FIRSTREGULARSESSION
HOUSECOMMITTEESUBSTITUTEFOR
SENATESUBSTITUTEFOR
SENATEBILLNO.181
102NDGENERALASSEMBLY
1166H.07C DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsections287.690,287.900,287.902,287.905,287.907,287.909,287.910,287.912,
287.915,287.917,287.919,287.920,375.1275,and379.316,RSMo,andtoenactin
lieuthereoftwenty-ninenewsectionsrelatingtocontractualagreements,withpenalty
provisionsandadelayedeffectivedateforcertainsections.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections287.690,287.900,287.902,287.905,287.907,287.909,287.910,
2287.912,287.915,287.917,287.919,287.920,375.1275,and379.316,RSMo,arerepealed
3andtwenty-ninenewsectionsenactedinlieuthereof,tobeknownassections287.690,
4287.921,361.749,375.1275,379.316,379.1850,379.1851,379.1853,379.1855,379.1857,
5379.1859,379.1861,379.1863,379.1865,379.1867,379.1869,387.435,436.550,436.552,
6436.554,436.556,436.558,436.560,436.562,436.564,436.566,436.568,436.570,and
7436.572,toreadasfollows:
287.690.[1.]PriortoDecember31,1993,forthepurposeofprovidingforthe
2expenseofadministeringthischapter[andforthepurposesetoutinsubsection2ofthis
3section], everyperson,partnership,association,corporation,whetherorganizedunderthe
4lawsofthisoranyotherstateorcountry,thestateofMissouri,includinganyofits
5departments,divisions,agencies,commissions,andboardsoranypoliticalsubdivisionsofthe
6statewhoself-insureorholdthemselvesouttobeanypartself-insured,company,mutual
7company,thepartiestoanyinterindemnitycontract,orotherplanorscheme,andeveryother
8insurancecarrier,insuringemployersinthisstateagainstliabilityforpersonalinjuriestotheir
9employees,orfordeathcausedthereby,underthischapter,shallpay,asprovidedinthis
10chapter,taxuponthenetdeposits,netpremiumsornetassessmentsreceived,whetherincash
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 11ornotesinthisstate,oronaccountofbusinessdoneinthisstate,forsuchinsuranceinthis
12stateattherateoftwopercentinlieuofallothertaxesonsuchnetdeposits,netpremiumsor
13netassessments,whichamountoftaxesshallbeassessedandcollectedashereinprovided.
14BeginningOctober31,1993,andeveryyearthereafter,thedirectorofthedivisionofworkers'
15compensationshallestimatetheamountofrevenuerequiredtoadministerthischapterandthe
16directorshalldeterminetherateoftaxtobepaidinthefollowingcalendaryearpursuantto
17thissectioncommencingwiththecalendaryearbeginningonJanuary1,1994.Ifthebalance
18ofthefundestimatedtobeonhandonDecemberthirty-firstoftheyeareachtaxrate
19determinationismadeislessthanonehundredtenpercentofthepreviousyear'sexpenses
20plusanyadditionalrevenuerequiredduetonewstatutoryrequirementsgiventothedivision
21bythegeneralassembly,thenthedirectorshallimposeataxnottoexceedtwopercentinlieu
22ofallothertaxesonnetdeposits,netpremiumsornetassessments,roundeduptothenearest
23one-halfofapercentagepoint,whichamountoftaxesshallbeassessedandcollectedas
24hereinprovided.Thenetpremiumequivalentforindividualself-insuredemployersshallbe
25basedonaveragerateclassificationscalculatedbythedepartmentofcommerceandinsurance
26astakenfrompremiumratesfiledbythetwentyinsurancecompaniesprovidingthegreatest
27volumeofworkers'compensationinsurancecoverageinthisstate.Foremployersqualifiedto
28self-insuretheirliabilitypursuanttothischapter,theratesfiledbysuchgroupofemployersin
29accordancewithsubsection4ofsection287.280shallbethenetpremiumequivalent.Any
30groupofpoliticalsubdivisionsofthisstatequalifiedtoself-insuretheirliabilitypursuantto
31thischapterasauthorizedbysection537.620maychooseeithertheaveragerateclassification
32methodorthefiledratemethod,providedthatthemethodusedmayonlybechangedonce
33withoutreceivingtheconsentofthedirectorofthedivisionofworkers'compensation.Every
34entityrequiredtopaythetaximposedpursuanttothissectionandsection287.730shallbe
35notifiedbythedivisionofworkers'compensationwithintencalendardaysofthedateofthe
36determinationoftherateoftaxtobeimposedforthefollowingyear.Netpremiums,net
37depositsornetassessmentsaredefinedasgrosspremiums,grossdepositsorgross
38assessmentslesscancelledorreturnedpremiums,premiumdepositsorassessmentsandless
39dividendsorsavings,actuallypaidorcredited.
40 [2.AfterJanuary1,1994,thedirectorofthedivisionshallmakeoneormoreloansto
41theMissouriemployersmutualinsurancecompanyinanamountnottoexceedanaggregate
42amountoffivemilliondollarsfromthefundmaintainedtoadministerthischapterforstart-up
43fundingandinitialcapitalizationofthecompany.Theboardofthecompanyshallmake
44applicationtothedirectorfortheloans,statingtheamounttobeloanedtothecompany.The
45loansshallbeforatermoffiveyearsand,atthetimetheapplicationforsuchloansis
46approvedbythedirector,shallbearinterestattheannualratebasedontherateforlinked
47depositloansascalculatedbythestatetreasurerpursuanttosection30.758.]
HCSSSSB181 2 287.921.1.Forpurposesofthissection,thefollowingtermsmean:
2 (1)"Company",anyindependentpubliccorporationcreatedforthepurposeof
3insuringMissouriemployersagainstliabilityforworkers'compensation,occupational
4disease,andemployers'liabilitycoverage;
5 (2)"Department",thedepartmentofcommerceandinsurance;
6 (3)"Director",thedirectorofthedepartmentofcommerceandinsurance.
7 2.BeforeJanuary1,2025,anycompanymayfileamendedandrestatedarticles
8ofincorporationwiththedepartmentandthesecretaryofstateconvertingthecompany
9fromanindependentpubliccorporationtoaprivatemutualinsurancecorporation
10undertheprovisionsofchapter379.Ifthedirectordeterminesthattheamendedand
11restatedarticlesofincorporationcomplywiththeapplicableprovisionsofchapter379,
12thefollowingshalloccur:
13 (1)ThedirectorshallissueanamendedcertificateofauthorityeffectiveJanuary
141,2025,tothecompanytooperateasaprivatemutualinsurancecorporationlicensedto
15writeanylinesofinsuranceauthorizedundertheprovisionsofchapter379;
16 (2)Thedirectorshallreauthorizethecompany'sexistingfilings,forms,orother
17administrativemattersonfilewiththedepartmentsothatthecompany'sfilings,rates,
18forms,orotheradministrativemattersshallbeeffectiveJanuary1,2025;and
19 (3)Thesecretaryofstateshallissueanamendedcertificateofincorporation
20effectiveJanuary1,2025,certifyinganddeclaringthecompanytobeabodycorporate
21dulyorganized,existing,andentitledtoallrightsandprivilegesgrantedcorporations
22organizedunderchapter379.
23 3.Thecompanymaycontinuetoconductbusinessunderitsexistingnameor
24adoptanyothernamethatcomplieswithstatelaw.
25 4.(1)FromandafterJanuary1,2025,theconvertedprivatemutualinsurance
26corporationshallbecomethesuccessorininteresttoallassetsandliabilitiesofthe
27companyasoftheconversiondatedirectedinthissectionwithoutanyconveyanceor
28transferandwithoutanyfurtheractordeedandshallbevestedbyoperationoflawto
29allpropertyofthecompany.
30 (2)Thestateisnotliablefortheexpenses,liabilities,ordebtsof:
31 (a)Theconvertedprivatemutualinsurancecorporationdescribedinthis
32section;
33 (b)Thecompany;or
34 (c)Asubsidiaryorjointenterpriseinvolvingtheprivatemutualinsurance
35corporationorthecompany.
361.749.1.Asusedinthissection,unlessthecontextclearlyindicatesotherwise,
2thefollowingtermsmean:
HCSSSSB181 3 3 (1)"Commissioner",thecommissionerofthedivisionoffinance;
4 (2)"Consumer",anyindividual;
5 (3)"Consumer-directedwageaccessservices",thebusinessofofferingor
6providingearnedwageaccessservicesdirectlytoaconsumerbasedontheconsumer's
7representationandtheprovider'sreasonabledeterminationoftheconsumer'searned
8butunpaidincome;
9 (4)"Division",theMissouridivisionoffinancewithinthedepartmentof
10commerceandinsurance;
11 (5)"Earnedbutunpaidincome",salary,wages,compensation,orotherincome
12thataconsumeroranemployerhasrepresented,andthataproviderhasreasonably
13determined,hasbeenearnedorhasaccruedtothebenefitoftheconsumerinexchange
14fortheconsumer'sprovisionofservicestotheemployeroronbehalfoftheemployer,
15includingonanhourly,project-based,piecework,orotherbasisandincludingwhere
16theconsumerisactingasanindependentcontractoroftheemployer,buthasnot,atthe
17timeofthepaymentofproceeds,beenpaidtotheconsumerbytheemployer;
18 (6)"Earnedwageaccessservices",thebusinessofprovidingconsumer-directed
19wageaccessservices,employer-integratedwageaccessservices,orboth;
20 (7)"Employer":
21 (a)Apersonwhoemploysaconsumer;or
22 (b)Anyotherpersonwhoiscontractuallyobligatedtopayaconsumerearned
23butunpaidincomeinexchangeforaconsumer'sprovisionofservicestotheemployeror
24onbehalfoftheemployer,includingonanhourly,project-based,piecework,orother
25basisandincludingwheretheconsumerisactingasanindependentcontractorwith
26respecttotheemployer.
27
28"Employer"doesnotincludeacustomerofanemployeroranyotherpersonwhose
29obligationtomakeapaymentofsalary,wages,compensation,orotherincometoa
30consumerisnotbasedontheprovisionofservicesbythatconsumerfororonbehalfof
31suchperson;
32 (8)"Employer-integratedwageaccessservices",thebusinessofdeliveringto
33consumersaccesstoearnedbutunpaidincomethatisbasedonemployment,income,
34andattendancedataobtaineddirectlyorindirectlyfromanemployer;
35 (9)"Fee":
36 (a)Afeeimposedbyaproviderfordeliveryorexpediteddeliveryofproceedsto
37aconsumer;
38 (b)Asubscriptionormembershipfeeimposedbyaproviderforabonafide
39groupofservicesthatincludesearnedwageaccessservices;or
HCSSSSB181 4 40 (c)Anamountpaidbyanemployertoaprovideronaconsumer'sbehalf,which
41entitlestheconsumertoreceiveproceedsatreducedornocosttotheconsumer.
