June

2021

09:21 AM

America/Chicago

Legislative Update - June 24, 2021

Gubernatorial Actions on Truly Agreed Legislation

On May 25, 2021, the General Assembly presented all remaining Truly Agreed legislation to Gov. Mike Parson for consideration and action. Since June 15, 2021, Parson has signed an additional five pieces of legislation: two Senate bills and three House bills. A list of these bills, including outlines of the affected statutory sections, is set out below. The deadlines for gubernatorial action will be June 30, for appropriations bills, and July 14, for regular legislation.

First Extraordinary Session

On June 22, 2021, Parson issued a proclamation calling the General Assembly to convene for the First Extra Session of the First Regular Session at noon on Wednesday, June 23, 2021, to consider the following matters:

Extension of the statutory expirations of the provider taxes that make up the state’s federal reimbursement allowance (FRA) program;
Enactment of legislation amending state law to exclude “abortifacient drugs or devices” from family planning services and statutorily define “abortifacient drugs or devices”; and
Enactment of legislation amending state law to exclude providers who are abortion facilities from reimbursement under the uninsured women’s health program.

The Senate convened on June 23, 2021, to consider introduced legislation related to the matters outlined in the governor’s proclamation. The House will convene for a technical session on Monday, June 28, 2021.

Truly Agreed Legislation

Below the outline of gubernatorial actions are summary highlights of Truly Agreed bills containing provisions relating to banks and financial institutions, insurance, and workers’ compensation.

GUBERNATORIAL ACTIONS

Senate Bills

HCS SS SB 6 (Wieland) – Relating to insurance, with existing penalty provisions

05/04/2021 – Truly Agreed To and Finally Passed

06/22/2021 – Signed by Governor [Effective on August 28, 2021]

Bill Text (TAFP)

Operation of State-Owned Vehicles (Section 41.201)
Certificates of Self-Insurance (Section 303.220)
Motor Clubs (Sections 304.153, 385.220, 385.320, and 385.450)
Petroleum Storage Tank Insurance Fund (Section 319.131)
Licensure of Insurance Producers (Sections 375.018 and 384.043)
Continuing Education Credits for Insurance Producers (Section 375.029)
Credit for Reinsurance as an Asset or Reduction from Liability of an Insurer (Section 375.246)
Association Health Plans (Section 376.421)
Issuance of Funding Agreements (Section 376.2080)
Explanations of Refusal to Write Automobile Insurance (Section 379.120)
Group Personal Lines Property and Casualty Insurance (Sections 379.1800 to 379.1824)
Insurance Holding Companies - Group Capital Ratios and Liquidity Stress Tests (Sections 382.010, 382.110, 382.176, 382.177, and 382.230)

HCS SS SB 176 (Hough) – Relating to emerging technologies, with penalty provisions and delayed effective date

05/03/2021 – Truly Agreed To and Finally Passed

06/22/2021 – Signed by Governor [Effective on August 28, 2021 (except as noted)]

Bill Text (TAFP)

Food Delivery Platforms (Section 196.276) [Effective on January 1, 2022]
Electric Bicycles (Sections 300.010, 301.010, 302.010, 303.020, 304.001, 307.025, 307.180, 307.188, 307.193, 307.194, 365.020, 407.560, 407.815, 407.1025, and 578.120)
Administrative Fees Charged by Vehicle Dealers in Connection with the Sale or Lease of a Vehicle (Section 301.558)
Personal Delivery Devices (Section 304.900)
Digital Electronic Equipment (Section 407.005)

House Bills

CCS SS#2 SCS HCS HB 271 (Wiemann) – Relating to local government, with penalty provisions and an emergency clause for certain sections

05/12/2021 – Truly Agreed To and Finally Passed

06/15/2021 – Signed by Governor [Effective on August 28, 2021 (except as noted)]

Bill Text (TAFP)

Missouri Local Government Expenditure Database (Sections 37.1090, 37.1091, 37.1092, 37.1093, 37.1094, 37.1095, 37.1096, 37.1097, and 37.1098)
County Commissions – Use of County Property (Sections 49.266, 49.310, 476.083, and 50.530)
County Officials (Sections 50.166, 50.327, 59.021, 59.100, 82.390, 84.400, 91.450, and 115.127)
Competitive Bid Process (Sections 50.660 and 50.783)
Property Maintenance – Boone County and Franklin County (Sections 64.207 and 67.398)
Public Health Orders (Sections 67.265 and 192.300) [Effective upon passage and approval]
Senior Citizens’ Services Fund (Sections 67.990 and 67.993)
County Convention and Sports Facilities Authority (Sections 67.1153 and 67.1158)
Telecommunications (Sections 67.1847, 67.2680, and 71.100)
Utilities (Sections 91.025, 386.800, 393.106, 394.020, 394.315, and 204.569)
Prohibited Public Funds Contributions or Expenditures by Political Subdivision Officer, Employee, or Agent (Section 115.646)
Property Tax – Electronic List and Notices, Penalties (Sections 137.280 and 139.100) [Section 139.100, effective upon passage and approval]
County Reimbursements – Cost of Incarceration of Prisoners (Section 221.105)
Copper Property and Copper Property Peddlers (Section 407.297)
Certain Materials, Collectors and Dealers to Keep Register, Information (Section 407.300)
Offense of Stealing (Section 570.030)
Marriage Licenses – Online Process (Section 451.040)
Court Reporter Salary (Section 485.060)
Additional Municipal Courts Costs – Kansas City (Section 488.2235)
Prohibition on Requirement of Documentation of Vaccination (Section 1)

CCS SS#2 SCS HB 273 (Hannegan) – Relating to professional registration, with penalty provisions

05/12/2021 – Truly Agreed To and Finally Passed

06/22/2021 – Signed by Governor [Effective on August 28, 2021]

Bill Text (TAFP)

Licensure Reciprocity (Sections 324.009 and 324.087)
Disqualification for Licensure (Section 324.012)
Dietitians (Sections 324.200 and 324.206)
Architects, Engineers, And Landscape Architects (Sections 327.011, 327.091, 327.101, 327.131, 327.191, 327.241, and 327.612)
Psychologists (Section 337.068)
Real Estate Licensees (Sections 339.100 and 339.150)
Insurance Producers (Section 375.029)
Uniform Athletes Agent Act (Sections 436.218, 436.224, 436.227, 436.230, 436.236, 436.242, 326.245, 436.248, 436.254, 436.260, 436.263, 436.266, and 436.257)
Pharmacists (Sections 338.010 and 338.730)

