|SB 1299||Raises the liability limits on residential insurance policies issued by the FAIR plan from $100,000 to $200,000|
|LR Number:||4729L.02T||Fiscal Note:||4729-02|
|Committee:||Small Business, Insurance & Industrial Relations|
|Last Action:||07/01/04 - Signed by Governor||Journal page:|
|Title:||HCS SB 1299|
|Effective Date:||August 28, 2004|
HCS/SB 1299 - This act revises several provisions of law as they relate to property and casualty insurance.
FAIR PLAN - This act modifies the definition of "basic property insurance" for purposes of the FAIR Plan by providing that policies issued by it shall be subject to the credit underwriting restrictions of Section 375.918 (Section 379.815). This act raises the liability limits on residential insurance policies issued under the FAIR plan from $100,000 to $200,000 (Section 379.825)(perfected Senate Bill).
"MISSOURI PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION ACT" - This act modifies and modernizes the "Missouri Property and Casualty Insurance Guaranty Association Act". The act modifies the definitions as they are used in Sections 375.771 to 375.779 (the Property and Casualty Insurance Guaranty Association Act). For example, the definition of "covered claim" is modified to clarify what types of claims are not covered (Section 375.772). The act provides that the guaranty association assessments shall not apply to insurance of warranties or service contracts, the portion of any insurance provided or guaranteed by any government, or to associations which form to provide malpractice insurance to their members under Sections 383.010 to 383.040 (Section 375.773). The act provides that the guaranty's obligation shall be satisfied by paying the claimant he full amount in a workers' compensation claim, an amount not exceeding $25,000 per policy for a covered claim for the return of unearned premium, or an amount not exceeding $300,000 for all other covered claims. The act provides that except in a claim for benefits under workers' compensation coverage, the obligation to the insured on covered claims shall cease when $10 million has been paid in the aggregate by the association. The act modifies the association's powers by providing that it may act as a servicing facility for other similar entities created by law and may intervene in other court proceedings involving insolvent insurers (Section 375.775). The act requires insureds who have claims against an insolvent insurer to exhaust their rights under forms of insurance policies first (Section 375.778). The association's obligation shall be reduced by the amount recoverable under the other forms of insurance.
AUTOMOBILE INSURANCE - REFUSAL TO RENEW - This act modifies the definition of "renewal" as it applies to automobile insurance. Any automobile insurance policy with a term of less than six months or any period with no fixed expiration date will be considered as if written for successive policy periods or terms of six months. Under current law, the default term is 12 months (Section 379.110).
SURPLUS LINES INSURANCE BONDING REQUIREMENT - This act repeals
the requirement that applicants for a surplus lines insurance
license file a bond with the Director of the Department of
Insurance (Sections 384.043, 384.062, and 384.065).