42
43Avoluntarytip,gratuity,ordonationshallnotbedeemedafee;
44 (10)"Outstandingproceeds",apaymentofproceedstoaconsumerbya
45providerthathasnotyetbeenrepaidtothatprovider;
46 (11)"Person",apartnership,corporation,association,soleproprietorship,
47limitedliabilitycompany,ornonprofitorgovernmentalentity;
48 (12)"Proceeds",apaymentoffundstoaconsumerbyaproviderthatisbased
49onearnedbutunpaidincome;
50 (13)"Provider",apersonwhoisinthebusinessofofferingandproviding
51earnedwageaccessservicestoconsumers.
52 2.(1)Nopersonshallengageinthebusinessofearnedwageaccessservicesin
53thisstatewithoutfirstregisteringasanearnedwageaccessservicesproviderwiththe
54division.
55 (2)Theannualregistrationfeeshallbeonethousanddollarspayabletothe
56divisionasofthefirstdayofJulyofeachyear.Thedivisionmayestablishabiennial
57registrationarrangement,butinnocaseshalltheregistrationfeebepayableformore
58thanoneyearatatime.
59 (3)Registrationshallbemadeonformspreparedbythecommissionerandshall
60containthefollowinginformation:
61 (a)Name,businessaddress,andtelephonenumberoftheearnedwageaccess
62servicesprovider;
63 (b)Nameandbusinessaddressofcorporateofficersanddirectorsorprincipals
64orpartners;and
65 (c)Aswornstatementbyanappropriateofficer,principal,orpartnerofthe
66earnedwageaccessservicesproviderthat:
67 a.Theproviderisfinanciallycapableofengaginginthebusinessofearnedwage
68accessservices;and
69 b.Ifacorporation,thatthecorporationisauthorizedtotransactbusinessinthis
70state.
71
72Ifanymaterialchangeoccursintheinformationcontainedintheregistrationform,a
73revisedstatementshallbesubmittedtothecommissioner.
74 (4)Acertificateofregistrationshallbeissuedbythecommissionerwithinthirty
75calendardaysafterthedateonwhichallregistrationmaterialshavebeenreceivedby
HCSSSSB181 5 76thecommissionerandshallnotbeassignableortransferable,exceptasapprovedbythe
77commissioner.
78 (5)Eachcertificateofregistrationshallremaininfullforceandeffectuntil
79surrendered,revoked,orsuspended.
80 3.Thissectionshallnotapplyto:
81 (1)Abankorsavingsandloanassociationwhosedepositsoraccountsare
82eligibleforinsurancebytheFederalDepositInsuranceCorporation,orasubsidiaryof
83suchabankorsavingsandloanassociation;
84 (2)Acredituniondoingbusinessinthisstate;or
85 (3)Apersonauthorizedtomakeloansorextensionsofcreditunderthelawsof
86thisstateortheUnitedStates,whoissubjecttoregulationandsupervisionbythisstate
87ortheUnitedStates.
88 4.Eachprovidershall:
89 (1)Developandimplementpoliciesandprocedurestorespondtoquestions
90raisedbyconsumersandaddresscomplaintsfromconsumersinanexpedientmanner;
91 (2)Beforeenteringintoanagreementwithaconsumerfortheprovisionof
92earnedwageaccessservices,provideaconsumerwithawrittenpaperorelectronic
93document,whichcanbeincludedaspartofthecontracttoprovideearnedwageaccess
94servicesandwhichmeetsallofthefollowingrequirements:
95 (a)Informstheconsumerofhisorherrightsundertheagreement;and
96 (b)Fullyandclearlydisclosesallfeesassociatedwiththeearnedwageaccess
97services;
98 (3)Informtheconsumerofthefactofanymaterialchangestothetermsand
99conditionsoftheearnedwageaccessservicesbeforeimplementingthosechangesfor
100thatconsumer;
101 (4)Provideproceedstoaconsumerbyanymeansmutuallyagreeduponbythe
102consumerandprovider;
103 (5)Complywithalllocal,state,andfederalprivacyandinformationsecurity
104laws;
105 (6)Inanycaseinwhichtheproviderwillseekrepaymentofoutstanding
106proceeds,fees,orotherpayments,includingvoluntarytips,gratuities,orother
107donationsfromaconsumer'saccountatadepositoryinstitutionandincludingvia
108electronicfundstransfer:
109 (a)ComplywithapplicableprovisionsofthefederalElectronicFundsTransfer
110Actanditsimplementingregulations;and
111 (b)Reimbursetheconsumerforthefullamountofanyoverdraftor
112nonsufficientfundsfeesimposedonaconsumerbytheconsumer'sdepository
HCSSSSB181 6 113institutionthatwerecausedbytheproviderattemptingtoseekpaymentofany
114outstandingproceeds,fees,voluntarytips,gratuities,orotherdonationsonadate
115before,orinanincorrectamountfrom,thedateoramountdisclosedtotheconsumer.
116
117Theprovisionsofthissubdivisionshallnotapplywithrespecttopaymentsof
118outstandingproceeds,fees,tips,gratuities,orotherdonationsincurredbyaconsumer
119throughfraudulentorothermeans;and
120 (7)Ifaprovidersolicits,charges,orreceivesatip,gratuity,ordonationfroma
121consumer:
122 (a)Clearlyandconspicuouslydisclosetotheconsumerimmediatelypriorto
123eachtransactionthatatip,gratuity,ordonationamountmaybezeroandisvoluntary;
124 (b)Clearlyandconspicuouslydiscloseinitsservicecontractwiththeconsumer
125andelsewherethattips,gratuities,ordonationsarevoluntaryandthattheofferingof
126earnedwageaccessservices,includingtheamountoftheproceedsaconsumeriseligible
127torequestandthefrequencywithwhichproceedsareprovidedtoaconsumer,isnot
128contingentonwhethertheconsumerpaysanytip,gratuity,ordonationoronthesizeof
129anytip,gratuity,ordonation;
130 (c)Refrainfrommisleadingordeceivingconsumersaboutthevoluntarynature
131ofsuchtips,gratuities,ordonations;and
132 (d)Refrainfrommakingrepresentationsthattipsorgratuitieswillbenefitany
133specific,individualperson.
134 5.Aprovidershallnot:
135 (1)Sharewithanemployeranyfees,voluntarytips,gratuities,orother
136donationsthatwerereceivedfromorchargedtoaconsumerforearnedwageaccess
137services;
138 (2)Chargeinterestforfailuretorepayoutstandingproceeds,fees,voluntary
139tips,gratuities,orotherdonations;
140 (3)Reportanyinformationabouttheconsumerregardingtheinabilityofthe
141providertoberepaidoutstandingproceeds,fees,voluntarytips,gratuities,orother
142donationstoaconsumercreditreportingagencyoradebtcollector;
143 (4)Requireaconsumer'screditreportorcreditscoretodetermineaconsumer's
144eligibilityforearnedwageaccessservices;
145 (5)Acceptpaymentfromaconsumerofoutstandingproceeds,fees,voluntary
146tips,gratuities,orotherdonationsviacreditcardorchargecard;or
147 (6)Compelorattempttocompelrepaymentbyaconsumerofoutstanding
148proceeds,fees,voluntarytips,gratuities,orotherdonationsthroughanyofthefollowing
149means:
HCSSSSB181 7 150 (a)Asuitagainsttheconsumerinacourtofcompetentjurisdiction;
151 (b)Useofathirdpartytopursuecollectionfromtheconsumerontheprovider's
152behalf;or
153 (c)Saleofoutstandingamountstoathird-partycollectorordebtbuyerfor
154collectionfromtheconsumer.
155
156Theprovisionsofthissubdivisionshallnotapplytopaymentsofoutstandingproceeds,
157fees,tips,gratuities,orotherdonationsincurredbyaconsumerthroughfraudulentor
158othermeansorprecludeaproviderfrompursuinganemployerforbreachofits
159contractualobligationstotheprovider.
160 6.Forpurposesofthelawsofthisstate:
161 (1)Earnedwageaccessservicesofferedandprovidedbyaregisteredprovider
162shallnotbeconsideredtobeanyofthefollowing:
163 (a)Aviolationofornoncompliancewiththelawsgoverningthesaleor
164assignmentoforanorderforearnedbutunpaidincome;
165 (b)Aloanorotherformofcredit,andtheprovidershallnotbeconsidereda
166creditororalender;
167 (c)Moneytransmission,andtheprovidershallnotbeconsideredamoney
168transmitter;
169 (2)Fees,voluntarytips,gratuities,orotherdonationsshallnotbeconsidered
170interestorfinancecharges.
171 7.Thecommissioner,orhisorherdulyauthorizedrepresentative,maymake
172suchinvestigationasisdeemednecessaryand,totheextentnecessaryforthispurpose,
173mayexaminetheregistrantoranyotherpersonhavingpersonalknowledgeofthe
174mattersunderinvestigation,andshallhavethepowertocompeltheproductionofall
175relevantbooks,records,accounts,anddocumentsbyregistrants.
176 8.(1)Anearnedwageaccessservicesprovidershallmaintainrecordsofits
177earnedwageaccessservicestransactionsandshallpreserveitsrecordsforatleasttwo
178yearsafterthefinaldateonwhichitprovidesproceedstoaconsumer.
179 (2)Recordsrequiredbythissectionmaybemaintainedelectronically.
180 9.Thedivisionmaypromulgaterulesasmaybenecessaryfortheadministration
181ofthissection.Anyruleorportionofarule,asthattermisdefinedinsection536.010,
182thatiscreatedundertheauthoritydelegatedinthissectionshallbecomeeffectiveonlyif
183itcomplieswithandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,
184section536.028.Thissectionandchapter536arenonseverableandifanyofthepowers
185vestedwiththegeneralassemblypursuanttochapter536toreview,todelaythe
186effectivedate,ortodisapproveandannularulearesubsequentlyheldunconstitutional,
HCSSSSB181 8 187thenthegrantofrulemakingauthorityandanyruleproposedoradoptedafterAugust
18828,2023,shallbeinvalidandvoid.
