HCS HB 782 -- INSURANCE FOR LARGE COMMERCIAL RISKS

SPONSOR:  Auer (Gunn)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Insurance
by a vote of 17 to 0.

This substitute excludes companies that provide insurance for
large commercial risks from the requirements to submit policy
forms and rating plans for review by the Department of
Insurance.  To be considered a large commercial risk, the buyer
of the insurance must either use the services of an independent
insurance advisor, or have their commercial operations meet 2 of
the following 6 criteria:

(1)  100 or more employees;

(2)  Net worth of over $25 million;

(3)  Net revenues or sales of over $50 million;

(4)  Paid aggregate annual insurance premiums of over $50,000,
excluding workers' compensation and  employer's liability
insurance;

(5)  Is a not-for-profit or public entity with an annual budget
or assets of at least $25 million; and

(6)  Is a municipality with a population over 50,000.

The substitute does not eliminate all oversight authority by the
Department of Insurance.  In particular, the department retains
authority to make certain that insurance rates for large
commercial risks are not excessive, inadequate, or unfairly
discriminatory.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that deregulation, or regulatory
reform, of large commercial insurance transactions increases
competition in the property and casualty insurance market while
providing important consumer protections.  Regulatory reform for
large commercial insurers makes it easier for Missouri
businesses to secure commercial insurance products.  Missouri
policyholders will benefit from regulatory reform, due to
increased competition and a more streamlined system.

Testifying for the bill were Representative Gunn; American
Insurance Association; National Association of Independent
Insurers; Department of Insurance; and Missouri Insurance
Coalition.

OPPONENTS:  There was no opposition voiced to the committee.

Marty Romitti, Legislative Analyst

HB 782 -- Insurance for Large Commercial Risks

Sponsor:  Gunn

This bill excludes companies that provide insurance for large
commercial risks from the requirements to submit rating plans
for review by the Department of Insurance.