375.1204. Payment of unearned premiums required--violation, penalties.

MISSOURI STATUTES AND CODES

375.1204. Payment of unearned premiums required--violation, penalties.

Payment of unearned premiums required--violation, penalties.

375.1204. 1. A producer, premium finance company, or any otherperson, other than the insured, responsible for the payment of a premium,shall be obligated to pay any unpaid earned premium due the insurer at thetime of the declaration of insolvency as shown on the records of theinsurer. The liquidator shall also have the right to recover from suchperson any part of an unearned premium that represents commission of suchperson. Credits or setoffs or both shall not be allowed to a producer orpremium finance company for any amounts advanced to the insurer by theproducer or premium finance company on behalf of, but in the absence of apayment by the insured. An insured shall be obligated to pay any unpaidearned premium due the insurer at the time of the declaration ofinsolvency, as shown on the records of the insurer.

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. A violation of thissection is a level one violation under section 374.049, RSMo. The directormay also suspend, revoke, or refuse to renew any license issued by thedirector to any offending person for any 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. A violation of this sectionis a level one violation under section 374.049, RSMo.