189 10.(1)Anyproviderregisteredpursuanttothissectionwhofails,refuses,or
190neglectstocomplywiththeprovisionsofthissectionorcommitsanycriminalactmay
191haveitsregistrationsuspendedorrevokedbythecommissioner,afterahearingbefore
192thecommissioneronanorderofthecommissionertoshowcausewhysuchorderof
193suspensionorrevocationshouldnotbeenteredspecifyingthegroundstherefor,which
194shallbeservedontheregistrantatleasttendayspriortothehearing.
195 (2)Wheneveritshallappeartothecommissionerthatanyproviderregistered
196pursuanttothissectionisfailing,refusing,orneglectingtomakeagoodfaitheffortto
197complywiththeprovisionsofthissection,thecommissionermayissueanordertocease
198anddesist,whichordermaybeenforceablebyacivilpenaltyofnotmorethanone
199thousanddollarsperdayforeachdaythattheneglect,failure,orrefusalshallcontinue.
200Thepenaltyshallbeassessedandcollectedbythecommissioner.Indeterminingthe
201amountofthepenalty,thecommissionershalltakeintoaccounttheappropriatenessof
202thepenaltywithrespecttothegravityoftheviolation,thehistoryofpreviousviolations,
203andsuchothermattersasjusticemayrequire.
204 11.Allrevenuescollectedbyorpaidtothecommissionerpursuanttothissection
205shallbeforwardedimmediatelytothedirectorofrevenue,whoshalldeposittheminthe
206divisionoffinancefund.
207 12.Anyearnedwageaccessservicesproviderknowinglyandwillfullyviolating
208theprovisionsofthissectionshallbeguiltyofaclassAmisdemeanor.
209 13.Ifthereisaconflictbetweentheprovisionsofthissectionandanyotherstate
210statute,theprovisionsofthissectionshallcontrol.
375.1275.1.ForRBCreportsrequiredtobefiledbylifeandhealthinsurerswith
2respectto1993,thefollowingrequirementsshallapplyinlieuoftheprovisionsofsection
3375.1255:
4 (1)Intheeventofacompanyactionleveleventwithrespecttoaninsurer,the
5directorshalltakenoregulatoryaction;
6 (2)Intheeventofaregulatoryactionleveleventpursuanttosection375.1257,the
7directorshalltaketheactionsrequiredpursuanttosection375.1255;
8 (3)Intheeventofaregulatoryactionleveleventpursuanttosection375.1257oran
9authorizedcontrollevelevent,thedirectorshalltaketheactionsrequiredpursuanttosection
10375.1257withrespecttotheinsurer;
11 (4)Intheeventofamandatorycontrolleveleventwithrespecttoaninsurer,the
12directorshalltaketheactionsrequiredpursuanttosection375.1260withrespecttothe
13insurer.
HCSSSSB181 9 14 2.ForRBCreportsrequiredtobefiledbypropertyandcasualtyinsurerswithrespect
15to1996,thefollowingrequirementsshallapplyinlieuoftheprovisionsofsections375.1255
16to375.1262:
17 (1)Intheeventofacompanyactionleveleventwithrespecttoadomesticinsurer,
18thedirectorshalltakenoregulatoryactionundersections375.1250to375.1275;
19 (2)Intheeventofaregulatoryactionleveleventundersubdivision(1),(2)or(3)of
20subsection1ofsection375.1257,thedirectorshalltaketheactionsrequiredundersection
21375.1255;
22 (3)Intheeventofaregulatoryactionleveleventundersubdivision(4),(5),(6),(7),
23(8)or(9)ofsubsection1ofsection375.1257oranauthorizedcontrollevelevent,thedirector
24shalltaketheactionsrequiredundersection375.1257,withrespecttotheinsurer;
25 (4)Intheeventofamandatorycontrollevelevent,thedirectorshalltaketheactions
26requiredundersection375.1260withrespecttotheinsurer.
27 3.ForRBCreportsrequiredtobefiledbyhealthorganizationswithrespectto2014,
28thefollowingrequirementsshallapplyinlieuoftheprovisionsofsections375.1255to
29375.1262:
30 (1)Intheeventofacompanyactionleveleventwithrespecttoadomestichealth
31organization,thedirectorshalltakenoregulatoryaction;
32 (2)Intheeventofaregulatoryactionleveleventundersubdivisions(1)to(3)of
33subsection1ofsection375.1257,thedirectorshalltaketheactionsrequiredpursuantto
34section375.1255;
35 (3)Intheeventofaregulatoryactionleveleventundersubdivisions(4)to(9)of
36subsection1ofsection375.1257oranauthorizedcontrollevelevent,thedirectorshalltake
37theactionsrequiredundersection375.1257withrespecttothehealthorganization;
38 (4)Intheeventofamandatorycontrolleveleventwithrespecttoahealth
39organization,thedirectorshalltaketheactionsrequiredundersection375.1260withrespect
40tothehealthorganization.
41 [4.Theactionsrequiredundersections375.1255to375.1262orthissectionshallnot
42applytoanyinsureroperatingundertheprovisionsofsections287.900to287.920whichis
43underanyorderofsupervision,includingwaiversofrequirementsforcapitalandsurplus,
44issuedorcommencedbythedirectorpriortoAugust28,1996.Thisprovisionshallremainin
45effectuntilsuchorderorproceedingexpiresorisotherwiseterminatedbyfurtherorderofthe
46director.]
379.316.1.Section379.017andsections379.316to379.361applytoinsurance
2companiesincorporatedpursuanttosections379.035to379.355,section379.080,sections
3379.060to379.075,sections379.085to379.095,sections379.205to379.310,andto
4insurancecompaniesofasimilartypeincorporatedpursuanttothelawsofanyotherstateof
HCSSSSB181 10 5theUnitedStates,andalieninsurerslicensedtodobusinessinthisstate,whichtransactfire
6andalliedlines,marineandinlandmarineinsurance,toanyandallcombinationsofthe
7foregoingorpartsthereof,andtothecombinationoffireinsurancewithothertypesof
8insurancewithinonepolicyformatasinglepremium,onrisksoroperationsinthisstate,
9except:
10 (1)Reinsurance,otherthanjointreinsurancetotheextentstatedinsection379.331;
11 (2)Insuranceofvesselsorcraft,theircargoes,marinebuilders'risks,marine
12protectionandindemnity,orotherriskscommonlyinsuredpursuanttomarine,as
13distinguishedfrominlandmarine,insurancepolicies;
14 (3)Insuranceagainstlossofordamagetoaircraft, oragainstliability,otherthan
15employers'liability,arisingoutoftheownership,maintenance,oruseofaircraft;
16 (4)Allformsofmotorvehicleinsurance;and
17 (5)Allformsoflife,accidentandhealth,andworkers'compensationinsurance.
18 2.Inlandmarineinsuranceshallbedeemedtoincludeinsurancenoworhereafter
19definedbystatute,orbyinterpretationthereof,orifnotsodefinedorinterpreted,byrulingof
20thedirector,orasestablishedbygeneralcustomofthebusiness,asinlandmarineinsurance.
21 3.Commercialpropertyandcommercialcasualtyinsurancepoliciesaresubjectto
22rateandformfilingrequirementsasprovidedinsection379.321.
379.1850.1.Sections379.1850to379.1869shallapplytoinsurersandinsurance
2producersengagedinanytransactioninvolvinglender-placedinsurance,asdefinedin
3section379.1851.
4 2.Alllender-placedinsurancewritteninconnectionwithmortgagedreal
5property,includingmanufacturedhomesandmodularunits,asdefinedinsection
6700.010,issubjecttotheprovisionsofsections379.1850to379.1869,except:
7 (1)Transactionsinvolvingextensionsofcreditprimarilyforbusiness,
8commercial,oragriculturalpurposes;
9 (2)Insuranceofferedbythelenderorservicerandelectedbythemortgagorat
10themortgagor'soption;
11 (3)Insurancepurchasedbyalenderorserviceronrealestateownedproperty;
12 (4)Insuranceforwhichnospecificchargeismadetothemortgagororthe
13mortgagor'saccount.
379.1851.Asusedinsections379.1850to379.1869,thefollowingtermsshall
2mean:
3 (1)"Affiliate",apersonwhodirectly,orindirectlythroughoneormore
4intermediaries,controls,iscontrolledby,orisundercommoncontrolwith,theperson
5specified;
HCSSSSB181 11 6 (2)"Individuallender-placedinsurance",coverageforindividualrealproperty
7evidencedbyacertificateofcoverageunderamasterlender-placedinsurancepolicyor
8alender-placedinsurancepolicyforindividualrealproperty;
9 (3)"Insuranceproducer",apersonorentity,oritsaffiliates,requiredtobe
10licensedunderthelawsofthisstatetosell,solicit,ornegotiateinsurance;
11 (4)"Insurer",aninsurancecompany,association,orexchange,oritsaffiliates,
12authorizedtoissuelender-placedinsuranceinthisstate;
13 (5)"Investor",apersonorentity,oritsaffiliates,holdingabeneficialinterestin
14loanssecuredbyrealproperty;
15 (6)"Lapse",themomentintimeinwhichamortgagorhasfailedtosecureor
16maintainvalidorsufficientinsuranceuponmortgagedrealpropertyasrequiredbya
17mortgageagreement;
18 (7)"Lender",apersonorentity,oritsaffiliates,makingloanssecuredbyan
19interestinrealproperty;
20 (8)"Lender-placedinsurance",insuranceobtainedbyalenderorservicerwhen
21amortgagordoesnotmaintainvalidorsufficientinsuranceuponmortgagedreal
22propertyasrequiredbythetermsofthemortgageagreement.Suchtermshallinclude
23insurancepurchasedunilaterallybythelenderorservicer,whoisthenamedinsured,
24subsequenttothedateofthecredittransaction,providingcoverageagainstloss,
25expense,ordamagetocollateralizedpropertyasaresultoffire,theft,collision,orother
26risksoflossthatwouldeitherimpairalender,servicer,orinvestor'sinterest,or
27adverselyaffectthevalueofcollateralcoveredbylimiteddualinterestinsurance.Such
28termislimitedtoinsurancepurchasedaccordingtothetermsofamortgageagreement
29asaresultofthemortgagor'sfailuretoprovideevidenceofrequiredinsurance;
30 (9)"Lossratio",theratioofincurredlossestoearnedpremium;
31 (10)"Masterlender-placedpolicy",agrouppolicyissuedtoalenderorservicer
32providingcoverageforallloansinthelenderorservicer'sloanportfolioasneeded;
33 (11)"Mortgageagreement",thewrittendocumentthatsetsforthanobligation
34orliabilityofanykindsecuredbyalienonrealpropertyandduefrom,owing,or
35incurredbyamortgagortoalenderonaccountofamortgageloan,includingasecurity
36agreement,deedoftrust,oranyotherdocumentofsimilareffect,andanyother
37documentsincorporatedbyreference;
38 (12)"Mortgageloan",aloan,advance,guarantee,orotherextensionofcredit
39fromalendertoamortgagor;
40 (13)"Mortgagetransaction",atransactionbythetermsofwhichtherepayment
41ofmoneyloanedorpaymentofrealpropertysoldistobemadeatafuturedateordates;
HCSSSSB181 12 42 (14)"Mortgagee",thepersonwhoholdsmortgagedrealpropertyassecurityfor
43repaymentofamortgageagreement;
44 (15)"Mortgagor",thepersonwhoisobligatedonamortgageloanpursuanttoa
45mortgageagreement;
46 (16)"Person",anindividualorentity;
47 (17)"Realestateownedproperty",propertyownedorheldbyalenderor
48servicerfollowingforeclosureundertherelatedmortgageagreementortheacceptance
49ofadeedinlieuofforeclosure;
50 (18)"Replacementcostvalue"or"RCV",theestimatedcosttoreplacecovered
51propertyatthetimeofthelossordamagewithoutdeductionfordepreciation.
