2023 Missouri Revised Statutes
Title XXIV - Business and Financial Institutions
Chapter 379 - Insurance Other Than Life
Section 379.830 - Procedure after inspection and submission.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 379

379.830. Procedure after inspection and submission. — 1. The facility shall, within five business days after receipt of the inspection report and application, complete an action report advising that:

(1) The risk is acceptable; or

(2) The risk is acceptable at a surcharged rate and the improvements necessary before coverage will be provided at an unsurcharged premium rate; or

(3) The risk will be acceptable if the improvements noted in the action report are made by the applicant and confirmed by reinspection; or

(4) The risk is not acceptable for the reasons stated in the action report.

2. In the event a risk is declined because it fails to meet reasonable underwriting standards, the facility will so notify the applicant.

(1) Reasonable underwriting standards shall include, but not be limited to, the following:

(a) Physical condition of the property, such as its construction, heating, wiring, evidence of previous fires or general deterioration;

(b) Its present use or housekeeping, such as vacancy, overcrowding, storage of rubbish or flammable materials.

(2) Neighborhood or area location or any environmental hazard beyond the control of the property owner shall not be deemed to be acceptable criteria for declining a risk.

3. If the risk is acceptable to the facility, the facility shall notify the applicant, and the licensed producer designated by the applicant, of the acceptability of the risk and the premium to be charged. The facility, upon receipt of the premium, shall within three business days issue the policy to be effective at 12:00 noon of the date of the receipt of the premium, unless a later effective date is specified. The policy shall be forwarded to the applicant with a copy to the licensed producer. The facility shall pay the commission to the licensed producer designated by the applicant.

4. In the event the risk is conditionally declined because the property does not meet reasonable underwriting standards but can be improved to meet such standards, the facility shall promptly advise the applicant what improvements noted in the action report should be made to the property. Upon completion of the improvements by the applicant or property owner, the facility, when so notified, will have the property promptly reinspected and thereupon shall process the application in the manner described in subsection 3 of this section.

5. If the inspection of the property reveals that there are one or more substandard conditions, surcharges may be imposed in conformity with the filings approved by the director.

6. If the facility declines the risk, or agrees to write the coverage sought on condition that the property will be improved, it shall promptly send a copy of both the inspection and action reports to the property owner and the director. At the time the facility sends such reports to the property owner, it shall also explain his right to appeal the decision of the facility to the director pursuant to section 379.850 of the program and shall in writing set forth the procedures to be followed for such appeal.

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(L. 1969 H.B. 772 § 379.131, A.L. 1986 S.B. 701)