SB 605 -- SURPLUS LINES INSURANCE

SPONSOR:  Jacob (Luetkenhaus)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee
on Insurance by a vote of 12 to 0.

This bill amends the bonding amount required for insurance
brokers selling surplus lines insurance so as to be 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.  The bill also 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.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that there are millions of dollars
in potential liability from surplus lines insurance coverage on
the books now, but less than $100,000 in bonds on file.  The
amount of the bond has to be increased.

Testifying for the bill were Senator Jacob; and Independent
Insurance Agents and Brokers 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 11:48 am