Missouri Code of State Regulations
Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE
Division 700 - Insurance Licensing
Chapter 1 - Insurance Producers
Section 20 CSR 700-1.070 - Coverages Permitted to be Sold Under Credit License

Universal Citation: 20 MO Code of State Regs 700-1.070

Current through Register Vol. 49, No. 6, March 15, 2024

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.

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

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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