Missouri Statute | Act | Code |Business And Financial Institutions| US Code - US Statute

The insurance department shall be charged with the execution of
all laws now in force, or which may be hereafter enacted, in relation to
insurance and insurance companies doing business in this state, and such
other duties as are provided for by law. (RSMo 1939 § 5780, A.L. 1990
H.B. 1739)

Prior revisions: 1929 § 5670; 1919 § 6082; 1909 § 6877

1. The chief officer of said department shall be designated as
the director of the department of insurance. He shall be a citizen of
this state, and experienced in matters of insurance, and be appointed by
the governor, by and with the advice and consent of the senate, and shall
hold his office concurrently with that of the governor and until his
successor is appointed and qualified, and shall be subject to removal
from office by the governor at his pleasure.

2. If a vacancy shall at any time occur, the same shall be filled by the
governor, by appointment, subject to the confirmation of the senate, if
in session; if not, then at its next session.

3. It shall not be lawful for the director or his deputy to hold any
position as officer, agent or employee of any insurance or assurance
company, nor shall he otherwise be directly or indirectly interested in
any insurance company, except as a policyholder. (RSMo 1939 § 5781, A.L.
1949 p. 300)

Prior revisions: 1929 § 5671; 1919 § 6083; 1909 § 6878

Within twenty days after receiving his commission, and before
entering upon the duties of his office, the director shall take the oath
of office prescribed by the constitution of this state, and shall give a
bond with a corporate surety or five or more good and sufficient sureties
to the state of Missouri in the sum of two hundred fifty thousand dollars
to be approved by the governor and attorney general, conditioned for the
faithful discharge of his duty, which oath and bond shall be filed in the
office of the secretary of state. (RSMo 1939 § 5782, A. 1949 H.B. 2115,
A.L. 1967 p. 516)

Prior revisions: 1929 § 5672; 1919 § 6084; 1909 § 6879

1. It shall be the duty of the director of the insurance
department to file in his office and safely keep all books and papers
required by law to be filed therein, to issue certificates of authority
to transact insurance business in this state to any companies who have
fully complied with the laws of this state, and to issue such other
certificates as are required by the laws of this state in the
organization of insurance companies and the transaction of the business
of insurance, and generally to do and perform with justice and
impartiality all such duties as are or may be imposed upon him by the
laws regulating the business of insurance in this state and to perform
those duties imposed upon him in such a manner as to be in the best
interests of and protect the general public, policyholders, insurance
companies, and the officers, directors and stockholders thereof; and
every director shall, upon retiring from office, deliver to his qualified
successor the possession of his office, and all furniture, papers and
property belonging to the same.

2. Notwithstanding the provisions of sections 621.015 to 621.198, RSMo,
whenever the director of insurance undertakes to issue, refuse, revoke or
suspend the license or certificate of authority of an insurance company,
fraternal benefit society, or reciprocal or interinsurance exchange, he
shall proceed in accordance with the insurance laws of this state. (RSMo
1939 § 5790, A.L. 1967 p. 516)

Prior revisions: 1929 § 5680; 1919 § 6091; 1909 § 6885

CROSS REFERENCE: Administrative hearing required on policy disapproval,
RSMo 375.920

(1974) Disapproval of policy containing a "termination premium" was
within power of director of insurance and termination penalty to be paid
if insured cancelled within ten years discriminated against cancelling
policyholder as opposed to policyholder who died within the same period.
Survivor's Benefit Insurance Co. v. Farmer (Mo.), 514 S.W.2d 565.

1. The director shall have the full power and authority to make
all reasonable rules and regulations to accomplish the following purposes:

(1) To regulate the internal affairs of the department of insurance;

(2) To prescribe forms and procedures to be followed in proceedings
before the department of insurance; and

(3) To effectuate or aid in the interpretation of any law of this state
pertaining to the business of insurance.

2. The director may from time to time withdraw or amend any rule or
regulation.

3. No rule or regulation shall conflict with any law of this state. No
rule or portion of a rule promulgated under the authority of this chapter
shall become effective unless it has been promulgated pursuant to the
provisions of section 536.024, RSMo.

4. At least fifteen days prior to the adoption of any rule or regulation,
or any amendment thereof, to be issued under the provisions of
subdivision (3) of subsection 1, the director shall give notice of a
hearing on the proposed action. The notice shall be mailed to all persons
who have made timely requests of the department of insurance for advance
notice of its rulemaking proceedings. The notice shall contain a
statement of the terms or the substance of the proposed rule or
regulation. In addition, the notice shall give the time and place where a
hearing on the proposed rule or regulation will be held and the manner in
which interested parties may present their views thereon. On the date of
the hearing, all interested parties shall be given reasonable opportunity
to present their views or arguments in writing or orally. The failure of
any person to receive any notice of a hearing on any proposed rule or
regulation shall not invalidate any rule or regulation subsequently
adopted.

5. The willful violation of any rule or regulation shall subject the
person violating it to such penalty as may be applicable and which the
director has within his power to impose under the laws of this state
relating to the business of insurance for violation of the law to which
the rule or regulation relates.

6. Upon request and payment of the reasonable cost thereof, if required
and fixed by the director, the director shall furnish a copy of any rule,
regulation, or order to any person so requesting. (L. 1967 p. 516, A.L.
1993 S.B. 52, A.L. 1995 S.B. 3)

CROSS REFERENCE: Director, certain rules and regulations prohibited, RSMo
375.920

1. (1) The director may issue cease and desist orders whenever
it appears to him upon competent and substantial evidence that any person
is acting in violation of any law of this state or any rule or regulation
promulgated by the director relating to the business of insurance. Before
any cease and desist order shall be issued, a copy of the proposed order
together with an order to show cause why such cease and desist order
should not be issued shall be served either personally or by certified
mail on any person named therein.

(2) (a) Upon issuing any order to show cause the director shall notify
the person named therein that the person is entitled to a public hearing
before the director if a request for a hearing is made in writing to the
director within fifteen days from the day of the service of the order to
show cause why the cease and desist order should not be issued.

(b) The cease and desist order shall be issued fifteen days after the
service of the order to show cause if no request for a public hearing is
made as above provided.

(c) Upon receipt of a request for a hearing the director shall set a time
and place for the hearing which shall not be less than ten days or more
than fifteen days from the receipt of the request or as otherwise agreed
upon by the parties. Notice of the time and place shall be given by the
director not less than five days before the hearing.

(d) At the hearing the person may be represented by counsel and shall be
entitled to be advised of the nature and source of any adverse evidence
procured by the director and shall be given the opportunity to submit any
relevant written or oral evidence in his behalf to show cause why the
cease and desist order should not be issued.

(e) At the hearing the director shall have such powers as are conferred
upon him in section 374.190.

(f) At the conclusion of the hearing, or within ten days thereafter, the
director shall issue the cease and desist order as proposed or as
subsequently modified or notify the person that no order shall be issued.

(g) The circuit court of Cole County shall have jurisdiction to review
any cease and desist order of the director under the provisions of
sections 536.100 to 536.150, RSMo; and, if any person against whom an
order is issued fails to request judicial review, or if, after judicial
review, the director's cease and desist order is upheld, the order shall
become final.

2. (1) Any person willfully violating any provision of any cease and
desist order of the director after it becomes final, while the same is in
force, upon conviction thereof shall be punished by a fine of not more
than one thousand dollars or one year in jail or by both such fine and
jail sentence.

(2) In addition to any other penalty provided, violation of any cease and
desist order shall subject the violator to suspension or revocation of
any certificate of authority or license as may be applicable under the
laws of this state relating to the business of insurance.

3. (1) When it appears to the director that there is a violation of the
laws of this state or any rule or regulation promulgated by the director
relating to the business of insurance, and that the continuance of the
acts or actions of any person as herein defined would produce injury to
the insuring public or to any other person in this state, or when it
appears that a person is doing or threatening to do some act in violation
of the laws of this state relating to insurance, the director may file a
petition for injunction in the circuit court of Cole County, Missouri, in
which he may ask for a temporary injunction or restraining order as well
as a permanent injunction to restrain the act or threatened act. In the
event the temporary injunction or restraining order or a permanent
injunction is issued by the circuit court of Cole County, Missouri, no
person against whom the temporary injunction or restraining order or
permanent injunction is granted shall do or continue to do any of the
acts or actions complained of in the petition for injunction, unless and
until the temporary injunction or restraining order or permanent
injunction is vacated, dismissed or otherwise terminated.

(2) Any writ of injunction issued under this law may be served and
enforced as provided by law in injunctions issued in other cases, but the
director of the insurance department shall not be required to give any
bond as preliminary to or in the course of any proceedings to which he is
a party as director under this section, either for costs or for any
injunction, or in case of appeal to either the supreme court or to any
appellate court.

4. The term "person" as used in this section shall include any
individual, partnership, corporation, association or trust, or any other
legal entity. (L. 1967 p. 516)

(1984) Nothing in this section prevents the Governor from directing the
division of insurance to issue a cease and desist order. American Family
Life Assurance Co. v. Teasdale (8th Cir.) 733 F.2d 559.

1. The seal now used by said department shall be the seal of the
office of the director of the insurance department, and the same may be
renewed whenever necessary.

2. Every certificate or other paper executed by said director in
pursuance of any authority conferred on him by law, and sealed with his
seal of office, and all copies of papers in the office of said director,
certified by him and authenticated by said seal, shall, in all cases, be
evidence equally and in like manner as the originals, and shall have the
same force and effect as the originals thereof would, in any suit or
proceeding in any court of this state. (RSMo 1939 § 5787)

Prior revisions: 1929 § 5677; 1919 § 6088; 1909 § 6882

1. The director shall maintain his office in Jefferson City and
shall keep the same open from eight a.m. to five p.m. every day except
Saturdays, Sundays and public holidays. He shall be furnished with
suitable rooms in the capitol or other state office building, which shall
be furnished with a safe, furniture, stationery, printing and such other
things as may be necessary for the transaction of the business of his
office.

2. With the approval of the governor, the director may maintain branch
offices in this state as may be needed to effectively discharge the
duties of his office. (RSMo 1939 § 5788, A. 1949 H.B. 2115, A.L. 1967 p.
516)

Prior revisions: 1929 § 5678; 1919 § 6089; 1909 § 6883

1. The office shall be a public office and the records shall be
public records and shall at all times be open to the inspection of the
public subject to such rules as the director shall make for their
safekeeping; provided, however, that the work product of the director,
the director's employees and agents, including but not limited to work
papers of examinations of companies, work papers of investigations of
companies, agents, brokers and insurance agencies and confidential
communications to the department of insurance, shall not be considered
public records except as the director may decide otherwise.

2. When requested, the director shall furnish certified copies of any
paper, report, or documents on file in the director's office to any
person requesting them, upon payment of the fees allowed by law.

3. Five years after the conclusion of the transactions to which they
relate, the director is authorized to destroy or otherwise dispose of all
correspondence, complaints, claim files, working papers of examinations
of companies, examination reports of companies made by the insurance
supervisory officials of states other than Missouri, rating files, void
or obsolete or superseded rate filings and schedules, individual company
rating experience data, applications, requisitions, and requests for
licenses, all license cards and records, all expired bonds, all records
of hearings, and all similar records, papers, documents, and memoranda
now or hereafter in the possession of the director.

4. Ten years after the conclusion of the transactions to which they
relate, the director is authorized to destroy or otherwise dispose of all
foreign companies' and alien companies' annual statements, valuation
reports, tax reports, and all similar records, papers, documents and
memoranda now or hereafter in the possession of the director.

5. Disposal and destruction of records shall be in accordance with
sections 109.200 to 109.310, RSMo. (RSMo 1939 §§ 5788, 5793, A. 1949 H.B.
2115, A.L. 1953 p. 242, A.L. 1967 p. 516, A.L. 1999 S.B. 19 merged with
S.B. 386)

Prior revisions: 1929 §§ 5678, 5683; 1919 §§ 6089, 6094; 1909 §§ 6883,
6888

1. The following records of the department are not public
records and are not available for public examination under section
374.070:

(1) Any document or other material in any consumer complaint file
maintained under section 374.085, including medical records, repair
estimates, adjuster notes, insurance policy provisions, recordings or
transcripts of witness interviews, and any other records regarding
coverage, settlement, payment, or denial of claim asserted under an
insurance policy;

(2) Any document or other material submitted by an insurer or producer
under section 374.190, or any other inquiry, information request, or data
call initiated by the department.

2. Any record that is not public under subsections 1 and 2 of this
section is confidential and is not subject to disclosure, including
discovery or subpoena, unless the subpoena is issued by the prosecuting
attorney, attorney general, administrative hearing officer, or under the
authority of any court. The director may only produce the documents or
other material to another state or federal governmental agency or officer
under a lawful request, subpoena, or formal discovery procedure. The
documents or material may, in the discretion of the director, be made
public once admitted as evidence in any administrative, civil, or
criminal enforcement proceeding.

3. The director may release contents of any record that is not public
under this section as part of an examination report under section
374.205, if the release is in the public interest. Notwithstanding any
provision of subsections 1 and 2 of this section to the contrary, in all
cases, the director may release an incident report record consisting of
the date and immediate facts and circumstances surrounding the initial
consumer report or complaint.

4. No waiver of any applicable privilege or claim of confidentiality
regarding any document shall occur as a result of disclosure to the
director or by the director in sharing documents with other state and
federal regulatory agencies, the National Association of Insurance
Commissioners, and its affiliates and subsidiaries, or state or federal
law enforcement authorities, and the recipient of such document is bound
by the provisions of this section as to the confidentiality of such
document. (L. 2005 H.B. 388)

1. The director of the department of insurance may establish two
or more divisions within the department. The director shall establish at
least one division, to be known as the "Division of Consumer Affairs",
which shall perform the functions of the consumer services section in
addition to such other functions as may be assigned to it by the director.

2. Any division established by the director shall be considered as though
it were transferred to the insurance department under a type I transfer
under section 1 of the Reorganization Act of 1974, except that the
advisory commission on insurance regulation, established in section
374.281, shall review the need for the division of consumer affairs to be
transferred under a type III transfer and report its findings to the
general assembly within one year after June 26, 1991.

