Section 375.065

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 375

Effective - 28 Aug 2007, 3 histories   

  375.065.  Credit insurance producer license — organizational credit entity license — application — fee — rules. — 1.  Notwithstanding any other provision of this chapter, the director may license credit insurance producers by issuing individual licenses to each credit insurance producer or by issuing an organizational credit entity license to a resident or nonresident applicant who has complied with the requirements of subsections 1 to 7 of this section.  An organizational credit entity license authorizes the employees of the licensee who are at least eighteen years of age, acting on behalf of and supervised by the licensee and whose compensation is not primarily paid on a commission basis to act as insurance producers for the following types of insurance:

  (1)  Credit life insurance;

  (2)  Credit accident and health insurance;

  (3)  Credit property insurance;

  (4)  Credit mortgage life insurance;

  (5)  Credit mortgage disability insurance;

  (6)  Credit involuntary unemployment insurance;

  (7)  Any other form of credit or credit-related insurance approved by the director.

  2.  To obtain an organizational credit entity license, an applicant shall submit to the director the uniform business entity application along with a fee of one hundred dollars.  All applications shall include the following information:

  (1)  The name of the business entity, the business address or addresses of the business entity and the type of ownership of the business entity.  If a business entity is a partnership or unincorporated association, the application shall contain the name and address of every person or corporation having a financial interest in or owning any part of the business entity.  If the business entity is a corporation, the application shall contain the names and addresses of all officers and directors of the corporation.  If the business entity is a limited liability company, the application shall contain the names and addresses of all members and officers of the limited liability company;

  (2)  A list of all persons employed by the business entity and to whom it pays any salary or commission for the sale, solicitation, negotiation or procurement of any contracts of credit life, credit accident and health, credit involuntary unemployment, credit leave of absence, credit property, credit mortgage life, credit mortgage disability or any other form of credit or credit-related insurance approved by the director.  Any changes in the list of employees of the business entity due to hiring or termination or any other reason shall be submitted to the director within ten days of the change.

  3.  All persons included on the list referenced in subdivision (2) of subsection 2 of this section shall be deemed insurance producers pursuant to the provisions of subsection 1 of section 375.014 for the authorized lines of credit insurance, and shall be deemed licensed insurance producers for the purposes of section 375.141, notwithstanding the fact that individual licenses are not issued to those persons included on the business entity application list.

  4.  Upon receipt of a completed application and payment of the requisite fees, the director, if satisfied that an applicant has complied with all license requirements contained in subsections 1 to 7 of this section, shall issue the applicant an organizational credit business entity license which shall remain in effect for one year or until suspended or revoked by the director, or until the organizational credit business entity ceases to operate as a legal entity in this state.  Each organizational credit business entity shall renew its license annually, on or before the anniversary date of the original issuance of the license, by:

  (1)  Paying a renewal fee of fifty dollars;

  (2)  Providing the director a list of all employees selling, soliciting, negotiating and procuring credit insurance, and paying a fee of eighteen dollars per each employee.

  5.  Licenses of organizational credit business entities which are not timely renewed shall expire on the anniversary date of the original issuance.  An organizational credit business entity that allows the license to expire may, within twelve months of the due date of the renewal, reinstate the license by paying the license fee that would have been paid had the license been renewed in a timely manner plus a penalty of twenty-five dollars per month that the license was expired.

  6.  Notwithstanding any other provision of law to the contrary, subsections 1 to 7 of this section shall not be construed to prohibit an insurance company from paying a commission or providing another form of remuneration to a duly licensed organizational credit business entity.

  7.  The director shall have the power to promulgate such rules and regulations as are necessary to implement the provisions of subsections 1 to 7 of this section.  No rule or portion of a rule promulgated pursuant to the authority of subsections 1 to 7 of this section shall become effective unless it has been promulgated pursuant to the provisions of chapter 536.

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(L. 2000 S.B. 896, A.L. 2001 S.B. 193, A.L. 2002 S.B. 895, A.L. 2007 S.B. 613 Revision)