HCS SB 1299 -- RESIDENTIAL PROPERTY INSURANCE

SPONSOR:  Loudon (Luetkemeyer)

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

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

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

(2)  Adds provisions establishing the guaranty association's
obligations for insurance products that have been created during
the past several years; and

(3)  Clarifies provisions regarding the administration of the
guaranty fund to comply with the recommendations of the National
Conference on Insurance Guaranty Funds.

In other provisions governing insurance, the substitute:

(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.

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

PROPONENTS:  Supporters say that the maximum dollar amount
allowed under the Basic Property Insurance Inspection and
Placement Program dates back to 1986, and the costs of homes have
increased dramatically since then.  The bill brings the program
up-to-date.

Testifying for the bill were Senator Loudon; Independent
Insurance Agents of Missouri; 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 11:16 am