3. All property, functions, duties and funds of the division of insurance
as it existed under the department of economic development shall be
transferred to the department of insurance. In addition, the property,
functions, duties and funds formerly possessed, performed, assigned or
appropriated to the department of economic development on behalf or for
the benefit of the division of insurance shall be transferred to the
department of insurance.

4. Wherever the laws, rules or regulations of this state make reference
to the "division of insurance" or to the "insurance division", such
references shall be deemed to refer to the department of insurance. (L.
1991 H.B. 575)

Effective 6-26-91

1. The director may appoint a deputy, who shall be subject to
removal at pleasure by the director, and who shall possess all the powers
and perform all the duties attached by law to the office of director
during a vacancy in the office, and during the absence, inability or
suspension of his principal. The director shall be responsible for the
acts of his deputy, who shall, before entering upon the duties of his
office, take the oath and be bonded as required of the director in
section 374.030. The deputy director shall assist the director in the
administration of the department, and perform such duties and have such
powers as the director may direct.

2. In the event there is an absence of the director and no deputy has
been appointed, the governor shall appoint the acting director from among
the division directors within the department. (RSMo 1939 § 5783, A.L.
1967 p. 516, A.L. 1990 H.B. 1739, A.L. 1991 H.B. 575)

Prior revisions: 1929 § 5673; 1919 § 6085; 1909 § 6880

Effective 6-26-91

1. The division of consumer affairs of the department of
insurance shall perform the following functions:

(1) The division shall receive complaints and inquiries from the general
public concerning insurance companies, health services corporations and
health maintenance organizations, their agents and employees;

(2) The division shall maintain records of each complaint received and
the disposition of that complaint, indexed by type of complaint, company,
and such other factors as the section deems appropriate;

(3) The division shall operate a statewide toll-free telephone service to
receive complaints and inquiries, and shall publicize the existence of
this service to the general public;

(4) The division shall investigate complaints received of unfair or
unlawful acts under the insurance laws of this state and shall close the
file on each investigation only when the director of the consumer
services division is satisfied that the person or persons complained
against have taken a fair and reasonable position or one which is legally
correct;

(5) The division shall prepare such brochures and other documents as it
deems appropriate to help inform the general public on such topics as the
state's insurance laws, insurance practices, policy coverages and policy
costs; and

(6) The division shall recommend changes to state statutes when it
considers such statutes to adversely or unfairly affect the interests of
the general public.

2. In performing the functions of this section, the consumer services
division may be assisted by a legal adviser. The legal adviser shall be
an attorney licensed to practice law in the state of Missouri and shall
possess a knowledge of the state's insurance laws and regulations. (L.
1990 H.B. 1739, A.L. 1991 H.B. 575)

Effective 6-26-91

1. The director shall appoint and employ an actuary, a chief
market conduct examiner and a chief financial examiner, who shall be
subject to removal at the pleasure of the director. The director may
contract with persons to assist the actuary or to provide actuarial
services subject to appropriation by the general assembly.

2. The actuary shall have had at least five years' experience in
actuarial work, the chief market conduct examiner shall have at least
five years in insurance examination work as defined by the NAIC market
conduct examiners' handbook in effect on August 28, 1990, and the chief
financial examiner shall have had at least five years' experience in
financial examination work.

3. The actuary and examiners shall not be or become interested in any
insurance company other than as a policyholder.

4. The actuary and the examiners each shall file bond as required by the
director, which shall not exceed the sum of ten thousand dollars. (RSMo
1939 § 5784, A. 1949 H.B. 2115, A.L. 1990 H.B. 1739)

Prior revision: 1929 § 5674

1. The actuary shall perform those duties usually performed by
actuaries and such other duties in connection with the department as the
director may direct.

2. All fees allowed or paid to the actuary as provided by law shall be
paid to the director of revenue and shall be deposited to the credit of
the insurance department fund. (RSMo 1939 §§ 5784, 5786, A. 1949 H.B.
2115)

Prior revisions: 1929 §§ 5674, 5676; 1919 § 6087; 1909 § 6881

1. The director of insurance, through the chief examiner, may
examine into the affairs and good faith of any person who is engaged in,
or is claiming or advertising that he is engaged in, organizing or
receiving subscriptions for or disposing of stock of, or in any manner
aiding or taking part in the formation of or business of an insurance
corporation, association or organization and the chief examiner shall
conduct or assist in conducting the examination of insurance companies,
associations and organizations and reciprocal or interinsurance exchanges
as required by law, and do such other things pertaining to the department
as the director may direct.

2. The director may also employ one or more expert actuaries or examiners
to assist the chief examiner in making such examinations.

3. The fees and expenses in all cases to be reasonable and to be paid by
the company, association, organization or reciprocal or interinsurance
exchange being examined upon accounts approved by the director. (RSMo
1939 § 5784, A. 1949 H.B. 2115)

Prior revision: 1929 § 5674

Examiners appointed or employed by the director of the
department of insurance shall be compensated according to the applicable
levels established and published by the National Association of Insurance
Commissioners. (L. 1989 S.B. 333 § 1)

1. The director shall appoint and employ such clerks and
clerical and other help which are necessary for a proper dispatch of the
business of the department of insurance at salaries as now or hereafter
provided by law, and may employ such actuarial work to be done as may be
necessary, all of which expense shall be paid as provided for by section
374.160, out of the amount appropriated by law from the fees collected by
the department of insurance.

2. The director shall appoint and employ legal counsel regarding the
enforcing of the insurance laws of the state; provided, however, that
with respect to criminal prosecutions, the attorney general shall be the
legal adviser to the director. All counsel employed by the legal section
shall be attorneys licensed to practice law in the state of Missouri and
the general counsel shall be subject to removal at the pleasure of the
director. In addition, the general counsel shall have had at least two
years of experience in the areas of insurance law, insurance regulation
or insurance litigation, or any combination thereof. The general counsel
may receive an annual salary of up to one thousand dollars less than the
annual salary paid the director. The director may assign legal counsel to
specific divisions established pursuant to section 374.075. Legal counsel
may act as hearing officers at any hearing before the insurance
department, but may not act as a hearing officer in any contested case
brought to the director from a division to which legal counsel was
assigned.

3. The director may also employ suitable persons to make examinations as
to the solvency or market conduct of companies when he deems it necessary.

4. The director shall also employ a reinsurance analyst to assist the
department in carrying out its responsibilities regarding reinsurers as
are provided for by law. The reinsurance analyst shall have knowledge of
the state's insurance laws and regulations, shall have a degree in
accounting, and shall be able to meet the requirements of an Associate in
Reinsurance of the American Institute of Property and Liability
Underwriters within two years of appointment, or comparable standards as
provided for by regulation, and have at least three years' experience in
insurance or reinsurance matters.

5. The director shall not employ any person in any capacity who is an
officer, agent or employee of any insurance company or association. (RSMo
1939 § 5788, A. 1949 H.B. 2115, A.L. 1990 H.B. 1739, A.L. 1991 H.B. 575)

Prior revisions: 1929 § 5678; 1919 § 6089; 1909 § 6883

Effective 6-26-91

(1956) Counsel employed by the director must be paid in the same way as
other expenses of the insurance division and cannot be paid from funds
escheated to the state under § 379.395. Jacobs v. Leggett (Mo.), 295
S.W.2d 825.

(1962) Attorneys' fees, arising under 1930 agreement whereby director had
agreed to pay attorneys out of unreturned excess premiums which attorneys
might be successful in recovering from companies, could not be allowed as
department expense payable out of current appropriations and state was
not liable for fees by estoppel where method of payment provided in
contract was invalid. State ex rel. Johnson v. Leggett (Mo.), 359 S.W.2d
790.

The director may designate one of the clerks of the insurance
department as chief clerk, who shall possess the qualifications of the
director, and shall, subject to the director and his deputy, have charge
of the clerical and detail work of the department, and the employees
thereof. In the absence or inability of both the director and deputy or
in case of a vacancy in both of said offices, the chief clerk shall have
and exercise the powers of the director. Chief clerk shall serve during
the pleasure of the director, and shall perform such other duties as the
director may direct. (RSMo 1939 § 5785)

Prior revisions: 1929 § 5675; 1919 § 6086

1. All fees due the state under the provisions of the insurance
laws of this state shall be paid to the director of revenue and deposited
in the state treasury to the credit of the insurance department fund
unless otherwise provided for in subsection 2 of this section.

2. There is hereby established in the state treasury a special fund to be
known as the "Department of Insurance Dedicated Fund". The fund shall be
subject to appropriation of the general assembly and shall be devoted
solely to the payment of expenditures incurred by the department of
insurance attributable to duties performed by the department as required
by law which are not paid for by another source of funds. Other
provisions of law to the contrary notwithstanding, beginning on January
1, 1991, all fees charged under any provision of chapter 325, 354, 374,
375, 376, 377, 378, 379, 380, 381, 382, 383, 384 or 385, RSMo, due the
state shall be paid into this fund. The state treasurer shall invest
moneys in this fund in the same manner as other state funds and any
interest or earnings on such moneys shall be credited to the department
of insurance dedicated fund. The provisions of section 33.080, RSMo,
notwithstanding, moneys in the fund shall not lapse, be transferred to or
placed to the credit of the general revenue fund unless and then only to
the extent to which the unencumbered balance at the close of the biennium
year exceeds two times the total amount appropriated, paid, or
transferred to the fund during such fiscal year.

3. Notwithstanding the provisions of this section to the contrary,
fifty-five percent of the balance in the department of insurance
dedicated fund as of the effective date of this act* or six million
fifteen thousand eight hundred and fifty-five dollars, whichever is
greater, shall be subject to an immediate one-time transfer to the state
general revenue fund. (RSMo 1939 § 5786, A.L. 1945 p. 1018, A. 1949 H.B.
2115, A.L. 1990 H.B. 1739, A.L. 1991 H.B. 575, A.L. 2003 S.B. 675)

Prior revisions: 1929 § 5676; 1919 § 6087; 1909 § 6881

*This act (S.B. 675, 2003) contained an effective date of 1-1-04 for §
339.105; remainder of act became effective 8-28-03.

1. The expenses of examinations, valuations or proceedings
against any company, and for dissolving or settling the affairs of
companies are to be paid by the company, or as provided by law. The state
shall not be responsible in any manner for the payment of any such
expenses, or any charges connected therewith.

2. All other expenses of the department of insurance now or hereafter
incurred and unpaid, or that may be hereafter incurred, including the
salaries of the director and deputy director, shall be paid out of the
state treasury in the manner provided by law.

3. The director shall assess the expenses of any examination against the
company examined and shall order that the examination expenses be paid
into the insurance examiners fund created by section 374.162. The
director shall also assess an additional amount equal to fifteen percent
of the total expenses of examination, to be paid for the supervision and
support of the examiners. The insurance examiner's sick leave fund
created by sections 374.261 to 374.267 shall be combined with the
insurance examiners fund. The director shall pay from the insurance
examiners fund the compensation of insurance examiners pursuant to
section 374.115, any expenses to be paid from such sick leave fund under
sections 374.261 to 374.267, and expenses incurred for supervision and
support of the examiners. The general assembly shall annually provide
appropriations sufficient to distribute all receipts into the insurance
examiners fund. The provisions of section 33.080, RSMo, relating to the
transfer of unexpended balances to the general revenue fund shall not
apply to the insurance examiners fund.

4. If any company shall refuse to pay the expenses of any examination,
valuation or proceeding assessed by the director pursuant to this
section, the company shall be liable for double the amount of such
expenses and all costs of collection, including attorney's fees. The
company shall not be entitled to a credit, pursuant to section 148.400,
RSMo, for any fees, expenses or costs ordered pursuant to this subsection
other than in the amount of the expenses originally assessed by the
director. All amounts collected pursuant to this subsection shall be
credited to the insurance examiners fund. (RSMo 1939 § 5789, A.L. 1945 p.
1018, A.L. 1980 H.B. 1266, A.L. 1991 H.B. 385, et al.)

Prior revisions: 1929 § 5679; 1919 § 6090; 1909 § 6884

Effective 7-1-92

(1962) Attorneys' fees, arising under 1930 agreement whereby director had
agreed to pay attorneys out of unreturned excess premiums which attorneys
might be successful in recovering from companies, could not be allowed as
department expense payable out of current appropriations and state was
not liable for fees by estoppel where method of payment provided in
contract was invalid. State ex rel. Johnson v. Leggett (Mo.), 359 S.W.2d
790.

1. There is hereby established a fund for the examination
expenses to be paid pursuant to section 374.160, to be known as the
"Insurance Examiners Fund". There shall be an amount assessed against all
insurers, health services corporations and health maintenance
organizations which are engaged in the business of insurance within this
state in order to provide initial funding for the insurance examiners
fund. The assessment shall be made between August 28, 1991, and December
31, 1991, in the total amount of four hundred thousand dollars. The
assessment of each such insurer, health services corporation and health
maintenance organization shall be proportionate to the amount of premiums
or enrollment fees received in this state by the insurer, health services
corporation or health maintenance organization during calendar year 1990,
is to the total amount of premiums and enrollment fees received in this
state by all such entities during calendar year 1990.

2. The director may make an assessment between August 28, 1993, and June
30, 1994, of each insurer, health services corporation and health
maintenance organization to provide a minimum balance in the insurance
examiners fund. The total amount of all assessments made pursuant to this
subsection shall not exceed four hundred thousand dollars. Such
assessments shall be proportionate to the amount of premiums or
enrollment fees received by such insurer, health services corporation, or
health maintenance organization during the calendar year 1992 to the
total amount of premiums and enrollment fees received in this state by
all such entities during calendar year 1992, except that the total amount
of all assessments on each insurer, health services corporation or health
maintenance organization shall be at least two hundred fifty dollars and
shall not exceed two thousand dollars. (L. 1991 H.B. 385, et al. § 1,
A.L. 1993 H.B. 709)

The director of the insurance department shall cause to be
prepared, and furnished to every insurance company doing business in this
state, forms of the statements required by him from said companies, and
he may make such changes and additions, from time to time, in the same,
and in any statements required, as shall seem to him best adapted to
elicit from said companies a true exhibit of their condition and
management. (RSMo 1939 § 5791, A.L. 1987 H.B. 700)

Prior revisions: 1929 § 5681; 1919 § 6092; 1909 § 6886

Effective 7-1-87

1. The director of the department of insurance shall prepare the
following information to be included in the biennial report of the
director of the department of economic development:

(1) A brief review of the department during the period covered by the
report, including a verified statement of the various sums received and
disbursed by him, and from and to whom, and for what purposes;

(2) Name, address, capital stock, in case of companies having a capital
stock, resources, insurance in force, and the amount and nature of
collateral deposited by each insurance company or association authorized
or licensed to do business in this state;

(3) A tabular statement, and synopsis of the annual statements, as
accepted by the director, of all insurance companies doing business in
this state;

(4) Such other matters as in his opinion may be for the benefit of the
public and such recommendations as he shall deem proper in regard to the
insurance laws of this state.