HB 476 (Grier) – Relating to professional registration, with a delayed effective date for certain sections

05/06/2021 – Truly Agreed To and Finally Passed

06/22/2021 – Signed by Governor [Effective on August 28, 2021 (except as noted)]

Bill Text (TAFP)

Pesticide Certification and Training (Sections 281.015, 281.020, 281.025, 281.030, 281.035, 281.037, 281.038, 281.040, 281.045, 281.048, 281.050, 281.055, 281.060, 281.063, 281.065, 281.070, 281.075, 281.085, and 281.101) [Effective on January 1, 2024]
Military Occupational Specialty (Section 324.009)
Occupational Therapy Licensure Compact (Section 324.087)
Dietitians (Sections 324.200 and 324.206)
Architects, Professional Engineers, and Landscape Architects (Sections 327.011, 327.091, 327.101, 327.131, 327.191, 327.241, and 327.612)
Psychologists (Sections 337.068)
HIV Postexposure Prophylaxis (Sections 338.010 and 338.730)
RX Cares for Missouri Program (Section 338.710)
Real Estate Brokers (Sections 339.100 and 339.150)

BANKS AND FINANCIAL INSTITUTIONS

SB 106 (Crawford) – Relating to financial institutions

Bill Text (TAFP – SS/SCS/SB 106)

STATE BANKING AND SAVINGS AND LOAN BOARD (Section 361.097) – The experience required of members of the State Banking and Savings and Loan Board would be modified to include not only active bank management experience but to include active bank or association management experience at an institution chartered under state law. The number of members required to have at least five years of such experience would be increased from two to three.

ELECTRONIC POSTINGS (Section 361.110) – The requirement that the Director of the Division of Finance keep a bulletin board in his or her office containing various statements of information concerning corporations and persons doing business in the state would be changed to require that such statements be posted on the Division of Finance website instead, to be updated each Monday. All such statements would be public documents, and at all reasonable times retained by the Division, open to public inspection, and available on the Division website.

BANKING REGULATIONS (Sections 362.044 - 362.765) – Electronic notification of annual or special stockholders' meetings would be permitted. (Section 362.044)

Directors of a bank or trust company would be permitted to attend board meetings by telephonic conference call or video conferencing, and such directors could be counted as part of the quorum, provided the bank or trust company had a composite rating of 1 or 2 under the Uniform Financial Institutions Rating System of the Federal Financial Institution Examination Counsel. The meeting minutes would be required to reflect that a director appeared remotely and that he or she 1) had received notice of the meeting and board meeting information required by law, 2) was alone when participating in the hearing, and 3) was able to hear the meeting clearly.

The Director of the Division of Finance would be permitted to promulgate additional regulations to provide for the integrity of the board of directors' operations when directors attended board meetings remotely, and for the safety and soundness of the bank and trust company's operation.

The provision providing a remedy for when a bank, trust company, or director failed to follow the procedures for directors who were not physically present and counted toward the board's quorum would be repealed. (Section 362.247)

Rather than requiring the oath, taken by every elected director of a bank or trust company, to be immediately transmitted to the Director of Finance to be filed and preserved in that office, such oath would be required to be retained with the official records of the board of directors. (Section 362.250)

Relevant information – relative to the amount or penal sum of the bonds or policies, and the sureties or underwriters thereon – would be required to be included on a form provided by the Division of Finance, and retained and preserved by the bank or trust company. The Director of Finance would be required to publish an annual tiered schedule of minimum levels of coverages. (Section 362.340)

A bank or trust company would be permitted to merge with one or more of its nonbank subsidiaries or affiliates pursuant to an agreement of merger. The Director of Finance would have to be presented the agreement of merger, and would be required to approve or decline it within 30 days. If the agreement were declined, the bank or trust company could appeal the decision to the State Banking and Savings and Loan Board. (Section 362.765)

RETAIL INSTALLMENT CONTRACTS - MOTOR VEHICLES (Sections 365.100 and 365.140) – The holder of a retail installment contract would be allowed to charge, finance, and collect a reasonable service fee not to exceed twenty-five dollars for each check, draft, order, or like instrument returned unpaid by a financial institution. In addition, the holder could collect an amount equal to the actual charge for the return of each check, draft, order, or like instrument returned unpaid. (Section 365.100)

If a retail installment contract were paid in full, the holder would be required to provide the buyer proof of payment in full. The holder would have the following options to use in providing such proof: 1) a letter referencing the contract that would include information enabling contract identification such as the original loan date, account number, or other identifying number or code; or 2) by returning the original contract or a copy of it that was marked as paid in full by the holder. (Section 365.140)

SAVINGS AND LOAN REGULATIONS (Sections 369.049 - 369.705) – The words "Savings Association" or "Savings and Loan Association" included in the name of every savings and loan association would be permitted rather than required. Further, the prohibition – on using the words "National", "Federal", "United States", "Insured", "Guaranteed", "Government", and "Official" in an association name – would be repealed.

A savings and loan institution or savings bank would be permitted to merge with one or more of its subsidiaries or affiliates pursuant to an agreement of merger. The Director of Finance would have to be presented the agreement of merger, and would be required approve or decline it within 30 days. If the agreement were declined, the savings and loan institution or savings bank could appeal the decision to the State Banking and Savings and Loan Board.

UNIFORM COMMERCIAL CODE (Section 400.3-309) – The process for how a person not in possession of an instrument could enforce an instrument under the Uniform Commercial Code would be modified. Specifically, a person could enforce such an instrument if, in addition to meeting criteria required under current law, the person either was entitled to enforce the instrument when the loss of possession occurred or the person had directly or indirectly acquired ownership of the instrument from a person who was entitled to enforce the instrument when loss of possession occurred.

RATES OF INTEREST IN BUSINESS, COMMERCIAL, AND AGRICULTURAL LOANS (Sections 408.035 and 408.100) – In addition to allowing parties to agree in writing to any rate of interest, fees, and other terms and conditions in connection with any business loan of five thousand dollars or more, parties could similarly agree in cases of extensions of credit primarily for business, commercial, or agricultural purposes. (Section 408.035). Further, an exemption – allowing any person, firm, or corporation to charge, contract for and receive interest on the unpaid principal balance at rates agreed to by the parties, such that it applies to loans which are secured by a lien on non-processed farm products, livestock, farm machinery or crops or to loans to corporations – would be repealed.