52Replacementcostvalueisnotmarketvalue,butitisinsteadthecosttoreplacecovered
53propertytoitspre-losscondition,asbestdeterminedundersection379.1855;
54 (19)"Servicer",apersonorentity,oritsaffiliates,contractuallyobligatedto
55serviceoneormoremortgageloansforalenderorinvestor.Suchtermshallinclude
56entitiesinvolvedinsubservicingarrangements.
379.1853.1.Lender-placedinsuranceshallbecomeeffectivenoearlierthanthe
2dateoflapseofinsuranceuponmortgagedrealpropertysubjecttothetermsofa
3mortgageagreementoranyotherstateorfederallawrequiringthesame.
4 2.Individuallender-placedinsuranceshallterminateontheearliestofthe
5followingdates:
6 (1)Thedateinsurancethatisacceptableunderthemortgageagreement
7becomeseffective,subjecttothemortgagorprovidingsufficientevidenceofsuch
8acceptableinsurance;
9 (2)Thedatetheapplicablerealpropertynolongerservesascollateralfora
10mortgageloanpursuanttoamortgageagreement;
11 (3)Suchotherdateasspecifiedbytheindividualpolicyorcertificateof
12insurance;
13 (4)Suchotherdateasspecifiedbythelenderorservicer;or
14 (5)Theterminationdateofthepolicy.
15 3.Aninsurancechargeshallnotbemadetoamortgagorforlender-placed
16insuranceforatermlongerthanthescheduledtermofthelender-placedinsurance,nor
17shallaninsurancechargebemadetothemortgagorforlender-placedinsurancebefore
18theeffectivedateofthelender-placedinsurance.
379.1855.1.Anylender-placedinsurancecoverage,andsubsequentcalculation
2ofpremium,shouldbebaseduponthereplacementcostvalueoftheproperty.
3Replacementcostvalueofthepropertyshallbedeterminedasfollows:
HCSSSSB181 13 4 (1)Thedwellingcoverageamountsetforthinthemostrecentevidenceof
5insurancecoverageprovidedbythemortgagee("lastknowncoverageamount"or
6"LKCA"),ifknowntothelenderorservicer;
7 (2)TheinsurershallinquireoftheinsuredatleastonceastotheLKCA,andifit
8isnotabletoobtaintheLKCAfromtheinsuredorinanothermanner,thereplacement
9costvaluemaybedeterminedassetforthinsubdivision(3)or(4)ofthissubsection;
10 (3)IftheLKCAisunknownandcannotbeobtainedfromtheinsuredorin
11anothermanner,thereplacementcostofthepropertyservingascollateralascalculated
12bytheinsurer,unlesstheuseofreplacementcostforthispurposeisprohibitedbyother
13law;
14 (4)IftheLKCAisunknownandcannotbeobtainedfromtheinsuredorin
15anothermanner,andthereplacementcostisnotavailableoritsuseisprohibited,the
16unpaidprincipalbalanceofthemortgageloan.
17 2.Intheeventofacoveredloss,anyreplacementcostcoverageprovidedbyan
18insurerinexcessoftheunpaidprincipalbalanceofthemortgageloanshallbepaidto
19themortgagor.
20 3.Noinsurershallwritelender-placedinsuranceforwhichthepremiumrate
21differsfromthatdeterminedbytheschedulesoftheinsureronfilewiththedepartment
22ofcommerceandinsuranceasoftheeffectivedateofthepolicy.
379.1857.1.Noinsurerorinsuranceproducershallissuelender-placed
2insuranceonmortgagedpropertyiftheinsurerorinsuranceproducer,oranaffiliateof
3theinsurerorinsuranceproducer,owns,performstheservicingfor,orownsthe
4servicingrightto,themortgagedproperty.
5 2.Noinsurerorinsuranceproducershallcompensatealender,insurer,investor,
6orservicer,includingthroughthepaymentofcommissions,forlender-placedinsurance
7policiesissuedbytheinsurer.
8 3.Noinsurerorinsuranceproducershallsharelender-placedinsurance
9premiumorriskwiththelender,investor,orservicerthatobtainedthelender-placed
10insurance.
11 4.Noinsurerorinsuranceproducershalloffercontingentcommissions,profit
12sharing,orotherpaymentsdependentonprofitabilityorlossratiostoanyperson
13affiliatedwithaservicerortheinsurerinconnectionwithlender-placedinsurance.
14 5.Noinsurershallprovidefreeorbelow-costoutsourcedservicestolenders,
15investors,orservicers,andnoinsurershalloutsourceitsownfunctionstolenders,
16insuranceproducers,investors,orservicersonanabove-costbasis.
HCSSSSB181 14 17 6.Noinsurerorinsuranceproducershallmakeanypayments,includingbutnot
18limitedtothepaymentofexpensestoalender,insurer,investor,orservicer,forthe
19purposeofsecuringlender-placedinsurancebusinessorrelatedoutsourcedservices.
379.1859.Nothinginsections379.1850to379.1869shallbeconstruedtoallowan
2insuranceproduceroraninsurersolelyunderwritinglender-placedinsuranceto
3circumventtherequirementssetforthwithinthosesections.Anypartofany
4requirements,limitations,orexclusionsprovidedinsections379.1850to379.1869shall
5applyinanyparttoanyinsurerorinsuranceproducerinvolvedinlender-placed
6insurance.
379.1861.Lender-placedinsuranceshallbesetforthinanindividualpolicyor
2certificateofinsurance.Acopyoftheindividualpolicy,certificateofinsurance,or
3otherevidenceofinsurancecoverageshallbemailed,firstclassmailed,ordeliveredin
4persontothelastknownaddressofthemortgagor,ordeliveredinaccordancewith
5sections432.200to432.295.Inadditiontoanyinformationotherwiserequiredbylaw,
6theindividualpolicyorcertificateofinsurancecoverageshallincludethefollowing
7information:
8 (1)Theaddressandidentificationoftheinsuredproperty;
9 (2)Thecoverageamount,oramountsifmultiplecoveragesareprovided;
10 (3)Theeffectivedateofthecoverage;
11 (4)Thetermofcoverage;
12 (5)Thepremiumchargeforthecoverage;
13 (6)Contactinformationforfilingaclaim;and
14 (7)Acompletedescriptionofthecoverageprovided.
379.1863.1.Allpolicyformsandcertificatesofinsurancetobedeliveredor
2issuedfordeliveryinthisstate,andtheschedulesofpremiumratespertainingthereto,
3shallbefiledwiththedepartmentofcommerceandinsurance.
4 2.Thedepartmentofcommerceandinsuranceshallreviewtheratesto
5determinewhethertheratesareexcessive,inadequate,orunfairlydiscriminatory.This
6analysisshallincludeadeterminationastowhetherexpensesincludedbytheinsurerin
7therateareappropriate.
8 3.Allinsurersshallre-filelender-placedinsuranceratesatleastonceeveryfour
9years.
10 4.Allinsurerswritinglender-placedinsuranceshallhaveseparateratesfor
11lender-placedinsuranceandvoluntaryinsuranceobtainedbyamortgageserviceron
12realestateownedproperty.
13 5.Upontheintroductionofanewlender-placedinsuranceprogram,theinsurer
14shallreferenceitsexperienceinexistingprogramsintheassociatedfilings.Nothingin
HCSSSSB181 15 15sections379.1850to379.1869shalllimitaninsurer'sdiscretion,asactuarially
16appropriate,todistinguishdifferentterms,conditions,exclusions,eligibilitycriteria,
17orotheruniqueordifferentcharacteristics.Moreover,aninsurermay,where
18actuariallyacceptable,relyuponmodelsor,inthecaseoffloodfilingswhereapplicable
19experienceisnotcredible,onFederalEmergencyManagementAgencyNationalFlood
20InsuranceProgramdata.
21 6.(1)NolaterthanAprilfirstofeachyear,eachinsurerwithatleastone
22hundredthousanddollarsindirectwrittenpremiumforlender-placedinsuranceinthis
23stateduringthepriorcalendaryearshallreporttothedepartmentofcommerceand
24insurancethefollowinginformationforthepriorcalendaryear:
25 (a)Actuallossratio;
26 (b)Earnedpremium;
27 (c)Anyaggregatescheduleratingdebitorcredittoearnedpremium;
28 (d)Itemizedexpenses;
29 (e)Paidlosses;
30 (f)Lossreserves,includingcasereservesandreservesforincurredbutnot
31reportedlosses.
32 (2)Thereportundersubdivision(1)ofthissubsectionshallbeseparately
33producedforeachlender-placedprogramandpresentedonbothanindividual-
34jurisdictionandcountrywidebasis.
35 7.Ifaninsurerexperiencesanannuallossratiooflessthanthirtyfivepercentin
36anylender-placedprogramfortwoconsecutiveyears,itshallsubmitaratefiling,either
37adjustingitsratesorsupportingtheircontinuance,tothedepartmentofcommerceand
38insurancenomorethanninetydaysafterthesubmissionofthedatarequiredin
39subsection6ofthissection.Thissubsectionshallnotapplywithregardtolender-placed
40floodinsurance.
41 8.Exceptasotherwisespecificallysetforthinthissection,ratesandformsshall
42befiledasrequiredundertheinsurancelawsofthisstate.
379.1865.1.(1)Thedirectorofthedepartmentofcommerceandinsurance
2shallhaveauthoritytoenforcetheprovisionsofsections379.1850to379.1869as
3specifiedinchapter374.
