Cancellation and Nonrenewal of Automobile Insurance

PURPOSE: This regulation describes policy provisions, charges, and procedures relating to cancellation and nonrenewal of private passenger automobile insurance contracts. This regulation was adopted pursuant to section 374.045, RSMo, and implements sections 303.170–303.210, 379.110–379.120, and 379.470, RSMo. (1) Applicability. This regulation applies to all private passenger automobile policies not excluded by definition in section 379.110(3), RSMo. (2) Statutory Standards for Applicants. (A) Any insurer that insures only a particular class of persons or operates within a specific geographical area must file with the Missouri Department of Commerce and Insurance (DCI) a statement signed by an officer which specifies the exact criteria for membership in that class or defines by inclusion or exclusion that specific geographical area. (B) No insurer or its insurance producer or representative may ask any applicant, policyholder, or operator whether any other insurer has cancelled, refused to write, or refused to renew a policy of automobile insurance to the person. This information may not be obtained indirectly through contacts with an applicant’s prior insurer. Questions which seek information as to whether any other insurer has cancelled, refused to write, or refused to renew a policy of automobile insurance may appear on an automobile insurance application form only if a prominent disclaimer appears immediately alongside of or below the question stating that “This question cannot be asked in the state of Missouri.” (C) If an insurer offers an applicant the minimum limits of insurance coverage required by the Motor Vehicle Safety Responsibility Law (Chapter 303, RSMo), the insurer has adequately evidenced its willingness to write automobile liability insurance for the applicant. There has not been a refusal to write because higher limits of liability are refused the applicant. (D) As used in section 379.114, RSMo, the term residence includes, in addition to the location, the existence of other residents of any usual or routine dwelling place of the applicant. (3) Cancellation. (A) A cancellation occurs whenever an insurer, directly or indirectly, terminates an automobile insurance contract or policy prior to its expiration date. If a contract or policy has a period of less than six (6) months or no fixed expiration date, it shall be considered as if written for successive periods of six (6) months. Any attempt by the insurer to terminate the contract or policy on a date other than its anniversary date is a cancellation. (B) If an insured has received coverage under an automobile insurance contract for over sixty (60) days, cancellation shall be governed by sections 379.110–379.120, RSMo. (4) Financial Responsibility Charges. (A) The provisions of sections 303.170 and 303.180, RSMo, specify how persons required to furnish proof of financial responsibility with the director of revenue may do so by filing a written certificate of insurance, certifying that there is in effect a motor vehicle liability policy for the benefit of the person required to file that proof. Those certified policies can be canceled only in accordance with the provisions of section 303.210, RSMo. Documenting that a certified policy is in force is accomplished by filing a form, typically an SR-22 form, with the director of revenue. The cancellation or termination of a certified policy is accomplished by filing an SR-26 form with the director of revenue. Any insurer providing coverage to an insured under a certified policy may file, on behalf of him/herself and the person covered, any such form as the situation requires. (B) Any special premium charge assessed by an insurer for providing coverage to an insured under a certified policy shall be reasonable in amount, and may include charges for the following: 1. The cost to the insurer of filing one (1) SR-22 form or other appropriate form. This charge shall be assessed only once during the period of the certified policy, including renewals, provided however, that if the policy has been canceled due to the nonpayment of premium, an additional charge may be assessed upon any reinstatement of the policy by the insurer; 2. The cost to the insurer of filing one (1) SR-26 form; and 3. The cost of providing ten (10) days of coverage after notice of cancellation to the director of revenue, pursuant to section 303.210, RSMo. (5) Cancellation or Termination of Certified Policies. (A) When an insurance carrier has certified a motor vehicle liability policy under section 303.170 or 303.180, RSMo, the insurance so certified shall not be canceled or terminated until at least ten (10) days after a notice of cancellation or termination of the insurance has been filed with the office of the director of revenue by means of an SR-26 form. This notice of cancellation or termination will not be required where one (1) certified policy is replaced with a new or renewed certified policy and there has been no gap in coverage, nor shall it be required where the time period for maintaining proof of financial responsibility has expired. (B) For purposes of this section, the notification of the cancellation or termination of a certified policy shall be deemed to have been filed with the Department of Revenue three (3) days after mailing, if mailed, provided the insurance company maintains a record system available for examination by the Department of Commerce and Insurance which accurately indicates the date of the mailing of those notices. In other instances, that notice shall be deemed by the Department of Commerce and Insurance to have been filed on the date the notification is stamped received by the Department of Revenue. (6) Joint Underwriting Association. (A) Any notice of cancellation, nonrenewal, or refusal to write a policy must contain the following notice or a notice substantially similar to: “You may obtain automobile insurance through the Missouri Automobile Insurance Plan (AIP) if you qualify. We urge you to contact any insurance producer of your choice immediately for further information.” (B) Insurers may substitute as the second sentence of the notice the following: “We urge you to contact your (insert company name) insurance producer or any other insurance producer of your choice immediately for further information.” AUTHORITY: sections 303.170–303.210 and 379.470, RSMo 2000, section 374.045, RSMo Supp. 2009, and sections 379.110– 379.120, RSMo 2000 and Supp. 2009.* This rule was previously filed as 4 CSR 19017.050. Original rule filed Feb. 26, 1975, effective March 8, 1975. Amended: Filed March 6, 1975, effective March 16, 1975. Amended: Filed April 13, 1978, effective Aug. 11, 1978. Amended: Filed Aug. 13, 1981, effective Jan. 1, 1982. Amended: Filed March 10, 1982, effective June 15, 1982. Amended: Filed Nov. 14, 1991, effective June 25, 1992. Amended: Filed July 12, 2002, effective Jan. 30, 2003. Amended: Filed Oct. 29, 2004, effective April 30, 2005. Amended: Filed March 22, 2010, effective Oct. 30, 2010. Non-substantive change filed Sept. 11, 2019, published Oct. 31, 2019. *Original authority: 303.170–303.210, see Revised Statutes of Missouri; 374.045, RSMo 1967, amended 1993, 1995, 2008; 379.110–379.120, see Revised Statutes of Missouri; and 379.470, RSMo 1947. Atty. Gen. No. 159, Shear, 12-21-76. The requirements of section 379.120, RSMo (Supp. 1975) apply to insurers cancelling automobile insurance policies which have been in effect for less than sixty days.