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SECOND REGULAR SESSION
HOUSE COMMITTEE SUBSTITUTE FOR
HOUSE BILL NO. 3328
103RD GENERAL ASSEMBL Y
6999H.02C JOSEPH ENGLER, Chief Clerk
AN ACT
T o repeal sections 33.080, 325.055, and 375.991, RSMo, and to enact in lieu thereof thirty-
one new sections relating to homeowner's insurance, with penalty provisions.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 33.080, 325.055, and 375.991, RSMo, are repealed and thirty-one
2 new sections enacted in lieu thereof, to be known as sections 33.080, 325.052, 325.055,
3 375.991, 379.135, 379.162, 379.163, 379.3000, 379.3005, 379.3010, 379.3015, 379.3020,
4 379.3025, 379.3030, 379.3035, 379.3040, 379.3042, 379.3045, 379.3050, 379.3055,
5 379.3100, 379.3105, 379.31 10, 379.31 15, 379.3120, 379.3125, 379.3130, 379.3135,
6 379.3140, 380.661, and 380.671, to read as follows:
33.080. 1. All fees, funds and moneys from whatsoever source received by any
2 department, board, bureau, commission, institution, of ficial or agency of the state government
3 by virtue of any law or rule or regulation made in accordance with any law , excluding all
4 funds received and disbursed by the state on behalf of counties and cities, towns and villages
5 shall, by the of ficial authorized to receive same, and at stated intervals of not more than thirty
6 days, be placed in the state treasury to the credit of the particular purpose or fund for which
7 collected, and shall be subject to appropriation by the general assembly for the particular
8 purpose or fund for which collected during the biennium in which collected and appropriated.
9 The unexpended balance remaining in all such funds (except such unexpended balance as
10 may remain in any fund authorized, collected and expended by virtue of the provisions of the
11 constitution of this state) shall at the end of the biennium and after all warrants on same have
12 been dischar ged and the appropriation thereof has lapsed, be transferred and placed to the
13 credit of the general revenue fund of the state by the state treasurer . Any of ficial or any
14 person who shall willfully fail to comply with any of the provisions of this section, and any
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
15 person who shall willfully violate any provision hereof, shall be deemed guilty of a
16 misdemeanor; provided, that all such money received by the curators of the University of
17 Missouri except those funds required by law or by instrument granting the same to be paid
18 into the seminary fund of the state, is excepted herefrom, and in the case of other state
19 educational institutions there is excepted herefrom, gifts or trust funds from whatever source;
20 appropriations; gifts or grants from the federal government, private or ganizations and
21 individuals; funds for or from student activities; farm or housing activities; and other funds
22 from which the whole or some part thereof may be liable to be repaid to the person
23 contributing the same; and hospital fees. All of the above excepted funds shall be reported in
24 detail quarterly to the governor and biennially to the general assembly .
25 2. Notwithstanding any provision of law to the contrary concerning the transfer of
26 funds, [ ten ] twelve million dollars shall be transferred from the insurance dedicated fund
27 established under section 374.150, and placed to the credit of the [ rebuild damaged
28 infrastructure ] Missouri's str onger homes fund created in section [ 33.295 ] 379.31 15 on [ July
29 1, 2013 ] July 1, 2027, and amounts as specified under section 379.31 15 on an annual
30 basis commencing July 1, 2028, and ending on July 30, 2037 .
325.052 . 1. Except as otherwise specified in this section, a public adjuster may
2 r eceive a commission for services pr ovided under this chapter consisting of an hourly
3 fee, a flat fee, or a reas onable per centage of the amount paid by an insur er to res olve a
4 claim.
5 2. A public adjuster shall not r eceive a fee or commission based on a per centage
6 of the total amount paid by an insur er to settle a claim if, within ten days of rep orting
7 the loss, the insur er either pays or commits in writing to pay the insured the policy
8 limits.
9 3. A public adjuster shall not accept any payment or compensation that violates
10 the pro visions of this section.
11 4. A public adjuster is entitled to reas onable compensation fr om the insur ed for
12 services pr ovided by a public adjuster on behalf of the insur ed, based on the actual time
13 spent on a claim that is subject to this section and expenses incurr ed by a public
14 adjuster , until the claim is paid or the insured r eceives a written commitment to pay
15 fr om the insur er .
16 5. Notwithstanding any authorization, contract, or agr eement the insure d may
17 have given to a public adjuster , a public adjuster shall not sign or endorse any payment
18 draft or check on behalf of an insur ed.
19 6. Notwithstanding any authorization, contract, or agr eement the insure d may
20 have given to a public adjuster , a public adjuster shall not r epresent himself or herself in
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21 any communication as the insured . All communications fr om a public adjuster shall
22 clearly identify himself or herself as a public adjuster .
23 7. All contracts with a public adjuster shall include the following disclaimer ,
24 placed immediately above the signatur e of the insured , in a bold, twelve-point font:
25 "YOU DON'T HA VE T O HIRE A PUBLIC ADJUSTER T O FILE A
26 CLAIM WITH YOUR INSURANCE COMP ANY . IF YOU HIRE A
27 PUBLIC ADJUSTER, YOU WILL HA VE T O P A Y ALL THE
28 COSTS. THA T WILL REDUCE THE AMOUNT OF MONEY YOU
29 GET FROM THE INSURANCE COMP ANY T O REP AIR OR
30 REBUILD YOUR HOME OR REPLACE YOUR BELONGINGS.
31 IF YOU NEED HELP WITH YOUR CLAIM, THE MISSOURI
32 DEP AR TMENT OF COMMERCE AND INSURANCE WILL HELP
33 YOU FOR FREE. YOU CAN CALL THE DEP AR TMENT A T 800-
34 726-7390 OR FILE A COMPLAINT ONLINE A T
35 INSURANCE.MO.GOV/CONSUMERS.".
36 8. Any violation of subsections 1 to 7 of this section is a level two violation under
37 section 374.049.
325.055. 1. No person, partnership, association or corporation, directly or indirectly ,
2 acting as a public adjuster or public adjuster solicitor licensed under the provisions of sections
3 325.010 to 325.055, may solicit, or enter into, an agreement for the repair or replacement of
4 damaged property on which said public adjuster or public adjuster solicitor has been engaged
5 to adjust or settle claims for losses or damages arising out of policies of fire or allied lines of
6 insurances.
7 2. No person or entity may:
8 (1) Acting as a public adjuster , advertise or solicit business by rep res enting they
9 will or can adjust, negotiate, or settle an insurance claim for which the contractor is
10 pr oviding or may pr ovide contracting services, regard less of whether the contractor
11 holds a license under this chapter or is authorized to act on behalf of the insur ed under a
12 power of attorney or other agreement; or
13 (2) Advertise, market, offer , contract, or otherwise rep res ent to unjustifiably
14 incr ease or inflate the value of an insurance claim or to waive, absorb, re fund, rebate,
15 pay , or not collect the deductible amount agr eed to under or imposed by the terms of the
16 insurance policy .
