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Insurance Legislation MAIA has Passed

Over the years, MAIA played a key role in passing many Missouri insurance laws that benefit independent agents and their customers.
 
(2016-HB 2150)
Requires life insurance companies to compare policies, annuities, and accounts against a death master file for potential matches and to either pay beneficiaries or remit unclaimed benefits to state treasurer.
 
 
Automobile Insurance Cancellation Notices (2015-HB 391)
Requires any insurer canceling, refusing to renew, or refusing to write a policy of automobile insurance to send written notice by United States Postal Service certificate of mailing, first class mail using Intelligent Mail barcode (IMb), or another mail tracking method used, approved, or accepted by the United States Postal Service.
 
Informational Documents Issued by the Department of Insurance (2015-HB 709)
Allows the Director of the Missouri Department of Insurance to issue non-binding informal written communications for the purpose of informing or educating the insurance industry and the general public about a regulatory topic or issue.
 
Prepaid Legal Services Plans (2014-SB 606)
This act repeals provisions of law requiring a person who solicits membership on behalf of a prepaid legal services plan to be licensed as an insurance agent.The act provides that any person who solicits memberships on behalf of a prepaid legal services plan must disclose to the consumer in writing that a prepaid legal services plan is not regulated by the Department of Insurance, Financial Institutions and Professional Registration.
 
Consumer Protections (2014-SB 610)
Previously, consumer protections against predatory business practices by building contractors were only afforded to owners of residential property.  This act expands those consumer protections to owners of commerical property.
 
Oral Chemotherapy (2014-SB 668)
Requires health benefit plans to establish equal out of pocket costs for covered oral and intraveneously administered chemotherapy medications.
 
Domestic Surplus Lines Insurers (2014-HB 1361)
This bill regulates nonadmitted insurers who are domiciled in Missouri and meet certain conditions to sell types of insurance not provided by admitted insurers. Domestic surplus lines insurers will possess a policyholder surplus of $20 million, be approved in another jurisdiction, pass a resolution seeking to be a domestic surplus lines insurer in Missouri, and be granted written approval by the Director of the Department of Insurance, Financial Institutions and Professional Registration.
The department may promulgate rules to enforce the bill. Domestic surplus lines insurers may write any type of policy that a nonadmitted insurer not domiciled in Missouri may write. These policies are not subject to the Missouri Property and Casualty Insurance Guaranty Act or the Missouri Life and Health Insurance Guaranty Association Act. They are subject to taxes on surplus lines policies including the surplus premium lines tax under Section 384.059, RSMo, but will not be subject to other taxes levied on admitted insurers whether domestic or foreign such as taxes imposed under Section 148.320. Surplus lines insurers are subject to financial solvency requirements unless specifically exempted. Domestic surplus lines insurers will receive the same specified exemptions regarding rating plans, policy forms, policy cancellation and non-renewal, and premiums as non-admitted insurers operating in Missouri.
 
Workers' Compensation (2013-SB 1)
Addresses the insolvency of the Second Injury Fund and corrects an onerous Western District Court ruling by clarifying that occupational diseases are covered under Missouri workers' compensation statute.

Regulation and Licensing of Navigators (2013-SB 262)
Provides statutory authority for the Department of Insurance, Financial Institutions and Professional Registration to regulate and license navigators who provide assistance to people relating to enrollment in the health exchange created under the Patient Protection and Affordable Care Act. Provides that navigators may not engage in conduct that requires licensing as a producer without being so licensed.

Missouri Life and Health Guaranty Association (2013-SB 59)
Increases the limits of coverage for the Life and Health Guaranty Association to reflect more modern amounts and conform to the nationwide model recommendations.

Electronic Delivery of Insurance Policies (2013-HB 322)
Allows consumers to opt in for electronic delivery of insurance policies or to access policies and endorsements on insurer websites. Provides that consumers may provide proof of motor vehicle insurance coverage to law enforcement officials on mobile electronic devices.