2. No more than two thousand copies of such report shall be published by
order of the director, at the expense of the department.

3. The director shall make such additional reports as shall be required
by the governor. (RSMo 1939 §§ 5792, 5797, 15005, A. 1949 H.B. 2115)

Prior revisions: 1929 §§ 5682, 5687, 13812; 1919 §§ 6093, 6098; 1909 §§
6887, 6892

The department shall submit an organizational plan in the same
manner as is required of departments under subsection (2) of section 1 of
the Reorganization Act of 1974; provided, however, that the compensation
levels to be reported shall include those of the director, the deputy
director, the assistant director for policies and licenses, the assistant
director for consumer services and the general counsel. (L. 1990 H.B.
1739 § 4)

1. The director of the department of insurance shall prescribe
by rule, after due consultation with providers of health care or
treatment and their respective licensing boards, accident and sickness
insurers, health services corporations and health maintenance
organizations, and after a public hearing, uniform claim forms for
reporting by health care providers. Such prescribed forms shall include
but need not be limited to information regarding the medical diagnosis,
treatment and prognosis of the patient, together with the details of
charges incident to the providing of such care, treatment or services,
sufficient for the purpose of meeting the proof requirements of an
accident and sickness insurance or hospital, medical or dental services
contract. Such prescribed forms shall be based upon the UB-82 form, with
respect to hospital claims, and the HCFA 1500 form, with respect to
physician claims, as such forms are modified or amended from time to time
by the National Uniform Billing Committee or the federal Health Care
Financing Administration.

2. The adoption of any uniform claim forms by the director pursuant to
this section shall not preclude an insurer, health services corporation,
or health maintenance organization from requesting any necessary
additional information in connection with a claims investigation from the
claimant, provider of health care or treatment, or certifier of coverage.
The provisions of this section shall not be deemed or construed to apply
to electronic claims submission. Insurers and providers may by contract
provide for modifications to the uniform billing document where both
insurers and providers feel that such modifications streamline claims
processing procedures relating to the claims of the insurer involved in
such contract modification. However, a refusal by the provider to agree
to modification of the uniform billing format shall not be used by the
insurer as grounds for refusing to enter into a contract with the
provider for reimbursement or payment for health services rendered to an
insured of the insurer.

3. Rules adopted or promulgated pursuant to this act* shall be subject to
notice and hearing as provided in chapter 536, RSMo. The regulations so
adopted shall specify an effective date, which shall not be less than one
hundred eighty days after the date of adoption, after which no accident
and sickness insurer, health services corporation or health maintenance
organization shall require providers of health care or treatment to
complete forms differing from those prescribed by the director pursuant
to this section, and after which no health care provider shall submit
claims except upon such prescribed forms; provided that the provisions of
this section shall not preclude the use by any insurer, health services
corporation or health maintenance organization of the UB-82 form or the
HCFA 1500 form. (L. 1992 S.B. 796 § 13)

*"This act" (S.B. 796, 1992) contains numerous sections. Consult
Disposition of Sections table for definitive listing.

1. The director shall examine and inquire into all violations of
the insurance laws of the state, and inquire into and investigate the
business of insurance transacted in this state by any insurance agent,
broker, agency or insurance company.

2. He or any of his duly appointed agents may compel the attendance
before him, and may examine, under oath, the directors, officers, agents,
employees, solicitors, attorneys or any other person, in reference to the
condition, affairs, management of the business, or any matters relating
thereto. He may administer oaths or affirmations, and shall have power to
summon and compel the attendance of witnesses, and to require and compel
the production of records, books, papers, contracts or other documents,
if necessary.

3. The director may make and conduct the investigation in person, or he
may appoint one or more persons to make and conduct the same for him. If
made by another than the director in person, the person duly appointed by
the director shall have the same powers as above granted to the director.
A certificate of appointment, under the official seal of the director,
shall be sufficient authority and evidence thereof for the person or
persons to act. For the purpose of making the investigations, or having
the same made, the director may employ the necessary clerical, actuarial
and other assistance. (RSMo 1939 § 5794, A. 1949 H.B. 2115, A.L. 1967 p.
516, A.L. 1992 H.B. 1574)

Prior revisions: 1929 § 5684; 1919 § 6095; 1909 § 6889

1. Notwithstanding any other provision of law to the contrary,
and except as provided in this section, any person or other entity which
provides coverage in this state for medical, surgical, chiropractic,
physical therapy, speech pathology, audiology, professional mental
health, dental, hospital, or optometric expenses, whether such coverage
is by direct payment, reimbursement, or otherwise, shall be presumed to
be subject to the jurisdiction of the department of insurance, unless the
person or other entity shows that while providing such services it is
subject to the jurisdiction of another agency of this state, any
subdivision thereof, or the federal government.

2. A person or entity may show that it is subject to the jurisdiction of
another agency of this state, any subdivision thereof, or the federal
government, by providing to the director of the department of insurance
the appropriate certificate, license or other document issued by the
other governmental agency which permits or qualifies it to provide those
services.

3. Any person or entity which is unable to show under subsection 2 of
this section that it is subject to the jurisdiction of another agency of
this state, any subdivision thereof, or the federal government, shall
submit to an examination by the director of the department of insurance
to determine the organization and solvency of the person or the entity,
and to determine whether or not such person or entity complies with the
applicable provisions of chapters 374 to 385, RSMo.

4. Any person or entity unable to show that it is subject to the
jurisdiction of another agency of this state, any subdivision thereof, or
the federal government, shall be subject to all appropriate provisions of
chapters 374 to 385, RSMo, regarding the conduct of its business.

5. Any production agency or administrator which advertises, sells,
transacts or administers the coverage of this state described in
subsection 1 of this section and which is required to submit to an
examination by the director of the department of insurance under
subsection 3 of this section, if such coverage is not fully insured or
otherwise fully covered by an admitted life of disability insurer,
nonprofit health services plan, or nonprofit health care plan shall
advise every purchaser, prospective purchaser, and covered person of such
lack of insurance or other coverage. Any administrator which advertises
or administers the coverage in this state described in subsection 1 of
this section and which is required to submit to an examination by the
director of the department of insurance under subsection 3 of this
section shall advise any production agency of the elements of the
coverage, including the amount of stop-loss insurance in effect. (L. 1991
H.B. 385, et al. § 113)

1. The purpose of sections 374.202 to 374.207 is to provide an
effective and efficient system for examining the activities, operations,
financial or market conduct, condition and affairs of all persons
transacting the business of insurance in this state and all persons
otherwise subject to the jurisdiction of the director. The provisions of
sections 374.202 to 374.207 are intended to enable the director to adopt
a flexible system of examinations which directs resources as the director
may deem appropriate and necessary for the administration of the
insurance related laws of this state.

2. As used in sections 374.202 to 374.207, the following terms mean:

(1) "Company", any person engaging in or proposing or attempting to
engage in any transaction or kind of insurance or surety business and any
person or group of persons who may otherwise be subject to the
administrative, regulatory or taxing authority of the director;

(2) "Department", the department of insurance of this state;

(3) "Director", the director of the department of insurance of this state;

(4) "Examiner", any individual or firm having been authorized by the
director to conduct an examination under sections 374.202 to 374.207;

(5) "Insurer" has the same meaning as insurer under sections 375.1150 to
375.1246, RSMo;

(6) "Person", any individual, aggregation of individuals, trust,
association, partnership or corporation, or any affiliate thereof. (L.
1992 H.B. 1574)

1. (1) The director or any of the director's examiners may
conduct an examination pursuant to sections 374.202 to 374.207 of any
company as often as the director in his or her sole discretion deems
appropriate, but shall, at a minimum, conduct a financial examination of
every insurer licensed in this state at least once every five years. In
scheduling and determining the nature, scope and frequency of
examinations, the director may consider such matters as the results of
financial statement analyses and ratios, changes in management or
ownership, actuarial opinions, reports of independent certified public
accountants, consumer complaints, and other criteria as set forth in the
Examiners' Handbook adopted by the National Association of Insurance
Commissioners and in effect when the director exercises discretion
pursuant to this section.

(2) For purposes of completing an examination of any company pursuant to
sections 374.202 to 374.207, the director may examine or investigate any
person, or the business of any person, insofar as such examination or
investigation is, in the sole discretion of the director, necessary or
material to the examination of the company.

(3) In lieu of a financial examination pursuant to section 374.207 of any
foreign or alien insurer licensed in this state, the director may accept
a financial examination report on the company as prepared by the
insurance department or other appropriate agency for the company's state
of domicile or port-of-entry state until January 1, 1994. After January
1, 1994, such reports may only be accepted if such insurance department
or other appropriate agency was at the time of the examination accredited
pursuant to the National Association of Insurance Commissioners'
Financial Regulation Standards and Accreditation Program or the
examination is performed under the supervision of an accredited insurance
department or other appropriate agency or with the participation of one
or more examiners who are employed by such an accredited state insurance
department or other appropriate agency and who, after a review of the
examination workpapers and report, state under oath that the examination
was performed in a manner consistent with the standards and procedures
required by their insurance department or other appropriate agency.

2. (1) Upon determining that an examination should be conducted, the
director or the director's designee shall issue an examination warrant
appointing one or more examiners to perform the examination and
instructing them as to the scope of the examination. In conducting the
examination, the examiner shall observe those guidelines and procedures
set forth in the Examiners' Handbook adopted by the National Association
of Insurance Commissioners. The director may also employ such other
guidelines or procedures as the director may deem appropriate.

(2) Every company or person from whom information is sought, its
officers, directors and agents shall provide to the examiners appointed
pursuant to subdivision (1) of this subsection timely, convenient and
free access at all reasonable hours at its offices to all books, records,
accounts, papers, documents and any or all computer or other recordings
relating to the property, assets, business and affairs of the company
being examined. The company or person being examined shall provide within
ten calendar days any record requested by an examiner during a market
conduct examination, unless such company or person demonstrates to the
satisfaction of the director that the requested record cannot be provided
within ten calendar days of the request. All policy records for each
policy issued shall be maintained for the duration of the current policy
term plus two calendar years and all claim files shall be maintained for
the calendar year in which the claim is closed plus three calendar years.
The officers, directors, employees and agents of the company or person
shall facilitate the examination and aid in the examination so far as it
is in their power to do so. The refusal of any company, by its officers,
directors, employees or agents, to submit to examination or to comply
with any reasonable written request of the examiners shall be grounds for
suspension or refusal of, or nonrenewal of, any license or authority held
by the company to engage in an insurance or other business subject to the
director's jurisdiction. Any such proceeding for suspension, revocation
or refusal of any license or authority shall be conducted pursuant to
section 374.046.

(3) The director or any of the director's examiners may issue subpoenas
to administer oaths and to examine under oath any person as to any matter
pertinent to the examination. Upon the failure or refusal of any person
to obey a subpoena, the director may petition a court of competent
jurisdiction, and upon proper showing, the court may enter an order
compelling the witness to appear and testify or produce documentary
evidence. Failure to obey the court order shall be punishable as contempt
of court. Such subpoenas may also be enforced pursuant to the provisions
of sections 375.881 and 375.1162, RSMo.

(4) When making an examination pursuant to sections 374.202 to 374.207,
the director may retain attorneys, appraisers, independent actuaries,
independent certified public accountants or other professionals and
specialists as examiners, the cost of which shall be borne directly by
the company which is the subject of the examination.

(5) The provisions of sections 374.202 to 374.207 shall not be construed
to limit the director's authority to terminate or suspend any examination
in order to pursue other legal or regulatory action pursuant to the
insurance laws of this state. Findings of fact and conclusions made
pursuant to any examination shall be prima facie evidence in any legal or
regulatory action.

(6) Nothing contained in sections 374.202 to 374.207 shall be construed
to limit the director's authority to use and, if appropriate, to make
public any final or preliminary examination report, any examiner or
company workpapers or other documents, or any other information
discovered or developed during the course of any examination in the
furtherance of any legal or regulatory action which the director may, in
his or her sole discretion, deem appropriate.

3. (1) All examination reports shall be comprised of only facts appearing
upon the books, records, or other documents of the company, its agents or
other persons examined, or as ascertained from the testimony of its
officers or agents or other persons examined concerning its affairs, and
such conclusions and recommendations as the examiners find reasonably
warranted from the facts.

(2) No later than sixty days following completion of the examination, the
examiner in charge shall file with the department a verified written
report of examination under oath. Upon receipt of the verified report,
the department shall transmit the report to the company examined,
together with a notice which shall afford the company examined a
reasonable opportunity of not more than thirty days to make a written
submission or rebuttal with respect to any matters contained in the
examination report.

(3) Within thirty days of the end of the period allowed for the receipt
of written submissions or rebuttals, the director shall fully consider
and review the report, together with any written submissions or rebuttals
and any relevant portions of the examiner's workpapers and either
initiate legal action or enter an order:

(a) Adopting the examination report as filed or with modification or
corrections. If the examination report reveals that the company is
operating in violation of any law, regulation or prior order of the
director, the director may order the company to take any action the
director considers necessary and appropriate to cure such violation;

(b) Rejecting the examination report with directions to the examiners to
reopen the examination for purposes of obtaining additional data,
documentation or information, and refiling pursuant to subsection 1 of
this section;

(c) Calling for an investigatory hearing with no less than twenty days'
notice to the company for purposes of obtaining additional documentation,
data, information and testimony; or

(d) Calling for such regulatory action as the director deems appropriate,
provided that this order shall be a confidential internal order directing
the department to take certain action.

