurance producer is accused of twisting by an insured who claims the producer used misleading comparisons and incomplete information to induce the insured to surrender an existing life insurance policy and purchase a new one. Which Missouri statute most directly addresses this prohibited marketing practice?
- A) RSMo § 375.936
- B) RSMo § 375.934
- C) RSMo § 375.007
- D) RSMo § 375.144
Show answer & explanation
Answer: A
Twisting is a specific unfair or deceptive act defined under RSMo § 375.936, which prohibits making false, misleading, or deceptive statements or representations as part of a sales presentation. While § 375.934 addresses false advertising and § 375.007 addresses unfair discrimination, twisting falls under the broader prohibitions of § 375.936. Fiduciary responsibilities under § 375.144 are unrelated to sales inducements.
Question 6 (Chapter 7)
The Missouri Department of Commerce and Insurance issues an order suspending an insurance producer's license for violations of marketing practices laws. The suspension order becomes effective immediately upon issuance. What recourse does the producer have to contest this suspension?
- A) The producer may request a hearing before the Director to contest the suspension, and the suspension may be stayed pending the hearing if the producer acts promptly.
- B) The producer must wait until the suspension period ends to appeal, as appeals are not permitted during an active suspension.
- C) The producer can only contest the suspension by filing a lawsuit in circuit court after the suspension period has concluded.
- D) The producer has no right to appeal; the Director's suspension order is final and not subject to review.
Show answer & explanation
Answer: A
Under RSMo § 375.022 and related provisions, a licensee has the right to a hearing before the Director to contest disciplinary actions like suspension or revocation. The producer must request this hearing promptly, and the suspension may be stayed (put on hold) pending the outcome if the request is made in a timely manner. Appeals are not restricted to after the suspension period (B, C), and the Director's order is not final without opportunity for hearing (D).
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Practice Questions 7-12: Fiduciary Duty, the Guaranty Association and Policy Forms
Covered here: premium handling, the guaranty association, cease and desist orders, defamation, policy form approval and how long an exam result stays valid. Work each question before you open the explanation.
Question 7 (Chapter 7)
A Missouri insurance producer receives a premium payment from a client and deposits it into their personal checking account, intending to forward it to the insurer later. The funds remain in the personal account for 45 days before being sent. Which statement best describes this action under Missouri law?
- A) This is permissible as long as the funds are eventually forwarded to the insurer and no interest is earned.
- B) This is allowed only if the producer informs the client in writing that funds will be deposited into a personal account.
- C) This violates Missouri law only if the funds are not forwarded within 60 days.
- D) This constitutes a violation of fiduciary responsibilities, as premiums must be held in a fiduciary capacity and not commingled with personal funds.
Show answer & explanation
Answer: D
Under RSMo §§ 375.051, 375.052, and 375.144, and 20 CSR 700-1.140, insurance producers have a fiduciary duty to handle premiums and funds belonging to others. Commingling premiums with personal funds in a personal account, regardless of intent to forward or client notification, is a breach of this fiduciary duty. There is no grace period that makes commingling permissible (C), and client notification does not cure the violation (B).
Question 8 (Chapter 7)
The Missouri Insurance Guaranty Association (MIGA) provides protection to policyholders of insolvent insurers. Which of the following types of claims is MIGA most likely to cover under RSMo §§ 376.715-.758?
- A) Claims under a life insurance policy for death benefits up to the statutory limit.
- B) Claims arising from a surety bond issued by an insolvent insurer.
- C) Claims under a self-funded employee welfare benefit plan administered by an insolvent company.
- D) Claims under a title insurance policy issued by an insolvent insurer.
Show answer & explanation
Answer: A
The Missouri Insurance Guaranty Association (MIGA), established under RSMo §§ 376.715-.758, provides a safety net for policyholders of insolvent insurers, but it has specific exclusions. MIGA covers certain claims under life and health insurance policies (including death benefits up to the statutory limit), but it does not cover surety bonds (B), self-funded welfare plans (C), or title insurance (D), which are explicitly excluded from guaranty association coverage.
Question 9 (Chapter 7)
The Missouri Department of Commerce and Insurance issues a cease and desist order to an insurance producer for engaging in twisting. The producer requests a hearing to contest the order. According to Missouri law, what is the effect of this request on the cease and desist order?
