Licensure of Motor Vehicle Extended Service Contract Producers

PURPOSE: This rule effectuates and aids in the interpretation of sections 385.200 to 385.220, RSMo, by defining “affiliated entities,” “authorized employees,” and “subsidiaries,” and setting the fees for applications. (1) Definitions. As used in section 385.206, RSMo, the following terms shall mean: (A) “Administrative fee,” a fee charged by a motor vehicle service contract provider upon the cancellation of a motor vehicle extended service contract by a service contract holder; (B) “Affiliated entity,” any company in the same corporate system as a parent, or a member organization by virtue of common ownership, control, operation, or management; (C) “Authorized employee,” an individual who meets the following criteria: 1. Is employed full-time or part-time by one (1) of the following entities listed in section 385.206, RSMo: a motor vehicle dealer; a manufacturer of motor vehicles; a federally insured depository institution; a lender; a provider; or an administrator under contract to effect coverage, collect provider fees, and settle claims on behalf of a provider; 2. Has been granted authority by such entity to sell, offer, negotiate, or solicit motor vehicle extended service contracts in Missouri on behalf of the entity; 3. Is not an employee or independent contractor of any person, except an administrator, required to hold a motor vehicle extended service contract producer license under section 385.206, RSMo, in order to sell, offer, negotiate, or solicit a motor vehicle extended service contract in Missouri; and 4. Is identified by the entity as an “authorized employee” in a record available to the director under section 385.210, RSMo; and (D) “Subsidiary,” an affiliated entity that is under the control of a provider. (2) Application and Fees. Application for a motor vehicle ex tended service contract producer license shall include the following, as applicable: (A) Initial Licensure. 1. Individual motor vehicle extended service contract producer. A. A completed application form, as prescribed by the director. B. Twenty-five dollar- ($25-) application fee. 2. Business entity motor vehicle extended service contract producer. A. A completed application form, as prescribed by the director. B. One hundred dollar- ($100-) application fee; and (B) Renewal. 1. Individual motor vehicle extended service contract producer. A. A completed renewal application form, as prescribed by the director, submitted no fewer than sixty (60) calendar days prior to the license expiration date. B. Twenty-five dollar- ($25-) application fee; 2. Business entity. A. A completed renewal application form, as prescribed by the director, submitted no fewer than sixty (60) calendar days prior to the license expiration date. B. One hundred dollar- ($100-) application fee. AUTHORITY: sections 374.045, 385.207, and 385.218, RSMo Supp. 2011.* Emergency rule filed Dec. 29, 2011, effective Jan. 9, 2012, expired July 6, 2012. Original rule filed Dec. 29, 2011, effective Aug. 30, 2012. *Original authority: 374.045, RSMo 1967, amended 1993, 1995, 2008; 385.207, RSMo 2011; and 385.218, RSMo 2007.