PERMISSIBLE FEES INCIDENT TO EXTENSIONS OF CREDIT (Section 408.140) – A lender would be allowed to:

· Charge reasonable and bona fide third-party fees paid out by the lender to any public officer for remote or electronic filing in any public office; and

· Charge a reasonable service fee – not to exceed $25 – for any check, draft, order, or like instrument returned unpaid by a financial institution. In addition, the lender could charge an amount equal to the actual charge for the return of each check, draft, order, or like instrument returned unpaid.

The provision allowing a lender to collect a fee in advance for allowing the debtor to defer up to three monthly loan payments would be repealed.

DEFERMENT OF MONTHLY LOAN PAYMENTS (Section 408.178) – The current loan amount threshold of an original amount of $600 or more for allowing a lender to collect a fee in advance for allowing a debtor to defer monthly loan payments would be repealed, thus allowing a lender to collect such a fee on a loan of any amount.

SECOND MORTGAGES (Sections 408.233 and 408.234) – The charge of a reasonable and bona fide third-party fee incurred for the remote or electronic filing of the perfection, release, or satisfaction of a security interest related to a second mortgage loan would be allowed. (Section 408.233)

The prohibition on the issuance of a second mortgage loan in an initial principal amount of less than $2,500 would be repealed. (Section 408.234)

RETAIL TIME CONTRACTS (Section 408.250) – Reasonable and bona fide third-party fees incurred for remote or electronic filing in connection with any retail time contract would be allowed.

LENDER RECOVERY UPON DEFAULT (Section 408.553) – If a borrower were to default, upon default, a lender would be entitled to recover the amount due and accrued under the agreement, including interest and penalties through the date of payment in full or to the date of final judgment. Following a judgment, the lender could additionally recover the simple interest equivalent of the rate provided in the contract as applied to the amount of the judgment until the date the judgment was paid and satisfied.

NOTICE OF DEFAULT (Section 408.554) – The requirement that a default notice issued in the case of a second default on the same loan or transaction, or a third default on the same second mortgage, contain a provision notifying the borrower that in case of further default the borrower would have no right to cure would be repealed.

LENDERS OF CONSUMER CREDIT LOANS (Section 367.150) – A law requiring lenders of consumer credit loans to file a report with the director of the Division of Finance detailing, among other things, the financial condition of the lender and the total aggregate number and principal amount of loans made by the lender would be repealed.

HJR 35 (Griesheimer) – Relating to the state treasurer’s ability to invest

Bill Text (TAFP – HCS/HJR 35) – Upon voter approval , this proposed amendment to the Missouri constitution (Mo. Const., Art. IV, Section 15) would authorize the State Treasurer to invest funds not necessary for current expenses in obligations of the United States government or its agencies or instrumentalities that mature and become payable not more than seven, as opposed to the current five, years from the date of purchase. The amendment also would also allow investment in municipal securities possessing one of the five highest long term ratings or the highest short term rating issued by a nationally recognized rating agency and maturing and becoming payable not more than five years from the date of purchase, and in other reasonable and prudent financial instruments and securities.

INSURANCE

SB 6 (Wieland) – Relating to insurance, with existing penalty provision

Bill Text (TAFP – HCS/SS/SB6)

OPERATION OF STATE-OWNED VEHICLES (Section 41.201) – Service members of the Missouri National Guard would be considered as state employees for the purposes of operating state-owned vehicles for official state business unless the members were called into active federal military service by order of the President of the United States.

CERTIFICATES OF SELF-INSURANCE (Section 303.220) – A religious denomination that has more than 25 members with motor vehicles and "discourages", rather than "prohibits", its members from purchasing insurance, as being contrary to its religious tenets, could obtain a certificate of self-insurance from the Director of the Department of Revenue.

MOTOR CLUBS (Sections 304.153, 385.220, 385.320, and 385.450) – Section 304.153 would modify the existing definition of "motor club," defining them to be a legal entity that, in consideration of dues, assessments, or periodic payments of money, promises to provide motor club services to its members or subscribers.

Motor club contracts would not be subject to the statutes (385.200 to 385.218) addressing motor vehicle extended service contracts. (Section 385.220)

Motor club contracts would not be subject to the statutes (385.300 to 385.318) addressing service contracts. (Section 385.320)

Motor club services would include services relating to motor travel, which may include but are not limited to towing services, emergency road services, bail bond services, discount services, theft services, map services, touring services, legal fee reimbursement services in the defense of traffic offenses, and participation in an accident and sickness or accidental death insurance benefit program. (Section. 385.450)

Fees collected from the sale of motor club contracts would not be subject to the taxation of premiums under chapter 148, RSMo. Further, motor clubs would not be subject to provisions governing insurance companies in this state.

These provisions are identical to SB 89 (2021), SB 1013 (2020) and HB 2465 (2020).

PETROLEUM STORAGE TANK INSURANCE FUND (Section 319.131) – The legal defense costs for eligible 3^rd party claims, as currently paid by the Petroleum Storage Tank Insurance Fund, would be separate from other coverage limits -- such as the costs of 3rd-party claims,and cleanup of contamination caused by releases from petroleum storage tanks. The Fund could set limits for such coverage.

LICENSURE OF INSURANCE PRODUCERS (Sections 375.018 and 384.043) – Insurance producers' licenses and insurance producers' surplus lines licenses would be renewed every 2 years on the producer's birth date, rather than every 2 years on the anniversary of the license being issued.

CONTINUING EDUCATION CREDITS FOR INSURANCE PRODUCERS (Section 375.029) – An insurance producer's active participation in a local, regional, state, or national professional insurance association could be approved by the Director of the Department of Commerce and Insurance for up to four hours of continuing education credit per biannual reporting period.

Credit granted under these provisions could not be used to satisfy continuing education hours required to be in a classroom or classroom-equivalent setting, or to satisfy ethics education requirements.

CREDIT FOR REINSURANCE AS AN ASSET OR REDUCTION FROM LIABILITY OF AN INSURER (Section 375.246) – The Director of the Department of Commerce and Insurance (“Director”) would be authorized to promulgate rules to establish requirements relating to or setting forth the valuation of assets or reserve credits, the amount and forms of security supporting reinsurance agreements, or the circumstances under which credit would be reduced or eliminated. (Sections 375.246.1 and 375.246.2).