17 3. For purposes of this section, the following terms shall mean:
18 (1) "Contractor", a person or entity in the business of contracting or offering to
19 contract with the owner of res idential, agricultural, or commer cial real estate to rep air
20 or repl ace roo f systems or to erect , demolish, alter , or repa ir impro vements or to
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21 perform any other rep air , repla cement, construction, or recon struction work on any
22 r esidential, agricultural, or commer cial structure situated upon res idential, agricultural,
23 or commer cial r eal estate as a general contractor or a subcontractor;
24 (2) "Negotiate", the pr ocess of discussing or exchanging offers with an insurance
25 company on an insured 's behalf to reac h an agreement with the insurance company on a
26 settlement amount for a covere d loss;
27 (3) "Roof system", includes r oof coverings, r oof sheathing, r oof
2 8 weatherpr oofing, and insulation.
29 4. The dir ector shall adopt rules necessary to implement and enfor ce this section.
30 Any rule or portion of a rule, as that term is defined in section 536.010, that is creat ed
31 under the authority delegated in this section shall become effective only if it complies
32 with and is subject to all of the pr ovisions of chapter 536 and, if applicable, section
33 536.028. This section and chapter 536 are nonseverable and if any of the powers vested
34 with the general assembly pursuant to chapter 536 to rev iew , to delay the effective date,
35 or to disappr ove and annul a rule are subsequently held unconstitutional, then the grant
36 of rulemaking authority and any rule pr oposed or adopted after August 28, 2026, shall
37 be invalid and void.
38 5. The dir ector is authorized to pursue enforcem ent actions and order reli ef as
39 set forth in sections 374.046 to 374.049.
375.991. 1. As used in sections 375.991 to 375.994, the term "statement" means any
2 communication, notice statement, proof of loss, bill of lading, receipt for payment, invoice,
3 account, estimate of damages, bills for services, diagnosis, prescription, hospital or doctor
4 records, x-rays, test results or other evidence of loss, injury or expense.
5 2. For the purposes of sections 375.991 to 375.994, a person commits a "fraudulent
6 insurance act" if such person knowingly presents, causes to be presented, or prepares with
7 knowledge or belief that it will be presented, to or by an insurer , purported insurer , broker , or
8 any agent thereof, any oral or written statement including computer generated documents as
9 part of, or in support of, an application for the issuance of, or the rating of, an insurance
10 policy for commercial or personal insurance, or a claim for payment or other benefit pursuant
11 to an insurance policy for commercial or personal insurance, which such person knows to
12 contain materially false information concerning any fact material thereto or if such person
13 conceals, for the purpose of misleading another , information concerning any fact material
14 thereto.
15 3. A "fraudulent insurance act" shall also include but not be limited to knowingly
16 filing false insurance claims with an insurer , health services corporation, or health
17 maintenance org anization by engaging in any one or more of the following false billing
18 practices:
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19 (1) "Unbundling", an insurance claim by claiming a number of medical procedures
20 were performed instead of a single comprehensive procedure;
21 (2) "Upcoding", an insurance claim by claiming that a more serious or extensive
22 procedure was performed than was actually performed;
23 (3) "Exploding", an insurance claim by claiming a series of tests was performed on a
24 single sample of blood, urine, or other bodily fluid, when actually the series of tests was part
25 of one battery of tests; [ or ]
26 (4) "Duplicating", a medical, hospital or rehabilitative insurance claim made by a
27 health care provider by resubmitting the claim through another health care provider in which
28 the original health care provider has an ownership interest ; or
29 (5) "Inflating", the intentional overstatement of the reas onable cost of goods or
30 services or exaggeration of the extent of damage, injury , or loss by an insur ed,
31 contractor , health car e pr ovider , or other service pro vider to incr ease the amount of an
32 insurance claim payment or to offset the amount of the deductible the insur ed would
33 otherwise be res ponsible for under the terms of the policy .
34
35 Nothing in sections 375.991 to 375.994 shall prohibit health care providers from making
36 good faith ef forts to ensure that claims for reimbursement are coded to reflect the proper
37 diagnosis and treatment.
38 4. If, by its own inquiries or as a result of complaints, the department of commerce
39 and insurance has reason to believe that a person has engaged in, or is engaging in, any
40 fraudulent insurance act or has violated any provision of chapters 375 to 385, it may
41 administer oaths and af firmations, serve subpoenas ordering the attendance of witnesses or
42 prof fering of matter , [ and ] collect evidence , and issue an order to cease and desist, or issue
43 a curative or summary order as set forth under section 374.046 . The director may refer
44 such evidence as is available concerning violations of this chapter to the proper prosecuting
45 attorney or circuit attorney who may , with or without such reference, initiate the appropriate
46 criminal proceedings.
47 5. If the matter that the department of commerce and insurance seeks to obtain by
48 request is located outside the state, the person so requested may make it available to the
49 department or its representative to examine the matter at the place where it is located. The
50 department may designate representatives, including of ficials of the state in which the matter
51 is located, to inspect the matter on its behalf, and it may respond to similar requests from
52 of ficials of other states.
53 6. A fraudulent insurance act for a first of fense is a class E felony . Any person who is
54 found guilty of a fraudulent insurance act who has previously been found guilty of a
55 fraudulent insurance act shall be guilty of a class D felony .
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56 7. Any person who pleads guilty or is found guilty of a fraudulent insurance act shall
57 be ordered by the court to make restitution to any person or insurer for any financial loss
58 sustained as a result of such violation. The court shall determine the extent and method of
59 restitution.
60 8. Nothing in this section shall limit the power of the state to punish any person for
61 any conduct that constitutes a crime by any other state statute.
379.135. 1. Upon payment by an insur er of all or any part of a claimant's
2 pr operty damage claim, legal title to the portion of the claim paid shall vest in the
3 insur er to the extent of such payment. No assignment or other action by the claimant
4 shall be requ ired for the insur er to enforce its legal title. The claimant shall ret ain legal
5 title only to that portion of the pr operty damage claim not paid by the insur er .
6 2. As used in this section, "assignment agreement" means any instrument by
7 which post-loss benefits under any policy of insurance covering pr operty including, but
8 not limited to, any right of action against the insurer or any pr oceeds acquired from the
9 insur er ar e assigned, transferred, or acquired in any other manner , in whole or in part,
10 to or fr om a person pr oviding services including, but not limited to, communicating with
11 an insur er or on an insured 's behalf or inspecting, estimating, protecti ng, r epairing,
12 r estoring, or rep lacing the pr operty or mitigating against further damage to the
13 pr operty .
14 3. (1) A person shall not solicit or accept an assignment, in whole or in part, of
15 any post-loss insurance benefit for a pro perty damage under a contract of insurance.
16 An assignment agree ment is against public policy , is null and void, and any contract
17 enter ed into in violation of this section shall be void and unenfor ceable; and
18 (2) The pr ovisions of this subsection shall not apply to:
19 (a) An assignment, transfer , pledge, or conveyance granted to a financial
20 institution, mortgagee, lienholder , or a subsequent pur chaser of the pr operty; and
21 (b) Any covenant not to execute or contract to limit r ecovery under section
22 537.065.
