Missouri Code of State Regulations
Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE
Division 700 - Insurance Licensing
Chapter 1 - Insurance Producers
Section 20 CSR 700-1.020 - Transacting Business as an Insurance Producer
Universal Citation: 20 MO Code of State Regs 700-1.020
Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This rule effectuates and aids in the interpretation of the definition of insurance producer as stated in section 375.012, RSMo by describing without limitation by enumeration activities for which licensure is required.
(1) Solicitation of an Insurance Contract.
(A) Unless otherwise
specifically provided by section
375.012, RSMo, no
person shall solicit an insurance contract in Missouri unless s/he is a
licensed insurance company, its employee or an insurance producer.
(B) Solicitation of an insurance contract
includes, but is not limited to, the following activities:
1. Disseminating information as to rates
secured by reference to a published or printed list or computer database of
standard rates;
2. Initiating sales
over the telephone other than scheduling appointments with insurance producers
to discuss insurance;
3. Advising
an insured to purchase additional insurance when receiving payment for existing
business;
4. Signing an application
or an order for insurance; and
5.
Advising a prospective purchaser on the terms of existing coverage.
(C) Solicitation of an insurance
contract does not include the following activities:
1. Dispensing brochures and other general
information so long as there is no conversation relating to the terms of an
insurance contract;
2.
Disseminating buyer's guides, applications for coverage, coverage selection
forms, or other similar forms in response to a request from prospective or
current policy-holders so long as there is no conversation relating to the
terms of an insurance contract;
3.
Receiving and recording information from a policyholder to give to an insurance
producer for his or her review and response; or
4. Scheduling appointments with insurance
producers to discuss insurance.
(2) Negotiation of an Insurance Contract.
(A) Unless otherwise specifically provided by
section
375.012, RSMo, no
person shall negotiate an insurance contract between an insured and a third
party in Missouri unless s/he is a licensed insurance company, its employee or
an insurance producer.
(B)
Negotiation of an insurance contract includes, but is not limited to, the
following activities:
1. Advising a
prospective purchaser on the premium cost of a proposed contract of insurance,
including the quoting of rates;
2.
Advising a prospective purchaser on the coverages or terms of a proposed
contract of insurance, including counseling as to which coverages to
buy;
3. Recommending or
independently initiating additions or deletions to an insured's
policy;
4. Explaining the effect of
age, health, or other risk-related conditions with respect to purchasing a
particular policy;
5. Counseling,
urging, or advising any prospective purchaser to buy a particular policy or to
insure with a particular company; or
6. Explaining, discussing, or interpreting
coverage, analyzing exposures or policies, or giving opinions or
recommendations as to coverage.
(C) Negotiation of an insurance contract does
not include communicating with the policyholder or prospective policyholder in
order to obtain factual information necessary for an insurance producer to
complete a review.
(3) Sale of an Insurance Contract.
(A) Unless
otherwise specifically provided by section
375.012, RSMo, no
person shall sell an insurance contract in Missouri unless s/he is a licensed
insurance company, its employee or an insurance producer.
(B) Sale of an insurance contract includes,
but is not limited to, the following activities:
1. Signing binders, certificates of
insurance, commitments, endorsements, insurance identification cards and
insurance policies;
2. Indicating
that the requested coverage is or will be bound or issued; or
3. Issuing certificates of insurance,
endorsements, binders, commitments, insurance policies or insurance
identification cards except when done by a group policyholder.
(C) Sale of an insurance contract
does not include the following activities:
1.
Receiving requests for coverage for transmittal to a licensed insurance
producer or for processing through an automated system developed and maintained
under the supervision of an insurer or licensed insurance producer;
2. Receiving and recording information from
an applicant or policyholder and preparing an application for insurance
pursuant to instructions from and for the review of an insurance
producer;
3. Obtaining underwriting
information from credit agencies, the Department of Revenue, and other
insurance agencies and companies;
4. Receiving and recording information from
an applicant or policyholder and preparing an application for an insurance
producer's review and signature, all binders, certificates, endorsements,
identification cards, or policies pursuant to instructions from the insurance
producer; or
5. Receiving premiums
at the recorded place of business where the payment is being made on a binder,
endorsement, or existing policy.
(4) Duty to Have Insurance Producer at Each Place of Business.
(A) Each place of business
of an insurance producer must contain the principal office of at least one (1)
licensed insurance producer.
(B) A
licensed insurance producer may be found to be materially aiding any acts in
violation of law engaged in by an unlicensed individual under the supervision
of that insurance producer.
*Original authority: 374.045, RSMo 1967, amended 1993, 1995 and 375.012, RSMo 1961, amended 1965, 1967, 1981, 1993, 1997, 2001, 2007.
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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