Work Place Injuries (2012-HB 1540)

Corrects onerous Western District Court Ruling (Hooker v. Robinson) which allowed employees to sue their co-employees for workplace injuries even after collecting workers’ compensation benefits. SB 1540 specifies that co-employees may not be held liable except in cases of affirmative negligence that purposefully and dangerously causes or increases the risk of injury.

Immunity (2012-HB 1495)
Expands immunity against civil actions for insurance providers and other entities that provide information to law enforcement and regulatory agencies in conjunction with insurance fraud investigations.

Certificates of Insurance (2011-HB 407)
Requires certificates of insurance to be filed with the Department of Insurance, Financial Institutions and Professional Registration. Provides guidelines and restrictions relating to the content, preparation, issuance and modification of certificates of insurance.

Storm Chasers (2011-SB 101)
Prohibits contractors who perform residential exterior work from offering to pay a homeowner's deductible. Prohibits contractors from representing homeowners or negotiating with insurers on behalf of homeowners. Allows homeowners to cancel contracts for residential work after being notified by an insurer that all or part of the work will not be covered by a policy.

Insurance Regulatory Revisions (2011-SB 132)
Provides for the regulation of motor vehicle extended service contracts by the Department of Insurance, Financial Institutions and Professional Registration. Specifies provisions for the licensing, sale and content of insurance for portable electronic devices. Adopts provisions to comply with federal law relating to the licensing, taxation and regulation of surplus lines insurance.

Insurance Regulatory Issues (2010-SB 583)
Requires non-resident drivers to maintain financial responsibility in compliance with their home state.  Establishes standards for the Director of the Department of Insurance to determine if an insurer is operating in a hazardous financial condition. Allows health benefit plan enrollees, upon request, to receive materials from a managed care entity in electronic form. And, mandates that health plans must provide coverage for adopted children on same basis as other dependents. Requires that unearned premiums from Medicare supplement or long term care policies be refunded within twenty days.
 
Liquidation and Dissolution of Domestic Stock Insurers (2010-SB 834)
Allows a domestic stock insurer to voluntarily dissolve and liquidate provided that the Director of the Department of Insurance approves the articles of dissolution.

Health Insurance For Autism Spectrum Disorders (2010-HB 1311) 
Requires all group health benefit plans to provide coverage for the diagnosis and treatment of autism disorders through 18 years of age.

Continuation of Health Coverage (2009-HB 231)
Requires all group health policies to provide continuation of coverage provisions in the same manner as provided by COBRA.
 
Omnibus Insurance Issues (2009-HB 577) 
Clarifies that insurers that pay premium taxes are exempt from Missouri income and franchise taxes; establishes crimes for knowingly producing, manufacturing, selling, distributing or possessing fraudulent auto insurance identification cards; authorizes Missouri’s participation in the Interstate Insurance Product Regulation Compact for filing of life, disability, annuity and long-term care products; changes surplus lines license renewals from annual to biennial; changes surplus lines tax reporting requirements and provides for surplus lines taxes to be paid directly to the Department of Revenue; requires health plans to offer coverage for prosthetic devices and services; prohibits life insurers from taking underwriting actions or charging different rates based upon a person’s past or future lawful travel destinations unless such action is based on sound actuarial principles; prohibits health insurers from imposing any co-payment that exceeds fifty percent of a single chiropractic service; and amends requirements related to the formation of captive insurance companies.
 
Department of Insurance, Financial Institutions and Professional Registration (2008-SB 788)
Codifies executive order bringing Finance, Professional Registration, Credit Unions and other regulatory divisions under the Department of Insurance and re-naming it as the Department of Insurance, Financial Institutions and Professional Registration.
 
Motor Fuel Storage Tanks and Equipment (2008-SB 907)
Establishes the Petroleum Storage Tank Insurance Fund as a Type III state agency. Added aggregate limit of $2 million to coverage requirements, extended expiration date of the fund to 2010 and adjusted the fees for participation in the fund.
 
Auto Renewal Notices (2008-HB 1690)
Allows insurers to make web-based rate and form filings and authorized insurers to send auto renewal notices electronically so long as the policyholder "opts-in" and requests that renewal notices be sent in such a manner.
 