23 4. A violation of subsection 3 of this section shall not apply to any covenant not to
24 execute or contract to limit recovery under section 537.065.
25 5. Nothing in this section shall be construed to pr ohibit an insur ed fr om
26 authorizing or dir ecting payment to, or paying a person for services, materials, or any
27 other thing which may be, or is, covered under an insurance policy . Insur ers shall issue
28 payment dir ectly to a person for services, materials, and other items that ar e cover ed
29 under an insurance policy , when the insur ed agr ees that any person pro viding such
30 services should be paid dir ectly , subject to applicable liens.
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379.162 . 1. This section shall apply to all homeowners' policies issued,
2 continued, or renew ed on or after July 1, 2027.
3 2. As used in this section, the following words and terms shall mean:
4 (1) "Homeowner's policy", a homeowner's insurance policy , a dwelling-owner's
5 insurance policy , or a r esidential fir e insurance policy covering real pr operty within this
6 state. For purposes of this section, this term shall not include a manufactur ed home or
7 mobile homeowner's policy , a tenant's or rent er's policy , or a condo owner's policy;
8 (2) "Insurer ", all insurance companies, recipr ocals, interinsurance exchanges
9 licensed under chapters 379 and 380, and the pr operty insurance inspection and
10 placement pr ogram (the "F AIR" Plan), issuing and renewi ng res idential pr operty
11 insurance policies;
12 (3) "Qualified inspector", a person who is:
13 (a) A roo fing inspector that is accr edited by the National Roof Certification and
14 Inspection Association (NRCIA) or a nationally r ecognized equivalent;
15 (b) A pr ofessional engineer or arch itect licensed under chapter 327;
16 (c) A roof ing contractor who has been in the r oofing business for not less than
17 ten years and who has evidence of the following:
18 a. A business regist ration with the Missouri secr etary of state;
19 b. A valid Missouri sales tax number; and
20 c. Possesses a local contractor's license, wher e requ ired by a local municipality
21 or county; or
22 (d) Any other individual or entity recog nized by the insure r as possessing the
23 necessary qualifications to pr operly complete a general inspection of the roof of a
24 r esidential structure insur ed under a homeowner's policy .
25 3. An insur er may not ref use to issue, cancel, or nonr enew a homeowner's policy
26 insuring a res idential structur e with a roo f that is less than fifteen years old solely
27 because of the age of the ro of.
28 4. For a roo f that is fifteen years of age or older , an insur er shall allow a
29 homeowner to have a ro of inspection performed by a qualified inspector at the
30 homeowner's expense before requ iring the repl acement of the roof of a re sidential
31 structur e as a condition of issuing, continuing, or renew ing a homeowner's policy .
32 5. The insur er shall not refu se to issue, cancel, or ref use to r enew a homeowner's
33 policy solely because of the roo f's age if an inspection of the roof of the re sidential
34 structur e performed by a qualified inspector indicates that the roof has five years or
35 mor e of useful life rem aining.
36 6. For purposes of this section, a ro of's age shall be calculated using the last date
37 on which one hundred percen t of the r oof's surface ar ea was built or r eplaced or the
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38 initial date of a partial roof repla cement when subsequent partial ro of builds or
39 r eplacements were completed that res ulted in one hundred per cent of the r oof's surface
40 ar ea being built or repla ced.
41 7. This section shall not:
42 (1) Limit the ability of an insurer to ref use to issue, cancel, or nonr enew any
43 homeowner's policy on any other grou nds, including, but not limited to, that the
44 structur e does not otherwise meet underwriting criteria applicable to replac ement cost
45 or law and ordinance coverage or for other rea sons not pr ohibited under Missouri law .
46 (2) Pr ohibit an insur er fr om limiting its liability under a policy or endorsement
47 thr ough a deductible or to dir ect physical loss caused by a covered peril.
48 8. (1) A policyholder may not assign, in whole or in part, any post-loss insurance
49 benefit under any res idential prop erty insurance policy or under any commerci al
50 pr operty insurance policy issued or rene wed on or after January 1, 2027.
51 (2) Any attempt to assign post-loss pro perty insurance benefits under a policy
52 issued or renewe d on or after January 1, 2027, is void, invalid, and unenfor ceable.
379.163 . 1. As used in this section, the following terms shall mean:
2 (1) "Replacement cost coverage", "r eplacement cost value", or "RCV", the
3 coverage that ultimately pays the estimated cost to r epair or replac e cover ed pr operty at
4 the time of the loss or damage without deduction for depr eciation. "Replacement cost
5 value" is not the market value, but it is instead the cost to r epair or repla ce cover ed
6 pr operty to its pre- loss condition;
7 (2) "Residential pr operty insurance policy", a homeowner's insurance, dwelling-
8 owner's insurance, res idential fir e insurance, condo owner's insurance, or
9 manufactur ed home or mobile homeowner's insurance written upon pr operty within
10 this state;
11 (3) "W ithheld recov erable depr eciation" or "r eplacement cost holdback", the
12 portion of an insurance claim payment that an insurer does not pay until the
13 policyholder completes necessary rep airs or r eplacement of damaged cover ed pr operty .
14 Once the rep airs or rep lacements ar e completed, the policyholder is eligible to rec eive
15 the withheld amount subject to the terms of the insurance policy .
16 2. An insur er that issues a r esidential pro perty insurance policy with
17 r eplacement cost coverage for roof damage may ref use to pay a claim for withheld
18 r ecoverable depr eciation or a r eplacement cost holdback under the policy for a roo f
19 claim until the insurer receiv es reas onable pr oof of payment by the policyholder of any
20 deductible applicable to the roof claim.
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21 3. Reasonable pr oof of payment includes a canceled check, money order r eceipt,
22 cr edit card statement, or copy of an executed installment plan contract or other
23 financing arrangement that req uires full payment of the deductible over time.
379.3000 . Sections 379.3000 to 379.3055 may be cited as the "Missouri Disaster
2 Mediation Act".
379.3005 . 1. The prov isions of sections 379.3000 to 379.3055 pr ovide for a
2 nonadversarial alternative dispute re solution prog ram for a facilitated claim r esolution
3 pr ocess pr ompted by the critical need for effective, fair , and timely handling of
4 insurance claims arising out of damage to res idential prop erty caused by an event for
5 which ther e is a state of disaster declar ed within sixty days of the event.
6 2. Sections 379.3000 to 379.3055 shall only apply when the dir ector issues an
7 order initiating the alternative dispute res olution pro gram authorized under the
8 Missouri disaster mediation act and:
9 (1) If a state of emergency has been procl aimed for this state or for an ar ea
10 within this state by the governor , or by a r esolution of the general assembly under
11 section 44.100; or
12 (2) If the Pr esident of the United States has issued a major disaster declaration
13 for this state or for an area within this state under the Robert T . Stafford Disaster Relief
14 and Emergency Assistance Act, 42 U.S.C. Section 5121, et seq., as amended.