(4) All orders entered pursuant to paragraph (a) of subdivision (3) of
this subsection shall be accompanied by findings and conclusions
resulting from the director's consideration and review of the examination
report, relevant examiner workpapers and any written submissions or
rebuttals. Any such order shall be considered a final administrative
decision and may be appealed pursuant to section 536.150, RSMo, and shall
be served upon the company by certified mail, together with a copy of the
adopted examination report. Within thirty days of the issuance of the
adopted report, the company shall file affidavits executed by each of its
directors stating under oath that they have received a copy of the
adopted report and related orders. Any hearing conducted pursuant to
paragraph (c) of subdivision (3) of this subsection by the director or
authorized representative shall be conducted as a nonadversarial
confidential investigatory proceeding as necessary for the resolution of
any inconsistencies, discrepancies or disputed issues apparent upon the
face of the filed examination report or raised by or as a result of the
director's review of relevant workpapers or by the written submission or
rebuttal of the company. Within twenty days of the conclusion of any such
hearing, the director shall enter an order pursuant to paragraph (a) of
subdivision (3) of this subsection. In conducting a hearing pursuant to
paragraph (c) of subdivision (3) of this subsection:

(a) The director shall not appoint an examiner as an authorized
representative to conduct the hearing. The hearing shall proceed
expeditiously with discovery by the company limited to the examiner's
workpapers which tend to substantiate any assertions set forth in any
written submission or rebuttal. The director or his or her representative
may issue subpoenas for the attendance of any witnesses or the production
of any documents deemed relevant to the investigation whether under the
control of the department, the company or other persons. The documents
produced shall be included in the record, and testimony taken by the
director or his or her representative shall be under oath and preserved
for the record. The provisions of this section shall not require the
department to disclose any information or records which would indicate or
show the existence of any investigation or activity of a criminal justice
agency; and

(b) The hearing shall proceed with the director or his or her
representative posing questions to the persons subpoenaed. Thereafter,
the company and the department may present testimony relevant to the
investigation. Cross-examination shall be conducted only by the director
or the director's representative. The company and the department shall be
permitted to make closing statements and may be represented by counsel of
their choice.

(5) Upon the adoption of the examination report pursuant to paragraph (a)
of subdivision (3) of this subsection, the director shall continue to
hold the content of the examination report as private and confidential
information for a period of ten days except to the extent provided in
this subdivision. Thereafter, the director may open the report for public
inspection so long as no court of competent jurisdiction has stayed its
publication. Nothing contained in the insurance laws of this state shall
prevent or be construed as prohibiting the director from disclosing the
content of an examination report, preliminary examination report or
results, or any matter relating thereto, to the insurance department of
this or any other state or country, or to law enforcement officials of
this or any other state or agency of the federal government at any time,
so long as such agency or office receiving the report or matters relating
thereto agrees in writing to hold it confidential and in a manner
consistent with this section. In the event the director determines that
legal or regulatory action is appropriate as a result of any examination,
he or she may initiate any proceedings or actions as provided by law.

4. All working papers, recorded information, documents and copies thereof
produced by, obtained by or disclosed to the director or any person in
the course of an examination made pursuant to this section shall be given
confidential treatment and are not subject to subpoena and may not be
made public by the director or any other person, except to the extent
provided in subdivision (5) of subsection 3 of this section. Access may
also be granted to the National Association of Insurance Commissioners.
Such parties shall agree in writing prior to receiving the information to
provide to it the same confidential treatment as required by this
section, unless the prior written consent of the company to which it
pertains has been obtained. (L. 1992 H.B. 1574, A.L. 1997 H.B. 626 merged
with H.B. 793, A.L. 1999 S.B. 19 merged with S.B. 386)

1. No examiner may be appointed by the director if such
examiner, either directly or indirectly, has a conflict of interest or is
affiliated with the management of or owns a pecuniary interest in any
person subject to examination under sections 374.202 to 374.207. This
subsection shall not be construed to automatically preclude an examiner
from being:

(1) A policyholder or claimant under an insurance policy;

(2) A grantor of a mortgage or similar instrument on the examiner's
residence to a regulated entity if done under customary terms and in the
ordinary course of business;

(3) An investment owner in shares of regulated diversified investment
companies; or

(4) A settlor or beneficiary of a blind trust into which any otherwise
impermissible holdings have been placed.

Notwithstanding the requirement of this subsection, the director may
retain from time to time, on an individual basis, qualified actuaries,
certified public accountants, or other similar individuals who are
independently practicing their professions, even though said persons may
from time to time be similarly employed or retained by persons subject to
examination under sections 374.202 to 374.207.

2. Expenses and costs of examinations shall be paid as set forth in
section 374.160.

3. The director, the director's authorized representatives or any
examiner appointed by the director shall have such official immunity as
exists at common law. (L. 1992 H.B. 1574)

1. Any person testifying falsely in reference to any matter
material to the investigation, examination or inquiry shall be deemed
guilty of perjury.

2. Any person who shall refuse to give such director full and truthful
information, and answer in writing to any inquiry or question made in
writing by the director, in regard to the business of insurance carried
on by such person, or to appear and testify under oath before the
director in regard to the same, shall be deemed guilty of a misdemeanor,
and, upon conviction thereof, shall be punished by a fine not exceeding
five hundred dollars, or imprisonment not exceeding three months.

3. Any director, officer, manager, agent or employee of any insurance
company, or any other person, who shall make any false certificate or
entry or memorandum upon any of the books or papers of any insurance
company, or upon any statement or exhibit offered, filed or offered to be
filed in the insurance department, or used in the course of any
examination, inquiry or investigation, with intent to deceive the
director or any person employed or appointed by him to make any
examination, inquiry or investigation, shall, upon conviction, be
punished by a fine not exceeding one thousand dollars, and by
imprisonment not less than two months in the county or city jail, nor
more than five years in the penitentiary. (RSMo 1939 § 5794, A. 1949 H.B.
2115)

Prior revisions: 1929 § 5684; 1919 § 6095; 1909 § 6889

1. If any insurance company doing business in this state fails
to timely make and file any statutorily required report or statement, the
department of insurance shall notify such company of such failure by
first class mail. Any company notified by the department of insurance
pursuant to this section shall have fifteen days to make and file such
report. If such company fails to make and file such report within the
fifteen days, it shall forfeit one hundred dollars for each day after the
fifteen-day grace period expires.

2. Any insurance company doing business in this state which knowingly or
intentionally files or which has filed on its behalf any materially false
report or statement forfeits not more than one thousand dollars.

3. Any forfeiture required or permitted by this section shall be
considered a civil penalty which the director of the department of
insurance may order pursuant to the provisions of sections 374.040 and
374.280. (L. 1989 S.B. 333)

1. A person commits the crime of filing a false insurance
statement if he prepares, makes, submits or files a financial report or
statement with the department of insurance with the purpose to
misrepresent the financial condition of the company in whose behalf such
report or statement is prepared, made, submitted or filed. The crime
shall require no mental state other than that specifically provided
herein.

2. The crime of filing a false insurance statement is a class C felony.
(L. 1991 H.B. 385, et al. § 111)

1. The director or any other employee of the department of
insurance shall not enter into any covenant not to sue or any agreement
to defer, refrain or desist from instituting or asserting against any
officer or director of any insurer or any other person or entity
regulated by the department of insurance, any claim, demand, action or
suit, either administrative or judicial, for injuries, damages or
penalties to the state or any person or property.

2. Any covenant or agreement entered into in derogation of subsection 1
of this section, either before or after August 28, 1991, shall be deemed
to be in violation of the public policy of this state that the general
assembly shall by law provide adequate regulation of insurers in order to
protect citizens of this state; and that the department of insurance
shall carry out and enforce such regulation. The courts of this state
shall not enforce or give effect to any such covenant or agreement. (L.
1991 H.B. 385, et al. § 109)

1. The expenses of proceedings against insurance companies, and
examinations of the assets or liabilities and valuations of policies of
insurance companies doing business in this state, shall be assessed by
the director upon the company proceeded against or examined, or whose
policies have been valued.

2. If the company has been or shall be adjudged insolvent, or shall
neglect, fail or refuse to pay the expenses, the director may approve the
payment of the expenses, in whole or in part, which shall be paid in like
manner as other expenses of the insurance department; and the amount so
paid, together with cost, charges and fees for collecting the same, shall
be a first lien upon all the assets and property of such company, and may
be recovered by the director of revenue in any court of competent
jurisdiction; or if said company be in liquidation, or process of being
wound up, the cost and expenses of settling its affairs shall be allowed
and taxed as cost against said company, and shall be a first lien upon
and payable out of its assets. The director of revenue shall deposit such
sums in the state treasury to reimburse the insurance fund.

3. Before any costs of any examination or valuation shall be paid,
vouchers for the same shall be submitted to and approved by the
commissioner of administration.

4. When any examination or valuation is made by the director in person or
by any salaried employee of the department of insurance, the cost of
making the same shall be certified to the director of revenue for
collection. (RSMo 1939 § 5795, A.L. 1945 p. 1018, A. 1949 H.B. 2115, A.L.
1967 p. 516, A.L. 1991 H.B. 385, et al.)

Prior revisions: 1929 § 5685; 1919 § 6096; 1909 § 6890

Effective 7-1-92

(1956) Action for attorney fees against insurance director for services
rendered state will not lie; only remedy provided is under § 374.220 and
review of the director's decision under § 536.100. Barker v. Leggett
(Mo.), 295 S.W.2d 836.

(1958) In prohibition proceeding against circuit judge where attorney had
brought action against director of insurance in circuit court of county
of attorney's residence for review of denial of attorney's claim for
compensation, held judge lacked jurisdiction as director was not required
by law to hold hearing on attorney's claim and, therefore, it was not a
contested case within the meaning of § 536.100. State v. Jensen (Mo.),
318 S.W.2d 353.

(1960) Fees and expenses imposed under this section for examiners of
insurance companies held not to be taxes. Leggett v. Missouri State Life
Insurance Co. (Mo.), 342 S.W.2d 833.

(1962) Attorneys' fees, arising under 1930 agreement whereby director had
agreed to pay attorneys out of unreturned excess premiums which attorneys
might be successful in recovering from companies, could not be allowed as
department expense payable out of current appropriations and state was
not liable for fees by estoppel where method of payment provided in
contract was invalid. State ex rel. Johnson v. Leggett (Mo.), 359 S.W.2d
790.

Every insurance company doing business in this state shall pay
to the director of revenue the following fees:

(1) For making valuations of policies or other obligations of assurance,
one thousand dollars for all ordinary forms of policies, and the cost of
computing special evaluation tables for policy forms requiring such shall
be added;

(2) For filing the declaration required on organization of each company,
fifty dollars;

(3) For filing statement and certified copy of charter required of
foreign companies, fifty dollars;

(4) For filing annual statement of any company doing business in this
state, two hundred fifty dollars;

(5) For filing supplementary annual statement of any company doing
business in this state, ten dollars;

(6) For filing any other paper required to be filed in the office of the
director of the department of insurance, fifty dollars each;

(7) For each agent's copy of his company's certificate of authority or
license, two dollars;

(8) For copies of papers, records, and documents filed in the office of
the director of the department of insurance, twenty cents per folio;

(9) For affixing the seal of office of the director of the department of
insurance, ten dollars;

(10) For accepting each service of process upon the company, ten dollars.
(RSMo 1939 §§ 5795, 5796, A.L. 1945 p. 1018, A. 1949 H.B. 2115, A.L. 1967
p. 516, A.L. 1989 S.B. 250)

Prior revisions: 1929 §§ 5685, 5686; 1919 §§ 6096, 6097; 1909 §§ 6890,
6891

1. The director may bring suit to recover any fees or other sums
which he is authorized by law to demand or collect.

2. Any company or person liable for any fees or assessments who shall
neglect or refuse to pay the same within ten days after written demand by
the director, shall be liable to pay double the amount of such fees or
assessments; and any judgment recovered in such case shall be for double
such amount and costs. (RSMo 1939 § 5797, A. 1949 H.B. 2115)

Prior revisions: 1929 § 5687; 1919 § 6098; 1909 § 6892

The director of the department of insurance or the director of
revenue may, within three years after a return is filed or at any time if
no return is filed, make a supplemental assessment or certification
whenever it is found that any assessment or certification of premium
taxes covered by this section is imperfect or incomplete in any material
aspect. The provisions of this section shall apply to taxes assessed
under sections 148.310 to 148.461, RSMo, and sections 287.690, RSMo, and
375.916, RSMo. (L. 1989 S.B. 260 § 1)

1. The director shall take proper vouchers for all payments made
by him and shall take receipts from the director of revenue for all
moneys he pays to the director of revenue.

2. At the close of each state fiscal year, the state auditor shall audit,
adjust and settle the accounts for all receipts and disbursements by the
director. (RSMo 1939 § 5797, A. 1949 H.B. 2115)

Prior revisions: 1929 § 5687; 1919 § 6098; 1909 § 6892

As used in sections 374.261 to 374.269, the following words mean:

(1) "Director", the director of the department of insurance;

(2) "Examiners", nonsalaried employees of the department of insurance
conducting an examination pursuant to section 374.190;

(3) "Sick leave", those days of leave taken during the conduct of an
examination during which an examiner is prevented from conducting an
examination due to illness or injury. (L. 1981 H.B. 673 § 1)

There is hereby created in the state treasury a fund to be known
as the "Insurance Examiner's Sick Leave Fund", hereinafter referred to as
the "fund". The fund shall be used to pay the daily wages of department
of insurance examiners who are temporarily unable to continue an
examination of an insurance company or companies pursuant to section
374.190, because of illness or injury suffered or sustained by the
examiner during the course of the examination which the examiner is
conducting. (L. 1981 H.B. 673 § 2)

1. There shall be an amount assessed against those domestic
insurers which are subject to premium tax and are engaged in the business
of insurance within this state, which amount shall be no less than one
hundred and fifty nor greater than five hundred dollars.