Employment Practices (2008-HB 1883)
A bill dealing with employment practices, including a provision relating to workers' compensation to abrogate the Missouri Supreme Court "Schoemehl" decision by specifying that the right for workers' compensation benefits terminates upon an injured employee's death.
 
Health Insurance (2007-HB 818)
Establishes Missouri health insurance laws as HIPAA compliant. Requires Missouri Consolidated Health Care Plan to offer HSA options. Allows employees choice to retain individual health coverage or enroll in employer group plans. Requires health insurers to offer dependent coverage to age 25. Requires employers to establish Section 125 Plan for employee health plan contributions. Alters eligibility and premium limitations for Missouri Health Insurance Pool. Provides 100% tax deduction for health insurance premiums from Missouri taxable income. Establishes regulations for discount medical plans. Requires insurers to provide 30 day notice for deletions in drug formularies.
 
Group Health Loss Data (2007- HB 791)
Requires insurers to provide loss data upon request to employers which have group insurance plans with 51 or more covered lives. Loss runs would not be required to be provided until a policy was in force for 22 months.
 
Department of Insurance Enforcement Powers (2007-SB 66)
Establishes consistent administrative, civil and criminal enforcement tools and penalties for the Department of Insurance. Increases continuing education requirements for producers to 16 hours. Amends assessments to insurers for Department examinations. Increases regulation of the Title Insurance industry.
 
Group Health Insurance (2006-HB 1827)
For health insurance plans issued to an association covering both small and large employers, this bill allows the difference in premium rates charged between similar classes of business to exceed 20% if the Director of the Department of Insurance determines it will be in the public's interest. The director may also approve additional classes of business if the plan is underwritten and rated as a single employer, has a uniform health plan design, guarantees issuance to all members, and complies with all other federal and state insurance requirements. The bill also reduces the membership requirement for policies issued to associations from 100 to 50 members.
 
Medical Malpractice Insurance and Enforcement Powers of the Department of Insurance (2006-HB 1837)
This bill changes the laws regarding medical malpractice insurance and the enforcement powers of the Department of Insurance.
 
Modifies Laws on Health Insurance Coverage (2006-SB 567)
·  HEALTH INSURANCE BENEFITS-Currently, an employer may provide or contract for health insurance at a reduced premium rate for employees who do not smoke or use tobacco products. This act allows the employer to also provide or contract for health insurance at a reduced deductible level for employees who do not smoke or use tobacco products. Insurers or small-employer carriers offering these policies will not be in violation of any unfair trade practice. These provisions are similar to HB 1101 (2006).
·  CLINICAL TRIALS HEALTH INSURANCE COVERAGE-This act requires health insurance companies to provide coverage for routine patient care costs incurred as the result of phase II clinical trials undertaken to treat cancer. Currently, Section 376.429, RSMo, requires coverage for phases III or IV only. In addition, health benefit plans may limit coverage for the routine patient care costs of patients in phase II of a clinical trial to those treating facilities within the health benefit plans' provider network; except that, this provision shall not be construed as relieving a health benefit plan of the sufficiency of network requirements under state statute. Routine patient care costs coverage for phase II clinical trials shall apply if the trial is sanctioned by the National Institutes of Health (NIH) or National Cancer Institute (NCI) and conducted at an academic or National Cancer Institute Center; and the person covered under this section is enrolled in the clinical trial and not merely following the protocol of phase II clinical trials. In addition, the provisions of this act regarding phase II of a clinical trial shall not apply automatically to an individually underwritten health benefit plan, but shall be an option to any such plan.
·  HEALTH INSURANCE CO-PAYMENTS FOR PRESCRIPTION DRUGS-This act provides that health insurers will be required to charge only one co-payment on a prescription if the required single dosage is not available and a combination of dosage amounts must be dispensed to fill the prescription. This provision does not apply to prescriptions in excess of a one-month supply. If technology does not permit adjudication, the health carrier or health benefit plan will provide reimbursement forms for the patients. These provisions are similar to HB 1904 (2006).
 