- A) The cease and desist order is automatically stayed pending the hearing and decision.
- B) The cease and desist order is voided upon request for a hearing, requiring the Director to issue a new order after the hearing.
- C) The cease and desist order remains in effect unless and until the Director, after hearing, determines it should be modified or withdrawn.
- D) The request for a hearing has no effect; the order takes effect immediately and cannot be contested.
Show answer & explanation
Answer: C
Under RSMo § 374.046 and related provisions, a cease and desist order remains effective upon issuance. A request for a hearing does not automatically stay the order; the order stays in effect unless the Director, after conducting the hearing, decides to modify, withdraw, or uphold it. Option A is incorrect because there is no automatic stay. Option B is incorrect because the order is not voided by a hearing request. Option D is incorrect because the producer does have the right to a hearing to contest the order, even if it remains effective during the process.
Question 10 (Chapter 7)
A Missouri insurance producer is accused of defamation after making false statements about another producer's business practices to potential clients. Which Missouri statute most directly addresses this prohibited activity?
- A) RSMo § 375.934
- B) RSMo § 375.007
- C) RSMo § 375.936
- D) RSMo § 375.995
Show answer & explanation
Answer: C
RSMo § 375.936 specifically prohibits defamation as an unfair or deceptive act in the business of insurance, which includes making false and malicious statements about another's financial condition or business integrity. While RSMo § 375.934 defines unfair methods of competition and unfair or deceptive acts, § 375.936 lists specific prohibited practices including defamation. RSMo § 375.007 addresses unfair discrimination, and § 375.995 concerns the Missouri Insurance Guaranty Association assessment base, neither of which pertain to defamation.
Question 11 (Chapter 7)
An insurance company operating in Missouri develops a new life insurance policy form it intends to offer to the public. Before this policy can be legally sold to Missouri residents, what action must the company take regarding the policy form?
- A) File the policy form with the National Association of Insurance Commissioners (NAIC) for approval.
- B) Distribute the policy form to all licensed producers in Missouri for their review and feedback.
- C) Publish the policy form in a newspaper of general circulation for public comment.
- D) Obtain approval for the policy form from the Missouri Director of Commerce and Insurance.
Show answer & explanation
Answer: D
Under the general powers and duties of the Director of Commerce and Insurance, as outlined in RSMo Chapter 374, the Director is responsible for approving insurance policy forms before they can be used in the state. This ensures that policies comply with Missouri law and protect consumers. Options A, B, and C are not required steps for policy form approval in Missouri.
Question 12 (Chapter 7)
After successfully passing the Missouri Life, Accident and Health Insurance Producer examination on March 15, 2026, John decides to take a few months to explore employment opportunities before applying for his license. What is the maximum period John's exam results will remain valid for him to apply for a producer license?
- A) 60 days from the date of passing the examination.
- B) One year from the date of passing the examination.
- C) 90 days from the date of passing the examination.
- D) Six months from the date of passing the examination.
Show answer & explanation
Answer: B
According to the Pearson VUE / Missouri Insurance Licensing Candidate Handbook, exam scores are valid for one year. This means John has up to one year from March 15, 2026, to apply for his producer license using these exam results. Options A, C, and D state incorrect validity periods.
Practice Questions 13-17: License Revocation, Examinations and Continuing Education
Covered here: felony convictions, fiduciary rules again, who pays for an examination, defamation and the ethics hours in continuing education. Work each question before you open the explanation.
Question 13 (Chapter 7)
An insurance producer in Missouri is convicted of a felony involving dishonesty and breach of trust. Upon learning of this conviction, what action is the Missouri Director of Commerce and Insurance most likely to take regarding the producer's license?
- A) Issue a warning letter, requiring the producer to attend an ethics course.
- B) Revoke the producer's license permanently, as this is a disqualifying offense.
- C) Suspend the producer's license for a period of time, followed by probation.
- D) Require the producer to pay a substantial fine but allow them to keep their license.