4 (2)Afinalorderofthedirectorenforcingsections379.1850to379.1869shallbe
5subjecttojudicialreviewinaccordancewiththeprovisionsofchapter536inthecircuit
6courtofColeCounty.
7 (3)Noorderofthedirectorenforcingsections379.1850to379.1869ororderofa
8courttoenforcethesameshallinanywayrelieveorabsolveanypersonaffectedbysuch
9orderfromanyliabilityunderanyotherlawsofthisstate.
HCSSSSB181 16 10 2.Nothinginsections379.1850to379.1869shallbeconstruedtocreateorimply
11aprivatecauseofactionforviolationsofsections379.1850to379.1869.
12 3.Nothinginsections379.1850to379.1869shallbeconstruedtoextinguishany
13mortgagorrightsotherwiseavailableunderstate,federal,orcommonlaw.
379.1867.Aninsurerthatviolatesanorderofthedirectorwhiletheorderisin
2effectmay,afternoticeandhearinganduponorderofthedirector,besubjectatthe
3discretionofthedirectortoeitherorbothofthefollowing:
4 (1)Paymentofamonetarypenaltyofnotmorethanonethousanddollarsper
5violation,nottoexceedanaggregatepenaltyofonehundredthousanddollars,unless
6theviolationwascommittedflagrantlyinaconsciousdisregardofsections379.1850to
7379.1869,inwhichcasethepenaltyshallnotbemorethantwenty-fivethousanddollars
8foreachviolation,nottoexceedanaggregatepenaltyoftwohundredfiftythousand
9dollars;or
10 (2)Suspensionorrevocationoftheinsurer'slicense.
379.1869.Thedepartmentofcommerceandinsurancemaypromulgaterulesas
2necessaryfortheimplementationofsections379.1850to379.1869.Anyruleorportion
3ofarule,asthattermisdefinedinsection536.010,thatiscreatedundertheauthority
4delegatedinthissectionshallbecomeeffectiveonlyifitcomplieswithandissubjectto
5alloftheprovisionsofchapter536and,ifapplicable,section536.028.Thissectionand
6chapter536arenonseverableandifanyofthepowersvestedwiththegeneralassembly
7pursuanttochapter536toreview,todelaytheeffectivedate,ortodisapproveandannul
8arulearesubsequentlyheldunconstitutional,thenthegrantofrulemakingauthority
9andanyruleproposedoradoptedafterAugust28,2023,shallbeinvalidandvoid.
387.435.ATNCshallnotbevicariouslyliableunderanylawbyreasonof
2owning,operating,ormaintainingthedigitalnetworkaccessedbyaTNCdriveror
3rider,orbybeingtheTNCaffiliatedwithaTNCdriver,forharmtopersonsorproperty
4thatresultsorarisesoutoftheuse,operation,orpossessionofamotorvehicleoperating
5asaTNCvehiclewhilethedriverisloggedontothedigitalnetworkif:
6 (1)Thereisnonegligenceundersections387.400to387.440orcriminal
7wrongdoingunderthefederalorMissouricriminalcodeonthepartoftheTNC;and
8 (2)TheTNChasfulfilledallofitsobligationsundersections387.400to387.440
9withrespecttotheTNCdriver.
436.550.Sections436.550to436.572shallbeknownandmaybecitedasthe
2"ConsumerLegalFundingAct".
436.552.Asusedinsections436.550to436.572,thefollowingtermsmean:
2 (1)"Advertise",publishingordisseminatinganywritten,electronic,orprinted
3communicationoranycommunicationbymeansofrecordedtelephonemessagesor
HCSSSSB181 17 4transmittedonradio,television,theinternet,orsimilarcommunicationsmedia,
5includingfilmstrips,motionpictures,andvideos,published,disseminated,circulated,
6orplacedbeforethepublic,directlyorindirectly,forthepurposeofinducinga
7consumertoenterintoaconsumerlegalfundingcontract;
8 (2)"Affiliate",asdefinedinsection515.505;
9 (3)"Charges",theamountofmoneystobepaidtotheconsumerlegalfunding
10companybyoronbehalfoftheconsumerabovethefundedamountprovidedbyoron
11behalfofthecompanytoaconsumerundersections436.550to436.572.Charges
12includealladministrative,origination,underwriting,orotherfees,nomatterhow
13denominated;
14 (4)"Commissioner",thecommissionerofthedivisionoffinancewithinthe
15departmentofcommerceandinsurance;
16 (5)"Consumer",anaturalpersonwhohasalegalclaimandresidesoris
17domiciledinMissouri;
18 (6)"Consumerlegalfundingcompany"or"company",apersonorentitythat
19entersintoaconsumerlegalfundingcontractwithaconsumerforanamountlessthan
20fivehundredthousanddollars.Thetermshallnotinclude:
21 (a)Animmediatefamilymemberoftheconsumer;
22 (b)Abank,lender,financingentity,orotherspecialpurposeentity:
23 a.Thatprovidesfinancingtoaconsumerlegalfundingcompany;or
24 b.Towhichaconsumerlegalfundingcompanygrantsasecurityinterestor
25transfersanyrightsorinterestinaconsumerlegalfunding;or
26 (c)Anattorneyoraccountantwhoprovidesservicestoaconsumer;
27 (7)"Consumerlegalfundingcontract",anonrecoursecontractualtransaction
28inwhichaconsumerlegalfundingcompanypurchasesandaconsumerassignstothe
29companyacontingentrighttoreceiveanamountofthepotentialproceedsofa
30settlement,judgment,award,orverdictobtainedintheconsumer'slegalclaim,solong
31asallofthefollowingapply:
32 (a)Theconsumer,attheirsolediscretion,shallusethefundstoaddresspersonal
33needsorhouseholdexpenses;
34 (b)Theconsumershallnotusethefundstopayforattorneys'fees,legalfilings,
35legalmarketing,legaldocumentpreparationordrafting,appeals,experttestimony,or
36otherlitigation-relatedexpenses;
37 (8)"Division",thedivisionoffinancewithinthedepartmentofcommerceand
38insurance;
HCSSSSB181 18 39 (9)"Fundedamount",theamountofmoneysprovidedtooronbehalfofthe
40consumerintheconsumerlegalfundingcontract."Fundedamount"shallnotinclude
41charges;
42 (10)"Fundingdate",thedateonwhichthefundedamountistransferredtothe
43consumerbytheconsumerlegalfundingcompanyeitherbypersonaldelivery,viawire,
44automatedclearinghousetransfer,orotherelectronicmeans,orbyinsured,certified,or
45registeredUnitedStatesmail;
46 (11)"Immediatefamilymember",aparent;sibling;childbyblood,adoption,or
47marriage;spouse;grandparent;orgrandchild;
48 (12)"Legalclaim",abonafidecivilclaimorcauseofaction;
49 (13)"Medicalprovider",anypersonorbusinessprovidingmedicalservicesof
50anykindtoaconsumerincluding,butnotlimitedto,physicians,nursepractitioners,
51hospitals,physicaltherapists,chiropractors,orradiologistsaswellasanyoftheir
52employeesorcontractorsoranypracticegroups,partnerships,orincorporationsofthe
53same;
54 (14)"Resolutiondate",thedatetheamountfundedtotheconsumer,plusthe
55agreed-uponcharges,isdeliveredtotheconsumerlegalfundingcompany.
436.554.1.Allconsumerlegalfundingcontractsshallmeetthefollowing
2requirements:
3 (1)Thecontractshallbecompletelyfilledinwhenpresentedtotheconsumerfor
4signature;
5 (2)Thecontractshallcontain,inboldandboxedtype,arightofrescission
6allowingtheconsumertocancelthecontractwithoutpenaltyorfurtherobligationif,
7withintenbusinessdaysafterthefundingdate,theconsumereither:
8 (a)Returnsthefullamountofthedisbursedfundstotheconsumerlegalfunding
9companybydeliveringthecompany'suncashedchecktothecompany'sofficeinperson;
10or
11 (b)Mailsanoticeofcancellationbyinsured,certified,orregisteredUnited
12Statesmailtotheaddressspecifiedinthecontractandincludesareturnofthefull
13amountofdisbursedfundsinsuchmailingintheformofthecompany'suncashedcheck
14oraregisteredorcertifiedcheckormoneyorder;
15 (3)Thecontractshallcontaintheinitialsoftheconsumeroneachpage;and
16 (4)Thecontractshallrequiretheconsumertogivenonrevocablewritten
17directiontotheconsumer'sattorneyrequiringtheattorneytonotifytheconsumerlegal
18fundingcompanywhenthelegalclaimhasbeenresolved.Oncetheconsumerlegal
19fundingcompanyconfirmsinwritingtheamountdueunderthecontract,the
HCSSSSB181 19 20consumer'sattorneyshallpay,fromtheproceedsoftheresolutionofthelegalclaim,the
21consumerlegalfundingcompanytheamountduewithintenbusinessdays.
22 2.Theconsumerlegalfundingcompanyshallprovidetheconsumer'sattorney
23withawrittennotificationoftheconsumerlegalfundingcontractprovidedtothe
24consumerwithinthreebusinessdaysofthefundingdatebywayofpostalmail,courier
25service,facsimile,orothermeansofproofofdeliverymethod.
26 3.Aconsumerlegalfundingcontractshallbeenteredintoonlyifthecontract
27involvesanexistinglegalclaiminwhichtheconsumerisrepresentedbyanattorney.
