Modifies provisions relating to homeowner's insurance

6512S.05C
1
SENATE COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 1543
AN ACT
To repeal sections 33.080, 325.055, and 375.991,
RSMo, and to enact in lieu thereof thirty -two 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are repealed and thirty -two new sections enacted in lieu
thereof, to be known as sections 33.080, 325.052, 325.055,
375.939, 375.991, 379.135, 379.162, 379.163, 379.3000,
379.3005, 379.3010, 379 .3015, 379.3020, 379.3025, 379.3030,
379.3035, 379.3040, 379.3042, 379.3045, 379.3050, 379.3055,
379.3100, 379.3105, 379.3110, 379.3115, 379.3120, 379.3125,
379.3130, 379.3135, 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 department, board, bureau,
commission, institution, official or agency of the state
government by virtue of any law or rule or regulation made
in accordance with any law, excluding all funds received and
disbursed by the state on behalf of counties and cities,
towns and villages shall, by the official authorized to
receive same, and at stated intervals of not more than
thirty days, be placed in the state treasury to the credit
of the particular purpose or fund for which collected, and
shall be subject to appropriation by the general assembly
for the particular purpose or fund for which collected
during the biennium in which collected and appropriated.
The unexpended balance remaining in all such funds (except

2
such unexpended balance as may remain in any fund
authorized, collected and expended by virtue of the
provisions of the constitution of this state) shall at the
end of the biennium and after all warrants on same have been
discharged and the appropriation thereof has lapsed, be
transferred and placed to the credit of the general revenue
fund of the state by the state treasurer. Any official or
any person who shall willfully fail to comply with any of
the provisions of this section, and any person who shall
willfully violate any provision hereof, shall be deemed
guilty of a misdemeanor; provided, that all such money
received by the curators of the University of Missouri
except those funds required by law or by instrument granting
the same to be paid into the seminary fund of the state, is
excepted herefrom, and in the case of other state
educational institutions there is excepted herefrom, gifts
or trust funds from whatever source; appropriations; gifts
or grants from the federal government, private organizations
and individuals; funds for or from student activities; farm
or housing activities; and other funds from which the whole
or some part thereof may be liable to be repaid to the
person contributing the same; and hospital fees. All of the
above excepted funds shall be reported in detail quarterly
to the governor and biennially to the general assembly.
2. Notwithstanding any provision of law to the
contrary concerning the transfer of funds, [ten] twelve
million dollars shall be transferred from the insurance
dedicated fund established under section 374.150, and placed
to the credit of the [rebuild damaged infrastructure]
Missouri's stronger homes fund created in section [33.295]
379.3115 on [July 1, 2013] July 1, 2027 and amounts as
specified under section 379.3115 on an annual basis
commencing July 1, 2028 and ending on July 30, 2037.

3
325.052. 1. Except as otherwise specified in this
section, a public adjuster may receive a commission for
services provided under this chapter consisting of an hourly
fee, a flat rate, a percentage of the total amount paid by
an insurer to resolve a claim, or another method of
compensation. The total commission received by a public
adjuster shall not, in any circumstance, exceed ten percent
of the amount of the total of the insurance settlement on
the claim.
2. A public adjuster shall not receive a fee or
commission based on a percentage of the total amount paid by
an insurer to settle a claim if, within ten days of
reporting the loss, the insurer either pays or commits in
writing to pay the insured the policy limits.
3. A public adjuster shall not accept any payment or
compensation that violates the provisions of this section.
4. A public adjuster is entitled to reasonable
compensation from the insured for services provided by a
public adjuster on behalf of the insured, based on the
actual time spent on a claim that is subject to this section
and expenses incurred by a public adjuster, until the claim
is paid or the insured receives a written commitment to pay
from the insurer.
5. Notwithstanding any authorization, contract, or
agreement the insured may have given to a public adjuster, a
public adjuster shall not sign or endorse any payment draft
or check on behalf of an insured.
6. Notwithstanding any authorization, contract, or
agreement the insured may have given to a public adjuster, a
public adjuster shall not represent himself or herself in
any communication as the insured. All communications from a
public adjuster shall clearly identify himself or herself as
a public adjuster.

4
7. All contracts with a public adjuster shall include
the following disclaimer, placed immediately above the
signature of the insured, in a bold, twelve-point font:
8. Any violation of subsections 1 to 7 of this section
is a level two violation under section 374.049.
325.055. 1. No person, partnership, association or
corporation, directly or indirectly, acting as a public
adjuster or public adjuster solicitor licensed under the
provisions of sections 325.010 to 325.055, may solicit, or
enter into, an agreement for the repair or replacement of
damaged property on which said public adjuster or public
adjuster solicitor has been engaged to adjust or settle
claims for losses or damages arising out of policies of fire
or allied lines of insurances.
2. No person or entity may:
(1) Acting as a public adjuster, advertise or solicit
business by representing they will or can adjust, negotiate
or settle an insurance claim for which the contractor is
providing or may provide contracting services, regardless of
whether the contractor holds a license under this chapter or
is authorized to act on behalf of the insured under a power
of attorney or other agreement; or
"YOU DON'T HAVE TO HIRE A PUBLIC ADJUSTER TO FILE A
CLAIM WITH YOUR INSURANCE COMPANY. IF YOU HIRE A
PUBLIC ADJUSTER, YOU WILL HAVE TO PAY ALL THE
COSTS. THAT WILL REDUCE THE AMOUNT OF MONEY YOU
GET FROM THE INSURANCE COMPANY TO REPAIR OR REBUILD
YOUR HOME OR REPLACE YOUR BELONGINGS.

IF YOU NEED HELP WITH YOUR CLAIM, THE MISSOURI
DEPARTMENT OF COMMERCE AND INSURANCE WILL HELP YOU
FOR FREE. YOU CAN CALL THE DEPARTMENT AT 800-726-
7390 OR FILE A COMPLAINT ONLINE AT
INSURANCE.MO.GOV/CONSUMERS.".

