Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This amendment modernizes the
rule.
(1) Definitions.
(A) Mobile home includes:
1. Mobile home, any manufactured housing
unit, transportable on its own chassis, axle, and wheels, designed for
permanent occupancy when connected to utilities;
2. Travel trailer, any manufactured
recreational vehicle, transportable on its own chassis, axle, and wheels when
towed by a motor vehicle, designed for temporary occupancy, to include a camper
trailer; and
3. Motor home, any
self-propelled, licensed, registered motor vehicle, designed for use
principally on the public right-of-way as a recreational vehicle and designed
to provide temporary living quarters, including truck-mounted camper
units.
(B) Dual interest
as used means a policy of insurance in which the interests of the
lien-holder/vendor and the named insured debtor/borrower are each insured as
their interest may appear. Coverage for the debtor shall not be less than the
standard fire policy with extended coverage endorsements. Vendors' single
interest may be written in conjunction with and incidental to a dual interest
policy.
(C) Vendors'/lenders'
single interest shall be an incidental coverage written in conjunction with a
dual interest policy. This vendors' single interest coverage may include
conversion, secretion, embezzlement, collision, and repossession return expense
coverages.
(2)
Substantial Protection .
(A) Vendors'/lenders'
single interest may not be written on mobile homes as a separate policy. It
only may be written as a portion of a dual interest policy protecting the
interests of the debtor/borrower and the creditor as they may appear.
(B) Lienholders, or sellers of mobile homes,
or both, may not be listed as additional insureds or appear in any other manner
as insureds on a policy insuring the mobile home where the policy is purchased
by the owner of the mobile home. They may be named in a loss payable clause as
a payee or be a payee under the vendors'/lenders' single interest portion of
that policy.
(C) No policy subject
to this regulation may be written unless it covers substantially the actual
cash value of the mobile home, except for the vendors'/lenders' single interest
portion of that policy which may be measured by the loan balance
payable.
(3) Consumers'
Rights, Rates, and Training. Insurers doing business subject to this regulation
shall comply with the following sections of
20 CSR
500-1.700 to foster open competition among the
insurers: section (4) Consumers' Rights, to include providing full and fair
written notice of these rights before the underlying mobile home credit
transaction is consummated; section (5) Rates; and section (7) Training , to
include the proper application of rates to each risk.
(4) Premium Rates and Schedules of Premium
Rates. All premium rates and all schedules of premium rates pertaining to
policies of insurance delivered or issued for delivery in this state shall be
filed with the director prior to their use in this state. The director shall
approve any rate or schedules of premium rates if s/he finds that the rates or
schedule of premium rates are reasonable in relation to the benefits provided
under the policies of insurance. A premium rate or schedule of premium rates
shall be presumed to be reasonable for purposes of this section if the rate or
schedule of rates produces or may reasonably be expected to produce a loss
ratio of sixty percent (60%) or greater.
*Original authority: 303.200, RSMo 1953; 365.080, RSMo
1963, amended 1989; 367.170, RSMo 1951, amended 1984; 374.045, RSMo 1967,
amended 1993; 375.936, RSMo 1959, amended 1967, 1969, 1971, 1976, 1978, 1983,
1991; and 408.280, RSMo 1961, amended
1989.
