Missouri Bill Exempts Some Commercial Insurance From Rate Filing Requirement
Missouri’s General Assembly has passed, and the governor has signed, a bill that exempts some commercial insurance policies and endorsements from rate filing requirements.
The legislative summary of SB 594 states that it “exempts certain lines and endorsements of commercial insurance from requirements to file rates, rate plans, modifications, and manuals with the Department of Insurance, Financial Institutions, and Professional Registration, and specifies that filings for other commercial lines and endorsements shall be filed for informational purposes within 10 days of their use.”
The act applies to policies issued or renewed on or after Jan. 1, 2019.
The American Insurance Association praised passage of what it deemed a commercial insurance modernization bill and thanked Gov. Mike Parsons for signing it into law.
“A competitive, open insurance marketplace is essential to the well-being of any state’s business community,” Steve Schneider, AIA’s vice president for state affairs, Midwest region stated in the group’s announcement. “We applaud Governor Parson and Missouri’s legislators for recognizing its importance, and look forward to seeing the bill swiftly implemented.”
Under the act, “commercial policies’ forms are exempt from filing requirements if the commercial policyholder’s annual commercial premiums total at least $100,000 and the policyholder employs a full time risk manager or has retained a licensed insurance producer to negotiate on its behalf,” the legislative summary for SB 594 states.
Exempt policies must include a message stating that they may contain rates or forms that are exempt from insurance department filing requirements.
“Insurers renewing policies exempt from form filing requirements shall give notice at least 10 days prior to the policy’s expiration date if, after renewal, there will be a material change in coverage not specifically requested by the insured, required by law, or based on change to the risk insured,” the legislative summary states.