SCS SB 309 -- SURPLUS LINES INSURANCE

SPONSOR:  Stouffer (Faith)

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Transportation by a vote of 10 to 0.

This substitute changes the laws regarding surplus lines
insurance.  In its main provisions, the substitute:

(1)  Requires the Department of Insurance, Financial
Institutions, and Professional Registration to publish notices
declaring a surplus lines insurer ineligible in a public
electronic format;

(2)  Requires taxes formerly remitted to the Director of the
Department of Insurance, Financial Institutions, and Professional
Registration to be remitted to the Department of Revenue;

(3)  Requires surplus lines insurers to file information
regarding the gross amounts charged for surplus lines insurance
and the amount of net premiums on a quarterly basis;

(4)  Allows the Director of the Department of Insurance,
Financial Institutions, and Professional Registration to bring a
lawsuit against a surplus lines licensee for unpaid penalties and
interest.  Currently, a lawsuit can only be brought against a
licensee for unpaid taxes;

(5)  Clarifies that all taxes, penalties, and interest or
delinquent taxes must be paid to the Department of Revenue, which
must notify the Director of the Department of Insurance,
Financial Institutions, and Professional Registration of the sums
collected from each surplus lines licensee; and

(6)  Repeals a provision which requires surplus lines licensees
to file certain information with the Department of Insurance,
Financial Institutions, and Professional Registration within 30
days of placing any surplus lines insurance policy.

FISCAL NOTE:  No impact on state funds in FY 2008, FY 2009, and
FY 2010.

PROPONENTS:  Supporters say that directly sending the tax to the
Department of Revenue instead of the Department of Insurance,
Financial Institutions, and Professional Registration will be
more efficient.  This is the only line of insurance that is
required to send the taxes to the Department of Insurance,
Financial Institutions, and Professional Registration which then
forwards it to the Department of Revenue.

Testifying for the bill were Senator Stouffer; and Department of
Insurance, Financial Institutions, and Professional Registration.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:22 am