5
(2) Advertise, market, offer, contract or otherwise
represent to unjustifiably increase or inflate the value of
an insurance claim or to waive, absorb, refund, rebate, pay
or not collect the deductible amount agreed to under or
imposed by the terms of the insurance policy.
3. For purposes of this section, the following terms
shall mean:
(1) "Contractor", a person or entity in the business
of contracting or offering to contract with the owner of
residential, agricultural or commercial real estate to
repair or replace roof systems or to erect, demolish, alter
or repair improvements or to perform any other repair,
replacement, construction, or reconstruction work on any
residential, agricultural or commercial structure situated
upon residential, agricultural or commercial real estate as
a general contractor or a subcontractor;
(2) "Negotiate", the process of discussing or
exchanging offers with an insurance company on an insured's
behalf to reach an agreement with the insurance company on a
settlement amount for a covered loss;
(3) "Roof system", includes roof coverings, roof
sheathing, roof weatherproofing, and insulation.
4. The director shall adopt rules necessary to
implement and enforce this section. Any rule or portion of
a rule, as that term is defined in section 536.010, that is
created under the authority delegated in this section shall
become effective only if it complies with and is subject to
all of the provisions of chapter 536 and, if applicable,
section 536.028. This section and chapter 536 are
nonseverable and if any of the powers vested with the
general assembly pursuant to chapter 536 to review, to delay
the effective date, or to disapprove and annul a rule are
subsequently held unconstitutional, then the grant of

6
rulemaking authority and any rule proposed or adopted after
August 28, 2026, shall be invalid and void.
5. The director is authorized to pursue enforcement
actions and order relief as set forth in sections 374.046 to
374.049.
375.939. 1. As used in this section, "assignment
agreement" means any instrument by which post-loss benefits
under any policy of insurance covering property, including,
but not limited to, any right of action against the insurer
or any proceeds acquired from the insurer are assigned,
transferred, or acquired in any other manner, in whole or in
part, to or from a person providing services, including, but
not limited to, communicating with an insurer or on an
insured's behalf or inspecting, estimating, protecting,
repairing, restoring, or replacing the property or
mitigating against further damage to the property.
2. (1) A person shall not solicit or accept an
assignment, in whole or in part, of any post-loss insurance
benefit for property damage under a contract of insurance.
An assignment agreement is against public policy and is null
and void, and any contract entered into in violation of this
section shall be void and unenforceable; and
(2) The provisions of this subsection shall not apply
to an assignment, transfer, pledge, or conveyance granted to
a financial institution, mortgagee, lienholder or a
subsequent purchaser of the property.
3. A violation of subsection 2 of this section shall
be considered a level 2 violation under section 374.049.
4. Nothing in this section shall be construed to
prohibit an insured from authorizing or directing payment
to, or paying, a person for services, materials, or any
other thing which may be, or is, covered under an insurance
policy. Insurers shall issue payment directly to a person

7
for services, materials, and other items that are covered
under an insurance policy, when the insured agrees that any
person providing such services should be paid directly,
subject to applicable liens.
375.991. 1. As used in sections 375.991 to 375.994,
the term "statement" means any communication, notice
statement, proof of loss, bill of lading, receipt for
payment, invoice, account, estimate of damages, bills for
services, diagnosis, prescription, hospital or doctor
records, x-rays, test results or other evidence of loss,
injury or expense.
2. For the purposes of sections 375.991 to 375.994, a
person commits a "fraudulent insurance act" if such person
knowingly presents, causes to be presented, or prepares with
knowledge or belief that it will be presented, to or by an
insurer, purported insurer, broker, or any agent thereof,
any oral or written statement including computer generated
documents as part of, or in support of, an application for
the issuance of, or the rating of, an insurance policy for
commercial or personal insurance, or a claim for payment or
other benefit pursuant to an insurance policy for commercial
or personal insurance, which such person knows to contain
materially false information concerning any fact material
thereto or if such person conceals, for the purpose of
misleading another, information concerning any fact material
thereto.
3. A "fraudulent insurance act" shall also include but
not be limited to knowingly filing false insurance claims
with an insurer, health services corporation, or health
maintenance organization by engaging in any one or more of
the following false billing practices:

8
(1) "Unbundling", an insurance claim by claiming a
number of medical procedures were performed instead of a
single comprehensive procedure;
(2) "Upcoding", an insurance claim by claiming that a
more serious or extensive procedure was performed than was
actually performed;
(3) "Exploding", an insurance claim by claiming a
series of tests was performed on a single sample of blood,
urine, or other bodily fluid, when actually the series of
tests was part of one battery of tests; [or]
(4) "Duplicating", a medical, hospital or
rehabilitative insurance claim made by a health care
provider by resubmitting the claim through another health
care provider in which the original health care provider has
an ownership interest; or
(5) "Inflating", the intentional overstatement of the
reasonable cost of goods or services or exaggeration of the
extent of damage, injury, or loss by an insured, contractor,
health care provider, or other service provider to increase
the amount of an insurance claim payment or to offset the
amount of the deductible the insured would otherwise be
responsible for under the terms of the policy.
Nothing in sections 375.991 to 375.994 shall prohibit health
care providers from making good faith efforts to ensure that
claims for reimbursement are coded to reflect the proper
diagnosis and treatment.
4. If, by its own inquiries or as a result of
complaints, the department of commerce and insurance has
reason to believe that a person has engaged in, or is
engaging in, any fraudulent insurance act or has violated
any provision of chapters 375 to 385, it may administer
oaths and affirmations, serve subpoenas ordering the