Missouri Health Insurance Pool Board of Directors Membership Requirements (2006-SB 837)
This act modifies the membership requirements for the board of directors of the Missouri Health Insurance Pool, the membership of the governing committee that administers the Missouri Basic Property Insurance Inspection and Placement Program and modifies the membership of board of directors that governs the Missouri Malpractice Joint Underwriting Association.
 
Department of Insurance Records (2005-HB 388)
This bill makes certain documents that are submitted to the Department of Insurance non-public documents, including information in consumer complaint files and information submitted by an insurer or producer for purposes of investigation. This information is confidential and not subject to disclosure unless a subpoena is issued by the proper prosecuting attorney, Attorney General, administrative hearing officer, or court. The department director may make these documents public if admitted as evidence in any administrative, civil, or criminal enforcement proceeding.
 
Construction Defects in Residential Property (2005-SB 168)
Creates a process to resolve disputes arising out of alleged construction defects in residential property. This act permits contractors to repair construction defects prior to the commencement of litigation.
 
Work Comp Reforms (2005-SB 1)
This bill amends various provisions of workers' compensation law, including modified definitions of the terms "accident" and "injury."
 
Tort Reforms (2005-HB 393)
Amends state laws affecting claims for damages and their payment, and establishes venue in all tort actions.
 
Insurance Fraud (2005-HB 866)
Increases the penalties for those who engage in fraudulent actions with respect to an insurance transaction. 
 
Guaranty Association Reforms (2004–SB 1299)
Increased payments made by the P/C Guaranty Association for return premiums to $25,000 (was $10,000) and includes coverage for "pain and suffering" up to the limits of the limits of the policy.
 
Surplus Lines Bonding Requirement (2004–SB 1299)
No longer requires surplus lines licensee to post a bond.
 
FAIR Plan Reform (2004–SB 1299)
The available limits on a home in the FAIR Plan were increased to $200,000 (was $100,000).
 
Six-Month Auto Policy (2004–SB 1299)
Established the minimum term of an automobile policy at six months.
 
Homeowners/Replacement Value (2004–SB 1086)
Prohibits lenders from requiring borrowers to obtain homeowners insurance that exceeds the replacement value of the home.
 
Credit Scoring (2002-HB 1502)
Prohibits insurers from using credit information or the lack thereof as the sole factor in underwriting, and ensures that consumers won’t damage their credit histories by shopping for insurance. Prohibits insurers from taking adverse action against an applicant or policyholder based on credit information contained in a credit report that the insurer knows is in dispute.
 
Commercial Deregulation (2002-HB 1468)
Primarily a "clean up" of the commercial deregulation bill that passed in 2001. MAIA was successful in attaching an amendment to this bill permitting the Property & Casualty Guaranty Association to accept claim forms other than their own.
 
Dram Shop Liability (2002-HB 1532)
Restores "dram shop" immunity except for serving a minor or an obviously intoxicated person. A May 2000 decision by the Missouri Supreme Court repealed a portion of the state’s Dram Shop Law, which caused much concern and uncertainty among insurers and insureds.
 
Single Producer’s License, and Other "Producer" Issues (2001–SB 193)
Does
 away with the distinction between agents’ and brokers’ licenses, replacing them with a single "producer license" effective 
Jan. 1, 2003. Other benefits for producers contained in the bill include: 1.) we finally established in law your right to charge incidental fees in addition to receiving commissions; 2.) we added language that will expunge (destroy) your records for minor fines after five years; and 3.) we eliminated insurers appointment/termination fees that were regularly passed on to agents.
 
Privacy of Information (2001–HB 801)
Brings 
Missouri into compliance with the federal Gramm Leach Bliley Act of 1999, and requires insurance companies and agencies to provide their privacy policies to their customers.
 
Commercial Lines Deregulation (2001–SB 186)
Modifies the commercial lines deregulation law. Requires insurers to give 60 days notice to the named insured and the insured’s "agent of record" if there will be a 25 percent or more increase in premiums.
 
Licensing Reciprocity (2000–SB 896)
Enacts the reciprocity provisions for licensing nonresident agents consistent with the federal Gramm Leach Bliley Act.
 