15 3. The mediation pr ogram under sections 379.3000 to 379.3055 shall be available
16 to Missouri r esidents with first-party insurance claims res ulting fr om damage to
17 r esidential pr operty that serves as a Missouri res ident's primary dwelling located within
18 this state. Sections 379.3000 to 379.3055 shall not apply to commerc ial insurance,
19 pr operty insurance covering multiple family dwellings, motor vehicle insurance, or
20 liability coverage contained within pro perty insurance policies.
21 4. After the prog ram has been initiated by order of the dir ector , it shall r emain
22 available to first-party claimants until the dir ector makes a determination that the need
23 has decr eased due to sufficient pr ogr ess of recov ery efforts and issues an order
24 terminating same.
379.3010 . For purposes of sections 379.3000 to 379.3055, except wher e otherwise
2 pr ovided, the following terms mean:
3 (1) "Administrator", the dir ector or the director's designee;
4 (2) "Dir ector", the dir ector of the department of commer ce and insurance;
5 (3) "Disputed claim", any matter on which ther e is a dispute as to the cause of
6 loss or amount of loss under a r esidential prop erty insurance policy , for which the
7 insur er has denied payment, in part or whole, with re spect to claims arising fr om a
8 disaster . Unless the parties agree to mediate a disputed claim involving a lesser amount,
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9 a "disputed claim" involves the insure d r equesting one thousand five hundr ed dollars or
10 mor e to settle the dispute, or the differ ence between the positions of the parties is one
11 thousand five hundred dollars or mor e. "Disputed claim" does not include a dispute
12 with respect to which the insur er has rep orted allegations of fraud, based on a refer ral
13 by the insur er's special investigative unit, to the dir ector . A disputed claim does not
14 include the following:
15 (a) A dispute with res pect to which the insur er has rep orted allegations of fraud,
16 based on a ref erral by the insur er's special investigative unit, to the dir ector; or
17 (b) A dispute in which ther e has been a denial of coverage for the loss because of
18 exclusions in the r esidential pr operty insurance policy , terms in the policy , conditions in
19 the policy , or if coverage was not in for ce at the time of the loss;
20 (4) "Insur ed", the named insured under a re sidential pr operty insurance policy;
21 (5) "Insurer ", all insurance companies, recipr ocals, interinsurance exchanges
22 licensed under chapters 379 and 380, and including Lloyds insur ers, surplus lines
23 insur ers, and the pro perty insurance inspection and placement prog ram (the "F AIR"
24 Plan), issuing and ren ewing res idential pr operty insurance policies;
25 (6) "Mediation", the alternative dispute r esolution pr ogram established under
26 sections 379.3000 to 379.3055; an informal pr ocess conducted or overseen by a mediator
27 with the objective of helping parties voluntarily settle a disputed claim;
28 (7) "Mediator", a neutral person who acts to encourage and facilitate the
29 r esolution of a disputed claim. A mediator shall not make an award or rend er a
30 judgment as to the merits of the claim. A mediator shall not impose the mediator's
31 judgment on the issues for that of the parties;
32 (8) "Party or parties", the insur ed and the insur er;
33 (9) "Residential pr operty insurance policy or policies", a homeowner's
34 insurance, dwelling-owner's insurance, r esidential fire insurance, condo owner's
35 insurance, manufactur ed home or mobile homeowner's insurance, tenant's or ren ter's
36 insurance, or any other contract of insurance covering owner -occupied single-family
37 habitational pr operty .
379.3015 . 1. Insur ers shall notify their insur eds in this state who have claimed
2 damage to their resi dential prop erties because of a disaster of their right to mediate
3 disputed claims. This requ irem ent applies to all disputed claims, including instances
4 wher e partial or full payment has been issued by the insur er to the insured .
5 2. The insurer shall, by mail or electr onic mail, transmit the notice described in
6 this section to an insur ed within five days after the time the insur ed or the administrator
7 notifies the insurer of a dispute regard ing the insure d's claim. The following conditions
8 apply:
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9 (1) If the insurer has not been notified of a disputed claim before the time an
10 insur er notifies the insured that a claim has been denied in whole or in part, the insur er
11 shall mail a notice of the right to mediate to the insur ed in the same mailing as the notice
12 of denial;
13 (2) The insur er is not req uired to send a notice of the right to mediate if a claim
14 is denied because the amount of the claim is less than the insured 's deductible;
15 (3) The transmission that contains the notice of the right to mediate shall include
16 any consumer br ochur e on mediation developed by the dir ector; and
17 (4) Notification shall be in writing and shall be legible, conspicuous, and printed
18 in at least twelve-point type. The first paragraph of the notice shall contain the
19 following statement:
20 "THE GENERAL ASSEMBL Y OF MISSOURI HAS ENACTED A
21 LA W T O F ACILIT A TE F AIR AND TIMEL Y HANDLING OF
22 RESIDENTIAL PROPER TY INSURANCE CLAIMS ARISING
23 OUT OF CA T ASTROPHIC WEA THER EVENTS. THIS LA W
24 GIVES YOU THE RIGHT T O A TTEND A MEDIA TION
25 CONFERENCE WITH YOUR INSURANCE COMP ANY T O
26 SETTLE ANY DISPUTE YOU HA VE ABOUT YOUR INSURANCE
27 CLAIM. AN INDEPENDENT MEDIA T OR, WHO HAS NO
28 CONNECTION WITH YOUR INSURANCE COMP ANY , WILL BE
29 IN CHARGE OF THE MEDIA TION CONFERENCE. THERE IS
30 NO COST T O YOU FOR USING THIS MEDIA TION PROCESS.
31 YOU DO NOT NEED T O HIRE A PUBLIC ADJUSTER OR AN
32 A TT ORNEY T O USE THE MEDIA TION PROCESS. IF YOU
33 HA VE A PUBLIC ADJUSTER OR AN A TTORNEY , YOU WILL
34 HA VE T O P A Y THOSE COSTS.".
35 3. The notice shall also include the following:
36 (1) Detailed instructions on how the insured is to req uest mediation, including
37 the name, addr ess, telephone number , and website addr ess for re questing a mediation
38 with the administrator;
39 (2) The insurer 's addr ess and telephone number for request ing additional
40 information; and
41 (3) The state from which the administrator shall select the mediator .
379.3020 . 1. If an insur ed r equests mediation before re ceipt of the notice of the
2 right to mediate or if the date of the notice cannot be established, the insur er shall be
3 notified by the administrator of the existence of the dispute before the administrator
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4 pr ocesses the insur ed's requ est for mediation. An insur ed must r equest mediation
5 within sixty days after the denial of the claim.
6 2. The failure to r equest mediation within this time period shall only bar the
7 right to demand mediation. It shall not prej udice any other legal right or rem edy of the
8 insur ed nor shall it pr ohibit the insurer fr om voluntarily accepting the req uest for
9 mediation.
