Missouri Code of State Regulations
Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE
Division 1140 - Division of Finance
Chapter 3 - Retail Credit Sales
Section 20 CSR 1140-3.041 - Retail Credit Sales- Insurance
Universal Citation: 20 MO Code of State Regs 1140-3.041
Current through Register Vol. 49, No. 18, September 16, 2024
PURPOSE: This rule is designed to promote consistent regulation of credit property insurance sold in connection with retail credit sales. It is felt that this regulation will promote competition.
(1) Credit property insurance may be sold, requisitioned, required or accepted in connection with any retail time transaction; provided, however, that such credit property insurance is subject to the following requirements, restrictions and qualifications:
(A) Minimum
Policy Standards. Credit property insurance must include standard fire
coverage, extended coverage endorsement and replacement cost provision
endorsement; such insurance must calculate benefits from the date of
loss;
(B) Written Evidence of
Coverage. The consumer must be provided with a copy of the policy or
certificate of insurance within thirty (30) days of the extension of
credit;
(C) Personal Property
Lists. The holder must retain a list of the personal property securing the
extension of credit which list must be signed by the consumer and dated to
correspond with the extension of credit;
(D) Consumer's Rights. The consumer shall
have the following rights concerning any credit property insurance:
1. The consumer shall not be required or
coerced to obtain insurance from any particular insurer or agent as a condition
for obtaining credit;
2. The
consumer may substitute coverage at any time and, upon such substitution, shall
be entitled to a pro rata refund of the unearned premium;
where such insurance was not initially required by the creditor, the consumer
may cancel at any time without substituting and shall be entitled to a
pro rata refund of any premium paid; and
3. Credit property insurance must be
cancelled upon the satisfaction or termination of the underlying indebtedness;
upon such cancellation, the consumer shall be entitled to a pro
rata refund of the unearned premium;
(E) Insurance not to Exceed Contract Terms.
Credit property insurance may not exceed in amount the total amount of the
indebtedness nor exceed in duration the scheduled term of the underlying
contract;
(F) Rates. Credit
property insurance rates may not exceed the rates for such coverage prescribed
or approved by the Division of Insurance; and
(G) Severability. If any provision of any
section of this regulation or the application thereof to any person or
circumstances is held invalid, such invalidity shall not affect other
provisions or that section or application of the regulations which can be given
effect without the invalid provision or application, and to this end the
provisions of this regulation are declared to be severable.
*Original authority: 364.060, RSMo 1963, amended 1993, 1995.
Disclaimer: These regulations may not be the most recent version. Missouri may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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