436.556.Noconsumerlegalfundingcompanyshall:
2 (1)Payoroffertopaycommissions,referralfees,orotherformsof
3considerationtoanyattorney,lawfirm,medicalprovider,chiropractor,orphysical
4therapistoranyoftheiremployeesforreferringaconsumertothecompany;
5 (2)Acceptanycommissions,referralfees,rebates,orotherformsof
6considerationfromanattorney,lawfirm,medicalprovider,chiropractor,orphysical
7therapistoranyoftheiremployees;
8 (3)Intentionallyadvertisemateriallyfalseormisleadinginformationregarding
9itsproductsorservices;
10 (4)Refer,infurtheranceofaninitiallegalfunding,acustomerorpotential
11customertoaspecificattorney,lawfirm,medicalprovider,chiropractor,orphysical
12therapistoranyoftheiremployees.However,thecompanymayreferthecustomertoa
13localorstatebarassociationreferralserviceifacustomerneedslegalrepresentation;
14 (5)Failtopromptlysupplyacopyoftheexecutedcontracttotheconsumer's
15attorney;
16 (6)Knowinglyprovidefundingtoaconsumerwhohaspreviouslyassignedor
17soldaportionoftherighttoproceedsfromtheconsumer'slegalclaimunlessthe
18consumerlegalfundingcompanypaysorpurchasestheentireunsatisfiedfunded
19amountandcontractedchargesfromthepriorconsumerlegalfundingcompanyorthe
20twocompaniesagreetoalesseramountinwriting.However,multiplecompaniesmay
21agreetocontemporaneouslyprovidefundingtoaconsumer,providedthattheconsumer
22andtheconsumer'sattorneyconsenttothearrangementinwriting;
23 (7)Receiveanyrighttoormakeanydecisionswithrespecttotheconductofthe
24underlyinglegalclaimoranysettlementorresolutionthereof.Therighttomakesuch
25decisionsshallremainsolelywiththeconsumerandtheattorneyinthelegalclaim;
26 (8)Knowinglypayoroffertopayforcourtcosts,filingfees,orattorney'sfees
27eitherduringoraftertheresolutionofthelegalclaimbyusingfundsfromtheconsumer
28legalfundingcontract.Theconsumerlegalfundingcontractshallincludeaprovision
29advisingtheconsumerthatthefundingshallnotbeusedforsuchcostsorfees;or
HCSSSSB181 20 30 (9)Sellaconsumerlitigationfundingcontractinwholeorinparttoathird
31party.However,iftheconsumerlegalfundingcompanyretainsresponsibilityfor
32collectingpayment,administering,andotherwiseenforcingtheconsumerlegalfunding
33contract,theprovisionsofthissubdivisionshallnotapplytoanyofthefollowing:
34 (a)Anassignmenttoawhollyownedsubsidiaryoftheconsumerlegalfunding
35company;
36 (b)Anassignmenttoanaffiliateoftheconsumerlegalfundingcompanythatis
37undercommoncontrol;
38 (c)ThegrantingofasecurityinterestunderArticle9oftheUniform
39CommercialCode,orasotherwisepermittedbylaw.
436.558.1.Thecontractedamounttobepaidtotheconsumerlegalfunding
2companyshallbesetasapredeterminedamountbaseduponintervalsoftimefromthe
3fundingdatetotheresolutiondateandshallnotbedeterminedasapercentageofthe
4recoveryfromthelegalclaim.
5 2.Noconsumerlegalfundingcontractshallbevalidifitstermsexceedaperiod
6offorty-eightmonths.Noconsumerlegalfundingcontractshallbeautomatically
7renewed.
436.560.Allconsumerlegalfundingcontractsshallcontainthedisclosures
2specifiedinthissection,whichshallconstitutematerialtermsofthecontract.Unless
3otherwisespecified,thedisclosuresshallbetypedinatleasttwelve-pointbold-typefont
4andbeplacedclearlyandconspicuouslywithinthecontract,asfollows:
5 (1)Onthefrontpageunderappropriateheadings,languagespecifying:
6 (a)Thefundedamounttobepaidtotheconsumerbytheconsumerlegal
7fundingcompany;
8 (b)Anitemizationofone-timecharges;
9 (c)Thetotalamounttobeassignedbytheconsumertothecompany,including
10thefundedamountandallcharges;and
11 (d)Apaymentscheduletoincludethefundedamountandcharges,listingall
12datesandtheamountdueattheendofeachsix-monthperiodfromthefundingdate
13untilthedatethemaximumamountduetothecompanybytheconsumertosatisfythe
14amountduepursuanttothecontract;
15 (2)Withinthebodyofthecontract,inaccordancewiththeprovisionsunder
16subdivision(2)ofsubsection1ofsection436.554:"Consumer'sRighttoCancellation:
17Youmaycancelthiscontractwithoutpenaltyorfurtherobligationwithintenbusiness
18daysafterthefundingdateifyoueither:
HCSSSSB181 21 19 (a)Returnthefullamountofthedisbursedfundstotheconsumerlegalfunding
20companybydeliveringthecompany'suncashedchecktothecompany'sofficeinperson;
21or
22 (b)Mailanoticeofcancellationbyinsured,certified,orregisteredUnitedStates
23mailtothecompanyattheaddressspecifiedinthecontractandincludeareturnofthe
24fullamountofdisbursedfundsinsuchmailingintheformofthecompany'suncashed
25checkoraregisteredorcertifiedcheckormoneyorder.";
26 (3)Withinthebodyofthecontract,astatementthatthecompanyhasno
27influenceoveranyaspectoftheconsumer'slegalclaimoranysettlementorresolution
28oftheconsumer'slegalclaimandthatalldecisionsrelatedtotheconsumer'slegalclaim
29remainsolelywiththeconsumerandtheconsumer'sattorney;
30 (4)Withinthebodyofthecontract,inallcapitallettersandinatleasttwelve-
31pointbold-typefontcontainedwithinabox:"THEFUNDEDAMOUNT AND
32AGREED-UPON CHARGESSHALLBEPAIDONLYFROMTHEPROCEEDSOF
33YOURLEGALCLAIMANDSHALLBEPAIDONLYTOTHEEXTENTTHAT
34THEREAREAVAILABLEPROCEEDSFROMYOURLEGALCLAIM.IFTHERE
35ISNORECOVERYOFANYDAMAGES FROMYOURLEGALCLAIMORIF
36THEREISNOTENOUGHMONEYTOPAYBACKTHECONSUMER LEGAL
37FUNDINGCOMPANYINFULL,YOUWILLNOTBEOBLIGATEDTOPAYTHE
38CONSUMER LEGALFUNDINGCOMPANYANYTHINGINEXCESSOFYOUR
39RECOVERYUNLESSYOUHAVEVIOLATEDTHISCONTRACT.YOUWILL
40NOTOWE(INSERTNAMEOFTHECONSUMER LEGALFUNDINGCOMPANY)
41ANYTHING IFTHEREARENOPROCEEDS FROMYOURLEGALCLAIM
42UNLESSYOUORYOURATTORNEYHAVEVIOLATEDANYMATERIALTERM
43OFTHISCONTRACT ORUNLESSYOUHAVECOMMITTED FRAUDAGAINST
44THECONSUMER LEGALFUNDINGCOMPANY.";and
45 (5)Locatedimmediatelyabovetheplaceonthecontractwheretheconsumer's
46signatureisrequired,intwelve-pointfont:"Donotsignthiscontractbeforeyoureadit
47completelyorifitcontainsanyblankspaces.Youareentitledtoacompletelyfilled-in
48copyofthecontract.Beforeyousignthiscontract,youshouldobtaintheadviceofan
49attorney.Dependingonthecircumstances,youmaywanttoconsultatax,publicor
50privatebenefitsplanning,orfinancialprofessional.Youacknowledgethatyour
51attorneyinthelegalclaimhasprovidednotax,publicorprivatebenefitplanning,or
52financialadviceregardingthistransaction.".
436.562.1.Nothinginsections436.550to436.572shallbeconstruedtorestrict
2theexerciseofpowersortheperformanceofthedutiesofthestateattorneygeneralthat
3heorsheisauthorizedtoexerciseorperformbylaw.
HCSSSSB181 22 4 2.Ifacourtofcompetentjurisdictiondeterminesthataconsumerlegalfunding
5companyhasintentionallyviolatedtheprovisionsofsections436.550to436.572ina
6consumerlegalfundingcontract,theconsumerlegalfundingcontractshallbevoided.
436.564.1.Thecontingentrighttoreceiveanamountofthepotentialproceeds
2ofalegalclaimisassignable.
3 2.Nothingcontainedinsections436.550to436.572shallbeconstruedtocause
4anyconsumerlegalfundingcontractconformingtosections436.550to436.572tobe
5deemedaloanortobesubjecttoanyoftheprovisionsgoverningloans.Aconsumer
6legalfundingcontractthatcomplieswithsections436.550to436.572isnotsubjectto
7anyotherstatutoryorregulatoryprovisionsgoverningloansorinvestmentcontracts.
8Totheextentthatsections436.550to436.572conflictwithanyotherlaw,suchsections
9shallsupersedetheotherlawforthepurposesofregulatingconsumerlegalfundingin
10thisstate.
11 3.Onlyattorney'sliensrelatedtothelegalclaim,Medicare,orotherstatutory
12liensrelatedtothelegalclaimshalltakepriorityoverclaimstoproceedsfromthe
13consumerlegalfundingcompany.Allotherliensandclaimsshalltakepriorityby
14normaloperationoflaw.
15 4.Noconsumerlegalfundingcompanyshallreportaconsumertoacredit
16reportingagencyifinsufficientfundsremainfromthenetproceedstorepaythe
17company.
436.566.Anattorneyorlawfirmretainedbytheconsumerinthelegalclaim
2shallnothaveafinancialinterestintheconsumerlegalfundingcompanyoffering
3consumerlegalfundingtothatconsumer.Additionally,anypracticingattorneywhohas
4referredtheconsumertohisorherretainedattorneyshallnothaveafinancialinterest
5intheconsumerlegalfundingcompanyofferingconsumerlegalfundingtothat
6consumer.
436.568.Nocommunicationbetweentheconsumer'sattorneyinthelegalclaim
2andtheconsumerlegalfundingcompanynecessarytoascertainthestatusofalegal
3claimoralegalclaim'sexpectedvalueshallbediscoverablebyapartywithwhomthe
4claimisfiledoragainstwhomtheclaimisasserted.Thissectiondoesnotlimit,waive,
5orabrogatethescopeornatureofanystatutoryorcommon-lawprivilege,includingthe
6work-productdoctrineandattorney-clientprivilege.
436.570.1.Aconsumerlegalfundingcompanyshallnotengageinthebusiness
2ofconsumerlegalfundinginthisstateunlessithasfirstobtainedalicensefromthe
3divisionoffinance.
4 2.Aconsumerlegalfundingcompany'sinitialorrenewallicenseapplication
5shallbeinwriting,madeunderoath,andonaformprovidedbythecommissioner.
HCSSSSB181 23 6 3.Everyconsumerlegalfundingcompany,atthetimeoffilingalicense
7application,shallpaythesumoffivehundredfiftydollarsfortheperiodendingthe
8thirtiethdayofJunenextfollowingthedateofpayment;thereafter,alikefeeshallbe
9paidonorbeforeJunethirtiethofeachyearandshallbecreditedtothedivisionof
10financefundestablishedundersection361.170.
11 4.Aconsumerlegalfundinglicenseshallnotbeissuedunlessthedivisionof
12finance,uponinvestigation,findsthatthecharacterandfitnessoftheapplicant
13company,andoftheofficersanddirectorsthereof,aresuchastowarrantbeliefthatthe
14businessshalloperatehonestlyandfairlywithinthepurposesofsections436.550to
15436.572.
