Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 700 - Insurance Licensing › Chapter 1 - Insurance Producers › Section 20 CSR 700-1.140 - Minimum Standards of Competency and Trustworthiness for Insurance Producers Concerning Personal Insurance Transactions

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This regulation effectuates and aids in the
				  interpretation of the provisions of section 375.141.1(8), RSMo, which relates
				  to the competence and trustworthiness of insurance producers. The regulation
				  requires insurance producers to comply with certain minimum requirements in
				  transactions involving personal insurance policies. It is promulgated pursuant
				  to the provisions of section
				  374.045,
				  RSMo and implements the provisions of section
				  375.141,
				  RSMo.
(1) Document and
				Premium Handling Standards. When dealing with any personal insurance policy,
				every insurance producer shall comply with the following standards of
				promptness regarding securing and amending coverage, providing written evidence
				of insurance transactions, and handling premiums, except to the extent these
				actions are the responsibility of the insurer. Where it is the insurer's
				responsibility to take these actions, this responsibility shall be delineated
				in a written document, a copy of which shall be retained by the licensee and
				available for examination by the department.
(A) Every insurance producer shall handle
				every application for new coverage under a personal insurance policy and every
				request for amendments to an existing policy in a manner which will secure the
				new or amended coverage as soon as is reasonably possible, unless a longer time
				is permitted under a written agreement between the licensee and the insured or
				prospective insured. If within thirty (30) days of the original application for
				insurance the licensee has not yet secured an insurer willing to provide
				coverage, the licensee immediately shall inform the prospective insured of this
				fact in writing.
(B) Whenever an
				insurer requires additional information prior to issuing a new personal
				insurance policy, or prior to renewing, continuing, or amending an existing
				policy, the insurance producer through whom the insured or prospective insured
				applied for or procured the coverage shall inform, at the earliest reasonable
				opportunity, the insured or prospective insured of the need for the additional
				information from the insured or prospective insured.
(C) Every insurance producer shall provide
				every purchaser of a personal insurance policy with written evidence of
				coverage at the time coverage is bound or the policy is issued, whichever
				occurs earlier, or as soon after as is reasonably possible, but in no event
				later than thirty (30) days after the date the coverage is bound or the policy
				is issued. A written binder or insurance policy shall constitute written
				evidence of coverage for purposes of this subsection. Any application forms,
				riders, or endorsements associated with the policy which are not provided along
				with written evidence of coverage shall be provided to the insured as soon as
				is reasonably possible. When an insurer declines to cover a prospective
				insured, the insurer's written denial of coverage shall be provided by the
				licensee to the prospective insured as soon as is reasonably possible, but in
				no event later than thirty (30) days after the date the coverage is
				denied.
(D) Insurance producers
				shall remit all premium payments associated with a personal insurance policy to
				those persons entitled to them as soon as is reasonably possible after their
				receipt by the licensee, but in no event later than thirty (30) days after the
				date of receipt, provided, however, that premiums may be remitted at a later
				point in time if the licensee is so authorized under a written agreement
				between the licensee and the person legally entitled to the premiums. In no
				event, however, shall a licensee retain premium payments if to do so will
				result in the failure to obtain or continue coverage on behalf of an insured or
				prospective insured.