10 3. If an insur er r eceives a req uest for mediation, the insur er shall electr onically
11 transmit the reque st to the administrator within thr ee business days after receip t of the
12 r equest. If the dir ector receive s any req uest, it shall electr onically transmit those
13 r equests to the administrator within thr ee business days after r eceipt. The
1 4 administrator shall notify the insurer within thr ee business days after receip t of a
15 r equest that has been filed with the dir ector .
16 4. In the insur ed's req uest for mediation, the insure d shall pr ovide the following
17 information, if known:
18 (1) Name, addr ess, and daytime telephone number of the insur ed and location of
19 the pro perty if differ ent fr om the addr ess given;
20 (2) The claim and policy number for the insur ed;
21 (3) A brief description of the natur e of the dispute; and
22 (4) The name of the insur er and the name, addr ess, and phone number of the
23 contact person for scheduling mediation.
379.3025 . 1. The dir ector may contract with qualified administrators to oversee
2 the mediation pro gram by means of a formal bid proce ss. A qualified administrator
3 may also be selected by the dir ector without a formal bid pr ocess if a state of emergency
4 has been declar ed pursuant to section 44.100. All bid pro cesses must comply with either
5 sections 34.040 or 34.045.
6 2. The expenses and fees of the mediator and of the administrator as established
7 by the dir ector are borne by the insur er . All other mediation costs, fees, or expenses
8 shall be borne by the party incurring such costs, fees, or expenses unless otherwise
9 pr ovided in a settlement agr eement.
10 3. The dire ctor shall establish fee schedules for moneys to be paid dir ectly to the
11 administrator by the insur er for the services of the administrator , the mediator , and for
12 timely and untimely mediation cancellations. Fee schedules shall be established thr ough
13 pr omulgation of emergency rules to be in effect no later than January 1, 2027. Such
14 rules establishing fee schedules may be amended as necessary , including as specified by
15 section 536.025 if a state of emergency has been declar ed pursuant to section 44.100.
16 4. The dir ector , the administrator , and mediators appointed by the dire ctor shall
17 have such official immunity pursuant to section 537.600 and as exists at common law .
HCS HB 3328 12
379.3030 . 1. The administrator shall select a mediator and schedule the
2 mediation confer ence.
3 2. T o be appr oved, the mediator who pr ovides alternative dispute r esolution
4 services independently or thr ough an organization shall have appr opriate training or
5 equivalent experience in conducting the type of alternative dispute r esolution service the
6 individual or organization pro vides, under Missouri suprem e court rule 17.
379.3035 . 1. The rules adopted by the dir ector shall include a requi rem ent of the
2 mediator to advise the parties of the mediation pr ocess and their rights and duties in the
3 mediation pr ocess.
4 2. A mediator shall terminate the mediation conferen ce if the mediator
5 determines that either party is unable or unwilling to participate meaningfully in the
6 pr ocess or upon mutual agreement of the parties.
7 3. An insurer's repr esentative attending a mediation conferen ce shall:
8 (1) Bring, in paper or electr onic medium, a copy of the policy and the entire
9 claims file to the conference ; and
10 (2) Know the facts and circu mstances of the claim and be knowledgeable of the
11 pr ovisions of the policy .
12 4. An insur er shall be deemed to have failed to appear if the insur er's
13 r epresent ative lacks authority to settle the claim within the limits of the policy .
14 5. The mediator shall be in charge of the mediation conferen ce and shall
15 establish and describe the pr ocedur es to be followed.
16 6. A party may move to disqualify a mediator for good cause prior to the
17 confer ence. If the gr ounds for disqualification are known befor e the mediation
18 confer ence, the requ est to disqualify a mediator shall be dir ected to the administrator .
19 For purposes of this section, good cause consists of a conflict of interes t between a party
20 and the mediator , the inability of the mediator to handle the mediation confer ence
21 competently , or other rea sons that would reas onably be expected to impair the
22 mediation confer ence.
379.3040 . 1. W ithin five business days after the conclusion of the mediation
2 confer ence, the mediator shall file with the administrator a mediator's status r eport, on
3 a form pr escribed by the administrator , indicating whether or not the parties rea ched a
4 settlement.
5 2. Mediation is nonbinding unless all the parties specifically agr ee otherwise in
6 writing.
7 3. If the parties reach a settlement, the mediator shall include a copy of the
8 settlement agr eement with the status re port.
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9 4. W ithin five business days after the conclusion of the mediation, if agr eed to by
10 the parties, the insur er shall disburse the settlement funds in accordance with the terms
11 of the settlement agree ment. The insured has thr ee business days after receip t of the
12 settlement funds within which to notify the dir ector and the insur er of the insur ed's
13 decision to res cind the settlement agreement. The res cission shall only be valid if the
14 insur ed has not r eceived the settlement funds by electr onic means or has not cashed or
15 deposited any check or draft disbursed to the insured in payment of the settlement
16 funds.
17 5. If a settlement agreement is rea ched, and is not res cinded, it shall act as a
18 r elease of all specific claims that were pre sented in the mediation confer ence. Any
19 subsequent claim under the policy shall be pre sented as a separate claim.
379.3042 . If the insur ed decides not to participate in the mediation pr ogram or if
2 the parties are unsuccessful at res olving the claim, the insur ed may choose to pro ceed
3 under the appraisal pr ocess set forth in the insurance policy , by litigation, or by any
4 other dispute res olution pro cedur e available under Missouri law .
379.3045 . If the insur ed res cinds a settlement agreement in accordance with
2 sections 379.3000 to 379.3055, the dir ector may r eview the settlement agreement to
3 determine if the agr eement was fair to the parties to the agree ment. If the dir ector , after
4 completing a r eview and within ten business days after receiving notice of the res cission,
5 deems that the settlement agr eement was fair to the parties, the insur ed, upon notice
6 fr om the dir ector , may withdraw the res cission within five business days after receip t of
7 the order fr om the dir ector , and the settlement agre ement is rein stated as if no res cission
8 had taken place. The dir ector's revi ew and findings shall not be offered or accepted as
9 evidence in any subsequent pro ceedings brou ght under sections 379.3000 to 379.3055.
379.3050 . 1. All statements made and documents pro duced at a mediation
2 confer ence shall be deemed confidential settlement communications.
3 2. All documents and r ecords pr oduced or exchanged prior to or during the
4 mediation confer ence shall be consider ed closed reco rds under chapter 610. These
5 documents and reco rds shall not be subject to subpoena.
6 3. No person who serves as administrator or mediator , nor any agent or
7 employee of that person, shall be subpoenaed or otherwise compelled to disclose any
8 matter disclosed in the pr ocess of setting up or conducting the mediation.
9 4. Any communication rel ating to the dispute made during the r esolution
10 pr ocess by any party , the administrator , mediator , or any other person pr esent at the
11 mediation shall be a confidential communication. No admission, re present ation,
12 statement, or other confidential communication made in setting up or conducting the
HCS HB 3328 14
13 mediation conferen ce not otherwise discoverable or obtainable shall be admissible as
14 evidence nor shall it be subject to discovery .