9
attendance of witnesses or proffering of matter, [and]
collect evidence, and issue an order to cease and desist, or
issue a curative or summary order as set forth under section
374.046. The director may refer such evidence as is
available concerning violations of this chapter to the
proper prosecuting attorney or circuit attorney who may,
with or without such reference, initiate the appropriate
criminal proceedings.
5. If the matter that the department of commerce and
insurance seeks to obtain by request is located outside the
state, the person so requested may make it available to the
department or its representative to examine the matter at
the place where it is located. The department may designate
representatives, including officials of the state in which
the matter is located, to inspect the matter on its behalf,
and it may respond to similar requests from officials of
other states.
6. A fraudulent insurance act for a first offense is a
class E felony. Any person who is found guilty of a
fraudulent insurance act who has previously been found
guilty of a fraudulent insurance act shall be guilty of a
class D felony.
7. Any person who pleads guilty or is found guilty of
a fraudulent insurance act shall be ordered by the court to
make restitution to any person or insurer for any financial
loss sustained as a result of such violation. The court
shall determine the extent and method of restitution.
8. Nothing in this section shall limit the power of
the state to punish any person for any conduct that
constitutes a crime by any other state statute.
379.135. 1. Upon payment by an insurer of all or any
part of a claimant's property damage claim, legal title to
the portion of the claim paid shall vest in the insurer to

10
the extent of such payment. No assignment or other action
by the claimant shall be required for the insurer to enforce
its legal title. The claimant shall retain legal title only
to that portion of the property damage claim not paid by the
insurer.
2. Notwithstanding the provisions of subsection 1 of
this section to the contrary, an insured under a policy of
insurance shall not, before or after a claimed or covered
loss, assign or otherwise transfer, in whole or in part, the
insured's:
(1) Duties under the policy; or
(2) Rights or benefits arising from the policy or any
duties owed by the insurer under the policy.
3. Any contract entered into in violation of this
section shall be void and unenforceable.
4. Nothing in this section shall be construed to
prohibit an insured from exercising any express authority
granted under a policy of insurance to authorize or direct
payment to, or to pay, a person for services, materials, or
any other thing that may be, or is, covered under the policy.
379.162. 1. This section shall apply to all
homeowners' policies issued, continued, or renewed on or
after July 1, 2027.
2. As used in this section, the following words and
terms shall mean:
(1) "Homeowner's policy", a homeowner's insurance
policy, a dwelling-owner's insurance policy or a residential
fire insurance policy covering real property within this
state. For purposes of this section, this term shall not
include a manufactured home or mobile homeowner's policy, a
tenant's or renter's policy, or a condo owner's policy;
(2) "Insurer", all insurance companies, reciprocals,
interinsurance exchanges licensed under this chapter, and

11
the property insurance inspection and placement program (the
"FAIR" Plan), issuing and renewing residential property
insurance policies;
(3) "Qualified inspector", a person who is:
(a) A roofing inspector that is accredited by the
National Roof Certification and Inspection Association
(NRCIA) or a nationally recognized equivalent; or
(b) A professional engineer or architect licensed
under chapter 327; or
(c) A roofing contractor who has been in the roofing
business for not less than ten years and who has evidence of
the following:
a. A business registration with the Missouri secretary
of state;
b. A valid Missouri sales tax number; and
c. Possesses a local contractor's license, where
required by a local municipality or county; or
(d) Any other individual or entity recognized by the
insurer as possessing the necessary qualifications to
properly complete a general inspection of the roof of a
residential structure insured under a homeowner's policy.
3. An insurer may not refuse to issue, cancel, or
nonrenew a homeowner's policy insuring a residential
structure with a roof that is less than fifteen years old
solely because of the age of the roof.
4. For a roof that is fifteen years of age or older,
an insurer shall allow a homeowner to have a roof inspection
performed by a qualified inspector at the homeowner's
expense before requiring the replacement of the roof of a
residential structure as a condition of issuing, continuing,
or renewing a homeowner's policy.
5. The insurer shall not refuse to issue, cancel, or
refuse to renew a homeowner's policy solely because of the

12
roof's age if an inspection of the roof of the residential
structure performed by a qualified inspector indicates that
the roof has five years or more of useful life remaining.
6. For purposes of this section, a roof's age shall be
calculated using the last date on which one hundred percent
of the roof's surface area was built or replaced or the
initial date of a partial roof replacement when subsequent
partial roof builds or replacements were completed that
resulted in one hundred percent of the roof's surface area
being built or replaced.
7. This section shall not:
(1) Limit the ability of an insurer to refuse to
issue, cancel, or nonrenew any homeowner's policy on any
other grounds, including, but not limited to, that the
structure does not otherwise meet underwriting criteria
applicable to replacement cost or law and ordinance coverage
or for other reasons not prohibited under Missouri law.
(2) Prohibit an insurer from limiting its liability
under a policy or endorsement through a deductible or to
direct physical loss caused by a covered peril.
379.163. 1. As used in this section, the following
terms shall mean:
(1) "Replacement cost coverage", "replacement cost
value", or "RCV", the coverage that ultimately pays the
estimated cost to repair or replace covered property at the
time of the loss or damage without deduction for
depreciation. "Replacement cost value" is not the market
value, but it is instead the cost to repair or replace
covered property to its pre-loss condition;
(2) "Residential property insurance policy", a
homeowner's insurance, dwelling-owner's insurance,
residential fire insurance, condo owner's insurance, or

13
manufactured home or mobile homeowner's insurance written
upon property within this state;
(3) "Withheld recoverable depreciation" or
"replacement cost holdback", the portion of an insurance
claim payment that an insurer does not pay until the
policyholder completes necessary repairs or replacement of
damaged covered property. Once the repairs or replacements
are completed, the policyholder is eligible to receive the
withheld amount subject to the terms of the insurance policy.
2. An insurer that issues a residential property
insurance policy with replacement cost coverage for roof
damage may refuse to pay a claim for withheld recoverable
depreciation or a replacement cost holdback under the policy
for a roof claim until the insurer receives reasonable proof
of payment by the policyholder of any deductible applicable
to the roof claim.
3. Reasonable proof of payment includes a canceled
check, money order receipt, credit card statement, or copy
of an executed installment plan contract or other financing
arrangement that requires full payment of the deductible
over time.
379.3000. Sections 379.3000 to 379.3055 may be cited
as the "Missouri Disaster Mediation Act".
379.3005. 1. The provisions of sections 379.3000 to
379.3055 provide for a nonadversarial alternative dispute
resolution program for a facilitated claim resolution
process prompted by the critical need for effective, fair,
and timely handling of insurance claims arising out of
damage to residential property caused by an event for which
there is a state of disaster declared within sixty days of
the event.
2. Sections 379.3000 to 379.3055 shall only apply when
the director issues an order initiating the alternative

