HB 1680 -- CREDIT INSURANCE
COMMITTEE ACTION: Voted "do pass" by the Committee on Insurance
by a vote of 13 to 0.
This bill creates a licensing process for credit insurance
companies. The bill allows such licensees to employ persons at
least 18 years old on a non-commission basis selling credit
insurance. The Director of the Department of Insurance will
prescribe an application form. The bill sets forth the
information to be included in the application, the renewal
process, and fees.
FISCAL NOTE: Estimated Net Income to Insurance Dedicated Fund
of $208,196 in FY 2001, $138,138 in FY 2002, and $137,268 in FY
PROPONENTS: Supporters say that this bill merely streamlines
the licensing process for sellers of credit insurance. It makes
the employer enforce the regulations, rather than relying upon
employees to comply themselves. There is considerable turn-over
in this industry and requiring each employee to go through the
licensing procedure has been ineffective and expensive for both
the licensees and the Department of Insurance in terms of
Testifying for the bill were Representative Gunn; Insurance
Group; Missouri Insurance Coalition; and National Association of
Independent Insurance Agents.
OPPONENTS: There was no opposition voiced to the committee.
Richard Smreker, Legislative Analyst