Show answer & explanation
Answer: B
RSMo § 375.141 outlines grounds for license denial, suspension, or revocation. A felony conviction, especially one involving dishonesty or breach of trust, is a serious disqualifying offense that typically leads to the permanent revocation of an insurance producer's license. The Director has the authority to take such action to protect the public and maintain the integrity of the insurance industry. Options A, C, and D represent less severe actions that are unlikely for a felony conviction of this nature.
Question 14 (Chapter 7)
A Missouri insurance producer receives a premium payment from a client and deposits it into the producer's personal checking account. The funds remain there for 5 business days before being forwarded to the insurer. Under Missouri's fiduciary responsibility laws, which statement is most accurate regarding this action?
- A) This is permissible as long as the funds are eventually forwarded to the insurer.
- B) This violates fiduciary responsibilities because premiums must be kept in a separate, fiduciary capacity and not commingled with personal funds.
- C) This is allowed if the producer maintains accurate records of the transaction.
- D) This is permissible only if the client provides written consent for the commingling of funds.
Show answer & explanation
Answer: B
Under RSMo § 375.051 and 20 CSR 700-1.140, insurance producers must hold premiums and other funds received in a fiduciary capacity. Commingling client premiums with personal funds in a personal checking account violates this requirement, regardless of the duration or record-keeping. The funds must be kept in a separate account designated for client funds, not a personal account.
Question 15 (Chapter 7)
The Director of Commerce and Insurance decides to conduct a financial examination of a domestic insurance company to ensure its solvency. According to RSMo § 374.110, how is the cost of this examination typically handled?
- A) The cost is paid for by the Missouri General Revenue Fund.
- B) The cost of the examination is borne by the company being examined.
- C) The cost is split equally between the Director and the insurance company.
- D) The examination is provided as a free service to all licensed insurers.
Show answer & explanation
Answer: B
Under Missouri law (RSMo § 374.110), the cost of examinations conducted by the Director or their authorized examiners is typically paid for by the entity being examined.
Question 16 (Chapter 7)
A Missouri producer is found to have made false and malicious statements regarding the financial solvency of a competing insurance company to a group of potential clients. This action is most accurately classified as:
- A) Rebating
- B) Misrepresentation
- C) Defamation
- D) Unfair Discrimination
Show answer & explanation
Answer: C
Defamation (RSMo § 375.936) involves making false or malicious statements about the financial condition of an insurer or the character of another producer. Misrepresentation (B) usually refers to lying about the policy terms. Rebating (A) is offering inducements. Unfair discrimination (D) is treating similar risks differently.
Question 17 (Chapter 7)
A producer has been licensed for two years and is now applying for renewal. They have completed 16 hours of CE, but none of the hours were in ethics or Missouri law. According to 20 CSR 700-3.200, what is the status of their renewal application?
- A) The application will be approved because the 16-hour total was met.
- B) The producer will be granted a 30-day extension to complete the ethics hours.
- C) The application will be denied because the 3-hour ethics/law requirement was not satisfied.
- D) The producer must retake the producer examination to renew the license.
Show answer & explanation
Answer: C
Missouri requires 16 hours of CE, and specifically mandates that 3 of those hours must cover ethics, Missouri law, and producer duties. Failure to meet this specific carve-out means the CE requirements are not satisfied, leading to a denial of renewal.
The Mistakes That Cost Marks
Treating a producer's premium collection casually. Premiums received for an insurer are held in a fiduciary capacity and not mixed with personal funds. Two questions test this from different angles (questions 7 and 14).
Getting the continuing education numbers wrong. Missouri requires 16 hours every two years, and 3 of them must cover ethics, Missouri law and producer duties (question 17). The total alone does not satisfy the rule.
Letting a passing score expire. Exam scores are valid for one year, so apply for the license within that window (question 12).
Confusing the unfair practices. Twisting, defamation, rebating and misrepresentation each have their own definition. Match the facts in the scenario to the definition, not to the label that sounds nearest (questions 5, 10 and 16).
Memorising section numbers without the idea behind them. The exam asks what a rule does, so learn the rule first and the citation second.
Your Next Step
Score yourself on the three groups and note which ones went worst, then return to that part of the outline. The course preview lets you try the audio lessons and quiz format, and our free practice question hub has the full list of topic sets for the Missouri Life & Health exam.
For the format and difficulty, read how many questions are on the exam and whether the exam is hard.
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