Section 379.402

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 379

Effective - 28 Aug 2020   

  379.402.  Property and casualty insurance, free or discounted products or services permitted, when — rulemaking authority. — 1.  A producer or insurer, by or through its employees, affiliates, or authorized third parties, may offer or provide products or services in conjunction with a policy of property and casualty insurance for free, at a discount, or at market value, if such products or services are intended to:

  (1)  Prevent or mitigate loss to persons or property;

  (2)  Provide loss control;

  (3)  Reduce rates or claims;

  (4)  Educate about risk of loss to persons or property;

  (5)  Monitor or assess risk, identify sources of risk, or develop strategies for eliminating or reducing risks; or

  (6)  Provide post-loss services.

  2.  A producer or insurer may offer or provide gifts, goods, or merchandise that contain advertising or promotion of the producer or insurer to policyholders, prospective policyholders, or members of the public.

  3.  A product or service offered or provided as described under subsection 1 or 2 of this section shall not be considered an inducement to insurance, a rebate, or any other impermissible consideration as those terms are used in section 379.356 and subdivision (9) of section 375.936.  The offer or provision of products or services described in subsection 1 or 2 of this section shall not be required in the contract or policy form filings.

  4.  The director may promulgate rules to exempt, but not restrict, additional categories of products or services under this section with regard to the provisions of section 379.356 and subdivision (9) of section 375.936 that prohibit insurers, employees of an insurer, affiliates, insurance producers, or other third parties from giving rebates, discounts, gifts, or other valuable consideration as an inducement to insurance.  Any rule or portion of a rule, as that term is defined in section 536.010, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028.  This section and chapter 536 are nonseverable, and if any of the powers vested with the general assembly pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2020, shall be invalid and void.

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(L. 2020 S.B. 551)