HB 542 -- INSURANCE

CO-SPONSORS:  Ridgeway, Luetkenhaus, Naeger, Abel, Berkstresser,
Secrest

COMMITTEE ACTION:  Voted "do pass" by the Committee on Insurance
by a vote of 13 to 1.

This bill permits the Director of the Department of Insurance to
expunge disciplinary records of insurance agents.  After a
5-year waiting period from the date of the disciplinary action,
the agent may apply to the director for expungement of the
department's disciplinary records.  All disciplinary actions
that resulted in the agent voluntarily forfeiting $200 or less
will be expunged automatically.  The bill sets forth criteria to
be considered by the director in reviewing the application.  A
decision by the director to not expunge a record is deemed an
exhaustion of all administrative remedies, permitting the agent
to appeal to the circuit court.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that the bill merely allows the
department to establish a process to review disciplinary records
more than 5 years old which may warrant expungement.  Only
minor, technical violations would be expunged automatically.
The records of any genuine disciplinary action would be subject
to a thorough review by the director before that record could be
expunged.  Minor, technical violations will occur periodically
in this highly regulated industry.  The department will usually
assess a small fine, perhaps $100, and the agent corrects the
problem.  But these minor violations can follow an agent around
for years, seriously harming that agent's livelihood.

Testifying for the bill were Representative Ridgeway; and
Missouri Association of Independent Insurance Agents and Brokers.

OPPONENTS:  There was no opposition voiced to the committee.

Richard Smreker, Senior Legislative Analyst

Missouri House of Representatives
Last Updated November 26, 2001 at 11:44 am