14
dispute resolution program authorized under the Missouri
disaster mediation act and:
(1) If a state of emergency has been proclaimed for
this state or for an area within this state by the governor,
or by a resolution of the general assembly under section
44.100; or
(2) If the President of the United States has issued a
major disaster declaration for this state or for an area
within this state under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act, 42 U.S.C. Section 5121,
et seq., as amended.
3. The mediation program under sections 379.3000 to
379.3055 shall be available to Missouri residents with first-
party insurance claims resulting from damage to residential
property that serves as a Missouri resident's primary
dwelling located within this state. Sections 379.3000 to
379.3055 shall not apply to commercial insurance, property
insurance covering multiple family dwellings, motor vehicle
insurance, or liability coverage contained within property
insurance policies.
4. After the program has been initiated by order of
the director, it shall remain available to first-party
claimants until the director makes a determination that the
need has decreased due to sufficient progress of recovery
efforts and issues an order terminating same.
379.3010. For purposes of sections 379.3000 to
379.3055, except where otherwise provided, the following
terms mean:
(1) "Administrator", the director or the director's
designee;
(2) "Director", the director of the department of
commerce and insurance;

15
(3) "Disputed claim", any matter on which there is a
dispute as to the cause of loss or amount of loss under a
residential property insurance policy, for which the insurer
has denied payment, in part or whole, with respect to claims
arising from a disaster. Unless the parties agree to
mediate a disputed claim involving a lesser amount, a
"disputed claim" involves the insured requesting five
thousand dollars or more to settle the dispute, or the
difference between the positions of the parties is five
thousand dollars or more. "Disputed claim" does not include
a dispute with respect to which the insurer has reported
allegations of fraud, based on a referral by the insurer's
special investigative unit, to the director. A disputed
claim does not include the following:
(a) A dispute with respect to which the insurer has
reported allegations of fraud, based on a referral by the
insurer's special investigative unit, to the director; or
(b) A dispute in which there has been a denial, in
whole or in part, of coverage for the loss because of
exclusions in the residential property insurance policy,
terms in the policy, conditions in the policy, or if
coverage was not in force at the time of the loss;
(4) "Insured", the named insured under a residential
property insurance policy;
(5) "Insurer", all insurance companies, reciprocals,
interinsurance exchanges licensed under this chapter, and
including Lloyds insurers, surplus lines insurers, and the
property insurance inspection and placement program (the
"FAIR" Plan), issuing and renewing residential property
insurance policies;
(6) "Mediation", the alternative dispute resolution
program established under sections 379.3000 to 379.3055; an
informal process conducted or overseen by a mediator with

16
the objective of helping parties voluntarily settle a
disputed claim;
(7) "Mediator", a neutral person who acts to encourage
and facilitate the resolution of a disputed claim. A
mediator shall not make an award or render a judgment as to
the merits of the claim. A mediator shall not impose the
mediator's judgment on the issues for that of the parties;
(8) "Party or parties", the insured and the insurer;
(9) "Residential property insurance policy or
policies", a homeowner's insurance, dwelling-owner's
insurance, residential fire insurance, condo owner's
insurance, manufactured home or mobile homeowner's
insurance, tenant's or renter's insurance, or any other
contract of insurance covering owner-occupied single-family
habitational property.
379.3015. 1. Insurers shall notify their insureds in
this state who have claimed damage to their residential
properties because of a disaster of their right to mediate
disputed claims. This requirement applies to all disputed
claims, including instances where partial or full payment
has been issued by the insurer to the insured.
2. The insurer shall, by mail or electronic mail,
transmit the notice described in this section to an insured
within five days after the time the insured or the
administrator notifies the insurer, by mail or electronic
mail, of a dispute regarding the insured's claim. The
following conditions apply:
(1) If the insurer has not been notified of a disputed
claim before the time an insurer notifies the insured that a
claim has been denied in whole or in part, the insurer shall
mail a notice of the right to mediate to the insured in the
same mailing as the notice of denial;

17
(2) The insurer is not required to send a notice of
the right to mediate if a claim is denied because the amount
of the claim is less than the insured's deductible;
(3) The transmission that contains the notice of the
right to mediate shall include any consumer brochure on
mediation developed by the director; and
(4) Notification shall be provided to the insured in
writing or by electronic transmission and shall be legible
and conspicuous. If provided in printed form, the notice
shall be printed in at least twelve-point type. If provided
electronically, the notice shall be displayed in a format
that is reasonably calculated to be readable and accessible
to the insured. The first paragraph of the notice shall
contain the following statement:
3. The notice shall also include the following:
(1) Detailed instructions on how the insured is to
request mediation, including the name, address, telephone
number, and website address for requesting a mediation with
the administrator;
"THE GENERAL ASSEMBLY OF MISSOURI HAS ENACTED A LAW
TO FACILITATE FAIR AND TIMELY HANDLING OF
RESIDENTIAL PROPERTY INSURANCE CLAIMS ARISING OUT
OF CATASTROPHIC WEATHER EVENTS. THIS LAW GIVES YOU
THE RIGHT TO ATTEND A MEDIATION CONFERENCE WITH
YOUR INSURANCE COMPANY TO SETTLE ANY DISPUTE YOU
HAVE ABOUT YOUR INSURANCE CLAIM. AN INDEPENDENT
MEDIATOR, WHO HAS NO CONNECTION WITH YOUR INSURANCE
COMPANY, WILL BE IN CHARGE OF THE MEDIATION
CONFERENCE. THERE IS NO COST TO YOU FOR USING THIS
MEDIATION PROCESS.

YOU DO NOT NEED TO HIRE A PUBLIC ADJUSTER OR AN
ATTORNEY TO USE THE MEDIATION PROCESS. IF YOU HAVE
A PUBLIC ADJUSTER OR AN ATTORNEY, YOU WILL HAVE TO
PAY THOSE COSTS.".

