SB 317 Allows proof of financial responsibility and other insurance-related documents to be provided or presented through electronic means
Sponsor: Romine
LR Number: 1506H.06C Fiscal Note available
Committee: Small Business, Insurance and Industry
Last Action: 5/17/2013 - H Calendar S Bills for Third Reading w/HCS Journal Page:
Title: HCS SCS SBs 317 & 319 Calendar Position:
Effective Date: August 28, 2013
House Handler: Gosen

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Current Bill Summary


HCS/SCS/SBs 317 & 319 - This act allows proof of financial responsibility and other insurance-related documents to be provided or presented through electronic means.

PROOF OF FINANCIAL RESPONSIBILITY - This act allows a motorist to provide proof of financial responsibility for vehicle registration purposes by displaying an image of an insurance identification card on a mobile electronic device (Section 301.149).

This act allows the insurance identification card that contains proof of insurance information for a motor vehicle to be produced in a paper or an electronic format. Acceptable electronic forms include the display of electronic images on a cellular phone or any other type of portable electronic device. Under the act, an image of a motor vehicle liability insurance policy displayed on a mobile electronic device shall serve as satisfactory evidence of insurance in lieu of an insurance identification card.

The display of an image of an insurance card on a mobile electronic device shall not serve as consent for a law enforcement officer to access other contents of the device in any manner other than to verify the image of the insurance card.

Under the act, a person presenting his or her mobile electronic device to a law enforcement officer shall assume all liability for any damage to the mobile electronic device except for damage willfully or maliciously caused by a law enforcement officer.

The act updates a provision of law which makes it a Class B misdemeanor to knowingly or intentionally produce or distribute fraudulent insurance identification cards. Under the act, it will be a Class B misdemeanor to knowingly or intentionally produce or distribute fraudulent identification card images on a mobile electronic device (Section 303.024).

MISSOURI AUTO INSURANCE PLAN - This act amends Missouri Auto Insurance Plan (Missouri's automobile insurance residual market mechanism) law. The Missouri Automobile Insurance Plan was created pursuant to Sections 303.200 and 379.460 to provide automobile insurance coverages to those eligible applicants who are unable to obtain coverage in the voluntary market. All companies issuing personal automobile insurance must participate in the plan. In lieu of accepting and servicing applicants directly, an insurance company may have another entity service the applicants and policies for a fee. This act limits the ability of an insurance company relieve itself from servicing personal automobile insurance applicants and policies. Under this act, if the total premium volume for a plan established for handling personal automobile risks exceeds $10 million in a calendar year, an insurance company with more than 5% market share shall not be excused from accepting and servicing applicants and policies of the plan for the next calendar year, unless the governing body of the plan votes to excuse the company from accepting and servicing the applicants and policies (section 303.200).

DELIVERY, STORAGE AND PRESENTATION OF INSURANCE DOCUMENTS - Under the terms of this act, any notice to a party or any other document required under applicable law in an insurance transaction or that is to serve as evidence of insurance coverage may be delivered, stored, and presented by electronic means so long as it meets the requirements of the Uniform Electronic Transactions Act. Delivery of a notice or document in accordance with the provisions of the act shall be considered equivalent to any delivery method required under applicable law, including delivery by first class mail, first class mail postage prepaid, certified mail, or certificate of mailing.

Under the act, a notice or document may be delivered by electronic means by an insurer to a party if the party has consented to that method of delivery and has not withdrawn the consent and the party, before giving consent, is provided with a clear and conspicuous statement informing the party of certain rights and options. Individuals who do not consent to delivery of electronic documents shall not be subject to any additional fees for receiving the documents in a paper or another non-electronic form. However, nothing in the act shall prevent insurers from offering discounts to insureds who elect to receive notices and other documents in an electronic format (Section 379.011).

PROVISION OF POLICY FORMS AND ENDORSEMENTS ELECTRONICALLY - This act provides that certain property insurance policy forms and endorsements, which do not contain personally identifiable information, may be made available electronically on the insurer's website in lieu of mailing or delivering a paper copy of policy forms and endorsements to an insured. If an insurer elects to make such insurance policy forms and endorsements available electronically on the insurer's website in lieu of mailing or delivering a paper copy to the insured, it must comply with certain conditions with respect to such policy forms and endorsements. For example, the policy forms and endorsements must be easily and publicly accessible on the insurer's website and remain that way for as long as the policy form or endorsement is in force or actively sold in Missouri. In addition, the insurer must retain and store the policy forms and endorsements for a period of 5 years after they are withdrawn from use or replaced with other policy forms and endorsements and make them available to insureds and former insureds upon request and at no cost. In addition, the act mandates that the policy forms and endorsements must be available on the insurer's website in an electronic format that enables the insured to print and save the policy forms and endorsements using programs or applications that are widely available on the internet and free to use. At policy issuance and renewal, the insurer shall provide clear and conspicuous notice to the insured that it does not intend to mail or deliver a paper copy of the policy forms or documents. The notice shall provide instructions on how the insured may access the policy forms and endorsements on the insurer's website. The insurer shall also notify the insured of their right to obtain a paper copy of the policy forms and endorsements at no cost and provide either a toll-free telephone number or the telephone number of the insured's producer by which the insured can make this request (Section 379.012).

These provisions may be found in the truly agreed to version of HB 322 (2013).

STEPHEN WITTE