HCS HB 1893 -- PREMIUM REFUND CALCULATIONS FOR CREDIT INSURANCE

SPONSOR:  Cunningham, 145 (Scharnhorst)

COMMITTEE ACTION:  Voted "do pass by consent" by the Special
Committee on Financial Institutions by a vote of 8 to 0.

This substitute changes the requirements for premium refund
calculations on credit insurance.  The first month's premium is
earned on the first day of coverage, and each successive month's
premium will be earned on the anniversary date of the coverage.

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

PROPONENTS:  Supporters say that the bill will correct a
statutory conflict of law.  Currently, premium refunds are to be
paid at the first of the month.  If this is done and the policy
end date is later than the first of the month, insurers are
violating statute because they are prohibited from giving free
insurance.

Testifying for the bill were Representative Scharnhorst;
Assurant, Incorporated; Missouri Bankers Association; and
Missouri Financial Services Association.

OPPONENTS:  There was no opposition voiced to the committee.

OTHERS:  Others testifying on the bill say it corrects an unusual
violation of law.  The Division of Finance and the Department of
Insurance, Financial Institutions, and Professional Registration
enforce the law differently.

Testifying on the bill was Department of Insurance, Financial
Institutions, and Professional Registration.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:11 pm