HCS HB 1253 -- INSURANCE

SPONSOR:  Luetkemeyer

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

This substitute makes changes to the insurance laws regarding the
powers and duties of liquidators, mutual credits, debt set-offs,
and credits for reinsurance.  The substitute clarifies that an
order to liquidate an insurer does not affect the validity of any
arbitration clauses in the insurer's existing contracts.  The
substitute repeals provisions that limit the extent to which an
insurer may set off debts in cases of an insurer's liquidation,
insolvency, or rehabilitation.  The substitute repeals provisions
clarifying that the statute supersedes the insurer's contractual
terms in determining the setoff rights of any person under
contract with the insurer.  The substitute also repeals the
sunset clause on a provision regarding payment from a reinsurer
on the basis of estimated incurred but not reported losses and
clarifies that expert testimony concerning these estimates may be
received in evidence in any proceeding.

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

PROPONENTS:  Supporters say that the bill merely cleans up some
provisions that affect reinsurers, such as language involving the
credits allowed to insurers for reinsurance and a clarification
that arbitration clauses in these contracts are enforceable.

Testifying for the bill were Representative Luetkemeyer; and
Reinsurance Association of America.

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 11:15 am