Rate Increases

PURPOSE: This regulation specifies one form of unfair discrimination in modification of rates applicable to policies of automobile insurance where the claim under the policy is not due to the fault of the operator. This regulation was adopted pursuant to provisions of section 374.045 and implements section 379.470, RSMo. (1) Rate Modification Prohibited. Any rating plan or rating system shall be considered unfairly discriminatory within the meaning of section 379.470, RSMo if the rating plan or rating system increases the insured’s automobile insurance premium as a result of an accident for which a claim is made upon the insured’s policy under the following circumstances: (A) The insured automobile was lawfully parked (an automobile rolling from a parked position shall not be considered as lawfully parked, but shall be considered as being operated by the last operator); (B) The insured or other operator residing in the same household or owner has been reimbursed by or on behalf of a person responsible for the accident or has judgment against that person; (C) The insured automobile was struck in the rear by another vehicle and the insured operator has not been convicted of a moving traffic violation in connection with the accident; (D) The operator of the other automobile involved in the accident was convicted of a moving traffic violation and the insured operator was not convicted of a moving traffic violation in connection with the accidents; (E) The insured automobile was damaged as a result of contact with a hit-and-run driver if the insured or other operator so reports the accident to the proper authorities within twenty-four (24) hours after discovery of the accident; (F) Accidents involving damage by contact with animals or fowl; (G) Accidents involving physical damage limited to and caused by flying gravel, missiles or falling objects; or (H) Accidents occurring as a result of the operation of any automobile in response to an emergency if the operator at the time of the accident was responding to a call of duty as a paid or volunteer member of any police or fire department, first-aid squad or any law enforcement agency. (2) Any premium notice sent by an insurer which increases the premium payable under policies of automobile insurance as a result of accident claims made under these policies shall be accompanied by a notice which shall specifically state the reasons for the increase in premiums and the percentage or dollar amount of this increase which is applicable to accident claims made under these policies. All these notices as required shall be submitted to this department prior to their use in this state to assure compliance with this regulation. (3) In no event shall an insurer request an increase in premium from any insured in connection with any claim arising out of any accident for which the insured was not at fault. In connection with any accident caused by the insured, an insurer may request an increase in premium as a result of payment by an insurer to or on behalf of the insured in settlement of any claim made by or against the insured. AUTHORITY: sections 374.045 and 379.470, RSMo 1986.* This rule was previously filed as 4 CSR 190-17.100. Original rule filed April 13, 1978, effective Aug. 11, 1978. Amended: Filed Aug. 16, 1979, effective Nov. 15, 1979. *Original authority: 374.045, RSMo 1967, amended 1993, 1995 and 379.470, RSMo 1947.