Missouri Property & Casualty Insurance Practice Exam Free - 2026

• A. Within 10 days
• B. Within 15 days
• C. Within 60 days
• D. Within 30 days

Correct answer: D. Within 30 days

Explanation: RSMo § 375.018.7 requires producers to inform the director of a change of address within thirty days, and RSMo § 375.141.5 likewise requires notice of any change of address within thirty days, with failure potentially resulting in a forfeiture of up to ten dollars per month or, if it prevents service of a complaint, immediate revocation until service can be obtained. Ten, fifteen, and sixty days are not the statutory period. See RSMo § 375.018 and RSMo § 375.141.

• A. $25,000 per person / $50,000 per accident for bodily injury and $25,000 for property damage
• B. $20,000 per person / $40,000 per accident for bodily injury and $10,000 for property damage
• C. $50,000 per person / $100,000 per accident for bodily injury and $25,000 for property damage
• D. $30,000 per person / $60,000 per accident for bodily injury and $15,000 for property damage

Correct answer: A. $25,000 per person / $50,000 per accident for bodily injury and $25,000 for property damage

Explanation: RSMo § 303.030.5 requires a policy to carry limits of not less than $25,000 for bodily injury to or death of one person, $50,000 for bodily injury to or death of two or more persons in one accident, and $25,000 for injury to or destruction of property of others in one accident. Options B and D are below the statutory minimums, and option C states the higher limits required only for transportation network company drivers while logged on. See RSMo § 303.030.

• A. UM coverage may be rejected in writing
• B. UM coverage is required in every auto liability policy at not less than the limits in RSMo § 303.030 and cannot be removed
• C. UM coverage is optional and may be removed at the insured's request
• D. UM coverage may be removed if the insured buys collision coverage instead

Correct answer: B. UM coverage is required in every auto liability policy at not less than the limits in RSMo § 303.030 and cannot be removed

Explanation: RSMo § 379.203.1 prohibits delivery of any automobile liability policy in Missouri unless it provides uninsured motorist coverage in not less than the bodily injury limits of RSMo § 303.030; the coverage is mandatory for personal policies, and only certain commercial fleet policies need merely have it offered. Missouri has no written-rejection option for individual policyholders, so options A and C are wrong, and collision coverage has no bearing on the requirement. See RSMo § 379.203.

• A. At least 10 days
• B. At least 20 days
• C. At least 30 days before the effective date
• D. At least 45 days before the effective date

Correct answer: C. At least 30 days before the effective date

Explanation: RSMo § 379.118.1 requires an insurer proposing to cancel or nonrenew an automobile policy, except at the insured's request or for nonpayment of premium, to send written notice on or before thirty days prior to the proposed effective date, stating the action, the effective date, the specific reason, and the insured's possible eligibility for the assigned risk plan. Ten days is the notice period only for cancellation due to nonpayment of premium, and twenty and forty-five days are not statutory periods. See RSMo § 379.118.

• A. Cyber liability coverage addresses the retailer's own investigation, restoration, and income loss, while first party cyber coverage responds to the customers' claims
• B. First party cyber coverage addresses the forensic investigation and data restoration, while the lost income and the customers' claims both fall under cyber liability
• C. First party cyber coverage addresses the retailer's own investigation, restoration, and income loss, while cyber liability responds to the customers' claims
• D. First party cyber coverage responds to the customers' claims and the lost income, while the forensic and restoration costs are paid under the commercial property form

Correct answer: C. First party cyber coverage addresses the retailer's own investigation, restoration, and income loss, while cyber liability responds to the customers' claims

Explanation: First party cyber coverage pays the insured's own costs such as forensics, data recovery, notification, and network interruption income, while third party cyber liability defends and pays claims brought by others harmed by the breach. Putting everything under one heading blurs the fundamental first party versus third party distinction. Ransomware is a covered peril under properly written cyber forms.

• A. Because the personal auto policy covers the driver in full during this period, while the network company's commercial policy does not attach until a ride request is accepted
• B. Because the personal auto policy typically excludes use of the vehicle as a public or livery conveyance, while the network company's contingent coverage in this period is often narrow
• C. Because the network company's commercial policy provides full primary coverage from the moment the app is on, while the personal auto policy is excess and often refuses to contribute
• D. Because the personal auto policy excludes any vehicle used for business purposes of any kind, and the network company provides no coverage until a passenger is actually in the vehicle

Correct answer: B. Because the personal auto policy typically excludes use of the vehicle as a public or livery conveyance, while the network company's contingent coverage in this period is often narrow

Explanation: Once the app is on, the personal policy's livery exclusion can apply, yet the network company's coverage before a passenger is matched is typically limited, leaving a thin layer of protection that a rideshare endorsement is designed to fill. Network companies generally do provide broader coverage once a ride is accepted. Phone presence is not an exclusion, and commercial auto policies may certainly be written for these drivers.

