2017 Insurance Bills Passed Into Law
HB 130: Transportation Network Companies
Requires Transportation Network Companies (TNC) to notify drivers that they may have a contractual obligation
to include the TNC as a loss payee on their insurance policy; also requires TNCs to perform criminal background checks on drivers. Does not affect insurance requirements previously passed in 2016 legislation.
HB 336: Life Insurance Suicide Exclusion
Currently, life insurance companies can exclude coverage for suicide for one year after the issuance of the policy. This bill adds the exclusion to any additional riders, endorsements, or amendments added.
reservation of rights letters, often issued by an insurance carrier when the
carrier believes more time is needed to decide if a claim is covered or not; specifies that if
a person who has a claim for damages against an at-fault party enters into a
contract with the at-fault party’s insurer, such person will, in consideration
for payment of a specified amount of money and in case of judgment against the party,
levy execution only up to the applicable monetary limits of the insurance
contract. Makes so-called "537.065 settlements" only available if the carrier has either declined coverage or has issued a reservation of rights letter. The carriers must also be given the opportunity to intervene within
30 days in any lawsuit relating to unliquidated claims for damages.
SB 31: Collateral Source Rule
Under the act, special damages claimed by the plaintiff at trial that have been satisfied by a payment from a defendant, the defendant's insurer, or authorized representative prior to trial are not recoverable. The defendant is entitled to deduct such payments towards special damages from any judgement as provided in current law and provides
that parties may introduce evidence of the actual cost, rather than the value,
of the medical care rendered. The collateral source doctrine allows for “double
collection” of damages by prohibiting the admission of evidence that an injured
party has already received compensation from the insurance carrier of the
SB 66: Workers' Compensation
bill makes numerous changes to the Missouri workers’ compensation system. Among
those areas addressed is the maximum number of weeks of benefits once the
worker has reached “maximum medical improvement,” the reduction of compensation
award based upon use of drugs, line of duty compensation, and death benefits
and burial expenses. But the most notable area of the bill as it pertains to
insurance agents in the ability for a shareholder of an S corporation with at
least 40 percent or
more interest in the S corporation to individually elect to reject coverage
under the workers' compensation laws by providing a written notice of the
rejection to the S corporation and its insurer. Members of limited liability
companies were already provided the choice to individually reject coverage.