Mo. Code Regs. tit. 20 § 700-1.070

Current through Register Vol. 49, No. 21, November 1, 2024.

Section 20 CSR 700-1.070 - Coverages Permitted to be Sold Under Credit License

PURPOSE: The purposes of the amendment to this rule are to remove obsolete statutory references, streamline grammar, and update the statutory authority.

PURPOSE: This regulation describes what coverages may be offered or sold under a limited credit insurance producer license.

(1) No credit life insurance may be offered or sold that-

(A) Is issued upon the life of any person other than the debtor(s);

(B) Exceeds the term of indebtedness it secures except as provided in section 385035., RSMo; or

(C) Exceeds at any time the amount of the indebtedness it secures except when-

1. Caused by voluntary prepayment of a portion of the loan;

2. The insurance is written on agricultural credit transaction commitments;

3. The insurance is written on educational credit transaction commitments; or

4. Insurance is written on residential real estate-secured credit transaction commitments. In addition, no credit life insurance that contains a conversion privilege may be offered or sold.

(2) No credit accident and sickness insurance may be offered or sold unless that policy does not exceed the amount or term of the indebtedness it secures and is issued only upon the health of the debtor.

(3) No property insurance under section 385.020.1(5), RSMo may be offered or sold unless it-

(A) Covers only that tangible personal property pledged as collateral for a loan except as otherwise permitted by section 408140., RSMo;

(B) Provides only physical damage coverage in the case of automobiles;

(C) Provides only the standard fire policy, with extended coverage, in the case of collateral other than automobiles; and

(D) Provides coverage no greater in amount than the total amount of the underlying indebtedness.

20 CSR 700-1.070

AUTHORITY: sections 374.045, RSMo Supp. 1993 and 375.018.5(4), RSMo 1986.* This rule was previously filed as 4 CSR 190-12.040. Original rule filed Dec. 20, 1974, effective Dec. 30, 1974. Amended: Filed May 13, 1975, effective June 20, 1975. Amended: Filed Aug. 16, 1977, effective Dec. 11, 1977. Amended: Filed Feb. 1, 1989, effective July 1, 1989. Amended: Filed Feb. 5, 1990, effective May 1, 1990.

Amended by Missouri Register August 1, 2019/Volume 44, Number 15, effective 9/30/2019

*Original authority: 374.045, RSMo 1967, amended 1993 and 375.018.5(4), RSMo 1965, amended 1967, 1981, 1984, 1985.