Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 600 - Statistical Reporting › Chapter 2 - Credit Insurance › Section 20 CSR 600-2.200 - Credit Property Insurance

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This proposed amendment clarifies and
				  modernizes the rule in reference to Chapter 385 which regulates credit property
				  insurance. This proposed amendment changes the title and purpose statement to
				  more accurately reflect the contents of the rule and appropriate statutes. This
				  proposed amendment also eliminates language that is duplicative of a statute or
				  which is no longer necessary.
PURPOSE: This regulation is designed to stimulate
				  open competition among insurers to provide insurance coverage in the credit
				  context at rates which are not unfairly discriminatory or excessive. Where
				  property insurance is sold by a creditor in connection with the extension of
				  credit, the regulating forces of open competition may not operate to control
				  rates and extend benefits. This regulation designates rate levels for certain
				  coverages above which rates for insurance sold in the credit context will be
				  presumed excessive and unfairly discriminatory under statutory standards. It is
				  solely because of the lack of effective price and product controlling
				  competition that the promulgation of these standards has become necessary to
				  policyholders and the public interest. This regulation was adopted pursuant to
				  the provisions of section
				  374.045,
				  RSMo and to implement sections
				  367.170,
				  374.190,
				  375.012, 375.158,
				  375.936, 385.010 to 385.080, and 408.280, RSMo.
(1) Scope. This regulation applies to credit
				property as defined in section
				385.020,
				RSMo.
(2) Definitions. The
				following terms are defined for use in this regulation:
(A) Affiliated insurance producer means any
				insurance producer of an insurer who receives any employment remuneration from
				a dealer or lender or sells insurance primarily to debtors of a dealer or
				lender group of associated dealers or lenders or whose insurance a dealer or
				lender controls, directly or indirectly, or regularly designates, recommends,
				refers or suggests to the buyer that s/he purchase in connection with the
				negotiation, execution, extension, or renewal of a contract;
(B) Contract includes any credit transaction
				for household, personal, or family use;
(C) Dealer means any person who extends
				credit for household, personal, or family use or any successor to a creditor's
				rights;
(D) Lender is any person
				engaged in the business of making consumer credit loans as defined in section
				367.100.2, RSMo and any assignee of a consumer credit loan agreement to include
				registrants under Chapter 367, RSMo, state banking associations, savings and
				loan associations, national banking associations to the extent that federal
				laws do not preempt this regulation, credit unions and any director, officer,
				employee or insurance producer of such a person; and
(E) Credit property insurance has the same
				meaning as in section 385.020.1(5), RSMo.