NAII Says Mo. Auto Insurance Surcharge Would Discriminate

March 28, 2002

A bill approved by a Missouri House committee that would impose a surcharge on auto insurance policies to finance a police chiefs and officers retirement fund is discriminatory, according to the National Association of Independent Insurers (NAII).

NAII counsel Ann Weber said the surcharge in House Bill 2160 would be a discriminatory tax since it targets only people who buy auto insurance. The additional expense also may perpetuate Missouri’s uninsured motorist problem, she added. NAII local lobbyist Harry Gallagher raised similar objections in opposing the bill before the House Public Safety, Law Enforcement and Veterans’ Affairs Committee last week.

HB 2160 would assess a 50-cent surcharge on every auto insurance policy sold in Missouri for a retirement fund for all police chiefs and officers outside Kansas City and St. Louis.

Weber noted that the bill’s sponsor, Rep. Phil Britt, D-Kennett, had indicated he would consider an alternate source of funding for the bill, but the committee reported it out without change.

Topics Auto Missouri

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