Sovereign Immunity Bill (1999–SB 295)
Raises the limits of liability to $300,000 per individual and $2 million per accident and established a factor for annual adjustments to the liability caps.
 
Agent Licensing-Anniversary Dates (1998–HB 1601)
Allows the Missouri Department of Insurance to fix the same anniversary date for persons who hold both an agent’s and broker’s license.
 
"Family Member" Coverage under Workers’ Compensation (1998–HB 1237)
This bill affected 32 sections of the work comp law, but of special interest to MAIA was a section that covers family member of partners or sole proprietors under the work comp law, unless the partner or sole proprietor opts out.
 
Work Comp Coverage for Limited Liability Companies (1996–HB 1368)
Covers LLCs under workers compensation, allowing the LLC member to reject coverage (opt-out) but requiring coverage of their employees.
 
Suspensions, Revocations of License (1993–HB 709)
This bill made it more difficult for the Department of Insurance to take away an agent’s or broker’s license. It says violations of state insurance laws or actions must be done "knowingly" by the agent, broker or agency.
 
Workers' Compensation Reforms (1993–SB 251)
Major reforms of the state’s work comp system, including open competition for work comp rates, a state mutual insurance company (Missouri Employers Mutual) to write work comp insurance for any employer; a new residual market mechanism, and new definitions of "accident," "injury," and occupational disease.
 
Small Employer Health Insurance Act (1992–SB 796)
Requires all insurers selling health insurance to groups with 3 to 25 employees to accept any business, regardless of the health status or claims experience of the applicant’s employees.
 
Workers' Compensation Reforms (1992–HB 975)
Various work comp reforms, including provisions limiting mental stress claims to those that are work-related, establishing deductibles in work comp policies, and stiffer penalties for work comp fraud.
 
MDI Reorganization & Agent/Broker Licensing (1991–HB 575)
Completed reorganization of MDI, changing the 1990 law to give the Director of Insurance more flexibility in hiring personnel. Your association also included language in the law that says agents’ or brokers’ licenses will not be terminated if they are more than 90 days late on renewal—provided continuing education requirements are met and a late penalty of $25 per month is paid.
 
Model Liquidation Act (1991–HB 385 et al)
Contains the NAIC Model Liquidation Act, amended so agents are not held responsible for uncollected, unearned premiums.
 
Constitutional Amendment Elevating Missouri Division of Insurance to Full Department (1990–SJR 31)
This constitutional amendment, which was approved by Missourians on 
Aug. 4, 1991, created a cabinet-level Department of Insurance and a consumer affairs office within MDI to investigate unfair insurance practices. Your association opposed a separate, independent office of consumer affairs.
 
MDI Reorganization & Continuing Education (1990–HB 1739)
This bill, which was designed to solve funding and staffing problems of MDI, created a dedicated fund for MDI. All licensing fees are deposited into this fund, which is earmarked solely for payment of expenditures incurred by MDI. Also changed continuing education requirements to 10 hours every two years for a P/C license or L/H license. Sixteen hours is required every two years for those licensed in all lines.
 
Workers’ Compensation Benefits (1990–SB 751)
Your association worked with business organizations and insurance companies to pass a workers' compensation bill acceptable to those interests. The law raised benefits, added strong language concerning defenses of alcohol or drug intoxication (that were causal to the injury), and severely restricted recovery for recreational injuries.
 
Countersignatures/Reciprocity (1989–HCS for BB 615 & 563)
Allows MDI to revoke 
Missouri non-resident agent’s licenses of those whose home states do not allow non-resident license holders to solicit, negotiate or procure insurance in their states. Imposes a countersignature requirement on nonresident agents and brokers if their states’ countersignature laws restrict Missouri agents.
 
Guaranty Association Deductible Revision (1989–SB 333)
Lowered Missouri Insurance Guaranty Association deductible from $200 to $100 and strengthened the Guaranty Association’s claims procedures.
 
Excess & Surplus Lines Revision (1989–SB 250)
Eliminated "diligent search" requirement that producing agents formerly were required to meet in order to place business with non-admitted insurers.
 
