House Committee Substitute

HCS/SCS/SB 1008 - This act modifies various provisions relating to health insurance and automobile insurance.

This act provides that in order to continue dependent coverage under certain health insurance plans on a child past a limiting age because of the child's physical or mental handicap, the enrollee must furnish proof of the child's incapacity and dependency within 31 days after the child reaching the limiting age. The current law states that such proof must be furnished at least 31 days after the child reaches the limiting age (section 354.536, 376.426, and 376.776)

This act allows the director of the Department of Insurance, Financial Institutions, and Professional Registration to promulgate rules establishing the specific delivery method for submissions of rate filings, rules, license applications, and other insurance-related filings. The types of delivery methods shall be web-based interface systems such as the System for Electronic Rate Form Filing (SERFF), the National Insurance Producer Registry (NIPR), and the National Association of Insurance Commissioners' Internet-State Interface Technology Enhancement (I-SITE)(Section 374.056). The act also provides that the filings of records and signatures is authorized when carried out in a manner consistent with the Federal Electronic Signatures in Global and National Commerce Act (Section 374.057).

This act modifies the law with respect to preexisting condition exclusion provisions in group health insurance policies. Under the act, preexisting condition exclusions may only apply to diseases or physical conditions for which medical advice or treatment was recommended or received by the person during the 6 month period prior to enrollment. The time period under current law is 12 months. In addition, the preexisting condition exclusion for late enrollees is reduced from 2 years to 18 months (Section 376.426). This provision also contains language that proof of incapacity and dependency in order to maintain coverage on certain dependent children past their limiting age must be provided within 31 days after the child reaches the limiting age. Current law states that the proof must be furnished at least 31 days after the child reaches the limiting age.

The act modifies the definition of "creditable coverage" to include coverage provided under a SCHIP plan. The act further modifies the definition of "waiting period" (Section 376.450).

Under this act, an employer that provides health insurance (to which any portion of the premium is paid by the employee) shall not provide the coverage unless the employer has established a premium-only cafeteria plan or a health reimbursement arrangement (HRA). Current law does not contain the HRA option (Section 376.453).

This act provides definitions for the terms "waiting period" and "affiliation period" for purposes of the high risk pool (Section 376.960).

Under the act, a person shall not be denied coverage under the high risk pool even though the person who has other health insurance coverage if the premiums on such coverage have increased beyond the eligibility limit set by the board (not to exceed 200% of rates). In addition, pool coverage shall not be denied to persons who have health insurance if the persons are federally defined eligible individuals (Section 376.966).

The act also allows automobile insurers to send automobile policy renewal notices electronically, if requested by the policyholder, as an alternative to sending such notices by first class mail. The act allows the policyholder to revert back to receiving the notice by first class mail (Section 379.118).

The act modifies the definition of "dependent" for purposes of the Small Employer Health Insurance Availability Act so that dependent unmarried children under the age of 25 who do not receive health insurance coverage under another plan may continue coverage under the small employer plan (Section 379.930).

This act allows small employers to provide a defined contribution to eligible employees who choose to maintain their individual policies through the establishment of a cafeteria plan or a HRA. Current law does not contain the HRA option (Section 379.940).


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