18
(2) The insurer's address and telephone number for
requesting additional information; and
(3) Contact information for the consumer affairs
division of the department of commerce and insurance.
379.3020. 1. If an insured requests mediation before
receipt of the notice of the right to mediate or if the date
of the notice cannot be established, the insurer shall be
notified by the administrator of the existence of the
dispute before the administrator processes the insured's
request for mediation. An insured must request mediation
within sixty days after the denial of the claim.
2. The failure to request mediation within this time
period shall only bar the right to demand mediation. It
shall not prejudice any other legal right or remedy of the
insured nor shall it prohibit the insurer from voluntarily
accepting the request for mediation.
3. If an insurer receives a request for mediation, the
insurer shall electronically transmit the request to the
administrator within three business days after receipt of
the request. If the director receives any request, it shall
electronically transmit those requests to the administrator
within three business days after receipt. The administrator
shall notify the insurer within three business days after
receipt of a request that has been filed with the director.
4. In the insured's request for mediation, the insured
shall provide the following information, if known:
(1) Name, address, and daytime telephone number of the
insured and location of the property if different from the
address given;
(2) The claim and policy number for the insured;
(3) A brief description of the nature of the dispute;
and

19
(4) The name of the insurer and the name, address, and
phone number of the contact person for scheduling mediation.
379.3025. 1. The director may contract with qualified
administrators to oversee the mediation program by means of
a formal bid process. A qualified administrator may also be
selected by the director without a formal bid process if a
state of emergency has been declared pursuant to section
44.100. All bid processes must comply with either sections
34.040 or 34.045.
2. The expenses and fees of the mediator and of the
administrator as established by the director are borne by
the insurer. All other mediation costs, fees, or expenses
shall be borne by the party incurring such costs, fees, or
expenses unless otherwise provided in a settlement agreement.
3. The director shall establish fee schedules for
monies to be paid directly to the administrator by the
insurer for the services of the administrator, the mediator,
and for timely and untimely mediation cancellations, with
the cancellation fees to be borne by the canceling party.
Fee schedules shall be established through promulgation of
emergency rules to be in effect no later than January 1,
2027. Such rules establishing fee schedules may be amended
as necessary, including as specified by section 536.025 if a
state of emergency has been declared pursuant to section
44.100.
4. The director, the administrator, and mediators
appointed by the director shall have such official immunity
pursuant to section 537.600 and as exists at common law.
379.3030. 1. The administrator shall select a
mediator and schedule the mediation conference.
2. To be approved, the mediator who provides
alternative dispute resolution services independently or
through an organization shall have appropriate training or

20
equivalent experience in conducting the type of alternative
dispute resolution service the individual or organization
provides, under Missouri supreme court rule 17.
379.3035. 1. The rules adopted by the director shall
include a requirement of the mediator to advise the parties
of the mediation process and their rights and duties in the
mediation process.
2. A mediator shall terminate the mediation conference
if the mediator determines that either party is unable or
unwilling to participate meaningfully in the process or upon
mutual agreement of the parties.
3. An insurer's representative attending a mediation
conference shall:
(1) Bring, in paper or electronic medium, a copy of
the policy and the entire claims file to the conference; and
(2) Know the facts and circumstances of the claim and
be knowledgeable of the provisions of the policy.
4. An insurer shall be deemed to have failed to appear
if the insurer's representative lacks authority to settle
the claim within the limits of the policy.
5. The mediator shall be in charge of the mediation
conference and shall establish and describe the procedures
to be followed.
6. A party may move to disqualify a mediator for good
cause prior to the conference. If the grounds for
disqualification are known before the mediation conference,
the request to disqualify a mediator shall be directed to
the administrator. For purposes of this section, good cause
consists of a conflict of interest between a party and the
mediator, the inability of the mediator to handle the
mediation conference competently, or other reasons that
would reasonably be expected to impair the mediation
conference.

21
379.3040. 1. Within five business days after the
conclusion of the mediation conference, the mediator shall
file with the administrator a mediator's status report, on a
form prescribed by the administrator, indicating whether or
not the parties reached a settlement.
2. Mediation is nonbinding unless all the parties
specifically agree otherwise in writing.
3. If the parties reach a settlement, the mediator
shall include a copy of the settlement agreement with the
status report.
4. Within five business days after the conclusion of
the mediation, if agreed to by the parties, the insurer
shall disburse the settlement funds in accordance with the
terms of the settlement agreement. The insured has three
business days after receipt of the settlement funds within
which to notify the director and the insurer of the
insured's decision to rescind the settlement agreement. The
rescission shall only be valid if the insured has not
received the settlement funds by electronic means or has not
cashed or deposited any check or draft disbursed to the
insured in payment of the settlement funds.
5. If a settlement agreement is reached, and is not
rescinded, it shall act as a release of all specific claims
that were presented in the mediation conference. Any
subsequent claim under the policy shall be presented as a
separate claim.
379.3042. If the insured decides not to participate in
the mediation program or if the parties are unsuccessful at
resolving the claim, the insured may choose to proceed under
the appraisal process set forth in the insurance policy, by
litigation, or by any other dispute resolution procedure
available under Missouri law.

22
379.3045. If the insured rescinds a settlement
agreement in accordance with sections 379.3000 to 379.3055,
the director may review the settlement agreement to
determine if the agreement was fair to the parties to the
agreement. If the director, after completing a review and
within ten business days after receiving notice of the
rescission, deems that the settlement agreement was fair to
the parties, the insured, upon notice from the director, may
withdraw the rescission within five business days after
receipt of the order from the director, and the settlement
agreement is reinstated as if no rescission had taken
place. The director's review and findings shall not be
offered or accepted as evidence in any subsequent
proceedings brought under sections 379.3000 to 379.3055.
379.3050. 1. All statements made and documents
produced at a mediation conference shall be deemed
confidential settlement communications.
2. All documents and records produced or exchanged
prior to or during the mediation conference shall be
considered closed records under chapter 610. These
documents and records shall not be subject to subpoena.
3. No person who serves as administrator or mediator,
nor any agent or employee of that person, shall be
subpoenaed or otherwise compelled to disclose any matter
disclosed in the process of setting up or conducting the
mediation.
4. Any communication relating to the dispute made
during the resolution process by any party, the
administrator, mediator, or any other person present at the
mediation shall be a confidential communication. No
admission, representation, statement or other confidential
communication made in setting up or conducting the mediation