16 5.Everyapplicantshallalso,atthetimeoffilingsuchapplication,fileabond
17satisfactorytothedivisionoffinanceinanamountnottoexceedfiftythousanddollars.
18Thebondshallprovidethattheapplicantshallfaithfullyconformtoandabidebythe
19provisionsofsections436.550to436.572,toallruleslawfullymadebythecommissioner
20undersections436.550to436.572,andthebondshallactasasuretyforanypersonor
21thestateforanyandallamountofmoneysthatmaybecomedueorowingfromthe
22applicantunderandbyvirtueofsections436.550to436.572,whichshallincludethe
23resultofanyactionthatoccurredwhilethebondwasinplacefortheapplicableperiod
24oflimitationsunderstatuteandsolongasthebondisnotexhaustedbyvalidclaims.
25 6.Ifanactioniscommencedonalicensee'sbond,thecommissionermayrequire
26thefilingofanewbond.Immediatelyuponanyrecoveryonthebond,thelicenseeshall
27fileanewbond.
28 7.Toensuretheeffectivesupervisionandenforcementofsections436.550to
29436.572,thecommissionermay,underchapter536:
30 (1)Deny,suspend,revoke,condition,ordeclinetorenewalicenseforaviolation
31ofsections436.550to436.572,rulesissuedundersections436.550to436.572,ororderor
32directiveenteredundersections436.550to436.572;
33 (2)Deny,suspend,revoke,condition,ordeclinetorenewalicenseifanapplicant
34orlicenseefailsatanytimetomeettherequirementsofsections436.550to436.572,or
35withholdsinformationormakesamaterialmisstatementinanapplicationforalicense
36orrenewalofalicense;
37 (3)Orderrestitutionagainstpersonssubjecttosections436.550to436.572for
38violationsofsections436.550to436.572;and
39 (4)Orderordirectsuchotheraffirmativeactionasthecommissionerdeems
40necessary.
41 8.Anyletterissuedbythecommissioneranddeclaringgroundsfordenyingor
42decliningtograntorrenewalicensemaybeappealedtothecircuitcourtofCole
HCSSSSB181 24 43County.Allothermatterspresentingacontestedcaseinvolvingalicenseemaybeheard
44bythecommissionerunderchapter536.
45 9.Notwithstandingthepriorapprovalrequirementofsubsection1ofthis
46section,aconsumerlegalfundingcompanythathasappliedwiththedivisionoffinance
47betweentheeffectivedateofsections436.550to436.572,orwhenthedivisionoffinance
48hasmadeapplicationsavailabletothepublic,whicheverislater,andsixmonths
49thereaftermayengageinconsumerlegalfundingwhilethelicenseapplicationofthe
50companyoranaffiliateofthecompanyisawaitingapprovalbythedivisionoffinance
51anduntilsuchtimeastheapplicanthaspursuedallappellateremediesandprocedures
52foranydenialofsuchapplication.Allfundingcontractsineffectpriortotheeffective
53dateofsections436.550to436.572arenotsubjecttothetermsofsections436.550to
54436.572.
55 10.Ifitappearstothecommissionerthatanyconsumerlegalfundingcompany
56isfailing,refusing,orneglectingtomakeagoodfaithefforttocomplywiththe
57provisionsofsections436.550to436.572,oranylawsorrulesrelatingtoconsumerlegal
58funding,thecommissionermayissueanordertoceaseanddesist,whichmaybe
59enforceablebyacivilpenaltyofnotmorethanonethousanddollarsperdayforeach
60daythattheneglect,failure,orrefusalcontinues.Thepenaltyshallbeassessedand
61collectedbythecommissioner.Indeterminingtheamountofthepenalty,the
62commissionershalltakeintoaccounttheappropriatenessofthepenaltywithrespectto
63thegravityoftheviolation,anyhistoryofpreviousviolations,andanyothermatters
64justicemayrequire.
65 11.Ifanyconsumerlegalfundingcompanyfails,refuses,orneglectstocomply
66withtheprovisionsofsections436.550to436.572,orofanylawsorrulesrelatingto
67consumerlegalfunding,itslicensemaybesuspendedorrevokedbyorderofthe
68commissionerafterahearingbeforesaidcommissioneronanyordertoshowcausewhy
69suchorderofsuspensionorrevocationshouldnotbeenteredandthatspecifiesthe
70groundstherefor.Suchanordershallbeservedontheparticularconsumerlegal
71fundingcompanyatleasttendayspriortothehearing.Anyordermadeandenteredby
72thecommissionermaybeappealedtothecircuitcourtofColeCounty.
73 12.(1)Thedivisionshallconductanexaminationofeachconsumerlegal
74fundingcompanyatleastonceeverytwenty-fourmonthsandatsuchothertimesasthe
75commissionermaydetermine.
76 (2)Foranysuchinvestigationorexamination,thecommissionerandhisorher
77representativesshallhavefreeandimmediateaccesstotheplaceorplacesofbusiness
78andthebooksandrecords,andshallhavetheauthoritytoplaceunderoathallpersons
HCSSSSB181 25 79whosetestimonymayberequiredrelativetotheaffairsandbusinessoftheconsumer
80legalfundingcompany.
81 (3)Thecommissionermayalsomakesuchspecialinvestigationsorexamination
82asthecommissionerdeemsnecessarytodeterminewhetheranyconsumerlegalfunding
83companyhasviolatedanyoftheprovisionsofsections436.550to436.572orrules
84promulgatedthereunder,andthecommissionermayassessthereasonablecostsofany
85investigationorexaminationincurredbythedivisiontothecompany.
86 13.Thedivisionoffinanceshallhavetheauthoritytopromulgaterulestocarry
87outtheprovisionsofsections436.550to436.572.Anyruleorportionofarule,asthat
88termisdefinedinsection536.010,thatiscreatedundertheauthoritydelegatedinthis
89sectionshallbecomeeffectiveonlyifitcomplieswithandissubjecttoallofthe
90provisionsofchapter536and,ifapplicable,section536.028.Thissectionandchapter
91536arenonseverableandifanyofthepowersvestedwiththegeneralassembly
92pursuanttochapter536toreview,todelaytheeffectivedate,ortodisapproveandannul
93arulearesubsequentlyheldunconstitutional,thenthegrantofrulemakingauthority
94andanyruleproposedoradoptedafterAugust28,2023,shallbeinvalidandvoid.
436.572.Aconsumerlegalfundingcontractisafactsubjecttotheusualrulesof
2discovery.
[287.900.1.Sections287.900to287.920shallbeknownasthe
2 "MissouriEmployersMutualInsuranceCompanyAct".
3 2.Asusedinsections287.900to287.920,thefollowingwordsmean:
4 (1)"Administrator",thechiefexecutiveofficeroftheMissouri
5 employersmutualinsurancecompany;
6 (2)"Board",theboardofdirectorsoftheMissouriemployersmutual
7 insurancecompany;
8 (3)"Company",theMissouriemployersmutualinsurancecompany
9 createdinsection287.902.]
[287.902.The"MissouriEmployersMutualInsuranceCompany"is
2 createdasanindependentpubliccorporationforthepurposeofinsuring
3 Missouriemployersagainstliabilityforworkers'compensation,occupational
4 diseaseandemployers'liabilitycoverage.Thecompanyshallbeorganized
5 andoperatedasadomesticmutualinsurancecompanyanditshallnotbea
6 stateagency.Thecompanyshallhavethepowersgrantedageneralnot-for-
7 profitcorporationpursuanttosection355.090totheextenttheprovisionsof
8 suchsectiondonotconflictwiththeprovisionsofsections287.900to
9 287.920.ThecompanyshallbeamemberoftheMissouripropertyand
10 casualtyguarantyassociation,sections375.771to375.779,andassuchwillbe
11 subjecttoassessmentstherefrom,andthemembersofsuchassociationshall
12 bearresponsibilityintheeventoftheinsolvencyofthecompany.The
13 companyshallbeestablishedpursuanttotheprovisionsofsections287.900to
14 287.920.PreferenceshallbegiventoMissouriemployersthatdevelopan
HCSSSSB181 26 15 annualpremiumofnotgreaterthantenthousanddollars.Thecompanyshall
16 useflexibilityandexperimentationinthedevelopmentoftypesofpoliciesand
17 coveragesofferedtoemployers,subjecttotheapprovalofthedirectorofthe
18 departmentofcommerceandinsurance.]
[287.905.1.Thereiscreatedaboardofdirectorsforthecompany.
2 TheboardshallbeappointedbyJanuary1,1994,andshallconsistoffive
3 membersappointedorselectedasprovidedinthissection.Thegovernorshall
4 appointtheinitialfivemembersoftheboardwiththeadviceandconsentof
5 thesenate.Eachdirectorshallserveafive-yearterm.Termsshallbe
6 staggeredsothatnomorethanonedirector'stermexpireseachyearonthefirst
7 dayofJuly.Thefivedirectorsinitiallyappointedbythegovernorshall
8 determinetheirinitialtermsbylot.Attheexpirationofthetermofany
9 memberoftheboard,thecompany'spolicyholdersshallelectanewdirectorin
10 accordancewithprovisionsdeterminedbytheboard.
11 2.Anypersonmaybeadirectorwho:
12 (1)Doesnothaveanyinterestasastockholder,employee,attorney,
13 agent,brokerorcontractorofaninsuranceentitywhowritesworkers'
14 compensationinsuranceorwhoseaffiliateswriteworkers'compensation
15 insurance;and
16 (2)Isofgoodmoralcharacterandwhohasneverpleadedguiltyto,or
17 beenfoundguiltyof,afelony.
18 3.Theboardshallannuallyelectachairmanandanyotherofficersit
19 deemsnecessaryfortheperformanceofitsduties.Boardcommitteesand
20 subcommitteesmayalsobeformed.]
[287.907.1.ByMarch1,1994,theboardshallhireanadministrator
2 whoshallserveatthepleasureoftheboardandthecompanyshallbefully
3 preparedtobeoperationalbyMarch1,1995,andassumeitsresponsibilities
4 pursuanttosections287.900to287.920.Theadministratorshallreceive
5 compensationasestablishedbytheboardandmusthaveprovensuccessful
6 experienceasanexecutiveatthegeneralmanagementlevelintheinsurance
7 business.
8 2.Theboardisvestedwithfullpower,authorityandjurisdictionover
9 thecompany.Theboardmayperformallactsnecessaryorconvenientinthe
10 administrationofthecompanyorinconnectionwiththeinsurancebusinessto
11 becarriedonbythecompany.Inthisregard,theboardisempoweredto
12 functioninallaspectsasagoverningbodyofaprivateinsurancecarrier.]
