Property and Casualty Laws
Member Insurer
any person that writes any line of insurance under a certificate of authority issued by the Director EXCEPT for the following: life, health, disability, accident, or annuity, mortgage guaranty, financial guaranty, fidelity, surety, bond, credit, title, ocean marine
Nonresident Producer
any person who is not a MO resident, but who is licensed in his/her home state, may be issued a nonresident producer license in MO for the same lines of authority that appear on the license in the home state under the following conditions. Must notify the Director within 30 days of any change in legal residence
Failure to Maintain Complaint Handling Procedures
failure of any person to maintain a complete record, for at least 3 years, of all written complaints received. Records must include: The total number of complaint, each complaints classification by line of insurance, the nature of each complaint and disposition, the amount of time taken to process each complaint.
License Suspension for Uninsured Motorist Causing an Accident
if the operator of a motor vehicle that cannot prove financial responsibilities and who causes an accident that results in $500 in injuries or property damage, has 20 days after the Director receives a MO accident report to show proof the he/she has: been released from liability for the accident, been finally adjudicated not to be liable for the accident, executed a legal written agreement providing for an agreed amount in installment payments of all claims for injuries and damages resulting from accident. Director must suspend the drivers license and all reg of uninsured operator within 90 days. If any person provides incorrect info the Director must take corrective action within 45 days.
Form SR-26
is issued by an insurer to state that a person no longer has an SR-22 on file with the insurer for the following reasons: SR-22 period has expired, the insured person cancels or does not renew the insurance underlying the SR-22 form
Form SR-22
is issued by the auto insurer and filed with the state after a persons license has been suspended; the insurance company charges a fee to issue the form which is formal proof that a person has auto insurance that meets requirements of state law. MO requires SR-22 as follows: 2 years form the date of suspension for a motor vehicle accident judgment for an accident for which the person failed to pay for damages. 3 years from the date of suspension for failure to show proof of insurance when requested by the Department of Revenue, with respect to an auto accident, failure to maintain liability insurance, providing false insurance to a police officer of the Department of Revenue
Surplus Lines Producer
is licensed to place insurance with non-admitted insurers authorized to transact insurance in the state in which the producer or broker is licensed. MO are not permitted to procure any surplus lines insurance with a non-admitted insurer if they are not also currently licensed. Must pay $100 fee to get license, submit application, and pass exam. Renew biennially. $100 renewal fee
Fiduciary Resposibilities
is one who is entrusted to care for, or act on behalf of another.
Renewal
producer licenses are issued for terms of 2 years. If a producers license expires, the producer may apply for reinstatement, without having to pass a written exam within 12 months of the date the renewal fee was due.
Producer Appointment and Registry
producers may not act on behalf of an insurer if they are not listed in the insurers register of appointed producers. Each producer must maintain a register of all producers it appoints to sell, solicit, negotiate insurance on its behalf. New appointees must be added to the registry within 30 days of appointment. Terminated appointees must be removed from the registry within 30 days with explanation of termination.
Reinstatement Requirements
provide proof of compliance with continuing education requirements, pay a penalty of $25 per month for each month the license was expired, pay all required renewal fees. Renewal fee is $100.
Continuing Education Requirements
unless exempt under law, insurance producers must complete 16 hrs of approved continuing education during each 2 year license renewal period. At least 3 hours of the 16 hours on instruction must be devoted to the topics of ethics, MO Law, producer duties and responsibilities. The Director may extend the time period for completing the course and passing any required exam up to 1 year if producer provides substantial ground for waiver. Example: serious injury, active duty, over 70 years old
Producer Commisions
unlicensed persons may not be paid or receive commissions, service fees, brokerage fees, or any valuable consideration for selling, soliciting, or negotiating insurance in MO if they are required to be licensed.
Special Notes
When the renewal premium is received by the FAIR Plan, the renewal policy will be issued automatically so long as there is no change in the risk. Insured property will be reinspected every 4 years. If the insured property sustains 2 losses within a 12-month period , a higher deductible will be charged. If there are no losses for 5 consecutive years the deductible may be reduced.
Cancellations/Nonrenewal
auto insurers cannot cancel or nonrenew auto insurance except for the following reason: non-payment of the policy premium, the named insureds drivers license was suspended or revoked at any time during the policy period. If a person has at least 2 years driving experience, an insurer cannot cancel, refuse to issue, or nonrenew based soley on: age, residence, race, gender, color, creed, national origin, ancestry, or lawful occupation
Missouri FAIR Plan
created to make available basic property insurance to applicants who cannot obtain it through standard markets. Its purpose is to serve as a last resort to obtain basic property insurance
Rebating
other than as permitted by law or expressly stated in an insurance contract, paying, giving, or allowing any of the following as an inducement for a person to purchase an insurance policy such as the following: rebate of insurance policy premiums, special favors, valuable consideration, stocks, bond, or securities in any insurance company.
Insolvent Insurer
licensed to transact insurance in MO at the time a policy was issued or at the time an insured event occurred, against which an order of liquidation with a finding of insolvency was entered in court in the insurers state of domicile or in MO.
Missouri FAIR Plan Renewal/Nonrenewal/Cancellation
may only cancel policies for the following reasons: evidence that the insured has committed arson or directed arson to be committed, non payment of policy premium, fraud or material misrepresentation, based on evidence, changes in physical condition render the property uninsurable. Must send written notice to the insured at least 30 days before the date of cancellation or non-renewal. Insured must appeal in 30 days.
Qualifications for License
must be at least 18 years old, not have committed any act that is grounds for license denial, suspension, or revocation, pay $100 fee, pass the exam for lines of authority for which the person has applied
Conduct of Producers
on a website insurers and producers must include: contact address and telephone number for communication with producers. A notice that shows the states in which the insurers or producers are authorized to transact insurance.
Cancellation and Termination of Certified Policies
once issued, an insurer may not cancel or terminate it until 10 days after filing SR26 form with the Director of Revenue. Considered filed 3 days after it has been mailed, if proof of mailing has been retained by the insurer. Otherwise the SR26 is considered filed on the date it is stamped by the Department of Revenue as received
Missouri FAIR Plan Eligibility Exclusion
vacant property, property that is unoccupied (commercial dwellings that are 70% or more unoccupied and residential dwellings that are 50% unoccupied), property in a severe state of disrepair or that contains unrepaired damage from prior loss, etc