15 5. If the dir ector or an employee or designee of the dir ector attends a mediation
16 pr oceeding, the dir ector , employee, or designee shall not be compelled to testify about
17 what transpir ed at the mediation or about any other matter in connection with the
18 mediation.
379.3055 . 1. The dir ector shall pro mulgate all necessary rules and reg ulations
2 for the administration of sections 379.3000 to 379.3055. Any rule or portion of a rule, as
3 that term is defined in section 536.010, that is creat ed under the authority delegated in
4 this section shall become effective only if it complies with and is subject to all of the
5 pr ovisions of chapter 536 and, if applicable, section 536.028. This section and chapter
6 536 are nonseverable and if any of the powers vested with the general assembly
7 pursuant to chapter 536 to revi ew , to delay the effective date, or to disappr ove and annul
8 a rule are subsequently held unconstitutional, then the grant of rulemaking authority
9 and any rule prop osed or adopted after August 28, 2026, shall be invalid and void.
10 2. The dir ector shall establish emergency rules and prop osed rules including, but
11 not limited to, the following:
12 (1) Fee schedules for the payment of moneys;
13 (2) The conduct of mediation conferen ces wher e the rule is not in conflict with
14 Missouri supr eme court rule 17;
15 (3) A mediator advising the parties of the mediation process and the parties'
16 rights and duties in the process ; and
17 (4) Any other rule that the dir ector believes is requ ired for the implementation
18 of the mediation pro gram.
19 3. The rules implemented under this section may be amended as necessary ,
20 including emergency rules pr omulgated under section 536.025, if a state of emergency
21 has been declar ed under section 44.100.
22 4. Sections 379.3000 to 379.3055 shall become effective on January 1, 2027, and
23 expir e June 30, 2038.
379.3100 . Sections 379.3100 to 379.3140 shall be known and may be cited as the
2 "Missouri Str onger Homes Act".
379.3105 . For purposes of sections 379.3100 to 379.3140, except wher e otherwise
2 pr ovided, the following terms mean:
3 (1) "Department", the department of commer ce and insurance;
4 (2) "Dir ector", the dir ector of the department;
5 (3) "Eligible pr operty", a resi dential, single-family , owner -occupied re al
6 pr operty within this state;
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7 (4) "Homeowner's policy", a homeowner's insurance policy , a dwelling owner's
8 insurance policy , or a r esidential fir e insurance policy covering real pr operty within this
9 state. "Homeowner's policy" shall not include a mobile homeowner's policy , a tenant's
10 or ren ter's policy , or a condo owner's policy;
11 (5) "Insur ed", the named insured under a re sidential pr operty insurance policy;
12 (6) "Insur er", all insurance companies, r ecipro cals, and interinsurance
13 exchanges licensed under chapters 379 and 380, and the pr operty insurance
1 4 inspection and placement pr ogram (the "F AIR" Plan), issuing and r enewing
1 5 r esidential prop erty insurance policies;
16 (7) "Progr am", the Missouri str onger homes pr ogram creat ed under section
17 379.31 10;
18 (8) "Residential prop erty owner", any individual person who holds legal title to
19 r eal pr operty that has been improv ed by a dwelling structur e intended for res idential,
20 single-family occupancy;
21 (9) "Risk r eduction standards", guidelines and technical specifications designed
22 to minimize the likelihood or impact of wind and hail weather events. "Risk redu ction
23 standards" include, but are not limited to, the use of designated construction materials
24 and prod ucts which demonstrate enhanced res istance to wind or hail, in addition to the
25 utilization of certain design, engineering, inspection, installation methods, and other
26 maintenance pr otocols necessary to ensur e the pro per performance of materials and
27 pr oducts.
379.31 10 . 1. Ther e is her eby creat ed within the department the "Missouri
2 Str onger Homes Pr ogram".
3 2. Sections 379.3100 to 379.3140 do not creat e an entitlement for pr operty
4 owners or obligate this state to fund the inspection, construction, or r etro fitting of
5 r esidential prop erty in this state.
6 3. Grant moneys shall be prov ided under sections 379.3100 to 379.3140 to assist
7 Missouri res idents in r etro fitting and constructing eligible pr operties to res ist loss due to
8 tornado, other catastr ophic windstorm events, or hail.
9 4. Implementation of the pr ogram is subject to the receip t of federal grants or
10 funds fr om other sources of grants or funds, including those funds specified in section
11 379.31 15. The department shall use its best efforts to obtain grants or funds fr om the
12 federal government or other funding sources to supplement the financial res ources of
13 the pro gram.
14 5. The progra m shall apply for financial grants to construct or ret rof it eligible
15 pr operty to res ist damage due to a tornado, other catastroph ic windstorm events, or hail
16 as prescrib ed in section 379.3135.
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17 6. The pr ogram may also make grants or funding available to nonpr ofit entities
18 for project s to construct or ret rof it eligible pro perties to res ist loss due to tornado, other
19 catastr ophic windstorm events, or hail if such grants or funding to nonpr ofit entities ar e
20 allowable under Missouri law . A nonpr ofit entity shall agr ee to administer the grants or
21 funds in the same manner as the progr am is req uired to administer grants or funds, and
22 the nonprof it entity shall pr ovide documentation to the director in a timely manner
23 upon req uest.
24 7. All mitigation efforts shall be based upon the securing of all requi red local
25 permits and applicable inspections in keeping with local building codes and the risk
26 r eduction standards of this pro gram. Mitigation pr ojects are subject to random
27 r einspection of all pr ojects.
28 8. The director shall establish a maximum grant award amount by rule and
29 adjust such amount as necessary to r eflect changes in construction costs. The maximum
30 amount of any grant awarded to an individual res idential pr operty owner shall not
31 exceed fifteen thousand dollars.
379.31 15 . 1. Ther e is hereby creat ed in the state tr easury the "Missouri Str onger
2 Homes Fund", which shall consist of moneys appr opriated or collected under this
3 section.
4 2. The fund shall be a continuing fund, not subject to fiscal year limitations, and
5 shall consist of any moneys deposited to the fund fr om the receip t of federal grants or
6 funds, or fr om other sour ces of grants or funds. All moneys accruing to the credi t of the
7 fund are her eby appr opriated and may be budgeted and expended by the department of
8 commer ce and insurance for the purpose of assisting the Missouri str onger homes
9 pr ogram in performing all duties that rela te to the pr ogram under sections 379.3100 to
10 379.3140. Expenditur es fro m the fund shall be drawn by the state tr easur er , based on
11 claims submitted by the department, and filed with the office of administration.
12 3. Moneys collected under this section shall be deposited in the fund. Moneys in
13 this fund shall not lapse unless otherwise specified under federal funding or federal
14 grant, or a grant or funds fr om another sour ce, or be transferr ed to the insurance
15 examination fund or general reven ue and shall not be redist ributed.
