HB 1080 -- COMMERCIAL CASUALTY INSURANCE

The bill specifies that an assignment or transfer of a
commercial casualty policy among affiliated insurers in a
holding company system is not considered a cancellation or
nonrenewal of the policy.

The bill also requires commercial casualty insurers to inform
policyholders in renewal notices that they may request a written
statement of the reasons for an increase in premiums.  This
requirement is effective January 1, 1999.

HB 1080 -- COMMERCIAL CASUALTY INSURANCE (Auer)

The bill specifies that an assignment or transfer of a
commercial casualty policy among affiliated insurers in an
insurance company holding system is not considered a
cancellation or nonrenewal of the policy.

The bill also specifies that insurers are not required to notify
their insureds of a change in any rating system component.

FISCAL NOTE:  No impact on state funds.

HB 1080 -- COMMERCIAL CASUALTY INSURANCE

SPONSOR:  Auer

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee
on Insurance by a vote of 14 to 0.

The bill specifies that an assignment or transfer of a
commercial casualty policy among affiliated insurers in an
insurance company holding system is not considered a
cancellation or nonrenewal of the policy.

The bill also specifies that insurers are not required to notify
their insureds of a change in any rating system component.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that a notice of policy nonrenewal
or cancellation should not be required because the policy is
transferred to another company within the same insurance
system.  Also, the notice can cause confusion and panic for a
policyholder who may then decide to switch insurance company.

Testifying for the bill were Representative Auer; Missouri
Insurance Coalition; American Insurance Association; and
Independent Insurance Agents.

OPPONENTS:  There was no opposition voiced to the committee.

Marty Romitti, Legislative Analyst

HB 1080 -- Commercial Casualty Insurance

Sponsor:  Auer

The bill specifies that an assignment or transfer of a
commercial casualty policy among affiliated insurers in an
insurance company holding system is not considered a
cancellation or nonrenewal of the policy.

The bill also specifies that insurers are not required to notify
their insureds of a change in any rating system component.