354.350. Fraudulent or bad faith conduct--investigation by division--hearing, procedure.

MISSOURI STATUTES AND CODES

354.350. Fraudulent or bad faith conduct--investigation by division--hearing, procedure.

Fraudulent or bad faith conduct--investigation by division--hearing,procedure.

354.350. 1. It is unlawful for any corporation subject to theprovisions of sections 354.010 to 354.380 transacting business in thisstate to:

(1) Conduct its business fraudulently;

(2) Fail to carry out its contracts in good faith; or

(3) Habitually and as a matter of business practice compel claimantsunder policies or liability judgment creditors of its members to eitheraccept less than the amount due under the terms of the policy or resort tolitigation against the corporation to secure payment of the amount due.

2. If the director determines that a person has engaged, is engagingin, or has taken a substantial step toward engaging in an act, practice orcourse of business constituting a violation of this section or a ruleadopted or order issued pursuant thereto or that a person has materiallyaided or is materially aiding an act, practice, omission, or course ofbusiness constituting a violation of this section or a rule adopted ororder issued pursuant thereto, the director may issue such administrativeorders as authorized under section 374.046, RSMo. Each practice inviolation of this section is a level two violation under section 374.049,RSMo. Each act as a part of a practice does not constitute a separateviolation under section 374.049, RSMo. The director may also suspend orrevoke the license or certificate of authority of a corporation subject tothe provisions of sections 354.010 to 354.380 or enrollment representativefor any such willful violation.

3. If the director believes that a person has engaged, is engagingin, or has taken a substantial step toward engaging in an act, practice orcourse of business constituting a violation of this section or a ruleadopted or order issued pursuant thereto or that a person has materiallyaided or is materially aiding an act, practice, omission, or course ofbusiness constituting a violation of this section or a rule adopted ororder issued pursuant thereto, the director may maintain a civil action forrelief authorized under section 374.048, RSMo. Each practice in violationof this section is a level two violation under section 374.049, RSMo. Eachact as a part of a practice does not constitute a separate violation undersection 374.049, RSMo.