2. The initial assessment shall be made within one month of September 28,
1981, in the total amount of thirty-six thousand dollars. Thereafter,
assessments shall be made annually, or as needed whenever the balance in
the fund becomes less than ten thousand dollars. The amount of such
subsequent assessments shall be that amount necessary to return the
balance in the fund to thirty-six thousand dollars. (L. 1981 H.B. 673 §
3, A.L. 1988 S.B. 430)

1. The director of the department of insurance, his agents or
appointees shall be empowered to make assessments pursuant to section
374.265, and to administer the fund.

2. The director, his agents or appointees shall compensate an examiner
out of the fund only after the examiner has satisfied the director, his
agents or appointees that:

(1) The examiner was employed by the department of insurance to conduct
an examination of an insurance company or companies pursuant to section
374.190 at the time of the illness or injury for which daily wages are
claimed; and

(2) The examiner was prevented from conducting the examination due to
illness or injury.

3. The amount paid by the director, his agents or appointees to an
examiner from the fund shall not exceed the amount of the examiner's
daily wages times the number of days during which the examiner was
prevented from conducting an examination as result of illness or injury,
but in no event shall any examiner be paid for more than one and
one-fourth days times the number of months for which he has been employed
by the department of insurance as an examiner, nor shall an examiner be
paid for or receive credit for sick leave after August 13, 1988, for or
on the basis of any month, months or portion thereof before August 13,
1988. (L. 1981 H.B. 673 § 4, A.L. 1988 S.B. 430)

1. The department of insurance may elect, under the provisions
of section 287.030, RSMo, to come under the provisions of chapter 287,
governing workers' compensation, and that law is extended to include all
employees of the department of insurance under any contract of hire,
express or implied, oral or written, or under any appointment or
election. The state of Missouri may be a self-insurer and assume all
liability imposed by chapter 287, in respect to the department of
insurance employees, without insurance. The attorney general shall appear
on behalf of and defend the state in all actions, when the state is a
self-insurer, brought by employees of the department of insurance
referred to herein under the provisions of the workers' compensation law.

2. The workers' compensation coverage may be provided by the purchase of
insurance or by the deposit in the commissioner of administration's
office of a fund from which workers' compensation benefits to employees
shall be paid. Purchase of the insurance or the deposit of a fund shall
be made from general appropriations.

3. The department of insurance shall adopt rules classifying the
employees mentioned herein who may be eligible for compensation under
this section, and its classification shall be decisive as to whether or
not an employee falls within the definition of an employee eligible for
workers' compensation coverage under this section.

4. The director of the department of insurance is authorized to perform
such duties as may be necessary to carry out effectively the purposes of
this section. (L. 1967 p. 516)

1. Notwithstanding any other provisions of chapters 374, 375,
376, 377, 378 and 379, RSMo, the director may, after a hearing, order a
forfeiture to the state of Missouri a sum not to exceed one hundred
dollars for each violation by any person, partnership or corporation
knowingly violating any provision of chapters 374, 375, 376, 377, 378 and
379, RSMo, or order of the director of insurance made in accordance with
those chapters, which forfeiture may be recovered by a civil action
brought by and in the name of the director of insurance. The civil action
may be brought in the county which has venue of an action against the
person, partnership or corporation under other provisions of law. The
director of insurance may also suspend or revoke the license of an
insurer, agent, broker or agency for any willful violation.

2. Nothing contained in this section shall be construed to prohibit the
director and the insurer, agent, broker or agency from agreeing to a
voluntary forfeiture of the sum mentioned herein without civil
proceedings being instituted. Any sum so agreed upon shall be paid into
the school fund as provided by law for other fines and penalties. (L.
1967 p. 516, A.L. 1993 H.B. 709)

(1982) Legislature did not expressly provide private cause of actions for
violation of section 379.118, although director of division of insurance
may suspend or revoke license of an insurer for any willful violation of
chapter 374. Shqeir v. Equifax, Inc. (Mo. banc) 636 S.W.2d 944.

The department of insurance shall create an advisory committee
to be known as the "Health Insurance Advisory Committee". This committee
shall be a voluntary committee comprised of representatives of the
insurance industry, provider groups and the public. The committee shall
consist of at least, but not limited to, one member representing each of
the following areas: small group insurance, managed care, doctors of
medicine, doctors of osteopathy, pharmacists, dentists and public members
representing self-employed workers and the elderly. This committee shall
meet to discuss and advise the department on issues relating to health
care insurance. (L. 1999 H.B. 191 § 2)

Except as provided in section 375.141, RSMo, all records of
disciplinary actions against an insurance agent, broker, agency or
producer which resulted in a voluntary forfeiture of two hundred dollars
or less shall be expunged after a period of five years from the date of
the execution of the voluntary forfeiture by the director of the
department of insurance. (L. 2001 S.B. 193)

As used in sections 374.300 to 374.310, "financial institution"
means any bank, bank holding company, sales finance company, consumer
finance company, credit union, insurance company, lender as that term is
defined in subdivision (3) of section 367.100, RSMo, savings and loan
association, savings and loan association holding company, savings and
loan association service corporation, company operating under the
mortgage brokerage laws of this state, or any subsidiary of any of the
foregoing. This definition shall not, however, include any financial
institution which has been granted an exemption by the Board of Governors
of the Federal Reserve System pursuant to Section 4(d) of the Federal
Bank Holding Company Act of 1956, as amended, or any financial
institution which neither owns more than ten percent of the capital stock
nor exercises effective control of a bank, savings and loan association
or entity licensed under the mortgage brokerage laws of this state, which
is licensed or authorized to transact business in this state. (L. 1977
H.B. 40 § 1)

No financial institution, as defined in section 374.300, shall,
as a condition of a loan, require any debtor to purchase life or health
insurance from an agent who is employed or retained by, or is a director
or officer of the financial institution making the loan. When life or
accident and sickness insurance is required or requested as additional
security for indebtedness, the debtor shall be informed of the option of
furnishing the insurance, or any portion thereof, through existing
policies owned or controlled by the debtor, or of procuring and
furnishing the required coverage through any agent or insurer authorized
to transact such insurance business within this state. (L. 1977 H.B. 40 §
2)

The director of insurance shall not grant or renew any life or
health insurance license if the license has been or is being used by the
applicant or licensee for any purpose prohibited by sections 374.300 to
374.310. Before the director can deny renewal he shall be required to
hold a public hearing, with ten days' notice to the applicant, to
determine whether the license has been or is being used contrary to the
mandates of sections 374.300 to 374.310. Appeal from the decision of the
director shall be to the administrative hearing commission which shall
conduct a hearing de novo. (L. 1977 H.B. 40 § 3)

Unless otherwise clearly indicated by the context, the following
words and terms as used in sections 374.400 to 374.410 shall mean:

(1) "Director", the director of the department of insurance;

(2) "Dwelling-owners' insurance", a policy of insurance on a one- or
two-family owner-occupied premises* which combines fire and allied lines
with any one or more perils of casualty, liability, or other types of
insurance within one policy form at a single premium, where the insurer's
liability for damage to the premises* under said policy is determined
with reference to the premises' actual cash value;

(3) "Homeowners' insurance", a policy of insurance on a one- or
two-family owner-occupied premises* which combines fire and allied lines
with any one or more perils of casualty, liability, or other types of
insurance within one policy form at a single premium, where the insurer's
liability for damage to the premises* under said policy is determined
with reference to the premises' replacement value;

(4) "Insurer", any insurance company, reciprocal or inter-insurance
exchange, licensed and authorized by the director to write homeowners'
insurance, dwelling-owners' insurance, renters' or tenants' insurance, or
residential fire insurance upon property located within this state;

(5) "Renters' or tenants' insurance", a policy of insurance on a single-
or multiple-family premises* which combines fire and allied lines with
any one or more perils of casualty, liability, or other types of
insurance within one policy form at a single premium, where the insurer's
liability for damage to the contents of the premises* under said policy
is determined with reference to the contents' actual cash value;

(6) "Residential fire insurance", a policy of insurance which provides
fire coverage or fire and allied lines coverage on a residential
premises* within one policy form, where the insurer's liability for
damage to the premises* under said policy is determined with reference to
the premises' actual cash value. (L. 1978 H.B. 1302 § 1)

*Word "premise" appears in original rolls.

1. The director shall establish statistical bases for the
reporting of premium and loss data under policies of homeowners'
insurance, dwelling-owners' insurance, renters' or tenants' insurance, or
residential fire insurance.

2. Each insurer shall annually report to the director all premium and
loss data under policies of homeowners' insurance, dwelling-owners'
insurance, renters' or tenants' insurance, or residential fire insurance
as the director may require.

3. The director shall have the authority to review and verify the
accuracy of the data reported. (L. 1978 H.B. 1302 § 2)

Whenever any insurer, group, association or other organization
of insurers, or rating organization shall change any town grading
schedule used in connection with the development of rates under policies
of homeowners' insurance, dwelling-owners' insurance, renters' or
tenants' insurance, or residential fire insurance written upon property
located within this state, such change shall be filed with the director
of the department of insurance. The director of the department of
insurance may set aside any change in town grading schedules that he
finds is not supported by substantial evidence and credible data acquired
under sections 374.400 to 374.410. (L. 1978 H.B. 1302 § 3)

1. As used in sections 374.400 to 374.425, "product liability
insurance" or "product liability policy" means:

(1) Any policy of insurance insuring only the insured's legal obligation
arising from the product liability exposure of the insured;

(2) Any other policy of liability insurance in which the premium
computation includes a specific premium charge for product liability
exposures of the insured; and

(3) Any other insurance policy designated by the commissioner of
insurance as providing product liability insurance.

2. Every insurer authorized to transact business in this state and
providing product liability insurance shall, if asked by the department
of insurance, on the first day of January of each year in which said
insurer actually provides product liability insurance in Missouri or
within sixty days thereafter, file with the director of insurance a
report containing the information hereinafter specified; provided,
however, insurers are not required to report product liability
information pursuant to sections 374.400 to 374.425 for business
incidental to the operation of affiliated companies or organizations.
Such report may be made upon forms provided by the director of insurance
and shall request the following information:

(1) The name of the insurance company;

(2) The name of all other companies associated with the company
submitting the report, as either a holding company, parent, wholly owned
subsidiary, division, or through interlocking directorates;

(3) All the lines of insurance a company offers in all states;

(4) The states in which the company has been admitted for product
liability insurance;

(5) The total premium dollar amount collected for all lines of insurance
in Missouri and in all states in each of the five calendar years next
preceding the initial report or in the year next preceding the filing of
each annual report thereafter;

(6) The dollar amount collected each year in product liability premiums
in Missouri and in all states beginning with calendar year 1978;

(7) The amount in dollars of product liability premiums for primary
coverage and for excess coverage in Missouri and in all states;

(8) The amounts shown in answer to subdivision (6) which include premises
and operations insurance or any other insurance delivered as part of a
package which cannot be considered exclusively product liability
insurance and the amounts which are nonproduct liability insurance. Such
amounts shall be listed separately for amounts relating to experience in
all states and amount relating to experience in Missouri only;

(9) Whether or not the company sets reserves for product liability claims
filed;

(10) Whether or not the company sets reserves for product liability
claims for losses which have been incurred but not reported;

(11) All reserves established in connection with the company's product
liability line;

(12) How dollars reserved are treated in each of the categories listed in
subdivisions (9), (10), and (11) for federal income tax purposes;

(13) The value of the securities held in the company's investment
portfolio as of December thirty-first of the year next preceding the
filing of each annual report.

3. In addition, each company may be required to report to the director of
insurance for the year next preceding the filing of each annual report,
beginning with the annual report for 1978, any claim or action for
damages for personal injury, death or property damage claimed to have
been by reason of a defect in such insured's product, if the claim
resulted in:

(1) A final judgment in any amount;

(2) A settlement in any amount; or

(3) A final disposition not resulting in payment on behalf of the insured.

Every insurer authorized to transact business in this state shall be
subject to the provisions of this section in regard to claims against
policies issued to Missouri insureds, regardless of the jurisdiction
under which these claims were adjudicated, settled or otherwise disposed
of. Every insurer authorized to transact business in this state shall be
subject to the provisions of this section in regard to claims
adjudicated, settled or disposition made pursuant to the laws of this
state regardless of the domicile of the insured.

4. The reports required by subsection 3 of this section may contain:

(1) The city and state of the insured;

(2) Type of product;

(3) Rating classification code of product liability coverage;

(4) Date of occurrence which created the claim, including the state or
other jurisdiction under whose jurisdiction the claim was adjudicated,
settled, or disposition made;

(5) Date of suit if filed;

(6) Date and amount of judgment or settlement, if any, and the parties
involved in the distributions of such judgment or settlement and the
amount received by any such party;

(7) Date and reason for final disposition if no judgment or settlement;

(8) A summary of the occurrence which created the claim;

(9) Total number of claims;

(10) Total claims closed without payment;

(11) Total claims closed with payment;

(12) Total amount of payments;

(13) Total number of suits filed;

(14) Total number of verdicts or judgments for defendants;

(15) Total number of verdicts or judgments for plaintiffs;

(16) Total amount for plaintiffs; and

(17) Such other information as the director may require.

5. With respect to amounts paid in claims for the year next preceding the
filing of each annual report, each company may be required to provide the
following information:

(1) Total amounts reserved with respect to those claims;

(2) The year in which the reserves were set; and

(3) The amounts set in each year. (L. 1978 H.B. 1302 § 4, A.L. 1991 H.B.
575)

Effective 6-26-91

There shall be no liability on the part of and no cause of
action of any nature shall arise against any insurer reporting hereunder
or its agents or employees, or the director of insurance or* the
director's employees, for any action taken by them pursuant to sections
374.400 to 374.425. (L. 1978 H.B. 1302 § 5)

*Word "of" appears in original rolls.

The director may waive or extend time of compliance for
reporting requirements under sections 374.400 to 374.425 for any insurer
upon showing that such requirements would cause the insurer undue expense
or that an unreasonable amount of time would be required to comply with
the requirements. (L. 1978 H.B. 1302 § 6)

1. Any entity in the business of delivering or financing health
care shall provide data regarding quality of patient care and patient
satisfaction to the director of the department of insurance. Failure to
provide such data as required by the director of the department of
insurance shall constitute grounds for violation of the unfair trade
practices act, sections 375.930 to 375.948, RSMo.

