HCS HB 1090 -- PROPERTY INSURANCE

SPONSOR:  Luetkemeyer (Bishop)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee on
Financial Services by a vote of 19 to 0.

Under current law, a person may receive real property via a
transfer on death clause in the deed.  This substitute makes the
recipient automatically insured under the property insurance
policy in effect at the time of the original owner's death.
Coverage will last for 30 days or until the existing policy
period ends, whichever occurs first.

FISCAL NOTE:  No impact on state funds in FY 2005, FY 2006, and
FY 2007.

PROPONENTS:  Supporters say that the widespread use of
non-probate transfers has created a glitch in the insurance
coverage for property that does not go through probate.  Current
law provides an extension of the insurance coverage of the
property of a deceased person, with the executor of the estate
automatically becoming the insured until probate is completed.
The bill applies the same kind of protection for properties that
are conveyed to a beneficiary automatically through a non-probate
transfer allowing the new owner 30 days to secure insurance.

Testifying for the bill were Representative Bishop; American
Family Insurance; and Missouri Association of Realtors.

OPPONENTS:  There was no opposition voiced to the committee.

Richard Smreker, Senior Legislative Analyst

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:14 am