HCS HB 1690 -- TRANSMISSION OF INSURANCE-RELATED INFORMATION

SPONSOR:  Wilson (130)

COMMITTEE ACTION:  Voted "do pass by consent" by the Special
Committee on Health Insurance by a vote of 6 to 0.

This substitute allows the Director of the Department of
Insurance, Financial Institutions, and Professional Registration
to establish rules and the web-based delivery method for
submitting required insurance-related filings.  The filings must
be carried out in a manner consistent with the federal Electronic
Signatures in Global and National Commerce Act.  Automobile
insurers will be allowed to send renewal notices electronically
as an alternative to sending the notices by first-class mail if
the insured requests an electronic notice in writing.  Policy
cancellations are prohibited from being sent electronically.

FISCAL NOTE:  No impact on state funds in FY 2009, FY 2010, and
FY 2011.

PROPONENTS:  Supporters say that insurance companies currently
must transmit all information by paper.  The bill will bring the
state up to date with technology and allow companies to transmit
information electronically.  An insured must opt into the
program.  There could be a cost savings by regulating the
transmission of forms, and the use of electronic form filings is
already increasing.  The bill is not intended to expand or change
the department's authority and will only apply to renewal
notices.  If no response is given, there will be a follow up
because insurers do not want to lose customers.

Testifying for the bill were Representative Wilson (130);
Department of Insurance, Financial Institutions, and Professional
Registration; Missouri Insurance Coalition; and Missouri
Association of Insurance Agents.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:10 pm