287.960. Disapproval of rate, when, how--procedures, director's powers--effect. - Missouri Statutes

Disapproval of rate, when, how--procedures, director's powers--effect.

287.960. 1. A rate may be disapproved at any timesubsequent to the effective date. A rate subject to prefilingunder section 287.947 may also be disapproved before theeffective date. A rate for a residual market in which insurersare mandated by law to participate shall not become effectiveuntil approved by the director, as provided in section 287.896.

2. The director may disapprove a rate for use in acompetitive market if the director finds that the rate isinadequate or unfairly discriminatory under section 287.950. Thedirector shall disapprove a rate for use in a noncompetitivemarket if he finds that the rate is excessive, inadequate orunfairly discriminatory under section 287.950.

3. If the director finds that a reasonable degree ofcompetition does not exist in a market in accordance with section287.942, the director may require that the insurers in thatmarket file supporting information in support of existing rates.If the director believes that such rates may violate any of therequirements of sections 287.930 to 287.975, a hearing shall becalled prior to any disapproval.

4. If the director believes that rates in a competitivemarket violate the inadequacy or unfair discrimination standardin section 287.950 or any other applicable requirement of thisact*, the director may require that the insurers in that marketfile supporting information in support of existing rates. Ifafter reviewing the supporting rate information, the directorcontinues to believe that the rates may violate theserequirements, a hearing shall be called prior to any disapproval.

5. The director may disapprove, without hearing, ratesprefiled pursuant to section 287.947 that have not becomeeffective; however, the insurer whose rates have been disapprovedshall be given a hearing upon a written request made withinthirty days after the disapproval order.

6. If the director disapproves a rate, the director shallissue an order specifying in what respects it fails to meet therequirements of sections 287.930 to 287.975 and stating when,within a reasonable period thereafter, such rate shall bediscontinued for any policy issued or renewed after a datespecified in the order. The order shall be issued subject to therequirements of section 287.962. Such order may include aprovision for premium adjustment for the period after theeffective date of the order for policies in effect on such date.

7. Whenever an insurer has no legally effective rates as aresult of the director's disapproval of rates or other act, thedirector shall on request of the insurer specify interim ratesfor the insurer that are high enough to protect the interests ofall parties and may order that a specified portion of thepremiums be placed in an escrow account approved by him. Whennew rates become legally effective, the director shall order theescrowed funds or any overcharge in the interim rates to bedistributed appropriately, except that refunds of less than tendollars per policyholder shall not be required.

(L. 1993 S.B. 251 § 29)

Effective 1-1-94

*"This act" (S.B. 251, 1993) contains numerous sections. Consult Disposition of Sections table for definitive listing.