23
conference not otherwise discoverable or obtainable shall be
admissible as evidence nor shall it be subject to discovery.
5. If the director or an employee or designee of the
director attends a mediation proceeding, the director,
employee, or designee shall not be compelled to testify
about what transpired at the mediation or about any other
matter in connection with the mediation.
6. Nothing in this section shall be construed to
require either party to divulge legally privileged
information or documents.
379.3055. 1. The director shall promulgate all
necessary rules and regulations for the administration of
sections 379.3000 to 379.3055. Any rule or portion of a
rule, as that term is defined in section 536.010, that is
created under the authority delegated in this section shall
become effective only if it complies with and is subject to
all of the provisions of chapter 536 and, if applicable,
section 536.028. This section and chapter 536 are
nonseverable and if any of the powers vested with the
general assembly pursuant to chapter 536 to review, to delay
the effective date, or to disapprove and annul a rule are
subsequently held unconstitutional, then the grant of
rulemaking authority and any rule proposed or adopted after
August 28, 2026, shall be invalid and void.
2. The director shall establish emergency rules and
proposed rules including, but not limited to, the following:
(1) Fee schedules for the payment of moneys;
(2) The conduct of mediation conferences where the
rule is not in conflict with Missouri supreme court rule 17;
(3) A mediator advising the parties of the mediation
process and the parties' rights and duties in the process;
and

24
(4) Any other rule that the director believes is
required for the implementation of the mediation program.
3. The rules implemented under this section may be
amended as necessary, including emergency rules promulgated
under section 536.025, if a state of emergency has been
declared under section 44.100.
4. Sections 379.3000 to 379.3055 shall become
effective on January 1, 2027, and expire June 30, 2038.
379.3100. Sections 379.3100 to 379.3140 shall be known
and may be cited as the "Missouri Stronger Homes Act".
379.3105. For purposes of sections 379.3100 to
379.3040, except where otherwise provided, the following
terms mean:
(1) "Department", the department of commerce and
insurance;
(2) "Director", the director of the department;
(3) "Homeowner's policy", a homeowner's insurance
policy, a dwelling owner's insurance policy, or a
residential fire insurance policy covering real property
within this state. "Homeowner's policy" shall not include a
mobile homeowner's policy, a tenant's or renter's policy, or
a condo owner's policy;
(4) "Insurable property", a residential, single-
family, owner-occupied real property within this state.
"Insurable property" shall exclude mobile homes;
(5) "Insurance Institute for Business and Home Safety"
or "IBHS", a nonprofit organization that conducts objective,
scientific research to identify and promote the most
effective ways to strengthen homes, businesses, and
communities against natural disasters;
(6) "Insured", the named insured under a residential
property insurance policy;

25
(7) "Insurer", all insurance companies, reciprocals,
and interinsurance exchanges licensed under this chapter,
and the property insurance inspection and placement program
(the "FAIR" Plan), issuing and renewing residential property
insurance policies;
(8) "Program", the Missouri stronger homes program
created under section 379.3110;
(9) "Residential property owner", any individual
person who holds legal title to real property that has been
improved by a dwelling structure intended for residential,
single-family occupancy.
379.3110. 1. There is hereby created within the
department the "Missouri Stronger Homes Program".
2. Sections 379.3100 to 379.3140 do not create an
entitlement for property owners or obligate this state to
fund the inspection, construction, or retrofitting of
residential property in this state.
3. Grant moneys shall be provided under sections
379.3100 to 379.3140 to assist Missouri residents in
retrofitting and constructing insurable properties to resist
loss due to tornado, other catastrophic windstorm events, or
hail.
4. Implementation of the program is subject to the
receipt of federal grants or funds from other sources of
grants or funds, including those funds specified in section
379.3115. The department shall use its best efforts to
obtain grants or funds from the federal government or other
funding sources to supplement the financial resources of the
program.
5. The program shall apply for financial grants to
construct or retrofit insurable property to resist damage
due to a tornado, other catastrophic windstorm events, or
hail as prescribed in section 379.3135.

26
6. The program may also make grants or funding
available to nonprofit entities for projects to construct or
retrofit insurable properties to resist loss due to tornado,
other catastrophic windstorm events, or hail if such grants
or funding to nonprofit entities are allowable under
Missouri law. A nonprofit entity shall agree to administer
the grants or funds in the same manner as the program is
required to administer grants or funds, and the nonprofit
entity shall provide documentation to the director in a
timely manner upon request.
7. All mitigation efforts shall be based upon the
securing of all required local permits and applicable
inspections in keeping with local building codes and the
IBHS Fortified Homes Program. Mitigation projects are
subject to random reinspection of all projects.
8. The director shall establish a maximum grant award
amount by rule and adjust such amount as necessary to
reflect changes in construction costs. The maximum amount
of any grant awarded to an individual residential property
owner shall not exceed fifteen thousand dollars.
379.3115. 1. There is hereby created in the state
treasury the "Missouri Stronger Homes Fund", which shall
consist of moneys appropriated or collected under this
section.
2. The fund shall be a continuing fund, not subject to
fiscal year limitations, and shall consist of any moneys
deposited to the fund from the receipt of federal grants or
funds, or from other sources of grants or funds. All moneys
accruing to the credit of the fund are hereby appropriated
and may be budgeted and expended by the department of
commerce and insurance for the purpose of assisting the
Missouri stronger homes program in performing all duties
that relate to the program under sections 379.3100 to

