Mo. Code Regs. tit. 20 § 700-1.060
Current through Register Vol. 49, No. 20, October 15, 2024
Section 20 CSR 700-1.060 - Retrospective Commission Contracts ProhibitedPURPOSE: This regulation specifies restrictions on the authority of insurance producers to settle claims when they profit directly from the refusal to pay claims. This regulation was adopted pursuant to the provisions of section 374.045, RSMo and implements sections 375.141 and 375.445, RSMo.
(1) Retrospective Commission Contracts Prohibited. No insurance company licensed or authorized to do business in Missouri may use any plan of payment to its insurance producers by which the company receives an agreed portion of its earned premium free from any normal claims and allows any insurance producer or other person to pay all normal claims from the remainder and retain as his/her compensation the money not paid to claimants.(2) Profit Sharing Permitted. Commission agreements may contain a provision for varying the amount of commission paid an insurance producer with the loss experience of the policies s/he has written, provided the company is directly liable for and does pay claims and the insurance producer has no authority to deny or refuse to pay or compromise any claim.(3) Records Required. Copies of all these agreements shall be maintained as business records by both the company and the insurance producer for three (3) years for inspection by the director or his/her duly appointed agent. AUTHORITY: sections 374.045, 375.141 and 375.445, RSMo 2000.* This rule was previously filed as 4 CSR 190-10.050. Original rule filed Dec. 20, 1974, effective Dec. 30, 1974. Amended: Filed Feb. 14, 1975, effective March 1, 1975. Amended: Filed July 15, 1976, effective Dec. 20, 1976. Amended: Filed July 12, 2002, effective Jan. 30, 2003. *Original authority: 374.045, RSMo 1967, amended 1993, 1995; 375.141, RSMo 1961, amended 1965, 1967, 1981, 1984, 1989, 1993, 2001; and 375.445, RSMo 1967.