HCS HB 353 -- INSURANCE GUARANTY ASSOCIATIONS

SPONSOR:  Luetkemeyer

COMMITTEE ACTION:  Voted "do pass" by the Committee on Financial
Services by a vote of 14 to 4 with 1 present.

This substitute amends several provisions of the Property and
Casualty Insurance Guaranty Association Act.  The substitute
expands the guaranty association's obligations for claims arising
from bodily injury, sickness, or disease, so as to include
damages for pain and suffering.

The substitute also adds several provisions establishing the
guaranty association's obligations for insurance products that
have been created during the past several years and clarifies
several provisions regarding the administration of the guaranty
fund, so as to comply with the recommendations of the National
Conference on Insurance Guaranty Funds.

FISCAL NOTE:  Not available at time of printing.

PROPONENTS:  Supporters say that this area of the law dates back
to 1972, and a lot of changes have occurred over the last 30
years.  The bill merely incorporates model language from the
National Conference of Insurance Guaranty Funds to bring
Missouri's law up to date.

Testifying for the bill were Representative Luetkemeyer; Missouri
Property and Casualty Guaranty Association; and Independent
Insurance Brokers and Agents of Missouri.

OPPONENTS:  Those who oppose the bill say that there is an
ambiguity in the language regarding the priority of the fees due
to the attorney in the original insurance claim.

Testifying against the bill was Missouri Association of Trial
Attorneys.

Richard Smreker, Senior Legislative Analyst

Missouri House of Representatives
Last Updated July 25, 2003 at 10:11 am