27
379.3140. Expenditures from the fund shall be drawn by the
state treasurer, based on claims submitted by the
department, and filed with the office of administration.
3. Moneys collected under this section shall be
deposited in the fund. Moneys in this fund shall not lapse,
unless otherwise specified under federal funding or federal
grant, or a grant or funds from another source, or be
transferred to the insurance examination fund or general
revenue and shall not be redistributed.
4. Notwithstanding any other provision of the law to
the contrary, twelve million dollars shall be transferred
from the insurance dedicated fund established under section
374.150 and placed to the credit of the Missouri stronger
homes fund on July 1, 2027. Beginning July 1, 2028, and
annually thereafter until July 1, 2037, up to twenty percent
of the remaining balance in the insurance dedicated fund as
of June thirtieth of the preceding fiscal year, in an amount
not to exceed two million dollars in any one year, shall be
transferred to and placed to the credit of the Missouri
stronger homes fund.
5. The state treasurer shall be custodian of the fund
and shall approve disbursements from the fund in accordance
with sections 30.170 and 30.180. Upon appropriation, moneys
in the fund shall be used solely for the purposes of this
section. The state treasurer shall invest moneys in the
fund in the same manner as other funds are invested. Any
interest and moneys earned on such investments shall be
credited to the fund.
6. The provisions of this section shall expire on June
30, 2038.
7. Any moneys remaining in the Missouri stronger homes
fund at the expiration of the program on July 1, 2038, shall

28
revert and be transferred back to the insurance dedicated
fund established under section 374.150.
379.3120. 1. To be eligible for a grant under the
Missouri stronger homes program, residential property owners
applying for a grant shall meet the eligibility requirements
set forth by the director by rule for each grant type. The
requirements shall include, but are not limited to, the
following:
(1) The insurable property shall be located within
this state and shall be the primary residence of the
applicant, or, if new construction, the construction shall
be located within this state and the applicant shall provide
other documentation to demonstrate qualification for the
grant, as specified by rules promulgated by the director;
(2) The insurable property to be mitigated shall be an
owner-occupied, single-family, primary residence and cannot
be a condominium, multifamily dwelling, or a mobile home;
(3) The insurable property shall be in a livable
condition, safe for habitation or use, and otherwise
eligible for a certificate of residential occupancy, unless
damaged by a tornado, other catastrophic windstorm event, or
hail;
(4) The grant funds cannot be used for general
maintenance or repairs, but may be used in conjunction with
repairs or reconstruction necessitated by damages from a
tornado or other catastrophic windstorm event or hail;
(5) A certified IBHS evaluator shall prequalify the
insurable property as mitigable and identify all
improvements required to achieve IBHS FORTIFIED Roof,
FORTIFIED Silver, FORTIFIED Gold, or successor designation,
or similar standard approved by the director. The
residential property owner shall select the evaluator from a

29
list provided by the program and shall pay the evaluator's
fee;
(6) The residential property owner shall obtain bids
from at least three IBHS-certified contractors approved by
the program;
(7) The residential property owner shall construct or
retrofit the home to the IBHS FORTIFIED Roof, FORTIFIED
Silver, FORTIFIED Gold, or successor designation, or similar
standard approved by the director, which shall include the
hail supplement;
(8) The residential property owner shall provide proof
of an active, in-force homeowner's policy insuring against
wind and hail damage to the home, unless good cause is
demonstrated by the applicant; and
(9) If the insurable property is in a special flood
hazard area, the residential property owner shall provide
proof of an in-force flood insurance policy. The flood
policy may be from the National Flood Insurance Program
(NFIP) or a private insurer.
2. Grant applications shall be filed electronically
with the department in the form and manner prescribed by the
director, along with any applicable transaction fees.
3. Grant applications and documents, materials, and
other information submitted to the department by residential
property owners or insurers in support of a grant
application shall be closed records under chapter 610.
These records shall not be subject to open records requests,
subpoenas, and shall not be subject to discovery or be
admissible as evidence in any private civil action. The
director is authorized to use the documents, materials, or
other information in furtherance of any regulatory or legal
action brought as a part of the director's duties.

30
4. Grants to residential property owners shall be used
to construct or retrofit an insurable property to resist
loss due to a tornado or other catastrophic windstorm event
or hail as prescribed in the FORTIFIED Home High Wind and
Hail Standards, as may from time to time be adopted by the
IBHS.
5. Retrofit projects should be completed within six
months of the date the residential property owner receives
notice of the grant approval. New construction shall be
completed within the time frame approved by the director.
Failure to complete the project within the prescribed time
frames may result in forfeiture of the grant.
6. Grant funds shall only be paid after a certificate
has been issued for the fortified standard approved by the
director. Grant funds shall be paid by the department or
another designated agency, on behalf of the residential
property owner, directly to the contractor who performed the
mitigation work.
7. Applications shall be accepted on a first-come,
first-served basis within each income tier established by
the director, with priority given to lower-income
applicants, applicants who live in locations that, based on
historical data, have a higher susceptibility to
catastrophic weather events, and applicants meeting any
other criteria the director determines is appropriate to
meet the purpose of the program.
8. Any entity providing funds to the program shall be
permitted to establish additional rules and guidelines under
which those funds may be used, as long as such rules and
guidelines do not violate any state or federal law.
9. The department may conduct random inspections of
funds, records, and properties to detect any fraud.

31
379.3125. 1. Under the program, a residential
property owner shall hire an IBHS-certified contractor who
is capable of performing work that satisfies the standards
prescribed by this act and the rules adopted thereto.
2. The department shall not endorse or otherwise
provide preferential treatment to any contractor.
3. A residential property owner is responsible for any
amount owed to a contractor that exceeds awarded grant
moneys.
4. To be eligible to work on a project funded by the
program as a contractor, a contractor shall meet all program
requirements including, but not limited to, maintaining a
current copy of all applicable certificates, licenses, and
proof of insurance coverages with the department. In
addition, a contractor shall:
(1) If required under Missouri law, hold a valid and
active contractor's license or registration in Missouri and
be free from all disciplinary action by any applicable
licensing board or boards;
(2) Be registered to do business in Missouri with the
secretary of state;
(3) Have a valid state tax identification number in
this state;
(4) Have an in-force general liability policy with at
least five hundred thousand dollars in liability coverage;
(5) Have workers' compensation and employer's
liability insurance in accordance with chapter 287;
(6) Hold an active IBHS FORTIFIED Roof Contractor
Certification or FORTIFIED Professional Certification, and
be responsible for paying all fees associated with
certification and training;
(7) Successfully register as a vendor or supplier with
the office of administration;

