374.048. Violations of state laws, action in circuit court--relief--bond--venue--judgment--fund created. - Missouri Statutes

Violations of state laws, action in circuitcourt--relief--bond--venue--judgment--fund created.

374.048. 1. If the director believes that a person has engaged, isengaging in or has taken a substantial step toward engaging in an act,practice, omission, or course of business constituting a violation of thelaws of this state relating to insurance in this chapter, chapter 354 andchapters 375 to 385, RSMo, or a rule adopted or order issued pursuantthereto or that a person has or is engaging in an act, practice, omission,or course of business that materially aids a violation of the laws of thisstate relating to insurance in this chapter, chapter 354 and chapters 375to 385, RSMo, or a rule adopted or order issued pursuant thereto, thedirector may maintain an action in the circuit court of any county of thestate or any city not within a county to enjoin the act, practice,omission, or course of business and to enforce compliance with the laws ofthis state relating to insurance or a rule adopted or order issued by thedirector.

2. In an action under this section and on a proper showing, the courtmay:

(1) Issue a permanent or temporary injunction, restraining order, ordeclaratory judgment;

(2) Order other appropriate or ancillary relief, which may include:

(a) An asset freeze, accounting, writ of attachment, writ of generalor specific execution, and appointment of a receiver or conservator, whichmay be the director, for the defendant or the defendant's assets;

(b) Ordering the director to take charge and control of a defendant'sproperty, including accounts in a depository institution, rents, andprofits; to collect debts; and to acquire and dispose of property;

(c) Imposing a civil penalty or forfeiture as provided in section374.049;

(d) Upon showing financial loss, injury, or harm to identifiableconsumers, imposing an order of restitution or disgorgement directed to aperson who has engaged in an act, practice, omission, or course of businessin violation of the laws or rules relating to insurance;

(e) Ordering the payment of prejudgment and postjudgment interest;

(f) Ordering reasonable costs of investigation and prosecution; and

(g) Ordering the payment to the insurance dedicated fund anadditional amount equal to ten percent of the total restitution ordisgorgement ordered, or such other amount as awarded by the court, whichshall be appropriated to an insurance consumer education programadministered by the director; or

(3) Order such other relief as the court considers necessary orappropriate.

3. The director may not be required to post a bond in an action orproceeding under this section.

4. The case may be brought in the circuit court of Cole County, anycounty or city not within a county in which a violation has occurred, orany county or city not within a county which has venue of an action againstthe person, partnership, or corporation under other provisions of law.

5. The enforcement authority of the director under this section iscumulative to any other authority of the director to impose orders underother provisions of the laws relating to insurance in this state.

6. If the director determines it to be in the public interest, thedirector is authorized to enter into a consent injunction and judgment inthe settlement of any proceeding under the laws of this state relating toinsurance in this chapter, chapter 354 and chapters 375 to 385, RSMo.

7. A "Consumer Restitution Fund" shall be created for the purpose ofpreserving and distributing to aggrieved consumers disgorgement orrestitution funds obtained through enforcement proceedings brought by thedirector. In addition to the equitable powers of the court authorizedabove, the court may order that such funds be paid into the consumerrestitution fund for distribution to aggrieved consumers. It shall be theduty of the director to distribute such funds to those persons injured bythe unlawful acts, practices, omissions, or courses of business by thesubject of the proceeding. Notwithstanding the provisions of section33.080, RSMo, any funds remaining in the director's consumer restitutionfund at the end of any biennium shall not be transferred to the generalrevenue fund, but if the director is unable with reasonable efforts toascertain the aggrieved consumers, then the funds may be transferred to theinsurance dedicated fund to be used for consumer education.

(L. 2006 H.B. 1837)