Further, credit for reinsurance would be allowed when the reinsurance was ceded to an assuming insurer meeting certain conditions. (Section 375.246.1(6)(a)). The assuming insurer would have to have its head office or be domiciled in and licensed in a reciprocal jurisdiction. (Section 375.246.1(6)(a)a). The assuming insurer would have to have and maintain minimum capital and surplus, or its equivalent, calculated according to the methodology of its domiciliary jurisdiction in an amount to be set forth by the Director by rule. If the assuming insurer were an association, it would maintain the same, net of liabilities, and a central fund containing an amount to be set forth by rule. (Section 375.246.1(6)(a)b). The assuming insurer would have to have and maintain a minimum solvency or capital ratio, which would be set by rule. If the assuming insurer were an association, it would have to have and maintain a minimum solvency and capital ratio in the reciprocal jurisdiction where the insurer had its head office or was domiciled and was also licensed. (Section 375.246.1(6)(a)c).

The assuming insurer would have to agree to and provide adequate assurance to the Director that it would provide prompt written notice and explanation to the Director if it fell below minimum capital and surplus requirements, or if any regulatory action was taken against it for serious noncompliance with the law. The assuming insurer would have to consent in writing to the jurisdiction of the courts of this state and to the appointment of the Director as its agent for service of process. The Director could require that the consent for service of process be provided for and included in each reinsurance agreement. These provisions would not alter the capacity of the parties to a reinsurance agreement to agree to enforceable alternative dispute resolution mechanisms. Where enforcement was sought and declared enforceable in the jurisdiction where the judgment was obtained, the assuming insurer would be required to consent, in writing, to pay all final judgments obtained by a ceding insurer or its legal successor. Each reinsurance agreement would require the assuming insurer to provide security, in an amount equal to 100% of the assuming insurer's liabilities attributable to reinsurance under the agreement, if the assuming insurer resisted enforcement of an enforceable final judgment or arbitration award. The assuming insurer would have to confirm that it was not presently participating in any solvent scheme of arrangement involving Missouri’s ceding insurers, and would have to agree to notify the ceding insurer and the Director. Further, it would have to provide security in an amount equal to 100% of the assuming insurer's liabilities to the ceding insurer if the assuming insurer were to enter into such a solvent scheme of arrangement. (Section 375.246.1(6)(a)d).

If requested by the Director, the assuming insurer or its legal successor would have to provide, documentation that would be specified by rule to be developed by the Director. (Section 375.246.1(6)(a)e). Also to be specified by a Director developed rule would be the requirement that the assuming insurer would have to maintain a practice of prompt payment of claims under reinsurance agreements. (Section 375.246.1(6)(a)f). Annually, the assuming insurer's supervisory authority would have to confirm to the Director that the assuming insurer complied with minimum capital and surplus or solvency or capital ratio requirements. (Section 375.246.1(6)(a)g). An assuming insurer could, if it chose, provide the Director with information on a voluntary basis. (Section 375.246.1(6)(a)h).

The Director would be required to create and publish a list of reciprocal jurisdictions. (Section 375.246.1(6)(b)). The list would have to include any jurisdiction meeting the definitions provided in this section and could, if considered appropriate, contain any other reciprocal jurisdiction included on the list published by the National Association of Insurance Commissioners (NAIC). The Director could approve additional jurisdictions if they met criteria under rules to be promulgated by the Director. (Section 375.246.1(6)(b)a). The Director could remove a jurisdiction from the list upon determining the jurisdiction no longer met the requirements of a reciprocal jurisdiction, except that a non-United States jurisdiction that is subject to a covered agreement could not be removed, nor could a United States jurisdiction that met the requirements for NAIC accreditation. (Section 375.246.1(6)(b)b).

A list of assuming insurers that had satisfied the section’s conditions, and to which cessions had been granted credit, would be required to be created and published by the Director. Assuming insurers could be added to the list if 1) an NAIC accredited jurisdiction had added the assuming insurer to such a list, or 2) the eligible assuming insurer submitted certain information stipulated in the section to the Director and complied with any additional requirements the Director could adopt that are not in conflict with an applicable covered agreement. (Section 375.246.1(6)(c)).

If the Director determined an assuming insurer no longer met one or more requirements for recognition, the Director could revoke or suspend the insurer's eligibility for recognition. (Section 375.246.1(6)(d)). While an assuming insurer's eligibility was suspended, no reinsurance agreement issued, amended, or renewed after the date of suspension would qualify for credit, except to the extent that the assuming insurer's obligations were secured as provided by law. (Section 375.246.1(6)(d)a). If an assuming insurer's eligibility was revoked, no credit for reinsurance could be granted after the effective date of revocation with respect to any reinsurance agreement entered into by the insurer, before or after the revocation, except to the extent the insurer's obligations were secured as provided by law. (Section 375.246.1(6)(d)b).

If subject to a legal process of rehabilitation, liquidation, or conservation, as applicable, the ceding insurer or its representative could seek a court order requiring that the assuming insurer post security for all outstanding liabilities. (Section 375.246.1(6)(e)). The capacity of parties to a reinsurance agreement to agree on requirements for security or other terms in that reinsurance agreement would in no way be limited or altered by the section, except as expressly prohibited by law. (Section 375.246.1(6)(f)).

Credit could be taken only for reinsurance agreements entered into, amended, or renewed on or after December 31, 2021, and only with respect to losses incurred and reserves reported on or after the later of 1) the date on which the assuming insurer had met applicable eligibility requirements, or 2) the effective date of the new reinsurance agreement, amendment, or renewal. (Section 375.246.1(6)(g)). A ceding insurer's right to take credit for reinsurance under the section, as long as the reinsurance qualified for credit under another applicable provision of law, would in no way be altered or impaired by the section (Section 375.246.1(6)(g)a). The capacity of parties to any reinsurance agreement to renegotiate the agreement would in no way be limited or altered by the section. (Section 375.246.1(6)(g)b).

The Director would be authorized to adopt rules and regulations applicable to reinsurance agreements relating to certain life insurance policies, variable annuities with guaranteed benefits, long-term care insurance policies, and such other life and health insurance and annuity products as to which the NAIC adopted model rules with respect to credit for reinsurance. (Section 375.246.4(2)(a)). A rule adopted regarding life insurance policies could apply to any treaty containing policies issued on or after January 1, 2015, or policies issued prior to January 1, 2015, if risk pertaining to such pre-2015 policies were ceded in connection with a treaty on or after January 1, 2015. (Section 375.246.4(2)(b)). A rule adopted could require the ceding insurer, in calculating the amounts or forms of security required to be held, to use the NAIC valuation manual to the extent applicable. (Section 375.246.4(2)(c)). Regulations would not apply to an assuming insurer 1) that met the section’s conditions, or if Missouri had not fully implemented the provisions of the section; 2) was operating in at least 5 states that had implemented the provisions of this section; 3) was certified in Missouri; or 4) a) maintained at least $250,000,000 in capital and surplus and was licensed in at least 26 states, or b) was licensed in at least 10 states and licensed or accredited in a total of at least 35 states. (Section 375.246.4(2)(d)). The Director's authority to otherwise adopt regulations relating to credit for reinsurance would not be limited by the authority to adopt regulations under this section. (Section 375.246.4(2)(e)).