32
(8) Maintain accurate contact information with the
Missouri stronger homes program;
(9) Agree to follow all procedures and rules as
prescribed by the director;
(10) Not have a financial interest in any project
funded by the Missouri stronger homes program for which the
contractor performs work other than receiving payment on
behalf of the residential property owner from the program
and shall report to the program any potential conflicts of
interest before work commences; and
(11) Not be an evaluator for any project funded by the
program.
379.3130. To be eligible to work on a project funded
by the program as an evaluator, the evaluator shall meet all
program requirements including, but not limited to, the
following:
(1) Maintaining a current copy of all applicable
certificates and licenses with the program office;
(2) Being in good standing with IBHS and maintaining
an active IBHS certification as a FORTIFIED Home Evaluator.
The evaluator shall be responsible for paying all fees
associated with certification and training;
(3) Agreeing to follow the program's procedures and
rules as prescribed by the director;
(4) Maintaining accurate contact information with the
program;
(5) Not having any financial interest in any project
that the evaluator inspects for designation purposes related
to the program;
(6) Not being a contractor or supplier of any
materials or products or systems installed in any home the
evaluator inspects for designation purposes for the program;

33
(7) Not being a sales agent or realtor for any home
being designated for the program; and
(8) Informing the program of any potential conflicts
of interest.
379.3135. 1. For homeowner's insurance policies
issued, continued, or renewed on or after January 1, 2027,
insurers shall provide a premium discount or insurance rate
reduction in an amount and manner as specified in this
section.
2. A premium discount or rate reduction shall be
available under the terms specified in this section to any
insured who retrofits the insurable property located in this
state to resist loss due to tornado, other catastrophic
windstorm events, or hail.
3. Insurers shall be required to offer a premium
discount or rate reduction only when the insurer has deemed
the adjustments to be actuarially justified and there is
sufficient and credible evidence of cost savings, which can
be attributed to the construction standards set forth in
this section.
4. Insurers may also offer additional adjustments in
deductible, other risk differentials, or a combination
thereof, collectively referred to as other adjustments.
5. To obtain the premium discount, rate reduction, or
other adjustment provided in this section, an insurable
property shall be retrofitted to the FORTIFIED Home High
Wind and Hail Standards, as may from time to time be adopted
by the IBHS. An insurable property shall be certified as
conforming to FORTIFIED Home High Wind and Hail Standards
only after evaluation and certification by an evaluator
certified pursuant to the FORTIFIED Home High Wind and Hail
Standards.

34
6. An insured claiming a premium discount, rate
reduction, or other adjustment under this section shall
maintain sufficient certification records and construction
records for the insurable property, including, but not
limited to, a certification of compliance with the FORTIFIED
Home High Wind and Hail Standards as provided in this
section, receipts from contractors, and receipts for
materials. Copies of the certification and construction
records shall be presented to the insurer or potential
insurer of an insurable property before the premium
discount, rate reduction, or other adjustment becomes
effective for the insurable property.
7. Insurers that write homeowner's insurance policies
that are subject to the premium discount or rate reduction
in this section shall submit rating plans under section
379.321, accompanied by actuarial justification
substantiating the premium discounts or rate reductions
described in this section. A premium discount, rate
reduction, or other adjustment shall apply only to policies
that provide wind or hail coverage. A premium discount,
rate reduction, or other adjustment shall apply only to the
premium representative of wind or hail damage to insurable
property.
8. If an insurer already offers an actuarially
justified hail resistance discount, that hail-related
discount shall be deemed as having met the requirements of
sections 379.3100 to 379.3140 as it pertains to hail-related
discounts or rate reductions and no additional hail-related
discount or rate reduction shall be required.
9. If an insurer already offers an actuarially
justified discount for meeting IBHS FORTIFIED Home
Standards, that discount shall be deemed as having met the
requirements of this act as it pertains to wind-related

35
discounts or rate reductions and no additional wind-related
discount or rate reduction shall be required.
10. Insurers shall apply the premium discount, rate
reduction, or other adjustment to the premium at the policy
renewal that follows the submission of the certification to
the insurer. At the time of a policy renewal for which a
premium discount, rate reduction, or other adjustment has
previously been made, the insurer may request documentation
or recertification that the FORTIFIED Home Standards as
described in this section continue to be met.
11. In addition to the requirements of this section,
an insurer may voluntarily offer any other mitigation
adjustment that the insurer deems appropriate.
379.3140. 1. The director may promulgate all
necessary rules and regulations for the administration of
sections 379.3100 to 379.3140, including any instructions or
requirements on grants and funds received by the
department. Any rule or portion of a rule, as that term is
defined in section 536.010, that is created under the
authority delegated in this section shall become effective
only if it complies with and is subject to all of the
provisions of chapter 536 and, if applicable, section
536.028. This section and chapter 536 are nonseverable and
if any of the powers vested with the general assembly
pursuant to chapter 536 to review, to delay the effective
date, or to disapprove and annul a rule are subsequently
held unconstitutional, then the grant of rulemaking
authority and any rule proposed or adopted after August 28,
2026, shall be invalid and void.
2. Sections 379.3100 to 379.3140 shall expire on June
30, 2038.

36
380.661. Any company operating under the provisions of
sections 380.011 to 380.151 and 380.201 to 380.611 shall
comply with the provisions of 379.3000 to 379.3055.
380.671. 1. Any company operating under the
provisions of sections 380.011 to 380.151 and 380.201 to
380.611 may develop programs eligible for financial grants
under the provisions of 379.3100 to 379.3140.
2. Any company operating under the provisions of
sections 380.011 to 380.151 and 380.201 to 380.611 shall not
be required to submit rating plans under section 379.321, or
otherwise submit actuarial justifications substantiating any
discount or rate associated with the program described in
sections 379.3100 to 379.3140.