A new law modernizing regulation of commercial insurance, now in effect in Missouri, will stimulate competition by eliminating unnecessary bureaucracy.
The new law, enacted as Senate Bill 186, specifies that all commercial insurance rate filings filed with the Director of Insurance are for informational purposes only and do not need to be reviewed by the department being used. The law took effect Aug. 28.
“This new law will benefit businesses because it will enable insurance companies to adjust their rates quickly to reflect changes in the marketplace without expensive bureaucratic red tape,” said Ann Weber, National Association of Independent Insurers (NAII) counsel.
The filings include manuals of classifications, rates, rate plans and modifications. Individual rates need not be filed if the insurance director already has the original manuals, rates and rules for the insurance plans to which such individual policies conform.
“If an insurer plans to raise the premium for a commercial policy by 25 percent or more, notice must be sent to the customer at least 60 days prior to the expiration date of the policy,” Weber said. “Notices for umbrella or excess policies that are contingent on an underlying commercial policy must be mailed at least 30 days prior to policy expiration. If notice is not properly given, coverage may continue for an additional 30 days past the expiration, unless otherwise agreed-upon.
NAII strongly supported enactment of the new law during this year’s legislative session. Missouri joins more than a dozen other states that have streamlined commercial insurance regulation in the past two years.
Topics Legislation Commercial Lines Business Insurance Missouri
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