[287.909.1.Theadministratorofthecompanyshallactasthe
2 company'schiefexecutiveofficer.Theadministratorshallbeinchargeofthe
3 day-to-dayoperationsandmanagementofthecompany.
4 2.Beforeenteringthedutiesofoffice,theadministratorshallgivean
5 officialbondinanamountandwithsuretiesapprovedbytheboard.The
6 premiumforthebondshallbepaidbythecompany.
7 3.Theadministratororhisdesigneeshallbethecustodianofthe
8 moneysofthecompanyandallpremiums,depositsorothermoneyspaid
HCSSSSB181 27 9 theretoshallbedepositedwithafinancialinstitutionasdesignatedbythe
10 administrator.
11 4.Noboardmember,officeroremployeeofthecompanyisliableina
12 privatecapacityforanyactperformedorobligationenteredintowhendonein
13 goodfaith,withoutintenttodefraud,andinanofficialcapacityinconnection
14 withtheadministration,managementorconductofthecompanyoraffairs
15 relatingtoit.]
[287.910.Theboardshallhavefullpowerandauthoritytoestablish
2 ratestobechargedbythecompanyforinsurance.Theboardshallcontractfor
3 theservicesoforhireanindependentactuary,amemberingoodstandingwith
4 theAmericanAcademyofActuaries,todevelopandrecommendactuarially
5 soundrates.Ratesshallbesetatamountssufficient,wheninvested,tocarry
6 allclaimstomaturity,meetthereasonableexpensesofconductingthebusiness
7 ofthecompanyandmaintainareasonablesurplus.Thecompanyshall
8 conductaworkers'compensationprogramthatshallbeneithermorenorless
9 thanself-supporting.]
[287.912.Theboardshallformulateandadoptaninvestmentpolicy
2 andsupervisetheinvestmentactivitiesofthecompany.Theadministrator
3 mayinvestandreinvestthesurplusorreservesofthecompanysubjecttothe
4 limitationsimposedondomesticinsurancecompaniesbystatelaw.The
5 companymayretainanindependentinvestmentcounsel.Theboardshall
6 periodicallyreviewandappraisetheinvestmentstrategybeingfollowedand
7 theeffectivenessofsuchservices.Anyinvestmentcounselretainedorhired
8 shallperiodicallyreporttotheboardoninvestmentresultsandrelated
9 matters.]
[287.915.Anyinsuranceagentorbrokerlicensedtosellworkers'
2 compensationinsuranceinthisstateshallbeauthorizedtosellinsurance
3 policiesforthecompanyincompliancewiththebylawsadoptedbythe
4 company.Theboardshallestablishascheduleofcommissionstopayforthe
5 servicesoftheagent.]
[287.917.1.Theadministratorshallformulate,implementand
2 monitoraworkplacesafetyprogramforallpolicyholders.
3 2.Thecompanyshallhaverepresentativeswhosesolepurposeisto
4 develop,withpolicyholders,awrittenworkplaceaccidentandinjuryreduction
5 planthatpromotessafeworkingconditionsandwhichisbaseduponclearly
6 statedgoalsandobjectives.Companyrepresentativesshallhavereasonable
7 accesstothepremisesofanypolicyholderorapplicantduringregularworking
8 hours.Thecompanyshallcommunicatetheimportanceofawell-defined
9 safetyplanandassistinanywaytoobtainthisobjective.
10 3.Theadministratororboardmayrefusetoinsure,ormayterminate
11 theinsuranceofanysubscriberwhorefusestopermiton-siteexaminationsor
12 disregardstheworkplaceaccidentandinjuryreductionplan.
HCSSSSB181 28 13 4.Uponthecompletionofadetailedinspectionandrecognitionofa
14 highregardforemployeeworksafety,adeviationmaybeappliedtotherate
15 structureofthatinsurednotingspecialrecognitionofthoseefforts.]
[287.919.1.TheMissouriemployersmutualinsurancecompanyshall
2 notreceiveanystateappropriation,directlyorindirectly,exceptasprovidedin
3 section287.690.
4 2.Inordertoprovidefundsforthecreation,continueddevelopment
5 andoperationofthecompany,theboardisauthorizedtoissuerevenuebonds
6 fromtimetotime,inaprincipalamountoutstandingnottoexceedforty
7 milliondollarsatanygiventime,payablesolelyfrompremiumsreceivedfrom
8 insurancepoliciesandotherrevenuesgeneratedbythecompany.
9 3.Theboardmayissuebondstorefundotherbondsissuedpursuantto
10 thissection.
11 4.Thebondsshallhaveamaturityofnomorethantenyearsfromthe
12 dateofissuance.Theboardshalldetermineallotherterms,covenantsand
13 conditionsofthebonds,exceptthatnobondsmayberedeemedpriorto
14 maturityunlessthecompanyhasestablishedadequatereservesfortherisksit
15 hasinsured.
16 5.Thebondsshallbeexecutedwiththemanualorfacsimilesignature
17 oftheadministratororthechairmanoftheboardandattestedbyanother
18 memberoftheboard.Thebondsmaybeartheseal,ifany,ofthecompany.
19 6.Theproceedsofthebondsandtheearningsonthoseproceedsshall
20 beusedbytheboardforthedevelopmentandoperationoftheMissouri
21 employersmutualinsurancecompany,topayexpensesincurredinthe
22 preparation,issuanceandsaleofthebondsandtopayanyobligationsrelating
23 tothebondsandtheproceedsofthebondsundertheUnitedStatesInternal
24 RevenueCodeof1986,asamended.
25 7.Thebondsmaybesoldatapublicsaleoraprivatesale.Ifthebonds
26 aresoldatapublicsale,thenoticeofsaleandotherproceduresforthesale
27 shallbedeterminedbytheadministratororthecompany.
28 8.Thissectionisfullauthorityfortheissuanceandsaleofthebonds
29 andthebondsshallnotbeinvalidforanyirregularityordefectinthe
30 proceedingsfortheirissuanceandsaleandshallbeincontestableinthehands
31 ofbonafidepurchasersorholdersofthebondsforvalue.
32 9.Anamountofmoneyfromthesourcesspecifiedinsubsection2of
33 thissectionsufficienttopaytheprincipalofandanyinterestonthebondsas
34 theybecomedueeachyearshallbesetasideandisherebypledgedforthe
35 paymentoftheprincipalandinterestonthebonds.
36 10.Thebondsshallbelegalinvestmentsforanypersonorboard
37 chargedwiththeinvestmentofpublicfundsandmaybeacceptedassecurity
38 foranydepositofpublicmoney,andthebondsandinterestthereonareexempt
39 fromtaxationbythestateandanypoliticalsubdivisionoragencyofthestate.
40 11.Thebondsshallbepayablebythecompany,whichshallkeepa
41 completerecordrelatingtothepaymentofthebonds.
42 12.Notmorethanfiftypercentofthebondssoldshallbesoldto
43 publicentities.]
HCSSSSB181 29 [287.920.1.Theboardshallcauseanannualauditofthebooksof
2 accounts,fundsandsecuritiesofthecompanytobemadebyacompetentand
3 independentfirmofcertifiedpublicaccountants,thecostoftheaudittobe
4 chargedagainstthecompany.Acopyoftheauditreportshallbefiledwiththe
5 directorofthedepartmentofcommerceandinsuranceandtheadministrator.
6 Theauditshallbeopentothepublicforinspection.
7 2.Theboardshallsubmitanannualindependentlyauditedreportin
8 accordancewithproceduresgoverningannualreportsadoptedbytheNational
9 AssociationofInsuranceCommissionersbyMarchfirstofeachyearandthe
10 reportshallbedeliveredtothegovernorandthegeneralassemblyandshall
11 indicatethebusinessdonebythecompanyduringthepreviousyearand
12 containastatementoftheresourcesandliabilitiesofthecompany.
13 3.Theadministratorshallannuallysubmittotheboardforitsapproval
14 anestimatedbudgetoftheentireexpenseofadministeringthecompanyforthe
15 succeedingcalendaryearhavingdueregardtothebusinessinterestsand
16 contractobligationsofthecompany.
17 4.Theincurredlossexperienceandexpenseofthecompanyshallbe
18 ascertainedeachyeartoincludebutnotbelimitedtoestimatesofoutstanding
19 liabilitiesforclaimsreportedtothecompanybutnotyetpaidandliabilitiesfor
20 claimsarisingfrominjurieswhichhaveoccurredbuthavenotyetbeen
21 reportedtothecompany.Ifthereisanexcessofassetsoverliabilities,
22 necessaryreservesandareasonablesurplusforthecatastrophehazard,thena
23 cashdividendmaybedeclaredoracreditallowedtoanemployerwhohas
24 beeninsuredwiththecompanyinaccordancewithcriteriaapprovedbythe
25 board,whichmayaccountfortheemployer'ssafetyrecordandperformance.
26 5.Thedepartmentofcommerceandinsuranceshallconductan
27 examinationofthecompanyinthemannerandundertheconditionsprovided
28 bythestatutesoftheinsurancecodefortheexaminationofinsurancecarriers.
29 Theboardshallpaythecostoftheexaminationasanexpenseofthecompany.
30 Thecompanyissubjecttoallprovisionsofthestatuteswhichrelatetoprivate
31 insurancecarriersandtothejurisdictionofthedepartmentofcommerceand
32 insuranceinthesamemannerasprivateinsurancecarriers,exceptasprovided
33 bythedirector.
34 6.Forthepurposeofascertainingthecorrectnessoftheamountof
35 payrollreported,thenumberofemployeesontheemployer'spayrollandfor
36 suchotherinformationastheadministratormayrequireintheproper
37 administrationofthecompany,therecordsandpayrollsofeachemployer
38 insuredbythecompanyshallalwaysbeopentoinspectionbythe
39 administratororhisdulyauthorizedagentorrepresentative.
40 7.Everyemployerprovidedinsurancecoveragebythecompany,upon
41 complyingwiththeunderwritingstandardsadoptedbythecompany,andupon
42 completingtheapplicationformprescribedbythecompany,shallbefurnished
43 withapolicyshowingthedateonwhichtheinsurancebecomeseffective.]
SectionB.Therepealofsections287.900,287.902,287.905,287.907,287.909,
2287.910,287.912,287.915,287.917,287.919,and287.920ofthisactandtherepealand
HCSSSSB181 30 3reenactmentofsections287.690and375.1275ofthisactshallbecomeeffectiveonJanuary1,
42025.
âś”
HCSSSSB181 31