2. In defining data standards for quality of care and patient
satisfaction, the director of the department of insurance shall:

(1) Use as the initial data set the HMO Employer Data and Information Set
developed by the National Committee for Quality Assurance;

(2) Consult with nationally recognized accreditation organizations,
including but not limited to the National Committee for Quality Assurance
and the Joint Committee on Accreditation of Health Care Organizations; and

(3) Consult with a state committee of a national committee convened to
develop standards regarding uniform billing of health care claims. (L.
1994 S.B. 732 § 1)

Unless otherwise clearly indicated by the context, the following
words and terms as used in sections 374.450 and 374.455 shall mean:

(1) "Director", the director of the department of insurance;

(2) "Insurer", any insurance company, reciprocal or inter-insurance
exchange, licensed and authorized by the director to write automobile
insurance within this state;

(3) "Private automobile insurance", a policy of insurance covering
private passenger nonfleet vehicles owned by an individual or by a
husband and wife and providing any one or more perils of protection
against bodily injury liability, property damage liability, medical
payments, uninsured motorist, comprehensive, collision, or other
insurance coverage incidental to the operation of the vehicle. (L. 1979
H.B. 503 § 1)

Effective 7-1-80

1. The director shall establish statistical bases for the
reporting of premium and loss data under policies of automobile insurance.

2. Each insurer shall annually report to the director or a statistical
agency designated by the director all premium and loss data under
policies of automobile insurance in such a manner as the director may
require.

3. The director shall have the authority to review and verify the
accuracy of the data reported.

4. The director of the department of insurance shall make reports of data
acquired hereunder and such reports shall be made available to the
public. (L. 1979 H.B. 503 §§ 2, 3)

Effective 7-1-80

The director of the department of insurance shall personally
report to the appropriate committees of the general assembly by March
first of each year on the status of all actions initiated, maintained by
the director, or which have been concluded, during the preceding year to
enforce the provisions of this act*. The director shall answer all
questions regarding such actions, or regarding other matters that are
related to the provisions of this act*. (L. 1997 H.B. 335 § 12)

*"This act" (H.B. 335, 1997) contains numerous sections. Consult
Disposition of Sections table for definitive listing.

As used in sections 374.500 to 374.515, the following terms mean:

(1) "Certificate", a certificate of registration granted by the
department of insurance to a utilization review agent;

(2) "Director", the director of the department of insurance;

(3) "Enrollee", an individual who has contracted for or who participates
in coverage under a health insurance policy, an employee welfare benefit
plan, a health services corporation plan or any other benefit program
providing payment, reimbursement or indemnification for health care costs
for himself or eligible dependents or both himself and eligible
dependents. The term "enrollee" shall not include an individual who has
health care coverage pursuant to a liability insurance policy, workers'
compensation insurance policy, or medical payments insurance issued as a
supplement to a liability policy;

(4) "Provider of record", the physician or other licensed practitioner
identified to the utilization review agent as having primary
responsibility for the care, treatment and services rendered to an
enrollee;

(5) "Utilization review", a set of formal techniques designed to monitor
the use of, or evaluate the clinical necessity, appropriateness,
efficacy, or efficiency of, health care services, procedures, or
settings. Techniques may include ambulatory review, prospective review,
second opinion, certification, concurrent review, case management,
discharge planning or retrospective review. Utilization review shall not
include elective requests for clarification of coverage;

(6) "Utilization review agent", any person or entity performing
utilization review, except:

(a) An agency of the federal government;

(b) An agent acting on behalf of the federal government, but only to the
extent that the agent is providing services to the federal government; or

(c) Any individual person employed or used by a utilization review agent
for the purpose of performing utilization review services, including, but
not limited to, individual nurses and physicians, unless such individuals
are providing utilization review services to the applicable benefit plan,
pursuant to a direct contractual relationship with the benefit plan;

(d) An employee health benefit plan that is self-insured and qualified
pursuant to the federal Employee Retirement Income Security Act of 1974,
as amended;

(e) A property-casualty insurer or an employee or agent working on behalf
of a property-casualty insurer;

(f) A health carrier, as defined in section 376.1350, RSMo, that is
performing a review of its own health plan;

(7) "Utilization review plan", a summary of the utilization review
procedures of a utilization review agent. (L. 1991 S.B. 352 § 1, A.L.
1993 H.B. 709, A.L. 1997 H.B. 335)

1. A utilization review agent may not conduct utilization review
in this state unless the Missouri department of insurance has granted the
utilization review agent a certificate.

2. No certificate is required for those review agents conducting general
in-house utilization review for hospitals, home health agencies, clinics,
private offices or any other health facility or entity, so long as the
review does not result in the approval or denial of payment for hospital
or medical services for a particular case. (L. 1991 S.B. 352 § 2)

Effective 7-10-91

1. An applicant for a certificate shall:

(1) Submit an application to the department of insurance; and

(2) Pay to the department of insurance the application fee established by
the department through regulation.

2. The application shall:

(1) Be on a form and accompanied by any reasonably related supporting
documentation that the department of insurance requires; and

(2) Be signed and verified by the applicant.

3. The application fee required under this subsection shall be sufficient
to pay for the administrative cost of the certification program and any
other cost associated with carrying out the provisions of sections
374.500 to 374.515. (L. 1991 S.B. 352 § 3)

Effective 7-10-91

In conjunction with the application, the utilization review
agent shall submit additional information as required by the department
of insurance. (L. 1991 S.B. 352 § 4, A.L. 1997 H.B. 335)

1. All utilization review agents shall meet the minimum
requirements set forth in sections 376.1350 to 376.1390.

2. All utilization review agents certified before September 1, 1997,
shall meet the requirements set forth in sections 376.1350 to 376.1390 by
January 1, 1998, or such certification shall be deemed invalid. (L. 1991
S.B. 352 § 5, A.L. 1997 H.B. 335)

1. Whenever the director has reason to believe that a
utilization review agent subject to sections 374.500 to 374.515 has been
or is engaged in conduct which violates the provisions of sections
374.500 to 374.515, the director shall notify the utilization review
agent of the alleged violation. The utilization review agent shall have
thirty days from the date the notice is received to respond to the
alleged violation.

2. If the director believes that the utilization review agent has
violated the provisions of sections 374.500 to 374.515, or is not
satisfied that the alleged violation has been corrected, he shall conduct
a hearing on the alleged violation, in accordance with chapter 536, RSMo.

3. If, after such hearing, the director determines that the utilization
review agent has engaged in violations of sections 374.500 to 374.515, he
shall reduce his findings to writing and shall issue and cause to be
served upon the utilization review agent a copy of such findings and an
order requiring the utilization review agent to cease and desist from
engaging in such violations. The director may also, at his discretion,
order:

(1) Payment of a monetary penalty of not more than ten thousand dollars
for a violation which occurred if the utilization review agent
consciously disregarded sections 374.500 to 374.515 or which occurred
with such frequency as to indicate a general business practice; or

(2) Suspension or revocation of the authority to do business in this
state as a utilization review agent if the utilization review agent knew
that it was in violation of sections 374.500 to 374.515. (L. 1991 S.B.
352 § 6 subsecs. 1, 2, 3)

Effective 7-10-91

The director may promulgate such rules and regulations necessary
to implement the provisions of sections 374.500 to 374.515, pursuant to
the provisions of sections 374.045 and chapter 536, RSMo. (L. 1991 S.B.
352 § 6 subsecs. 4 to 8, A.L. 1993 S.B. 52)

Sections 374.695 to 374.789 may be known and shall be cited as
the "Professional Bail Bondsman and Surety Recovery Agent Licensure Act".
(L. 2004 S.B. 1122)

Effective 1-1-05

As used in sections 374.695 to 374.789, the following terms
shall mean:

(1) "Bail bond agent", a surety agent or an agent of a property bail
bondsman who is duly licensed pursuant to the provisions of sections
374.695 to 374.789, is employed by and is working under the authority of
a licensed general bail bond agent;

(2) "Bail bond or appearance bond", a bond for a specified monetary
amount which is executed by the defendant and a qualified licensee
pursuant to sections 374.695 to 374.789, and which is issued to a court
or authorized officer as security for the subsequent court appearance of
the defendant upon the defendant's release from actual custody pending
the appearance;

(3) "Department", the department of insurance of the state of Missouri;

(4) "Director", the director of the department of insurance;

(5) "General bail bond agent", a surety agent or a property bail
bondsman, as defined in sections 374.700 to 374.775, who is licensed in
accordance with sections 374.700 to 374.775 and who devotes at least
fifty percent of his working time to the bail bond business in this state;

(6) "Insurer", any surety insurance company which is qualified by the
department to transact surety business in Missouri;

(7) "Licensee", a bail bond agent or a general bail bond agent;

(8) "Property bail bondsman", a person who pledges United States
currency, United States postal money orders or cashier's checks or other
property as security for a bail bond in connection with a judicial
proceeding, and who receives or is promised therefor money or other
things of value;

(9) "Surety bail bond agent", any person appointed by an insurer by power
of attorney to execute or countersign bail bonds in connection with
judicial proceedings, and who receives or is promised money or other
things of value therefor;

(10) "Surety recovery agent", a person not performing the duties of a
sworn peace officer who tracks down, captures and surrenders to the
custody of a court a fugitive who has violated a bail bond agreement,
excluding a bail bond agent or general bail bond agent;

(11) "Taking a bail" or "take bail", the acceptance by a person
authorized to take bail of the undertaking of a sufficient surety for the
appearance of the defendant according to the terms of the undertaking or
that the surety will pay to the court the sum specified. Taking of bail
or take bail does not include the fixing of the amount of bail and no
person other than a competent court shall fix the amount of bail. (L.
1983 S.B. 363 § 1, A.L. 2001 S.B. 267, A.L. 2004 S.B. 1122)

Effective 1-1-05

1. No person shall engage in the bail bond business as a bail
bond agent or a general bail bond agent without being licensed as
provided in sections 374.695 to 374.775.

2. No judge, attorney, court official, law enforcement officer, state,
county, or municipal employee who is either elected or appointed shall be
licensed as a bail bond agent or a general bail bond agent.

3. A licensed bail bond agent shall not execute or issue an appearance
bond in this state without holding a valid appointment from a general
bail bond agent and without attaching to the appearance bond an executed
and prenumbered power of attorney referencing the general bail bond agent
or insurer.

4. A person licensed as an active bail bond agent shall hold the license
for at least two years prior to owning or being an officer of a licensed
general bail bond agent.

5. A general bail bond agent shall not engage in the bail bond business:

(1) Without having been licensed as a general bail bond agent pursuant to
sections 374.695 to 374.775; or

(2) Except through an agent licensed as a bail bond agent pursuant to
sections 374.695 to 374.775.

6. A general bail bond agent shall not permit any unlicensed person to
solicit or engage in the bail bond business on the general bail bond
agent's behalf, except for individuals who are employed solely for the
performance of clerical, stenographic, investigative, or other
administrative duties which do not require a license pursuant to sections
374.695 to 374.789.

7. Any person who is convicted of a violation of this section is guilty
of a class A misdemeanor. For any subsequent convictions, a person who is
convicted of a violation of this section is guilty of a class D felony.
(L. 2004 S.B. 1122)

Effective 1-1-05

1. The department shall administer and enforce the provisions of
sections 374.695 to 374.789, prescribe the duties of its officers and
employees with respect to sections 374.695 to 374.789, and promulgate,
pursuant to section 374.045 and chapter 536, RSMo, such rules and
regulations within the scope and purview of the provisions of sections
374.695 to 374.789 as the director considers necessary and proper for the
effective administration and interpretation of the provisions of sections
374.695 to 374.789.

2. The director shall set the amount of all fees authorized and required
by the provisions of sections 374.695 to 374.789 by rules and regulations
promulgated pursuant to chapter 536, RSMo. All such fees shall be set at
a level designed to produce revenue which shall not substantially exceed
the cost and expense of administering the provisions of sections 374.695
to 374.789. However, such fees shall not exceed one hundred fifty dollars
every two years for biennial licenses and renewable licenses for general
bail bond agents as provided for in section 374.710. (L. 1983 S.B. 363 §
2, A.L. 1993 S.B. 52, A.L. 2004 S.B. 1122)

Effective 1-1-05

1. Except as otherwise provided in sections 374.695 to 374.775,
no person or other entity shall practice as a bail bond agent or general
bail bond agent, as defined in section 374.700, in Missouri unless and
until the department has issued to him or her a license, to be renewed
every two years as hereinafter provided, to practice as a bail bond agent
or general bail bond agent.

2. An applicant for a bail bond and general bail bond agent license shall
submit with the application proof that he or she has received twenty-
four hours of initial basic training in areas of instruction in subjects
determined by the director deemed appropriate to professionals in the
bail bond profession. Bail bond agents and general bail bond agents who
are licensed at the date which this act becomes law* shall be exempt from
such twenty-four hours of initial basic training.

3. In addition to the twenty-four hours of initial basic training to
become a bail bond agent or general bail bond agent, there shall be eight
hours of biennial continuing education for all bail bond agents and
general bail bond agents to maintain their state license. The director
shall determine said appropriate areas of instruction for said biennial
continuing education. The director shall determine which institutions,
organizations, associations, and individuals shall be eligible to provide
the initial basic training and the biennial continuing education
instruction. The department may allow state institutions, organizations,
associations, or individuals to provide courses for the initial basic
training and the biennial continuing education training. The cost shall
not exceed two hundred dollars for the initial basic training and one
hundred fifty dollars for biennial continuing education.

4. Upon completion of said basic training or biennial continuing
education and the licensee meeting the other requirements as provided
under sections 374.695 to 374.789, the director shall issue a two-year
license for the bail bond agent or general bail bond agent for a fee not
to exceed one hundred fifty dollars.

5. Nothing in sections 374.695 to 374.775 shall be construed to prohibit
any person from posting or otherwise providing a bail bond in connection
with any legal proceeding, provided that such person receives no fee,
remuneration or consideration therefor. (L. 1983 S.B. 363 § 3, A.L. 1995
S.B. 3, A.L. 2004 S.B. 1122)

Effective 1-1-05

*"This act" (S.B. 1122, 2004) contained effective dates of August 28,
2004, and January 1, 2005.

