HCS HB 798 -- INSURANCE

SPONSOR:  Luetkenhaus (Ward)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee
on Insurance by a vote of 16 to 0.

This substitute revises the law governing the licensing of
insurance agents and brokers.  The substitute removes
distinctions between agents and brokers in terms of licensing,
referring to each as "insurance producers."  The substitute
revises most of the provisions pertaining to licensure,
including the courses of study initially required for licensure,
continuing education, temporary licensure, the termination and
renewal of agency contracts, examination requirements, broker
compensation restrictions, suspension and revocation of
licenses, penalties for violations, closed and confidential
records, and fees for licensure.

The substitute has an effective date of January 1, 2002.

FISCAL NOTE:  Not available at time of printing.

PROPONENTS:  Supporters say that the bill makes the licensing
process much more streamlined and less complicated.  The bill
also raises agents' fees, which are needed to cover increasing
costs incurred by the Department of Insurance.  The bill is
based upon the National Association of Insurance Commissioners'
model legislation.  The bill was drafted after the many parties
involved reached a consensus on a variety of issues.  The model
legislation will bring uniformity in licensing across the
country.  This is needed to allow agents to sell insurance
across state lines with less paperwork and less confusion.

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

OPPONENTS:  Those who oppose the bill say that there is one
problem with the bill.  Those employees who answer an "800"
number for basic inquiries about policies should not have to be
licensed.  Many of those questions simply deal with basic
information and can be handled by non-agents.

Testifying against the bill was National Association of
Independent Insurers.

Richard Smreker, Senior Legislative Analyst

Missouri House of Representatives
Last Updated November 26, 2001 at 11:45 am