HB 1051 -- Property and Casualty Insurance

Sponsor:  Luetkemeyer

This bill makes a variety of changes in the laws governing
insurance and amends several 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 so as to include
damages for pain and suffering;

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

(3)  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.

In other provisions governing insurance, the bill:

(1)  Repeals the sunset clause on a section of law governing the
liquidation of insurance companies.  This provision is currently
set to expire on December 31, 2005.  The provision allows an
estimation of contingent liabilities to be used to fix creditors'
claims during the liquidation process.  It also requires a
reinsurer's payment to be made directly to the liquidator, except
where the contract specifically provides for another payee or
where another insurer assumes the ceding insurer's policy
obligations;

(2)  Changes the definition of "renewal" as it applies 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; and

(3)  Repeals the bond requirement for acquiring a license to sell
surplus lines of insurance.

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