HB 478 -- MANAGING GENERAL AGENTS FOR INSURANCE COMPANIES

This bill adds to the definition of a managing general agent for
an insurance company.  Currently, part of the definition for
being a managing general agent is that the person or company
adjusts or pays claims over a certain amount.  The Department of
Insurance sets this amount.  The bill adds that the department
must set the same threshold amount for both Missouri-based and
non-Missouri-based insurance companies.

HB 478 -- MANAGING GENERAL AGENTS FOR INSURANCE COMPANIES (Ward)

This bill adds to the definition of a managing general agent for
an insurance company.  Currently, part of the definition for
being a managing general agent is that the person or company
adjusts or pays claims over a certain amount.  The Department of
Insurance sets this amount.  The bill adds that the department
must set the same threshold amount for both Missouri-based and
non-Missouri-based insurance companies.

FISCAL NOTE:  No impact on state funds.

HB 478 -- MANAGING GENERAL AGENTS FOR INSURANCE COMPANIES

SPONSOR:  Ward

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee
on Insurance by a vote of 18 to 0.

This bill adds to the definition of a managing general agent for
an insurance company.  Currently, part of the definition for
being a managing general agent is that the person or company
adjusts or pays claims over a certain amount.  The Department of
Insurance sets this amount.  The bill adds that the department
must set the same threshold amount for both Missouri-based and
non-Missouri-based insurance companies.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that current regulation of the
managing general agent (MGA) law by the Department of Insurance
discriminates against Missouri-based insurers that use MGAs.  An
insurer from outside Missouri can use MGAs and, if their
settlement authority is below the $10,000 per claim threshold,
Missouri's MGA law does not apply.  Missouri-based insurers
cannot conduct their operations similarly.  This hurts Missouri--
based insurers by imposing extra regulatory burdens and costs on
them not borne by insurers from outside the state.

Testifying for the bill were Representative Ward; and Missouri
Insurance Coalition.

OPPONENTS:  There was no opposition voiced to the committee.

Marty Romitti, Legislative Analyst

HB 478 -- Managing General Agents for Insurance Companies

Sponsor:  Ward

This bill adds to the definition of a managing general agent for
an insurance company.  Currently, part of the definition for
being a managing general agent is that the person or company
adjusts or pays claims over a certain amount.  The Department of
Insurance sets this amount.  The bill adds that the department
must set the same threshold amount for both Missouri-based and
non-Missouri-based insurance companies.