COMMITTEE
HB 478 -- MANAGING GENERAL AGENTS FOR INSURANCE COMPANIES
SPONSOR: Ward
COMMITTEE ACTION: Voted "do pass by consent" by the Committee
on Insurance by a vote of 18 to 0.
This bill adds to the definition of a managing general agent for
an insurance company. Currently, part of the definition for
being a managing general agent is that the person or company
adjusts or pays claims over a certain amount. The Department of
Insurance sets this amount. The bill adds that the department
must set the same threshold amount for both Missouri-based and
non-Missouri-based insurance companies.
FISCAL NOTE: No impact on state funds.
PROPONENTS: Supporters say that current regulation of the
managing general agent (MGA) law by the Department of Insurance
discriminates against Missouri-based insurers that use MGAs. An
insurer from outside Missouri can use MGAs and, if their
settlement authority is below the $10,000 per claim threshold,
Missouri's MGA law does not apply. Missouri-based insurers
cannot conduct their operations similarly. This hurts Missouri--
based insurers by imposing extra regulatory burdens and costs on
them not borne by insurers from outside the state.
Testifying for the bill were Representative Ward; and Missouri
Insurance Coalition.
OPPONENTS: There was no opposition voiced to the committee.
Marty Romitti, Legislative Analyst