HB 586 -- Department of Insurance, Financial Institutions, and
Professional Registration

Sponsor:  Yates

This bill changes the laws regarding the enforcement and
regulatory powers of the Department of Insurance, Financial
Institutions, and Professional Registration.

DEPARTMENT OF INSURANCE, FINANCIAL INSTITUTIONS, AND PROFESSIONAL
REGISTRATION

The bill:

(1)  Synchronizes the penalties, administrative orders, civil
actions, and other remedies available to the department director;

(2)  Allows the director, upon determining that a person has
violated or attempted to violate provisions of the insurance
laws, to:

(a)  Issue an order directing the person to cease and desist from
engaging in the act, practice, omission, or course of business;

(b)  Issue a curative order or an order directing the person to
take other action necessary to comply with insurance laws;

(c)  Order a civil penalty or forfeiture; or

(d)  Award reasonable costs of the investigation;

(3)  Allows the director to suspend or revoke a corporation's or
insurer's certificate of authority for violating insurance laws
or for a felony or misdemeanor conviction.  The director must
provide 30 days' notice and a hearing, if requested, before
revocation;

(4)  Removes the director's authority to suspend a prepaid dental
corporation's certificate of authority if it issues a contract
without prior approval;

(5)  Allows any applicant who is refused a license to sell
insurance to file a petition with the Administrative Hearing
Commission.  The director will retain discretion in refusing a
license or renewal;

(6)  Authorizes the director to consult and share information
with other members of the National Association of Insurance
Commissioners, the Commissioner of Securities within the Office
of Secretary of State, state securities regulators, the Division
of Finance and the Division of Credit Unions within the
department, the Attorney General, federal banking and securities
regulators, the National Association of Securities Dealers
(NASD), the United States Department of Justice, the Commodity
Futures Trading Commission, and the Federal Trade Commission to
effectuate greater uniformity in insurance and financial services
regulation among state and federal governments and
self-regulatory organizations.  The cooperation, coordination,
consultation, and sharing of records and information authorized
by the bill include:

(a)  Establishing or employing one or more designees as a central
electronic depository for licensing and rate and form filings
with the director and for records required or allowed to be
maintained;

(b)  Encouraging insurance companies and producers to implement
electronic filing through a central electronic depository;

(c)  Developing and maintaining uniform forms;

(d)  Conducting joint market conduct examinations and other
investigations through collaboration and cooperation with other
insurance regulators;

(e)  Holding joint administrative hearings;

(f)  Instituting and prosecuting joint civil or administrative
enforcement proceedings; and

(g)  Sharing and exchanging personnel;

(7)  Changes the laws regarding falsely testifying in insurance
investigations and prohibits an individual from knowingly making
a false statement under oath or affirmation in any record
submitted to the director.  Knowingly making false statements or
making false entries upon documents will be a class D felony;

(8)  Allows the director to seek an order to enforce compliance
if a person refuses to testify, file statements, or produce
records.  Persons are not excused from testifying or producing
records based on the grounds that the testimony or records may
tend to incriminate them.  In this case, the director may seek a
court order to compel the testimony or production of records, and
the testimony or records may not be used as evidence in a
criminal case;

(9)  Requires insurance producers, beginning January 1, 2008, to
complete 24 hours of continuing education every two years; and

(10)  Allows the director to adopt rules to prescribe uniform
disclosure of material information on insurance policy forms.

DISCOUNT MEDICAL PLAN ORGANIZATION

The bill regulates discount medical plans.  The bill:

(1)  Defines "discount medical plan" as a business arrangement in
which a discount medical plan organization (DMPO), in exchange
for compensation, provides access for plan members to medical
service providers at a discount;

(2)  Requires a DMPO to register with the director and pay an
application fee of $250.  The organization must be a legal entity
organized under the laws of this state or authorized to transact
business in this state;

(3)  Allows the director to examine the business affairs of a
DMPO;

(4)  Allows a DMPO to charge reasonable fees as long as the fees
are disclosed to the applicant.  Members have a 30-day, free-look
period on memberships;

(5)  Prohibits a DMPO from disseminating information that could
mislead a person to think that the plan is health insurance;

(6)  Prohibits the restriction of access to providers including
waiting and notification periods.  A DMPO cannot collect or pay
fees for medical services unless licensed by the director to act
as an administrator;

(7)  Requires a DMPO to maintain a net worth of at least
$150,000;

(8)  Requires notification to the director at least 30 days prior
to changing the organization's name or address;

(9)  Requires a DMPO to maintain a surety bond with the director
of at least $35,000, for use by the director in protecting plan
members; and

(10)  Allows the director to deny or revoke registration of an
applicant for material misstatements, misrepresentation, or
fraud.  The applicant can request an appeals hearing.  The
director is authorized to issue administrative orders and
maintain civil actions against a DMPO that is in violation of
these provisions.

BAIL BOND AGENTS

The bill changes the laws regarding the licensure of bail bond
agents.  The bill:

(1)  Requires the department to notify any bail bond agent who is
listed as having a forfeited bond;

(2)  Requires all licenses issued to bail bond agents to include
a photograph of the licensee;

(3)  Requires all bail bond agents to provide the department with
the name, address, and telephone number of each employer for whom
they work or contract with;

(4)  Requires any newly appointed surety bail bond agent to file
an affidavit with the department stating that all forfeitures or
judgments on previously written bonds have been satisfied;

(5)  Requires all applicants for licensure to be fingerprinted
and have a criminal background check;

(6)  Authorizes the department to have a cause of action brought
against a licensee who has been found guilty of a dangerous
felony or has filed bankruptcy as an owner of a bail bond
business;

(7)  Allows bail bond agents to write bonds in municipal or
circuit courts if the general bail bond agent who employs them is
qualified to write bonds in these courts; and

(8)  Requires any bail bond agent arrested for a felony to notify
the department of the arrest within 10 days.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:19 am