2005 Missouri Revised Statutes - § 375.445. — Company operating fraudulently or in bad faith, director to issue a statement of charges--hearing--penalties.

375.445. 1. When upon investigation the director finds that any company transacting business in this state has conducted its business fraudulently, is not carrying out its contracts in good faith, or is habitually and as a matter of business practice compelling claimants under policies or liability judgment creditors of the insured to either accept less than the amount due under the terms of the policy or resort to litigation against the company to secure payment of the amount due, and that a proceeding in respect thereto would be in the interest of the public, he shall issue and serve upon the company a statement of the charges in that respect and a notice of a hearing thereon.

2. If after the hearing the director shall determine that the company has fraudulently conducted its business as defined in this section, he shall order the company to cease and desist from the fraudulent practice and may suspend the company's certificate of authority for a period not to exceed thirty days and may in addition order a forfeiture to the state of Missouri of a sum not to exceed one thousand dollars, which forfeiture may be recovered by a civil action brought by and in the name of the director of insurance. The civil action may be brought in the circuit court of Cole County or, at the option of the director of insurance, in another county which has venue of an action against the person, partnership or corporation under other provisions of law. The director of insurance may also suspend or revoke the license of an insurer or agent for any such willful violation.

(L. 1967 p. 516)