16 4. Notwithstanding any other pro vision of the law to the contrary , twelve million
17 dollars shall be transferred fro m the insurance dedicated fund established under section
18 374.150 and placed to the credi t of the Missouri stro nger homes fund on July 1, 2027.
19 Beginning July 1, 2028, and annually ther eafter until July 1, 2037, up to twenty per cent
20 of the rem aining balance in the insurance dedicated fund as of June thirtieth of the
21 pr eceding fiscal year , in an amount not to exceed two million dollars in any one year ,
22 shall be transferr ed to and placed to the credi t of the Missouri stron ger homes fund.
HCS HB 3328 17
23 5. The state tr easurer shall be custodian of the fund and shall appr ove
24 disbursements fr om the fund in accordance with sections 30.170 and 30.180. Upon
25 appr opriation, moneys in the fund shall be used solely for the purposes of this
26 section. The state tr easurer shall invest moneys in the fund in the same manner as other
27 funds ar e invested. Any interest and moneys earned on such investments shall be
28 cr edited to the fund.
29 6. The pr ovisions of this section shall expir e on June 30, 2038.
30 7. Any moneys rem aining in the Missouri stro nger homes fund at the expiration
31 of the pr ogram on July 1, 2038, shall r evert and be transferr ed back to the insurance
32 dedicated fund established under section 374.150.
379.3120 . 1. T o be eligible for a grant under the Missouri strong er homes
2 pr ogram, res idential prop erty owners applying for a grant shall meet the eligibility
3 r equir ements set forth by the dir ector by rule for each grant type. The r equir ements
4 shall include, but are not limited to, the following:
5 (1) The eligible pr operty shall be located within this state and shall be the
6 primary res idence of the applicant, or , if new construction, the construction shall be
7 located within this state and the applicant shall prov ide other documentation to
8 demonstrate qualification for the grant, as specified by rules pro mulgated by the
9 dir ector;
10 (2) The eligible pr operty to be mitigated shall be an owner -occupied, single-
11 family , primary r esidence and cannot be a condominium, multifamily dwelling, or a
12 mobile home;
13 (3) The eligible pr operty shall be in a livable condition, safe for habitation or use,
14 and otherwise eligible for a certificate of r esidential occupancy , unless damaged by a
15 tornado, other catastr ophic windstorm event, or hail;
16 (4) The grant funds cannot be used for general maintenance or rep airs to the
17 eligible pr operty , but may be used in conjunction with r epairs or reconstr uction
18 necessitated by damages fro m a tornado or other catastroph ic windstorm event or hail;
19 (5) A certified evaluator shall preq ualify the eligible pr operty as mitigable and
20 identify all impro vements r equir ed to achieve the risk reduc tion standards appr oved by
21 the dir ector . The res idential pr operty owner shall select the evaluator fro m a list
22 pr ovided by the dir ector and shall pay the evaluator's fee;
23 (6) The res idential pr operty owner shall obtain bids fro m at least thr ee certified
24 contractors appr oved by the dir ector;
25 (7) The r esidential prop erty owner shall construct or ret rof it the home to the
26 standard appr oved by the director;
HCS HB 3328 18
27 (8) The res idential pr operty owner shall pr ovide pro of of an active, in-for ce
28 homeowner's policy insuring against wind and hail damage to the home, unless good
29 cause is demonstrated by the applicant; and
30 (9) If the eligible pr operty is in a special flood hazard area, the res idential
31 pr operty owner shall pr ovide proo f of an in-for ce flood insurance policy . The flood
32 policy may be fr om the National Flood Insurance Pr ogram (NFIP) or a private insurer .
33 2. Grant applications shall be filed electr onically with the department in the
34 form and manner prescrib ed by the direc tor , along with any applicable transaction fees.
35 3. Grant applications and documents, materials, and other information
36 submitted to the department by resi dential pr operty owners or insur ers in support of
37 a grant application shall be closed recor ds under chapter 610. These record s shall not
38 be subject to open record s r equests, subpoenas, and shall not be subject to discovery or
39 be admissible as evidence in any private civil action. The direc tor is authorized to use
40 the documents, materials, or other information in furtherance of any regu latory or legal
41 action br ought as a part of the director's duties.
42 4. Grants to re sidential pr operty owners shall be used to construct or retr ofit an
43 eligible prop erty to res ist loss due to a tornado or other catastrop hic windstorm event or
44 hail as pr escribed in the risk r eduction standards adopted by the dir ector .
45 5. Retr ofit pr ojects should be completed within six months of the date the
46 r esidential pr operty owner receiv es notice of the grant appr oval. New construction shall
47 be completed within the time frame appr oved by the dir ector . Failur e to complete the
48 pr oject within the pr escribed time frames may res ult in forfeitur e of the grant.
49 6. Grant funds shall only be paid after a certificate has been issued for the
50 eligible pr operty meeting the risk re duction standard appr oved by the dir ector . Grant
51 funds shall be paid by the department or another designated agency , on behalf of the
52 r esidential prop erty owner , dir ectly to the contractor who performed the mitigation
53 work.
54 7. Applications shall be accepted on a first-come, first-served basis within each
55 income tier established by the dir ector , with priority given to lower -income applicants,
56 applicants who live in locations that, based on historical data, have a higher
57 susceptibility to catastr ophic weather events, and applicants meeting any other
58 criteria the director determines are appr opriate to meet the purpose of the pr ogram.
59 8. Any entity pro viding funds to the pr ogram shall be permitted to establish
60 additional rules and guidelines under which those funds may be used, as long as such
61 rules and guidelines do not violate any state or federal law .
62 9. The department may conduct random inspections of funds, record s, and
63 pr operties to detect any fraud.
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379.3125 . 1. A r esidential prop erty owner shall hire a certified contractor who is
2 capable of performing work that satisfies the standards prescribed by this act and the
3 rules adopted ther eto.
4 2. The department shall not endorse or otherwise prov ide pr efer ential tr eatment
5 to any contractor .
6 3. A r esidential pr operty owner is res ponsible for any amount owed to a
7 contractor that exceeds awarded grant moneys.
8 4. T o be eligible to work on a project funded by the stro nger homes pr ogram as a
9 contractor , a contractor shall meet all r equir ements including, but not limited to,
10 maintaining a curr ent copy of all applicable certificates, licenses, and proof of insurance
11 coverages with the department. In addition, a contractor shall:
12 (1) If req uired under Missouri law , hold a valid and active contractor's license or
13 r egistration in Missouri and be fr ee fro m all disciplinary action by any applicable
14 licensing board or boards;
15 (2) Be regi stered to do business in Missouri with the secr etary of state;
16 (3) Have a valid state tax identification number in this state;
17 (4) Have an in-for ce general liability policy with at least five hundr ed thousand
18 dollars in liability coverage;
19 (5) Have workers' compensation and employer's liability insurance in
2 0 accordance with chapter 287;
21 (6) Successfully r egister as a vendor or supplier with the office of
2 2 administration;
23 (7) Maintain accurate contact information with the Missouri strong er homes
24 pr ogram;
25 (8) Agree to follow all proce dures and rules as prescribed by the dir ector;
26 (9) Not have a financial inter est in any pr oject funded by the Missouri stron ger
27 homes progr am for which the contractor performs work other than rece iving payment
28 on behalf of the resi dential prop erty owner fr om the pr ogram and shall r eport to the
29 pr ogram any potential conflicts of interes t before work commences;
30 (10) Not be an evaluator for any pr oject funded by the pro gram; and
31 (1 1) Any other r equir ements as specified by the director by rule.