ASSOCIATION HEALTH PLANS (Section 376.421) – The requirements that an association shall have been organized and maintained for purposes other than obtaining health insurance and shall have been in existence for at least 2 years, in order to be issued a policy of group health insurance, would be repealed.

ISSUANCE OF FUNDING AGREEMENTS (Section 376.2080) – Life insurance companies could issue funding agreements. Funding agreements would be defined as an agreement for an insurer to accept and accumulate funds and to make one or more payments at future dates in amounts not based on mortality or morbidity contingencies of the person to whom the funding agreement was issued. Funding agreements would not be deemed to constitute a security. Issuing a funding agreement would be deemed to be doing insurance business.

EXPLANATIONS OF REFUSAL TO WRITE AUTOMOBILE INSURANCE (Section 379.120) – If the applicant is written on a policy of insurance issued by an affiliate or subsidiary insurer within the same insurance holding company system, and any insurer refuses to write a policy of automobile insurance, the insurers would be exempt from requirements that they send applicants a written explanation of the refusal clearly stating the reason for the refusal and informing the applicant that s/he may be eligible for coverage through the assigned risk plan if other insurance is not available.

GROUP PERSONAL LINES PROPERTY AND CASUALTY INSURANCE (Sections 379.1800 to 379.1824) – No policy of group personal lines property and casualty insurance would be issued or delivered in Missouri, unless it conformed to one of the categories described in the section. (Section 379.1800.1)

(Section 379.1800.1(1)) describes policies issued to an employer or trustees of a fund established by an employer. (Section 379.1800.1(2)) describes policies issued to a labor union or similar employee organization. (Section 379.1800.1(3)) describes policies issued to a trust, or trustees of a fund, established by two or more employers or by one or more labor unions or similar employee organizations or by a combination thereof. (Section 379.1800.1(4)) describes policies issued to an association or to a trust, or trustees of a fund, established for the benefit of members of one or more associations. Persons' eligibility for coverage under the policies, and the sources of funds from which the policy premiums could be paid would be specified for each. For policies issued for the benefit of an association or associations, the association or associations would be required 1) to have at least 100 members at the outset, 2) to have been organized and maintained in good faith for purposes other than obtaining insurance, and 3) to have been in active existence for at least 1 year. (Section 379.1800.1(4)). The association or associations' constitution and bylaws would have to require that the association meet at least annually to further the purposes of the members, collect dues or solicit member contributions, and provide members with voting privileges and representation on the governing board and committees. (Section 379.1800.1(4)). Lastly, if compensation of any kind were to be paid to the policyholder in connection with a group policy issued for the benefit of an association or associations, the insurer would have to notify prospective insureds. (Section 379.1800.1(4)(c)c)

Group personal lines property and casualty insurance issued to a group other than one described above would have to meet additional requirements. (Section 379.1800.2). In order for such policy to be issued or delivered in Missouri, the Director of the Department of Commerce and Insurance would have to find that the issuance of the group policy 1) was not contrary to the best interest of the public, 2) would result in economies of acquisition or administration, and 3) the benefits were reasonable in relation to the premiums charged. (Section 379.1800.2(1)). In order for a policy issued or delivered in another state to offer coverage in Missouri, the Director, or another state with comparable requirements, would have to determine that the requirements of Section 379.1800.1 had been met. (Section 379.1800.2(2)). Premiums for these plans would be required to be paid from funds that were contributed by the policyholder, by covered persons, or by both. (Section 379.1800.2(3)). If compensation were to be paid to the policyholder in connection with the group policy, the insurer would be required to notify prospective insureds. (Section 379.1800.2(4)).

For all group personal lines property and casualty insurance, master policies would be issued to the policyholders. Eligible employees or members insured under a master policy would be issued certificates of coverage that included a statement describing the insurance protection to which they were entitled. (Section 379.1803.1). No master policy or certificate of insurance, nor any subsequent amendments to the policy forms, would be issued or delivered in Missouri, unless the forms and any amendments had met the state’s applicable filing requirements. (Section 379.1803.2). The master policy would identify coverages, exclusions, and conditions of the insurance provided, as well as the terms and conditions of the agreement between the policyholder and insurer. (Section 379.1803.3). If the master policy provided for remittance of premiums by the policyholder, failure to remit such premiums that an employee or member had timely paid would not be considered nonpayment of premium by the employee or member. (Section 379.1803.4).

The master policy would be required to provide a basic package of coverages and limits that were available to all eligible employees or members. The package would have to include at least the minimum coverages and limits required in the employee's or member's state of residence or in the state where the subject property was located, Additional coverages or limits could be offered to qualified employees or members for an increased premium. (Section 379.1806.1). The master policy would provide coverage for all eligible employees or members who elected coverage during their initial period of eligibility, which could be up to 31 days. Employees or members who did not elect coverage during the initial period and later request coverage would be subject to the insurer's underwriting standards. (Section 379.1806.2). Coverage under a master policy could be reduced only as to all members of a class, and could never be reduced to a level below the limits required by applicable law. (Section 379.1806.3). Coverage under the master policy could be terminated as to an employee or member only for 1) failure to make required premium, contributions, 2)termination of the master policy in its entirety or as to a class. 3) discontinuance of membership in an eligible class, or 4) termination of employment or membership. (Section 379.1806.4). If optional coverages or limits were required by law, the policyholder's acceptance or rejection of them on behalf of the group would be binding on the employees or members. If the policyholder rejected any coverages or limits required by law unless rejected by the named insured, notice of the rejection would have to be given to the employees or members on or before delivery of their certificates of coverage. (Section 379.1806.5). Stacking of coverages or limits under a master policy would be prohibited, except state law would apply with regard to the stacking of coverages for separate certificates of coverage issued to relatives living in the same household. (Section 379.1806.6).