• A. The increased cost of rebuilding to current code and the demolition of the undamaged portion, but not the loss of value in that undamaged portion
• B. The loss to the undamaged portion and the demolition cost, but not the increased cost of construction, which falls under the standard building coverage
• C. The increased cost of construction and the loss of value in the undamaged portion, with demolition and debris removal covered by the standard debris removal provision
• D. The loss to the undamaged portion, the cost of demolition and debris removal for that portion, and the increased cost of construction

Correct answer: D. The loss to the undamaged portion, the cost of demolition and debris removal for that portion, and the increased cost of construction

Explanation: Ordinance or law coverage is customarily written in three parts that together address the value of the undamaged portion the insured must destroy, the demolition and removal cost, and the extra expense of rebuilding to current requirements. Dropping any one of the three leaves substantial uninsured cost, because a standard property policy pays only to restore what was actually damaged and its debris removal provision applies to damaged property. This is why code upgrade exposure is a common gap in older buildings.

• A. Because standard property forms generally exclude loss caused by mechanical breakdown, electrical arcing, and steam boiler explosion, which the equipment breakdown form covers
• B. Because standard property forms cover mechanical breakdown but exclude the resulting fire and explosion damage, which the equipment breakdown form picks up
• C. Because standard property forms exclude damage to machinery from any cause, so all equipment must be scheduled on an equipment breakdown form to be insured
• D. Because standard property forms cover the building and contents but exclude all business income losses, which the equipment breakdown form provides for every covered peril

Correct answer: A. Because standard property forms generally exclude loss caused by mechanical breakdown, electrical arcing, and steam boiler explosion, which the equipment breakdown form covers

Explanation: Commercial property forms are written for external causes of loss and carve out internal failures such as mechanical or electrical breakdown and boiler rupture, which is exactly the gap equipment breakdown fills, often with resulting damage and business income as well. Fire remains a covered peril under the property form. Property forms do not exclude all damage to machinery or all business income losses; the gap is specifically the internal breakdown perils.

• A. They must disclose the identity of their reinsurers to each policyholder
• B. They must clearly disclose the premium charged for terrorism coverage and the existence of federal participation in paying losses
• C. They must disclose the loss ratio of the policyholder's classification
• D. They must disclose the insurer's total surplus at the time of issuance

Correct answer: B. They must clearly disclose the premium charged for terrorism coverage and the existence of federal participation in paying losses

Explanation: The law requires a clear and conspicuous disclosure separately stating the terrorism premium and informing the insured that the federal government shares in the payment of certified terrorism losses. Reinsurer identities, company surplus, and class loss ratios are not part of that required notice. The disclosure is generally required both at offer and at policy issuance.

• A. The loss is excluded because flood and surface water are not covered perils; separate flood insurance is needed
• B. The loss is covered because water damage of any kind is a named peril
• C. The loss is covered but only up to 10 percent of the dwelling limit
• D. The loss is excluded only if the home sits in a designated flood zone

Correct answer: A. The loss is excluded because flood and surface water are not covered perils; separate flood insurance is needed

Explanation: Standard homeowners policies do not cover flood damage, including rising water and surface water entering the home. Coverage must be purchased separately, most often through the National Flood Insurance Program. The exclusion applies regardless of whether the home is in a mapped flood zone, and there is no percentage sublimit for flood in the standard form.

• A. The loss is covered because the landslide was sudden and accidental
• B. The loss is covered under the falling objects peril
• C. The loss is excluded as earth movement, which requires a separate policy or endorsement to insure
• D. The loss is covered if the insured proves the slide was caused by weather

Correct answer: C. The loss is excluded as earth movement, which requires a separate policy or endorsement to insure

Explanation: Earth movement - including earthquake, landslide, and similar ground movement - is excluded under standard homeowners forms even when triggered by rain or other weather. Coverage is available from many insurers only as a separate policy or endorsement. The suddenness of the event does not defeat the exclusion, and a landslide is not a falling object in the policy sense.

• A. The insurer pays in full, because the upgrades are part of repairing the covered fire damage
• B. Beyond any small built-in allowance, the insured pays, unless an ordinance or law endorsement was purchased
• C. The city must subsidize the upgrades it requires
• D. The insurer pays, but only if the home is insured for replacement cost

Correct answer: B. Beyond any small built-in allowance, the insured pays, unless an ordinance or law endorsement was purchased

Explanation: A standard policy pays to repair or rebuild what was there before the loss; the added expense of complying with building codes and ordinances that did not exist when the home was built is excluded except for any small built-in allowance. An ordinance or law endorsement pays that extra expense. Replacement cost settlement by itself does not add code-upgrade coverage.