Mobile Homes as Collateral

PURPOSE: This regulation requires certain policy provisions in insurance on mobile homes which are loan collateral. This regulation was adopted pursuant to section 374.045 and implements sections 365.080, 367.170, 375.936, 379.400, 379.470 and 408.280, RSMo. (1) Definitions. (A) Mobile home includes: 1. Mobile home, any manufactured housing unit, transportable on its own chassis, axle, and wheels, designed for permanent occupancy when connected to utilities; 2. Travel trailer, any manufactured recreational vehicle, transportable on its own chassis, axle, and wheels when towed by a motor vehicle, designed for temporary occupancy, to include a camper trailer; and 3. Motor home, any self-propelled, licensed, registered motor vehicle, designed for use principally on the public right-of-way as a recreational vehicle and designed to provide temporary living quarters, including truck-mounted camper units. (B) Dual interest as used means a policy of insurance in which the interests of the lienholder/vendor and the named insured debtor/borrower are each insured as their interest may appear. Coverage for the debtor shall not be less than the standard fire policy with extended coverage endorsements. Vendors' single interest may be written in conjunction with and incidental to a dual interest policy. (C) Vendors'/lenders' single interest shall be an incidental coverage written in conjunction with a dual interest policy. This vendors' single interest coverage may include conversion, secretion, embezzlement, collision, and repossession return expense coverages. (2) Substantial Protection. (A) Vendors'/lenders' single interest may not be written on mobile homes as a separate policy. It only may be written as a portion of a dual interest policy protecting the interests of the debtor/borrower and the creditor as they may appear. (B) Lienholders, or sellers of mobile homes, or both, may not be listed as additional insureds or appear in any other manner as insureds on a policy insuring the mobile home where the policy is purchased by the owner of the mobile home. They may be named in a loss payable clause as a payee or be a payee under the vendors'/lenders' single interest portion of that policy. (C) No policy subject to this regulation may be written unless it covers substantially the actual cash value of the mobile home, except for the vendors'/lenders' single interest portion of that policy which may be measured by the loan balance payable. (3) Consumers' Rights, Rates, and Training. Insurers doing business subject to this regulation shall comply with the following sections of 20 CSR 500-1.700 to foster open competition among the insurers: section (4) Consumers' Rights, to include providing full and fair written notice of these rights before the underlying mobile home credit transaction is consummated; section (5) Rates; and section (7) Training, to include the proper application of rates to each risk. (4) Premium Rates and Schedules of Premium Rates. All premium rates and all schedules of premium rates pertaining to policies of insurance delivered or issued for delivery in this state shall be filed with the director prior to their use in this state. The director shall approve any rate or schedules of premium rates if s/he finds that the rates or schedule of premium rates are reasonable in relation to the benefits provided under the policies of insurance. A premium rate or schedule of premium rates shall be presumed to be reasonable for purposes of this section if the rate or schedule of rates produces or may reasonably be expected to produce a loss ratio of sixty percent (60%) or greater. AUTHORITY: sections 303.200, 365.080, 367.170, 374.045, 375.936, and 408.280, RSMo 2016.* This rule was previously filed as 4 CSR 190-17.090. Original rule filed Dec. 20, 1974, effective Dec. 30, 1974. Amended: Filed Aug. 4, 1989, effective Dec. 1, 1989. Amended: Filed Jan. 13, 1995, effective July 30, 1995. Amended: Filed Dec. 13, 2018, effective July 30, 2019. *Original authority: 303.200, RSMo 1953, amended 1999, 2001; 365.080, RSMo 1963, amended 1989, 2004; 367.170, RSMo 1951, amended 1984; 374.045, RSMo 1967, amended 1993, 1995, 2008; 375.936, RSMo 1959, amended 1967, 1969, 1971, 1976, 1978, 1983, 1991; and 408.280, RSMo 1961, amended 1989.