Minimum Standards for Automobile Policies

PURPOSE: This regulation requires the filing of private passenger automobile insurance policies used in this state and specifies the minimum standards to be found in them. The contents of renewal certificates are specified and limitations placed on the use of restrictive endorsements. This regulation was adopted pursuant to the provisions of section 374.045, RSMo (1986) and implements sections 374.040, 375.936, 379.110—379.120, 379.203, 379.470, 379.475 and 379.480, RSMo (1986). (1) Documents to be Filed with the Director of Insurance. All insurance companies authorized to write private passenger automobile insurance in Missouri shall file with the director of insurance duplicate copies of all automobile insurance policies, endorsements and renewals or other extension of coverage certificates which the company uses in Missouri. (2) Minimum Automobile Policy Standards. (A) No private passenger automobile policy which conflicts with any of the criteria set forth in this regulation may be issued to a Missouri insured. (B) Definition of the insured, as to an owned automobile, shall include— 1. The spouse if a resident of the same household; and 2. Any person using or any organization responsible for the use of the automobile with the express or implied permission of the named insured or spouse. (C) Medical payments coverage shall not be excess over any accident and sickness insurance other than that provided under an automobile insurance policy unless the excess provisions are clearly disclosed to the insured and properly reflected in the rating of the coverage. This disclosure must be by endorsement or on the declarations page or by another method acceptable to the Department of Commerce and Insurance. (D) Physical damage coverage shall not exclude any attached factory-installed equipment as is usual and incidental to the use and operation of a private passenger automobile as a vehicle. (E) The geographical policy territory shall not be less than the United States of America, its territories and possessions and Canada. (F) Newly acquired and replacement automobile coverage provisions shall provide not fewer than thirty (30) days within which to advise the company of the acquisition. (G) Uninsured motor vehicle coverage, whether provided within the policy or separately by endorsement, shall not— 1. Permit medical payments or Workers’ Compensation payments set-off; 2. Force or force by intent, arbitration of claims; 3. Deny carrier insolvency as a basis for claim; and 4. Utilize any definition more limiting than uninsured motor vehicle as construed in section 379.203, RSMo; (H) Total theft supplementary coverage for loss of use must be provided under comprehensive coverage— 1. Not greater than a forty-eight (48)- hour waiting period before payment begins may be used; 2. The maximum payment shall not be less than ten dollars ($10) per day subject to an aggregate payment of not less than three hundred dollars ($300); and 3. A provision terminating these payments at the time the insurer extends a reasonable settlement offer is expressly permitted. (3) Contents of Renewal Certificates. Any billing, renewal certificate or other document designed to afford an extension of coverage of the originally issued policy must state—the original policy number; the name of the insured; the term and coverage afforded; and that if, subsequent to the issuance of the policy, the coverage provided is extended or broadened without an additional charge, this coverage shall inure to the benefit of the insured under the policy from the effective date of that revision. This provision shall not be required if a liberalization clause is contained in the underlying policy. (4) Restrictive Endorsements. (A) No driver or operator exclusion is acceptable for use on the private passenger auto policy other than as to the named person. These endorsements shall include a provision for the signature of the named insured accepting and acknowledging the restriction in coverage. (B) No endorsement or policy amendment may be utilized which reduces, limits or restricts coverage provided under a private passenger automobile policy or which attempts to limit or restrict coverage, directly or indirectly, solely because of the age, residence, race, sex, color, creed, national origin, ancestry or lawful occupation of the insured. (5) Effective Date. The provisions of this regulation shall become effective on April 15, 1975. All policy forms subject to this regulation shall be deemed to comply with the provisions on that date. Existing policy forms shall be amended by endorsement or replaced by a complying policy on their next renewal date not later than July 1, 1975, unless the director shall grant a specific extension of time for compliance. AUTHORITY: sections 374.040, 374.045, 375.936, 379.110–379.120, 379.203, 379.470, 379.475 and 379.480, RSMo 1986.* This rule was previously filed as 4 CSR 190-17.010. This version of rule filed April 7, 1975, effective April 17, 1975. Amended: Filed Aug. 16, 1977, effective Dec. 11, 1977. Amended: Filed Sept. 12, 1978, effective Feb. 12, 1979. Non-substantive change filed Sept. 11, 2019, published Oct. 31, 2019. *Original authority: 374.040, RSMo 1939, amended 1967; 374.045, RSMo 1967; 375.936, RSMo 1959, amended 1967, 1969, 1971, 1976, 1978; 379.110– 379.120, see Revised Statutes of Missouri; 379.203, RSMo 1967, amended 1971, 1972; 379.470, RSMo 1947; 379.475, RSMo 1947; and 379.480, RSMo 1947. State Farm Mutual Co. v. Universal Underwriters Co., 94 SW2d 950 (Mo. App. 1980). 4 CSR 190-17.010 may not be interpreted to invalidate all escape and excess clauses from private passenger automobile insurance policies. Survivors Ben. Ins. Co. v. Farmer, 514 SW2d 565 (Mo. 1974). Superintendent of insurance has the duty to approve or disapprove life insurance contracts and forms and no contract or form may be used in Missouri without the approval of the superintendent. Kisling v. MFA Mutual Ins. Co., 399 SW2d 245 (Mo. App. 1966). Policy exclusion making uninsured motorist coverage inapplicable to bodily injury where insured, without consent of insurance company, makes settlement with party who may be legally liable therefor, held against public policy and invalid. Op. Atty. Gen. No. 112, Edmiston, 6-21-76. Insurance companies are required to pay a filing fee pursuant to section 374.230(6), RSMo for documents filed with the director of the Division of Insurance pursuant to sections 376.405, 376.675 and 376.777, RSMo (1978) and section 379.321, RSMo (1978). The filing fee imposed by section 374.230(6) is for each document and not each page of each document. The filing fee paid pursuant to section 374.230(6) is not, pursuant to section 148.400, RSMo, deductible from the premium tax payable by such companies. Op. Atty. Gen. No. 81 Scharz, 4-8-66. Foreign insurance company cannot be authorized to do business under name same as or similar to existing domestic or foreign insurance company.