No master policy or certificate of insurance could be issued or delivered in Missouri unless the rating plan and any amendments had met applicable filing requirements of the state. (Section 379.1809.1). Group insurance premium rates could not be deemed to be unfairly discriminatory if adjusted to reflect past and prospective loss experience or group expense factors, or if averaged broadly among persons covered under the master policy. The rates likewise could not be deemed unfairly discriminatory if they did not reflect individual rating factors including surcharges and discounts required for individual personal lines property and casualty policies. (Section 379.1809.2). Experience refunds or dividends could be paid to the policyholder of a group personal lines property and casualty policy if justified by the insurer's experience under that policy. However, if an experience refund or dividend were paid, it would be required to be applied for the sole benefit of the insured employees or members to the extent it exceeded the policyholder's contribution to premiums for the applicable period. (Section 379.1809.3).

An insurer issuing or delivering group personal lines property and casualty insurance would be required to maintain separate statistics as to the pertinent loss and expense experience. (Section 379.1812.1). No insurer could issue or deliver a policy if purchasing insurance were a condition of employment or membership in the group, or if any employee or member would be penalized for nonparticipation. (Section 379.1812.2). Insurers would be prohibited from issuing or delivering a policy if the purchase was contingent on purchase of other insurance, product, or services, or on the purchase of additional coverage under the policy, with a few exceptions. (Section 379.1812.3). The insurer's experience from the policies would be included in the determination of its participation in residual market plans. (Section 379.1812.4). For purposes of premium taxes, the insurer would be required to allocate premiums in accordance with the rules for individual personal lines policies, except that the allocation could be based on an annual survey of the insureds. Premiums would have to be apportioned among states without differentiation between the source of payment. (Section 379.1812.5)

Persons acting as an insurance broker or agent in connection with the policies would be required to be licensed in Missouri as an insurance producer, with some exceptions. (Section 379.1815.1). The signature of a licensed producer residing in Missouri would not be required for issuance or delivery of a policy. (Section 379.1815.2).

Insurers would be required to give 30-days written notice to persons whose coverage is being terminated for reasons other than by their own request or a failure to pay premiums. (Section 379.1818.1). The employee or member whose coverage was terminated would be entitled to be issued a comparable individual policy if he or she applied and paid the first premium within 30 days of receiving the notice. (Section 379.1818.2). These notice and replacement policy provisions would not apply if the master policy was replaced within 30 days. (Section 379.1818.3).

In order to issue a policy, insurers would be required to be duly licensed in Missouri. Sections 379.1800 to 379.1824 would not apply to mass marketing of individual policies, nor would they apply to credit property or casualty insurance insuring debtors of creditors, auto insurance, personal motor vehicle liability insurance. or to policies issued by non-admitted insurers. The authority of the Director would not be limited with respect to consumer complaints or disputes. (Section 379.1821).

INSURANCE HOLDING COMPANIES - GROUP CAPITAL RATIOS AND LIQUIDITY STRESS TESTS (Sections 382.010, 382.110, 382.176, 382.177, and 382.230)

Insurers subject to registration would be required to file annual group capital calculations in accordance with National Association of Insurance Commissioners (NAIC) instructions. The report would have to be filed with the Director of Insurance for the lead state for the holding company. Insurance holding companies that 1) had only one insurer in its structure, 2) were required to perform group capital calculation specified by the Federal Reserve, 3) were non-U.S. groups located in reciprocal jurisdictions that recognize the U.S. state regulatory approach, or 4) were systems that provide information to accredited lead states would be exempt. (Section 382.176.1). The lead state Director of Insurance would have to require group capital calculations for U.S. operation of any non-U.S. based insurance holding company where it was deemed appropriate for oversight, solvency monitoring, and marketplace competitiveness purposes. (Section 382.176.2). The lead state Director could exempt or accept limited filings from insurers in accordance with criteria specified by regulation. (Section 382.176.3). If the lead state Director of Insurance determined a holding company system no longer qualified for an exemption under the act, the holding company would be required to file the group capital calculation at the next filing date unless given an extension by the Director. (Section 382.176.4).

Insurers subject to registration and also within the scope of the NAIC liquidity stress test framework would be required to file the results of a specific year's liquidity stress test with the lead state Director of Insurance as determined by NAIC procedures. (Section 382.177).

Information, documents and copies obtained by or provided to the Director of Insurance or any other person in the course of certain examinations, investigations, or reports would be considered proprietary and deemed to contain trade secrets. The Director of Insurance would have to maintain the confidentiality of the group capital calculation, the group capital ratio produced within the calculation, and any group capital information received from a holding company supervised by the Federal Reserve Board or any U.S. group-wide supervisor. The Director would be required to maintain the confidentiality of the liquidity stress test results, supporting disclosures, and any liquidity stress test information received from an insurance holding company supervised by the Federal Reserve Board and non-U.S. group-wide supervisors. (Section 382.230.1).

Provisions specifying with whom and under what circumstances the Director could share and receive proprietary and trade secret information, including with regard to subsidiaries and affiliates of the NAIC, and third-party consultants designated by the Director would be modified. (Section 382.230.3).

Lastly, the group capital calculation and resulting group capital ratio, and the liquidity stress test and its results and supporting disclosures, would be specified as regulatory tools for assessing risk and solvency, and would not be intended to serve as a means to rank insurers or holding companies. Accordingly, statements and notices containing representations of this information or associated calculations would be prohibited. However, an insurer could publish announcements in a written publication to rebut statements shown to the Director to be materially false regarding this information. (Section 382.230.7).

HB 604 (Gregory) – Relating to insurance

Bill Text (TAFP – SCS/HB 604)

LONG-TERM CARE INSURANCE (Sections 135.096 and 376.1109) – Beginning December 31, 2020, a resident individual could deduct an amount equal to 100% of all non-reimbursed amounts paid for long-term care insurance from their Missouri taxable income. The definition of qualified long-term care insurance would be expanded to include insurance policies that are considered an asset or resource for purposes of eligibility for long-term care benefits under MO HealthNet.

No long-term care insurance policy could increase premium rates, in excess of the actuarially justified amount based on credible experience, and on the rate basis in effect in Missouri without recognition of rates that may be in effect in other states.

WORKERS' COMPENSATION BENEFITS (Sections 287.170 and 287.180) – Temporary, total and partial disability payments would be required to be made to a claimant by check, other negotiable instrument, or by electronic transfer or other manner authorized by the claimant.

SECOND INJURY FUND SURCHARGE (Section 287.715) – The sunset date for the annual supplemental surcharge of up to 3% on employers' workers' compensation premiums paid into the Second Injury Fund would be extended from 2021 to 2022. For calendar year 2023, only, the Director of the Division of Workers' Compensation would be allowed to collect a supplemental surcharge not to exceed 2.5% of the policyholder's or self-insured's workers' compensation net deposits, net premiums, or net assessments for the previous policy year rounded up to the nearest one-half of a percentage point.

