HCS SB 1299 -- RESIDENTIAL PROPERTY INSURANCE

This bill changes the laws regarding insurance and amends
provisions of the Property and Casualty Insurance Guaranty
Association Act.  The bill:

(1)  Expands the guaranty association's obligations for claims
arising from bodily injury, sickness, or disease to include
damages for pain and suffering;

(2)  Limits the claims for any one insolvent insurer to $10
million;

(3)  Expands the list of insurance products to which the guaranty
association assessments will not apply, including insurance on
warranties and service contracts, vendors' single-interest
insurance, collateral protection insurance, any forms of
insurance offering protection against investment risk, and the
portion of any insurance provided or guaranteed by any
government;

(4)  Limits claims for unearned premiums to $25,000 per policy;

(5)  Requires claims to be filed within 18 months of the date of
the liquidation order;

(6)  Clarifies that the association is not deemed to be the
insolvent insurer for the purpose of establishing personal
jurisdiction of the courts of any state; and

(7)  Clarifies that any obligation to defend the insolvent
insurer terminates with the payment of the association's claim
limit.

In other provisions governing insurance, the bill:

(1)  Changes the definition of "renewal" as it relates to
automobile insurance.  Any automobile insurance policy with a
term of less than six months or with no fixed expiration date
will be considered a six-month policy.  Under current law, the
default term is 12 months;

(2)  Repeals the bond requirement for acquiring a license to sell
surplus lines of insurance; and

(3)  Increases from $100,000 to $200,000 the maximum limit of
liability on a residential property in the Missouri Basic
Property Insurance Inspection and Placement Program and makes the
insurance contracts in the program subject to credit scoring
underwriting restrictions.

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:16 am