HCS/SB 282 - This act modifies the law relating to property and casualty insurance procedures. ELECTRONIC SIGNATURE FOR TITLE TRANSFER (Section 301.645, RSMo)
This act allows the use of an electronic signature for a motor vehicle owner to assign ownership of motor vehicle or trailer to an insurance company where the insurance company has paid or is paying a total loss claim on such motor vehicle or trailer.
This section is identical to provisions contained in HCS/SS/SCS/SB 278 (2015).
BULLETINS AND NO-ACTION LETTERS (Sections 374.015 and 374.018)
This act allows the Department of Insurance to issue non-binding informational documents to insurers. The Department may issue informal bulletins for the purpose educating the insurance industry and the general public about a regulatory topic or issue. The Department may also issue a no-action letter stating the intention of the Department to not take enforcement actions to a particular insurer based on a specific set of facts presented by the insurer under applicable law as of the date of the issuance of the letter. So long as there is no change in any material fact or law or a discovery of a material misrepresentation or omission made by the insurer, the Department is estopped from brining any enforcement action against an insurer who has been issued a no-action letter concerning the conduct that is the subject of the no-action letter.
This section is identical to SCS/SB 362 (2015) and provisions included in SS/SCS/HCS/HB 709 (2015).
FOREIGN INVESTMENTS BY INSURANCE COMPANIES (Sections 375.534,
375.1070, 375.1074, and 375.1078)
This act raises the amount of assets that an insurer may invest in foreign securities, investments or deposits from five percent to twenty-percent. The act limits the aggregate investment by an insurer in a single foreign jurisdiction to ten percent of admitted assets for foreign jurisdictions with a sovereign debt rating of SVO 1 or 5% for any other foreign jurisdiction. This act includes a special investment cap of twenty-five percent for investment in Canadian investments. In the case of Canadian investments, an insurer that is authorized to do business in Canada or that has outstanding contracts on risks resident or located in Canada and denominated in Canadian currency have increased limits. This act also limits investments by an insurer of all kinds issued, assumed, accepted, insured, or guaranteed by a single person to 5% of the insurers admitted assets. The special investment cap for Canadian investments and limits on investments of all kinds issued, assumed, accepted, insured, or guaranteed by a single person do not apply to insurers organized under chapter 376.
This act is nearly identical to SCS/SB 346 (2015).
WORKERS COMPENSATION (Section 375.1605)
The act requires all large deductible claims which are also covered claims to be turned over to the responsible guaranty association, unless otherwise stipulated by the guaranty association. However, in the event that an insured pays a deductible claim pursuant to an agreement with a guaranty association, no receiver or guaranty association shall have any obligation to pay such claim or reimburse the insured.
The act entitles guaranty associations to reimbursement from the insured for payment of deductible claims in the event that the insurer would have been entitled to such reimbursement. If the guaranty association is not reimbursed, they are entitled to assert a claim for the amount owed in subsequent disciplinary proceedings.
The receiver is required to take all commercially reasonable actions to collect reimbursements for deductible claims and bill the insured for such reimbursement. Insolvency of the insurer or its inability to perform its obligations under the policy shall not be a defense to the insured's failure to reimburse. Further, only in the case of gross negligence or an allegation of improper handling or payment of a deductible claim by the insurer shall insolvency of the receiver or guaranty association be a defense to the insured's failure to reimburse such entity.
The act requires receivers to utilize collateral, when available, to secure the insured's obligations to fund or reimburse deductible claims or other secured obligations. The act sets out the procedures for satisfying claims with collateral.
This act is nearly identical to HB 609 (2015) and SB 402 (2015).
AUTOMOBILE INSURANCE NOTICE REQUIREMENTS (Sections 379.118 and
379.120)
This act requires insurers mailing notices cancelling, refusing to renew, or refusing to issue automobile insurance policies send such notices by United States postal service certified mail, certificate of mailing, first class mail using intelligent mail barcode, or another mail tracking method used, approved, or accepted by the United States postal service.
RETURN OF PREMIUMS (Section 379.470)
This act authorizes a return or refund of a portion of expense savings to an insured in cases where an insured makes no reportable claim under specified coverages within a prescribed period of time. This act further states that such a return or refund shall not constitute a rebate or an unfair trade practice.
This section is nearly identical to SB 470 (2015).
RATING PLANS (Section 379.473)
This act provides that for purposes of Sections 379.318 to 379.470 relating to property and casualty insurance coverage, a rating difference resulting from the application of a rating plan intended to control rate changes, on current policyholders at renewal or transfer among insurers, is not excessive, inadequate, or unfairly discriminatory, and must not be deemed an unfair trade practice under Sections 375.930 to 375.948.
PERSONAL AUTOMOBILE INSURANCE COVERAGE EXCLUSIONS (Section
379.1706)
This act specifies that insurers that write automobile insurance in Missouri may exclude any and all coverage under a policy issued to an owner or operator of a personal vehicle for any loss or injury that occurs while the driver is logged on to a Transportation Network Company's digital network, provides a prearranged ride, or a vehicle is being used to transport or carry persons or property for any compensation or suggested donation.
HA 1 - THIS AMENDMENT ADDS SECTION 376.791 WHICH EXEMPTS INDIVIDUAL HEALTH INSURANCE COVERAGE FROM TWO SPECIFICALLY REQUIRED CONTRACT PROVISIONS AND GRANTS THE DIRECTOR OF THE DEPARTMENT OF INSURANCE RULE MAKING POWERS IMPLEMENT THE SECTION.
HA 2 - THIS AMENDMENT REPLACES 379.473. THE NEW LANGUAGE STATES RATING DIFFERENCES AS PART OF RATING PLANS INTENDED TO CONTROL RATE CHANGES SHALL NOT BE CONSIDERED EXCESSIVE, INADEQUATE, OR UNFAIRLY DISCRIMINATORY AND SHALL NOT BE DEEMED AN UNFAIR TRADE PRACTICE.
HA 3 - THIS AMENDMENT ADDS SECTION 376.1950 WHICH ADDS PROVISIONS RELATING TO HEALTH BENEFIT PLAN RATE RELEASE.