HCS SS SB 193 -- INSURANCE PRODUCERS

SPONSOR:  Rohrbach (Ward)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Insurance
by a vote of 15 to 0.

This substitute revises various provisions of the law governing
insurance.  The substitute:

(1)  Removes the distinction between agents and brokers in terms
of licensing, referring to each as "insurance producers" and
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;

(2)  Allows insurers to carry over the examination fee deduction
to future tax years until the full deduction is claimed, up to 5
years;

(3)  Increases the bonding amount required for insurance brokers
selling surplus lines insurance to the lesser of $100,000 or an
amount equal to the broker's tax liability for the previous tax
year.  Currently, a bond of $10,000 is required;

(4)  Grants nonresident licensees of surplus lines insurance the
same authority as resident licensees.  Currently, the licensing
of nonresidents is within the discretion of the Department of
Insurance; and

(5)  Requires the expungement of insurance agent disciplinary
records after 5 years, for disciplinary actions that resulted in
a voluntary forfeiture of $200 or less.

FISCAL NOTE:  Estimated Net Effect on Insurance Dedicated Fund
of $0 in FY 2002, a cost of $40,750 in FY 2003, and an income of
$58,500 in FY 2004.

PROPONENTS:  Supporters say that the bill allows agents to sell
insurance throughout the region (across state lines) because the
licensing will then be uniform.  Consolidating agents and
brokers into one new status of "producer" will increase
efficiency for the Department of Insurance and make licensing
renewal and fees less burdensome for insurance agents and
brokers.

Testifying for the bill were Senator Rohrbach; Independent
Insurance Agents of Missouri; Missouri Insurance Coalition; and
American Insurance Association.

OPPONENTS:  There was no opposition voiced to the committee.

Richard Smreker, Senior Legislative Analyst

Missouri House of Representatives
Last Updated November 26, 2001 at 11:47 am