SB 0468 Establishes MO Earthquake Catastrophe Fund to reimburse property insurers for losses incurred in an earthquake
LR Number:S2025.01I Fiscal Note:2025-01
Committee:Insurance and Housing
Last Action:03/03/99 - Hearing Conducted S Insurance & Housing Committee Journal page:
Effective Date:August 28, 1999
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Current Bill Summary

SB 468 - This act creates the Missouri Earthquake Catastrophe Fund. Under the fund, insurance companies will enter into reimbursement contracts with the Department of Insurance in which it will compensate the insurer for losses incurred in an earthquake. The insurance companies will be required to pay a reimbursement premium to the Department of Insurance in order to receive coverage under the fund.

If the fund is insufficient to pay claims, the Department of Insurance may enter into agreements with local governments for the issuance of revenue bonds. The bonds will be issued for the purpose of meeting the reimbursement obligations of the fund. If the premiums paid by the insurance companies are not sufficient to pay off the bonds, the Department may levy an emergency assessment on the insurance companies in order to pay the bonds off. If the insurer becomes insolvent, the fund will pay the insurer's claim to the Missouri Property and Casualty Insurance Guarantee Association for the benefit of the defunct's policyholders.

Under the act, the Department of Insurance will appoint an advisory council to provide it information regarding the issue of earthquakes and related topics.

If a federal or multistate earthquake fund is created, the Department of Insurance will recommend to the General Assembly whether to terminate the Missouri fund or take other appropriate action.