1. Applications for examination and licensure as a bail bond
agent or general bail bond agent shall be in writing and on forms
prescribed and furnished by the department, and shall contain such
information as the department requires. Each application shall be
accompanied by proof satisfactory to the department that the applicant is
a citizen of the United States, is at least twenty-one years of age, has
a high school diploma or general education development certificate (GED),
is of good moral character, and meets the qualifications for surety on
bail bonds as provided by supreme court rule. Each application shall be
accompanied by the examination and application fee set by the department.
Individuals currently employed as bail bond agents and general bail bond
agents shall not be required to meet the education requirements needed
for licensure pursuant to this section.

2. In addition, each applicant for licensure as a general bail bond agent
shall furnish proof satisfactory to the department that the applicant or,
if the applicant is a corporation, that each officer thereof has
completed at least two years as a bail bond agent, and that the applicant
possesses liquid assets of at least ten thousand dollars, along with a
duly executed assignment of ten thousand dollars to the state of
Missouri. The assignment shall become effective upon the applicant's
violating any provision of sections 374.695 to 374.789. The assignment
required by this section shall be in the form and executed in the manner
prescribed by the department. The director may require by regulation
conditions by which additional assignments of assets of the general bail
bond agent may occur when the circumstances of the business of the
general bail bond agent warrants additional funds. However, such
additional funds shall not exceed twenty-five thousand dollars. (L. 1983
S.B. 363 § 4, A.L. 1997 S.B. 248, A.L. 2004 S.B. 1122)

Effective 1-1-05

1. Every bail bond agent shall account for each power of
attorney assigned by the general bail bond agent on a weekly basis and
remit all sums collected and owed to the general bail bond agent pursuant
to his or her written contract. The general bail bond agent shall
maintain the weekly accounting and remittance records for a period of
three years. Such records shall be subject to inspection by the director
or his or her designee during regular business hours or at other
reasonable times.

2. For every bond written in this state, the licensee shall provide to
the principal a copy of the bail contract. (L. 2004 S.B. 1122)

Effective 1-1-05

No insurer or licensee, court, or law enforcement officer shall:

(1) Pay a fee or rebate or give or promise anything of value in order to
secure a settlement, compromise, remission, or reduction of the amount of
any bail bond to:

(a) A jailer, police officer, peace officer, committing judge, or any
other person who has power to arrest or to hold in custody any person; or

(b) Any public official or public employee;

(2) Pay a fee or rebate or give anything of value to an attorney in bail
bond matters, except in defense of any action on a bond;

(3) Pay a fee or rebate or give anything of value to the principal or
anyone on the principal's behalf;

(4) Accept anything of value from a principal except the premium and
expenses incurred, provided that the licensee shall be permitted to
accept collateral security or other indemnity from the principal in
accordance with the provisions of section 374.719. (L. 2004 S.B. 1122)

Effective 1-1-05

1. A licensee may accept collateral security from the principal
in a fiduciary capacity, which collateral shall be returned upon final
termination of liability on the bond. When a licensee accepts collateral,
the licensee shall provide a prenumbered written receipt, which shall
include a detailed account of the collateral received by the licensee.
The acceptance of collateral security by a bail bond agent shall be
reported to the general bail bond agent.

2. The collateral security required by the licensee shall be reasonable
in relation to the amount of the bond.

3. If a failure to appear, absconding or attempting to abscond, or a
judgment of forfeiture on the bond has occurred, the collateral security
may be used to reimburse the licensee for any costs and expenses incurred
associated with the forfeiture.

4. The general bail bond agent shall retain records of the acceptance,
return, or judgment of forfeiture resulting in the use of the collateral
to reimburse the licensee for a period of three years. (L. 2004 S.B. 1122)

Effective 1-1-05

1. Each applicant for licensure as a general bail bond agent,
after complying with this section and the provisions of section 374.715,
shall be issued a license by the department unless grounds exist under
section 374.755 for denial of a license.

2. Each applicant for examination and licensure as a bail bond agent,
after complying with the provisions of section 374.715, shall appear for
examination at the time and place specified by the department. Such
examination shall be as prescribed by the director as provided under
section 375.018, RSMo, and shall be designed to test the applicant's
knowledge and expertise in the area of surety bonds in general and the
practice of a bail bond agent, as defined in sections 374.700 to 374.775,
in particular. The applicant shall be notified of the result of the
examination within twenty working days of the examination. Any applicant
who fails such examination may, upon reapplication and payment of the
reexamination fee set by the department, retake the examination. (L. 1983
S.B. 363 § 5 subsecs. 1, 2, A.L. 1993 H.B. 709)

All licenses issued to bail bond agents and general bail bond
agents under the provisions of sections 374.700 to 374.775 shall be
renewed biennially, which renewal shall be in the form and manner
prescribed by the department and shall be accompanied by the renewal fee
set by the department. (L. 1983 S.B. 363 § 5 subsec. 4, A.L. 2004 S.B.
1122)

Effective 1-1-05

1. The department may, in its discretion, grant a license
without requiring an examination to a bail bond agent who has been
licensed in another state immediately preceding his or her applying to
the department, if the department is satisfied by proof adduced by the
applicant that:

(1) The qualifications of the other state are at least equivalent to the
requirements for initial licensure as a bail bond agent in this state
pursuant to the provisions of sections 374.695 to 374.775, provided that
the other state licenses Missouri residents in the same manner; and

(2) The applicant has no suspensions or revocations of a license to
engage in the bail bond or fugitive recovery business in any jurisdiction.

2. Every applicant for a license pursuant to this section, upon showing
the necessary qualifications as provided in this section, shall be
required to pay the same fee as the fee required to be paid by resident
applicants.

3. Within the limits provided in this section, the department may
negotiate reciprocal compacts with licensing entities of other states for
the admission of licensed bail bond agents from Missouri in other states.

4. All applicants applying for licenses in this state after the enactment
of said act shall complete the education requirement as stated in section
374.710. If the bail bond agent or general bail bond agent has been
licensed in another state and has a license in Missouri at the time said
act becomes law, said individual shall not be required to complete the
twenty-four hours of initial basic training. (L. 1983 S.B. 363 § 6
subsec. 1, A.L. 2004 S.B. 1122)

Effective 1-1-05

Any person applying to be licensed as a nonresident general bail
bond agent who has been licensed in another state shall devote fifty
percent of his or her working time in the state of Missouri and shall
file proof with the director of insurance as to his or her compliance,
and accompany his or her application with the fees set by the director by
regulation and, if applying for a nonresident general bail bond agent's
license, with a duly executed assignment of twenty-five thousand dollars
to the state of Missouri, which assignment shall become effective upon
the applicant's violating any provision of sections 374.695 to 374.789.
Failure to comply with this section will result in revocation of the
nonresidence license. The assignment required by this section shall be in
the form and executed in the manner prescribed by the department. All
licenses issued pursuant to this section shall be subject to the same
renewal requirements set for other licenses issued pursuant to sections
374.695 to 374.789. (L. 1983 S.B. 363 § 6 subsec. 2, A.L. 2004 S.B. 1122)

Effective 1-1-05

The department may refuse to issue or renew any license required
pursuant to sections 374.700 to 374.775 for any one or any combination of
causes stated in section 374.755. The department shall notify the
applicant in writing of the reasons for the refusal and shall advise the
applicant of his right to file a complaint with the administrative
hearing commission as provided by chapter 621, RSMo. (L. 1983 S.B. 363 §
7 subsec. 1)

1. The department may cause a complaint to be filed with the
administrative hearing commission as provided by chapter 621, RSMo,
against any holder of any license required by sections 374.695 to 374.775
or any person who has failed to renew or has surrendered his or her
license for any one or any combination of the following causes:

(1) Use of any controlled substance, as defined in chapter 195, RSMo, or
alcoholic beverage to an extent that such use impairs a person's ability
to perform the work of the profession licensed under sections 374.695 to
374.775;

(2) Final adjudication or a plea of guilty or nolo contendere within the
past fifteen years in a criminal prosecution under any state or federal
law for a felony or a crime involving moral turpitude whether or not a
sentence is imposed, prior to issuance of license date;

(3) Use of fraud, deception, misrepresentation or bribery in securing any
license or in obtaining permission to take any examination required
pursuant to sections 374.695 to 374.775;

(4) Obtaining or attempting to obtain any compensation as a member of the
profession licensed by sections 374.695 to 374.775 by means of fraud,
deception or misrepresentation;

(5) Misappropriation of the premium, collateral, or other things of value
given to a bail bond agent or a general bail bond agent for the taking of
bail, incompetency, misconduct, gross negligence, fraud, or
misrepresentation in the performance of the functions or duties of the
profession licensed or regulated by sections 374.695 to 374.775;

(6) Violation of any provision of or any obligation imposed by the laws
of this state, department of insurance rules and regulations, or aiding
or abetting other persons to violate such laws, orders, rules or
regulations, or subpoenas;

(7) Transferring a license or permitting another person to use a license
of the licensee;

(8) Disciplinary action against the holder of a license or other right to
practice the profession regulated by sections 374.695 to 374.789 granted
by another state, territory, federal agency or country upon grounds for
which revocation or suspension is authorized in this state;

(9) Being finally adjudged insane or incompetent by a court of competent
jurisdiction;

(10) Assisting or enabling any person to practice or offer to practice
the profession licensed or regulated by sections 374.695 to 374.789 who
is not currently licensed and eligible to practice pursuant to sections
374.695 to 374.789;

(11) Acting in the capacity of an attorney at a trial or hearing of a
person for whom the attorney is acting as surety;

(12) Failing to provide a copy of the bail contract, renumbered written
receipt for acceptance of money, or other collateral for the taking of
bail to the principal, if requested by any person who is a party to the
bail contract, or any person providing funds or collateral for bail on
the principal's behalf.

2. After the filing of such complaint, the proceedings shall be conducted
in accordance with the provisions of chapter 621, RSMo. Upon a finding by
the administrative hearing commission that one or more of the causes
stated in subsection 1 of this section have been met, the director may
suspend or revoke the license or enter into an agreement for a monetary
or other penalty pursuant to section 374.280.

3. In lieu of filing a complaint at the administrative hearing
commission, the director and the bail bond agent or general bail bond
agent may enter into an agreement for a monetary or other penalty
pursuant to section 374.280.

4. In addition to any other remedies available, the director may issue a
cease and desist order or may seek an injunction in a court of competent
jurisdiction pursuant to the provisions of section 374.046 whenever it
appears that any person is acting as a bail bond agent or general bail
bond agent without a license or violating any other provisions of
sections 374.695 to 374.789. (L. 1983 S.B. 363 § 7 subsecs. 2, 3, A.L.
2004 S.B. 1122)

Effective 1-1-05

1. Any agent licensed by sections 374.695 to 374.775 who intends
to apprehend any person in this state shall inform law enforcement
authorities in the city or county in which such agent intends such
apprehension, before attempting such apprehension. Such agent shall
present to the local law enforcement authorities a certified copy of the
bond and all other appropriate paperwork identifying the principal and
the person to be apprehended. Local law enforcement may accompany the
agent. Failure of any agent to whom this section applies to comply with
the provisions of this section shall be a class A misdemeanor for the
first violation and a class D felony for subsequent violations; and shall
also be a violation of section 374.755 and may in addition be punished
pursuant to that section.

2. The surety recovery agent shall inform the local law enforcement in
the county or city where such agent is planning to enter a residence.
Such agent shall have a certified copy of the bond and all appropriate
paperwork to identify the principal. Local law enforcement, when
notified, may accompany the surety recovery agent to that location to
keep the peace if an active warrant is effective for a felony or
misdemeanor. If a warrant is not active, the local law enforcement
officers may accompany the surety recovery agent to such location.
Failure to report to the local law enforcement agency is a class A
misdemeanor. For any subsequent violations, failure to report to the
local law enforcement agency is a class D felony. (L. 2001 S.B. 267, A.L.
2004 S.B. 1122)

Effective 1-1-05

1. Any bail bond agent licensed in the state of Missouri shall
have access to all publicly available court records of the defendant by
available means to make a realistic assessment of the* defendant's
probability of attending all court dates as set in his or her charges
relating to the* bond request.

2. Any defendant shall have free access to any bail bond agent via one
phone call so long as the call is made to a local phone number. All other
numbers may be available as a collect call to any nonlocal number.

3. All Missouri licensed bail bond agents or licensed general agents
shall be qualified, without further requirements, in all jurisdictions of
this state, as provided in rules promulgated by the supreme court of
Missouri and not by any circuit court rule. (L. 2004 S.B. 1122)

Effective 1-1-05

*Word "the" does not appear in original rolls.

Each general bail bond agent shall file, between the first and
tenth day of each month, sworn affidavits with the department stating
that there are no unsatisfied judgments against him. Such affidavits
shall be in the form and manner prescribed by the department. (L. 1983
S.B. 363 § 8)

1. If any final judgment ordering forfeiture of a defendant's
bond is not paid within a six-month period of time, the court shall
extend the judgment date or notify the department of the failure to
satisfy such judgment. The director shall draw upon the assets of the
surety, remit the sum to the court, and obtain a receipt of such sum from
the court. The director may take action as provided by section 374.755,
regarding the license of the surety and any bail bond agents writing upon
the surety's liability.

2. The department shall furnish to the presiding judge of each circuit
court of this state, on at least a monthly basis, a list of all duly
licensed and qualified bail bond agents and general bail bond agents
whose licenses are not subject to pending suspension or revocation
proceedings, and who are not subject to unsatisfied bond forfeiture
judgments. In lieu of such list, the department may provide this
information to each presiding judge in an electronic format.

3. All duly licensed and qualified bail bond agents and general bail bond
agents shall be qualified, without further requirement, to write bail
upon a surety's liability in all courts of this state as provided in
rules promulgated by the supreme court of Missouri and not by any circuit
court rule. (L. 1997 S.B. 248, A.L. 2004 S.B. 1122)

Effective 1-1-05

1. The director shall examine and inquire into all alleged
violations or complaints filed with the department of insurance of the
bail bond law of the state, and inquire into and investigate the bail
bond business transacted in the state by any bail bond agent, general
bail bond agent, or surety recovery agent.