Workers’ Compensation (1989–SB 311)
Your association worked with other business groups to pass a law that would not change the method of calculating WC premiums from total wages to actual hours worked in the contracting classification.
 
Underground Storage Tanks (1989–HB 78)
Created the Missouri Underground Storage Tank Insurance Fund to create a market for these risks.
 
Third Party Administrators (1989–SB 251)
Regulates third party administrators, bringing them under the regulation of MDI.
 
Mandatory Continuing Education Law (1988–SB 430)
Established mandatory continuing education requirements for insurance agents and brokers. Required 15 continuing education credits every three years for either a life/health or property/casualty license; 24 credits for those who are licensed for all lines.
 
Insurance/Tort Reform Law (1987–HB 700)
Contains numerous insurance and legal "reforms" designed to hold down the cost of liability insurance, including flex rating.
 
Revisions to Mo. Insurance Guaranty Assn. & Missouri Liquidation Act (1986–HCS for HB 1103)
Raised the limits of a claim covered by the association from $50,000 to $300,000 and the limits of claims for unearned premiums from $2,500 to $10,000. The deductibles were raised from $100 to $200. Also required the Guaranty Association to pay work comp claims in full and cover third-party judgments against an insured. In addition, revised the state’s Liquidation Act so that when an insolvency occurs, liquidators are prohibited from collecting unearned premiums from agents and brokers.
 
Mandatory Auto Liability Insurance Law (1986–SB 424)
Your association worked with several insurance companies to pass this law, which requires motor vehicle owners to carry auto liability insurance or some other form of financial coverage, and also establishes an insurance identification card system and various checks to insure that motor vehicle owners comply with minimum liability requirements.
 
Modification of Agents Cancellation Law; FAIR Plan Open to Rural Property (1986–HS for SB 710)
Makes a technical correction in the Agents Cancellation Law so that the law applies to all contracts in existence or written after the original date of the act. Opens the FAIR Plan to rural risks.
 
Dram Shop Law (1985–SB 345)
Limits third-party liability for those who dispense alcoholic beverages.
 
Guaranty Fund Revisions (1985–SB 329)
1) Changes the definition of an "insolvent insurer" to make certain that money in the fund will be used to pay claims of insolvent insurers, not to rehabilitate insurance companies. 2) Requires companies to give independent agents 60 days notice before canceling certain classes of commercial risks.
 
Pre-licensing Education Requirements & Licensing Examinations (1984–SB 570)
Requires 40 hours of pre-licensing education to qualify for a property/casualty license. Also permits the Department of Insurance to contract with an independent testing service to prepare and administer the state’s licensing exams.
 
Mutual Insurance Companies (1984–HB 1498)
Eliminated all town, county and farm mutual laws, replacing them with a law for only "
Missouri mutual insurance companies." This law gave the division greater authority over mutuals.
 
Missouri Insurance Guaranty Association Act (1983–SB 125)
Permits claims for unearned premiums when insurers are declared insolvent. They were previously excluded from the Guaranty Association’s definition of "covered claim."
 
Workers’ Compensation Revisions - Partners & Sole Proprietors (1983–HB 556)
Permits sole proprietors, partners and co-partners to be covered under workers' compensation insurance. Also allowed individual contractors to show proof of workers' comp without becoming incorporated.
 
Agents Licensing Law (1981–SB 10)
Your association worked with the Missouri Department of Insurance to pass this law creating "life-time" licensing for insurance agents. (Previously, licenses were renewed annually.) Did away with requirement that agents hold a separate license for each company they represented. Instead, companies notify MDI when they appoint or terminate an agent.
 
Motor Vehicle Responsibility Act (1981–SB 201)
Increased the auto liability limits to $25,000/$50,000/$10,000. Raised the minimum amount of uninsured motorist coverage to $25,000/$50,000.
 
Agency Cancellation Law (1979–HB 506)
Requires property and casualty insurers to give independent agents 90 days notice before canceling their contracts. Requires insurers to renew all contracts written by cancelled agents for one year.