PETROLEUM STORAGE TANK INSURANCE FUND (Section 319.131) – The legal defense costs for eligible 3^rd party claims, as currently paid by the Petroleum Storage Tank Insurance Fund, would be separate from other coverage limits -- such as the costs of 3rd-party claims, and cleanup of contamination caused by releases from petroleum storage tanks. The Fund could set limits for such coverage.

MENTAL HEALTH INSURANCE COVERAGE (Section 376.1551) – Each health carrier that issues health benefit plans on or after January 1, 2022, and that provide coverage for a mental health condition, will have to meet the requirements of the Mental Health Parity and Addiction Equity Act of 2008. These provisions do not apply to specified supplemental policies.

PROPERTY INSURANCE (Sections 379.140, 379.150 and 379.160) The requirement that an insurer pay a claim for any total loss or damage by a fire in the full amount for which the property was insured would be changed to state that an insurer would pay a claim for total loss or damage from any peril covered under the policy for real property less any deductible. Exclusions from the requirement include among others: 1) any partial loss; 2) any unscheduled personal property; 3) any detached or appurtenant structure; 4) any builder's risk policy; and 5) any policy of mortgage insurance; (Section 379.140)

Any fire insurance policy issued or renewed after August 28, 2021 would cover partial losses caused by fire to be adjusted – either by settling the loss at the actual cash value, or by repairing, rebuilding or replacing the destroyed or damaged property with other of like kind or quality within a reasonable time. Notice of the manner in which the settlement would occur would be required. (Section 379.150).

It would be clear that the "Standard Fire Insurance Policy for Missouri" would apply only to real property (Section 379.160).

INSURANCE HOLDING COMPANIES - GROUP CAPITAL RATIOS AND LIQUIDITY STRESS TESTS (Sections 382.010, 382.110, 382.176, 382.177, and 382.230)

GROUP PERSONAL LINES PROPERTY AND CASUALTY INSURANCE (Sections 379.1800 to 379.1824) The bill specifies that no policy of group personal lines property and casualty insurance shall be issued or delivered in the state unless it conforms to one of the categories described in the bill.

The bill describes policies issued to an employer or trustees of a fund established by an employer policies issued to a labor union or similar employee organization policies issued to a trust, or trustees of a fund, established by two or more employers or by one or more labor unions or similar employee organizations or by a combination thereof and policies issued to an association or to a trust, or trustees of a fund, established for the benefit of members of one or more associations. For each, the bill specifies persons' eligibility for coverage under the policies, and the sources of funds from which the policy premiums may be paid. For policies issued for the benefit of an association or associations, the bill further requires that the association or associations have at the outset least 100 members, have been organized and maintained in good faith for purposes other than obtaining insurance, and have been in active existence for at least one year. The association or associations' constitution and bylaws shall require that the association shall meet at least annually to further the purposes of the members, shall collect dues or solicit member contributions, and shall provide members with voting privileges and representation on the governing board and committees. Lastly, if compensation of any kind will be paid to the policyholder in connection with a group policy issued for the benefit of an association or associations, the insurer shall notify prospective insureds as required in the bill.

Group personal lines property and casualty insurance issued to a group other than one described above shall meet additional requirements. No such policy shall be issued or delivered in this state unless the Director of the Department of Commerce and Insurance finds that the issuance of the group policy is not contrary to the best interest of the public, would result in economies of acquisition or administration, and that the benefits are reasonable in relation to the premiums charged. No policy issued or delivered in another state shall offer coverage in this state unless the Director, or another state with comparable requirements, determines these additional requirements have been met. Premiums for these plans shall be paid from funds that are contributed by the policyholder, by covered persons, or by both. If compensation is to be paid to the policyholder in connection with the group policy, the insurer shall notify prospective insureds as specified in the bill.

For all group personal lines property and casualty insurance, master policies shall be issued to the policyholders, and eligible employees or members insured under a master policy shall be issued certificates of coverage setting forth a statement as to the insurance protection to which they are entitled. No master policy or certificate of insurance, nor any subsequent amendments to the policy forms, shall be issued or delivered in this state unless the forms and any amendments thereto have met the applicable filing requirements of this state. The master policy shall set forth coverages, exclusions, and conditions of the insurance provided, together with the terms and conditions of the agreement between the policyholder and insurer, as provided in the bill. If the master policy provides for remittance of premiums by the policyholder, failure by the policyholder to remit premiums timely paid by an employee or member shall not be considered nonpayment of premium by the employee or member.

The master policy shall provide a basic package of coverages and limits that are available to all eligible employees or members, including at least the minimum coverages and limits required in the employee's or member's state of residence or in the state where the subject property is located, and may offer additional coverages or limits to qualified employees or members for an increased premium. The master policy shall provide coverage for all eligible employees or members who elect coverage during their initial period of eligibility, which may be up to 31 days. Employees or members who do not elect coverage during the initial period and later request coverage shall be subject to the insurer's underwriting standards. Coverage under a master policy may be reduced only as to all members of a class, and shall never be reduced to a level below the limits required by applicable law. Coverage under the master policy may be terminated as to an employee or member only for reasons specified in the bill. If optional coverages or limits are required by law to be available, the policyholder's acceptance or rejection of them on behalf of the group shall be binding on the employees or members. If the policyholder rejects any coverages or limits that are required by law to be provided unless rejected by the named insured, notice of the rejection shall be given to the employees or members upon or before delivery of their certificates of coverage. The bill prohibits the stacking of coverages or limits under a master policy, except that state law shall apply with regard to the stacking of coverages for separate certificates of coverage issued to relatives living in the same household.

No master policy or certificate of insurance shall be issued or delivered in this state unless the rating plan and amendments thereto have met applicable filing requirements of this state. Group insurance premium rates shall not be deemed to be unfairly discriminatory if adjusted to reflect past and prospective loss experience or group expense factors, or if averaged broadly among persons covered under the master policy. The rates likewise shall not be deemed unfairly discriminatory if they do not reflect individual rating factors including surcharges and discounts required for individual personal lines property and casualty policies. Experience refunds or dividends may be paid to the policyholder of a group personal lines property and casualty policy if justified by the insurer's experience under that policy. However, if an experience refund or dividend is paid, it shall be applied for the sole benefit of the insured employees or members to the extent it exceeds the policyholder's contribution to premiums for the applicable period.

