Cancellation or Nonrenewal by a Provider of Financial Assurance

PURPOSE: This rule requires providers of financial responsibility to notify the department of impending cancellation or nonrenewal of any financial assurance mechanism. (1) Except as otherwise provided, a provider of financial assurance may cancel or fail to renew an assurance mechanism by sending a notice of termination by certified mail to the owner or operator. Notice of termination shall comply with the following requirements: (A) Termination of a guarantee, a surety bond, or a letter of credit shall not occur until one hundred twenty (120) days after the date on which the owner or operator receives the notice of termination as evidenced by the return receipt; and (B) Termination of insurance or risk retention group coverage, except for nonpayment or misrepresentation by the insured or statefunded assurance, shall not occur until sixty (60) days after the date on which the owner or operator receives the notice of termination as evidenced by the return receipt. Termination for nonpayment of premium or misrepresentation by the insured may not occur until a minimum of ten (10) days after the date on which the owner or operator receives the notice of termination as evidenced by the return receipt. (2) If a provider of financial responsibility cancels or fails to renew for reasons other than incapacity of the provider as specified in 10 CSR 26-3.110, the owner or operator shall obtain alternate coverage as specified in this section within sixty (60) days after receipt of the notice of termination. If the owner or operator fails to obtain alternate coverage within sixty (60) days after receipt of the notice of termination, the owner or operator shall notify the director of the failure and submit— (A) The name and address of the provider of financial assurance; (B) The effective date of termination; and (C) The evidence of the financial assurance mechanism subject to the termination maintained in accordance with 10 CSR 263.107(2). AUTHORITY: section 319.114, RSMo 2000.* This rule originally filed as 10 CSR 2011.105. Original rule filed Feb. 7, 1991, effective Aug. 30, 1991. Amended: Filed Aug. 3, 1993, effective April 9, 1994. Moved and amended: Filed April 15, 2011, effective Dec. 30, 2011. *Original authority: 319.114, RSMo 1989.