Missouri Code of State Regulations
Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE
Division 500 - Property and Casualty
Chapter 1 - Property and Casualty Insurance in General
Section 20 CSR 500-1.300 - Use of Binders
Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This regulation prohibits insurance producers from binding insurance to provide rate advantages. This regulation was adopted pursuant to the provisions of section 374.045, RSMo and implements sections 379.318 and 379.470, RSMo.
(1) Policy Coverage Concurrent. Any policy of property and casualty insurance replacing a binder must provide coverage from the date of coverage under the binder.
(2) Rate Advantage Prohibited. The use of binders written to cover property or casualty risks may not result in a rate advantage to any party.
(3) Binder Premium Charge Required. If a binder is not replaced by an insurance policy, a binder premium charge must be made which does not exceed the pro rata amount of premium which would have been applicable for that coverage had the policy been issued.
(4) The requirement as stated in section (3) of this regulation is not applicable if the binder premium charge is twenty dollars ($20) or less. A binder premium charge of twenty dollars ($20) or less may be made at the option of the insurer.
*Original authority: 374.045, RSMo 1967, amended 1993, 1995; 379.318, RSMo 1972; and 379.470, RSMo 1947.