An insurer issuing or delivering group personal lines property and casualty insurance shall maintain separate statistics as to the loss and expense experience pertinent thereto. No insurer shall issue or deliver a policy if purchasing insurance is a condition of employment or membership in the group, or if any employee or member shall be penalized for nonparticipation. The bill prohibits insurers from issuing or delivering a policy if the purchase is contingent on purchase of other insurance, product, or services, or on the purchase of additional coverage under the policy, except as specified in the bill. The insurer's experience from the policies shall be included in the determination of its participation in residual market plans. For purposes of premium taxes, the insurer shall allocate premiums in accordance with the rules for individual personal lines policies, except that the allocation may be based on an annual survey of the insureds. Premiums shall be apportioned among states without differentiation between the source of payment.

The bill requires persons acting as an insurance broker or agent in connection with the policies to be licensed in this state as an insurance producer, except as otherwise specified in the bill and provides that the signature of a licensed producer residing in this state shall not be required for issuance or delivery of a policy.

Regarding termination of coverage, the bill requires insurers to give 30 days written notice, as specified in the bill, to persons whose coverage is being terminated for reasons other than by their own request or a failure to pay premiums. The employee or member whose coverage is terminated shall be entitled to be issued a comparable individual policy if he or she applies and pays the first premium within 30 days of receiving the notice. These notice and replacement policy provisions shall not apply if the master policy is replaced within 30 days.

The bill further requires insurers to be duly licensed, specifies that the bill is not applicable to mass marketing of individual policies, excludes certain credit insurance, specifies that it does not apply or modify motor vehicle insurance, and provides that it shall not modify the authority of the Director with respect to consumer complaints or disputes.

These provisions shall take effect on January 1, 2022. A master policy or certificate of insurance that is lawfully in effect at that time shall comply with this bill within 12 months of such date.

MISSOURI STATUTORY THRESHOLDS FOR SETTLEMENTS INVOLVING MINORS ACT (Section 436.700 and 507.184) – The "Missouri Statutory Thresholds for Settlements Involving Minors Act" would be created It would allow persons having legal custody over a minor to enter into settlement agreements with a person or entity against whom the minor had a claim if following requirements were met:

(1) A conservator or guardian ad litem had not been appointed for the minor;

(2) The total amount of the claim, including reimbursement of medical expenses, liens, reasonable attorneys' fees and costs, was $35,000 or less if paid in cash, by draft, or if paid by the purchase of a premium for an annuity;

(3) The moneys paid pursuant to the settlement followed the requirements of this bill; and

(4) The person entering into the settlement agreement completed an affidavit or statement that attested that the person had made a reasonable inquiry and that the minor would be fully compensated by the settlement or that there was no practical way to obtain additional amounts from the person or entity.

The limit of $35,000 for the total amount of the claim would be increased by inflation every five years beginning January 1, 2027. The affidavit or statement would be maintained by the attorney representing the person entering into the settlement agreement on behalf of the minor for at least six years in accordance with the Missouri Supreme Court Rules of Professional Conduct.

The payments from the settlement agreement 1) would be deposited into a uniform transfer to minors account for the sole benefit of the minor, 2) would be paid by direct payment to a provider of an annuity with the minor as the sole beneficiary, or 3) would be paid into a trust account or trust subaccount established by the Children's Division of the Department of Social Services for those minors in the custody of the state. The moneys in the minor's saving account, trust account, or trust subaccount could not be withdrawn, removed, paid out, or transferred to any person, including the minor, 1) unless pursuant to court order, 2) the minor attained 18 years of age, 3) at the direction of a duly appointed conservator, 4) at the direction of the custodian for the uniform transfer to minors account, or 5) upon the minor's death.

The signature of the person entering into the settlement agreement on behalf of the minor would be binding on the minor without the need for further court approval or review. It also would have the same force and effect as if the minor were a competent adult entering into the agreement.

A person, including any insurer of a person, acting in good faith in entering into a settlement agreement on behalf of a minor would not be liable to the minor for the moneys paid in the settlement or for any other claims arising out of the settlement of the claim. Additionally, any person or entity against whom a minor had a claim that settled the claim with the minor in good faith would not be liable to the minor for any claims arising from the settlement of the claim.

Current law regarding settlements contracted by a next friend, guardian ad litem or guardian or conservator would not be construed as prohibiting settlements made pursuant to sections 436.700 and 507.184 or as requiring court approval of settlements made pursuant to sections 436.700 and 507.184.

WORKERS’ COMPENSATION

SB 303 (Gannon) – Relating to workers’ compensation

Bill Text (TAFP – CCS/HCS/SB 303)

ELECTRONIC TRANSFER OF DISABILITY PAYMENTS (Sections 287.170 to 287.180) – Delivery of temporary total or temporary partial disability payments payable under workers' compensation laws would be allowed to be made by electronic transfer or other manner authorized by the claimant.

SECOND INJURY FUND LIABILITIES (Section 287.220) – The applicability of the priority schedule for payment of liabilities of the Second Injury Fund (SIF) would be modified to allow for the payment from the SIF of the following SIF liabilities prior to any liability set forth in the priority schedule:

All death benefits incurred relating to claims for deaths occurring prior to January 1, 2014, consistent with a temporary or final award; and
Ongoing medical expenses, but not past medical expenses, relating to claims for injuries occurring prior to January 1, 2014, consistent with a temporary or final award which includes future medical benefits.

THIRD-PARTY ADMINISTRATORS (Section 287.280) – The Division of Workers' Compensation would be permitted to call the security of a group self-insured employer or public sector individual employer if they were deemed insolvent, were determined to be insolvent, filed for bankruptcy, or failed to pay any obligations owed under the workers' compensation laws. Furthermore, the Division would be permitted to retain a third-party administrator for the purpose of paying any compensation benefits owed to an injured employee.

ELECTRONIC FILINGS WITH LIRC (Section 287.480) – The Labor and Industrial Relations Commission would be allowed to permit the filing of applications for review, briefs, motions, and other requests for relief with the Commission by electronic means, in such manner as would be prescribed by rule.

SUPPLEMENTAL SURCHARGE (Section 287.715) – The expiration date of the supplemental surcharge not to exceed three percent of the policyholder's or self-insured's workers' compensation net deposits, net premiums, or net assessments for the previous policy year, rounded up to the nearest one-half of a percentage point, which the director of the Division of Workers' Compensation is required to collect, would be changed from December 31, 2021, to December 31, 2023. The maximum amount of the supplemental surcharge for calendar year 2023 would be lowered to 2.5% of the policyholder's or self-insured's workers' compensation net deposits, net premiums, or net assessments for the previous policy year, rounded up to the nearest one-half of a percentage point.