379.3130 . T o be eligible to work on a pr oject funded by the stron ger homes
2 pr ogram as an evaluator , the evaluator shall meet all req uirements including, but not
3 limited to, the following:
4 (1) Maintaining a curr ent copy of all applicable certificates and licenses with the
5 pr ogram office;
HCS HB 3328 20
6 (2) Agr eeing to follow the progra m's pro cedure s and rules as pr escribed by the
7 dir ector;
8 (3) Maintaining accurate contact information with the pr ogram;
9 (4) Not having any financial interes t in any pr oject that the evaluator inspects
10 for designation purposes for the str onger homes pr ogram;
11 (5) Not being a contractor or supplier of any materials or pr oducts or systems
12 installed in any home the evaluator inspects for designation purposes for the stron ger
13 homes prog ram;
14 (6) Not being a sales agent or r ealtor for any home being designated for the
15 str onger homes pr ogram;
16 (7) Informing the pr ogram of any potential conflicts of interes t; and
17 (8) Any other req uire ments as specified by the dir ector by rule.
379.3135 . 1. For homeowner's insurance policies issued, continued, or renew ed
2 on or after January 1, 2027, insurers shall pr ovide a pr emium discount or insurance
3 rate redu ction in an amount and manner as specified in this section.
4 2. A premiu m discount or rate red uction shall be available under the terms
5 specified in this section to any insur ed who re trofit s the eligible prop erty located in this
6 state to res ist loss due to tornado, other catastrop hic windstorm events, or hail.
7 3. Insur ers shall be r equir ed to offer a pr emium discount or rate r eduction only
8 when the insurer has deemed the adjustments to be actuarially justified and ther e is
9 sufficient and cr edible evidence of cost savings, which can be attributed to the
10 construction standards set forth in this section.
11 4. Insur ers may also offer additional adjustments in deductible, other risk
12 differ entials, or a combination ther eof, collectively ref erred to as other adjustments. T o
13 obtain the pr emium discount, rate redu ction, or other adjustment pr ovided in this
14 section, an eligible pr operty shall be r etr ofitted to the risk r eduction standards adopted
15 by the dir ector . An eligible pr operty shall be certified as conforming to the risk
16 r eduction standards only after evaluation and certification by an evaluator as specified
17 in section 379.3130.
18 5. An insured claiming a pr emium discount, rate redu ction, or other adjustment
19 under this section shall maintain sufficient certification reco rds and construction
20 r ecords for the eligible pr operty , including, but not limited to, a certification of
21 compliance with the risk redu ction standards adopted by the dir ector , recei pts fr om
22 contractors, and receipts for materials. Copies of the certification and construction
23 r ecords shall be pr esented to the insurer or potential insurer of an eligible pr operty
24 befor e the pr emium discount, rate r eduction, or other adjustment becomes effective for
25 the eligible prop erty .
HCS HB 3328 21
26 6. Insur ers that write homeowner's insurance policies that ar e subject to the
27 pr emium discount or rate redu ction in this section shall submit rating plans under
28 section 379.321, accompanied by actuarial justification substantiating the premium
29 discounts or rate r eductions described in this section. A premium discount, rate
30 r eduction, or other adjustment shall apply only to policies that pro vide wind or hail
31 coverage. A premiu m discount, rate redu ction, or other adjustment shall apply only to
32 the premiu m repr esentative of wind or hail damage to eligible pr operty .
33 7. If an insur er alr eady offers an actuarially justified hail res istance discount,
34 that hail-r elated discount shall be deemed as having met the r equir ements of sections
35 379.3100 to 379.3140 as it pertains to hail-r elated discounts or rate re ductions and no
36 additional hail-r elated discount or rate r eduction shall be requ ired.
37 8. If an insure r alrea dy offers an actuarially justified discount for meeting risk
38 r eduction standards, that discount shall be deemed as having met the r equir ements of
39 this act as it pertains to wind-r elated discounts or rate redu ctions and no additional
40 wind-r elated discount or rate redu ction shall be req uired .
41 9. Insur ers shall apply the pr emium discount, rate reduct ion, or other
42 adjustment to the pr emium at the policy renewa l that follows the submission of the
43 certification to the insurer . At the time of a policy ren ewal for which a premium
44 discount, rate redu ction, or other adjustment has pr eviously been made, the insur er
45 may r equest documentation or recert ification that the risk r eduction standards as
46 described in this section continue to be met.
47 10. In addition to the r equir ements of this section, an insur er may voluntarily
48 offer any other mitigation adjustments that the insurer deems appr opriate.
379.3140 . 1. The dir ector may promul gate all necessary rules and reg ulations
2 for the administration of sections 379.3100 to 379.3140, including, but not limited to,
3 establishing the risk r eduction standards, specifying instructions or re quir ements on
4 grants and funds recei ved by the department and establishing other r equir ements
5 r elating to eligibility and certifications. Any rule or portion of a rule, as that term is
6 defined in section 536.010, that is cr eated under the authority delegated in this section
7 shall become effective only if it complies with and is subject to all of the provi sions of
8 chapter 536 and, if applicable, section 536.028. This section and chapter 536 are
9 nonseverable and if any of the powers vested with the general assembly pursuant to
10 chapter 536 to review , to delay the effective date, or to disappr ove and annul a rule ar e
11 subsequently held unconstitutional, then the grant of rulemaking authority and any rule
12 pr oposed or adopted after August 28, 2026, shall be invalid and void.
13 2. Sections 379.3100 to 379.3140 shall expir e on June 30, 2038.
HCS HB 3328 22
380.661. Any company operating under the pr ovisions of sections 380.01 1 to
2 380.151 and sections 380.201 to 380.61 1 shall comply with the pr ovisions of sections
3 379.3000 to 379.3055.
380.671. 1. Any company operating under the pro visions of sections 380.01 1 to
2 380.151 and sections 380.201 to 380.61 1 may develop pr ograms eligible for financial
3 grants under the pr ovisions of sections 379.3100 to 379.3140.
4 2. Any company operating under the pr ovisions of sections 380.01 1 to 380.151
5 and sections 380.201 to 380.61 1 shall not be r equir ed to submit rating plans under
6 section 379.321, or otherwise submit actuarial justifications substantiating any discount
7 or rate associated with the progr am described in sections 379.3100 to 379.3140.
✔
HCS HB 3328 23