2. The director or any of his or her duly appointed agents may compel the
attendance before him or her, and may examine, under oath, the directors,
officers, bail bond agents, general bail bond agents, surety recovery
agents, employees, or any other person in reference to the condition,
affairs, management of the bail bond or surety recovery business, or any
matters relating thereto. He or she may administer oaths or affirmations
and shall have power to summon and compel the attendance of witnesses and
to require and compel the production of records, books, papers,
contracts, or other documents if necessary.

3. The director may make and conduct the investigation in person or the
director may appoint one or more persons to make and conduct the
investigation. If made by a person other than the director, the person
duly appointed by the director shall have the same powers as granted to
the director pursuant to this section. A certificate of appointment under
the official seal of the director shall be sufficient authority and
evidence thereof for the person to act. For the purpose of making the
investigations, or having the same made, the director may employ the
necessary clerical, actuarial, and other assistance. (L. 2004 S.B. 1122)

Effective 1-1-05

1. If there is a breach of the contract of the bond, the court
in which the case is pending shall declare a bond forfeiture, unless the
surety upon such bond informs the court that the defendant is
incarcerated somewhere within the United States. If forfeiture is not
ordered because the defendant is incarcerated somewhere within the United
States, the surety is responsible for the return of the defendant. If
bond forfeiture is ordered and the surety can subsequently prove the
defendant is incarcerated somewhere within the United States, then the
bond forfeiture shall be set aside and the surety be responsible for the
return of the defendant. When the surety notifies the court of the
whereabouts of the defendant, a hold order shall be placed by the court
having jurisdiction on the defendant in the state in which the defendant
is being held.

2. In all instances in which a bail bond agent or general bail bond agent
duly licensed by sections 374.700 to 374.775 has given his bond for bail
for any defendant who has absented himself in violation of the condition
of such bond, the bail bond agent or general bail bond agent shall have
the first opportunity to return such defendant to the proper court. If he
is unable to return such defendant, the state of Missouri shall return
such defendant to the proper court for prosecution, and all costs
incurred by the state in so returning a defendant may be levied against
the bail bond agent or general bail bond agent in question. (L. 1983 S.B.
363 § 10)

When issuing bonds of one thousand dollars or less, licensed
bail bond agents or general bail bond agents may charge a minimum premium
of fifty dollars. In connection with such bonds no bail bond agent,
general bail bond agent, or corporation shall charge or receive any
additional fee for investigations or services rendered in connection with
the execution of the bond. (L. 1983 S.B. 363 § 11)

1. No person shall hold himself or herself out as being a surety
recovery agent in this state, unless such person is licensed in
accordance with the provisions of sections 374.783 to 374.789. Licensed
bail bond agents and general bail bond agents may perform fugitive
recovery without being licensed as a surety recovery agent.

2. The director shall have authority to license all surety recovery
agents in this state. The director shall have control and supervision
over the licensing of such agents and the enforcement of the terms and
provisions of sections 374.783 to 374.789.

3. The director shall have the power to:

(1) Set and determine the amount of the fees authorized and required
pursuant to sections 374.783 to 374.789. The fees shall be set at a level
sufficient to produce revenue which shall not substantially exceed the
cost and expense of administering sections 374.783 to 374.789. However,
such fees shall not exceed one hundred fifty dollars for a two-year
license; and

(2) Determine the sufficient qualifications of applicants for a license.

4. The director shall license for a period of two years all surety
recovery agents in this state who meet the requirements of sections
374.783 to 374.789. (L. 2004 S.B. 1122)

1. Applications for examination and licensure as a surety
recovery agent shall be submitted on forms prescribed by the department
and shall contain such information as the department requires, along with
a copy of the front and back of a photographic identification card.

2. Each application shall be accompanied by proof satisfactory to the
director that the applicant is a citizen of the United States, is at
least twenty-one years of age, and has a high school diploma or a general
educational development certificate (GED). An applicant shall furnish
evidence of such person's qualifications by completing an approved surety
recovery agent course with at least twenty-four hours of initial minimum
training. The director shall determine which institutions, organizations,
associations, and individuals shall be eligible to provide said training.
Said instructions and fees associated therewith shall be identical or
similar to those prescribed in section 374.710 for bail bond agents and
general bail bond agents.

3. In addition to said twenty-four hours of initial minimum training,
licensees shall be required to receive eight hours of biennial continuing
education of which said instructions and fees shall be identical or
similar to those prescribed in section 374.710 for bail bond agents and
general bail bond agents.

4. Applicants for surety recovery agents licensing shall be exempt from
said requirements of the twenty-four hours of initial minimum training if
applicants provide proof of prior training as a law enforcement officer
with at least two years of such service within the ten years prior to the
application being submitted to the department.

5. The director may refuse to issue any license pursuant to sections
374.783 to 374.789, for any one or any combination of causes stated in
section 374.787. The director shall notify the applicant in writing of
the reason or reasons for refusal and shall advise the applicant of the
right to file a complaint with the administrative hearing commission to
appeal the refusal as provided by chapter 621, RSMo. (L. 2004 S.B. 1122)

1. The director shall issue a license for a period of two years
to any surety recovery agent who is licensed in another jurisdiction and
who:

(1) Has no violations, suspensions, or revocations of a license to engage
in fugitive recovery in any jurisdiction; and

(2) Is licensed in a jurisdiction whose requirements are substantially
equal to or greater than the requirements for a surety recovery agent
license in Missouri at the time the applicant applies for a license.

2. Any surety recovery agent who is licensed in another state shall also
be subject to the same training requirements as in-state surety recovery
agents prescribe to under section 374.784.

3. For the purpose of surrender of the defendant, a surety recovery agent
may apprehend the defendant anywhere within the state of Missouri before
or after the forfeiture of the undertaking without personal liability for
false imprisonment or may empower any surety recovery agent to make
apprehension by providing written authority endorsed on a certified copy
of the undertaking and paying the lawful fees.

4. Every applicant for a license pursuant to this section, upon making
application and showing the necessary qualifications as provided in this
section, shall be required to pay the same fee as required of resident
applicants. Within the limits provided in this section, the director may
negotiate reciprocal compacts with licensing entities of other states for
the admission of licensed surety recovery agents from Missouri in other
states. (L. 2004 S.B. 1122)

Effective 1-1-05

1. Every person licensed pursuant to sections 374.783 to 374.789
shall, before the license renewal date, apply to the director for renewal
for the ensuing licensing period. The application shall be made on a form
furnished to the applicant and shall state the applicant's full name, the
applicant's business address, the address at which the applicant resides,
the date the applicant first received a license, and the applicant's
surety recovery agent identification number, if any.

2. A renewal form shall be mailed to each person licensed in this state
at the person's last known address. The failure to mail the renewal form
or the failure of a person to receive it does not relieve any person of
the duty to be licensed and to pay the license fee required nor exempt
such person from the penalties provided for failure to be licensed.

3. Each applicant for renewal shall accompany such application with a
renewal fee to be paid to the department for the licensing period for
which renewal is sought.

4. The director may refuse to renew any license required pursuant to
sections 374.783 to 374.789 for any one or any combination of causes
stated in section 374.787. The director shall notify the applicant in
writing of the reasons for refusal to renew and shall advise the
applicant of his or her right to file a complaint with the administrative
hearing commission as provided by chapter 621, RSMo. (L. 2004 S.B. 1122)

Effective 1-1-05

1. The director may cause a complaint to be filed with the
administrative hearing commission as provided by chapter 621, RSMo,
against any surety recovery agent or any person who has failed to renew
or has surrendered his or her license for any one or any combination of
the following causes:

(1) Violation of any provisions of, or any obligations imposed by, the
laws of this state, the department of insurance rules and regulations, or
aiding or abetting other persons to violate such laws, orders, rules, or
regulations;

(2) Final adjudication or a plea of guilty or nolo contendere in a
criminal prosecution under state or federal law for a felony or a crime
involving moral turpitude, whether or not a sentence is imposed;

(3) Using fraud, deception, misrepresentation, or bribery in securing a
license or in obtaining permission to take any examination required by
sections 374.783 to 374.789;

(4) Obtaining or attempting to obtain any compensation as a surety
recovery agent by means of fraud, deception, or misrepresentation;

(5) Acting as a surety recovery agent or aiding or abetting another in
acting as a surety recovery agent without a license;

(6) Incompetence, misconduct, gross negligence, fraud, or
misrepresentation in the performance of the functions or duties of a
surety recovery agent;

(7) Having a license revoked or suspended that was issued by another
state.

2. After the filing of the complaint, the proceedings shall be conducted
in accordance with the provisions of chapter 621, RSMo. Upon a finding by
the administrative hearing commission that one or more of the causes
stated in subsection 1 of this section have been met, the director may
suspend or revoke the license or enter into an agreement for a monetary
or other penalty pursuant to section 374.280.

3. In lieu of filing a complaint with the administrative hearing
commission, the director and the surety recovery agent may enter into an
agreement for a monetary or other penalty pursuant to section 374.280.

4. In addition to any other remedies available, the director may issue a
cease and desist order or may seek an injunction in a court of law
pursuant to section 374.046 whenever it appears that any person is acting
as a surety recovery agent without a license. (L. 2004 S.B. 1122)

Effective 1-1-05

1. A bail bond agent having probable grounds to believe a
subject free on his or her bond has failed to appear as directed by a
court, has breached the terms of the subject's surety agreement, or has
taken a substantial step toward absconding may utilize all lawful means
to apprehend the subject. To surrender a subject to a court, a licensed
bail bond or surety recovery agent having probable grounds to believe the
subject is free on his or her bond may:

(1) Detain the subject in a lawful manner, for a reasonable time,
provided that in the event travel from another state is involved, the
detention period may include reasonable travel time not to exceed
seventy-two hours;

(2) Transport a subject in a lawful manner from state to state and county
to county to a place of authorized surrender; and

(3) Enter upon private or public property in a lawful manner to execute
apprehension of a subject.

2. A surety recovery agent who apprehends a subject pursuant to the
provisions of subsection 1 of this section shall surrender custody of the
subject to the court of jurisdiction.

3. When a surety recovery agent is in the process of performing fugitive
recovery, a photographic identification card shall be prominently
displayed on his or her person. (L. 2004 S.B. 1122)

Effective 1-1-05

1. A person is guilty of a class D felony if he or she does not
hold a valid surety recovery agent license or a bail bond license and
commits any of the following acts:

(1) Holds himself or herself out to be a licensed surety recovery agent
within this state;

(2) Claims that he or she can render surety recovery agent services; or

(3) Engages in fugitive recovery in this state.

2. Any person who engages in fugitive recovery in this state and
wrongfully causes damage to any person or property, including, but not
limited to, unlawful apprehension, unlawful detainment, or assault, shall
be liable for such damages and may be liable for punitive damages. (L.
2004 S.B. 1122)

Effective 1-1-05

The department of insurance shall prepare and submit a plan to
the general assembly by September 1, 1993, to reduce the number of
employers insured through the residual market. The department shall
specifically examine and address in its plan the following topics:

(1) The use of an employer's experience modification factor and the
appropriate level thereof as an objective criterion in determining
eligibility for coverage;

(2) The maximum amount of such coverage an insurer would be required to
issue, expressed as a percentage of its voluntary business;

(3) Providing a system of incentives to insurers to voluntarily cover
employers which had been insured through the residual market by reducing
the amount of coverage required to be provided by such insurer under the
plan;

(4) The effect of the implementation of such plan on the competitive
voluntary insurance workers' compensation market in Missouri in terms of
the number of insurers actively competing, the availability of coverage
by classification and pricing by classification;

(5) Permitting insurers to file separate rates by classification for
employers which they may be required to insure under such plan;

(6) Requiring that only agents which have been appointed by such insurer
may submit applications for coverage under such plan;

(7) The results of this plan in other jurisdictions where it has been
implemented in either workers' compensation or other lines of insurance;

(8) Requiring nonexperienced rated employers or employers not eligible
for experience rating, as a condition to receive coverage, to utilize the
insurer's managed care medical program and to comply with the insurer's
loss control or safety engineering program.

Upon receipt of the plan, the general assembly shall, by concurrent
resolution disapprove such plan by September 24, 1993. If the plan is not
disapproved it shall be implemented by rule on January 1, 1994. If the
plan is not submitted to the general assembly under the provisions of
this section, it shall not be implemented by rule. (L. 1993 S.B. 251 § 16)

(1995) Where statute required director to submit plan to general assembly
when legislature was not in session, court properly prohibited the
director of insurance from implementing "Workers' Compensation Residual
Market Depopulation Plan" by rule. Chief clerk is not member of house of
representatives and has no duty to distribute plans to members, therefore
there was no receipt of the plan by the house members. Statute provided
that plan would become effective by rule if not disapproved by concurrent
resolution within thirty days. State ex rel. Royal Insurance v. Director
of the Missouri Department of Insurance, 894 S.W.2d 159 (Mo. en banc).

1. Notwithstanding any other provision of law, when the
department of insurance intends to enter into any contract or other
written agreement or approve any letter of intent for payment of money by
the state in excess of one hundred thousand dollars, modification or
potential reduction of a party's financial obligation to the state in
excess of one hundred thousand dollars, the department of insurance shall
forward a copy to the attorney general before entering into that
contract, subcontract or other written agreement or approving the letter
of intent.

2. Upon receiving the contract, other written agreement or letter of
intent, the attorney general shall, within ten days, review and approve
that contract, other written contract or letter of intent for its legal
form and content as may be necessary to protect the legal interest of the
state. If the attorney general does not approve, then the attorney
general shall return the contract, other written agreement or letter of
intent with additional proposed provisions as may be necessary to the
proper enforcement of the contract as required to protect the state's
legal interest. If the attorney general does not respond within ten days
or, in the case of any contract that involves a payment of money by the
state or a modification or potential reduction of a party's financial
obligation to the state of one million dollars or more, within thirty
days, the contract shall be deemed approved.

3. Communications related to the attorney general's review are
attorney-client communications. The attorney general's written
disposition shall be subject to chapter 610, RSMo. (L. 2001 H.B. 762 § 1)

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