94-07: Fines on Delinquent Filings

* This bulletin was repealed by 08-05

To:           All Surplus Lines Brokers

From:      Jay Angoff, Director

Re:          Fines on Delinquent Filings

Date:       November 9, 1994

It is the responsibility of the Missouri Department of Insurance to enforce compliance with all insurance statutes and regulations. This bulletin will serve as notice that we will be stringently regulating all filing requirements under Chapter 384.

Effective immediately the Department will begin exercising its authority under Section 384.071, RSMo (Cum. Supp. 1993) for violations of Chapter 384. Section 384.071 provides for imposing a fine in the amount of $1,000.00 on a Missouri surplus lines licensee for the first violation of Sections 384.011 to 384.071 and a fine in an amount not exceeding $2,000.00 for each succeeding violation.

Section 384.031 provides for the reporting of surplus lines placements within thirty (30) days of the effective date of coverage. Section 384.057 requires all individuals holding a Missouri surplus lines license to submit to the department a report under oath before March 2 of each year. They must report on a form prescribed by the Director a summary of all surplus lines transactions procured during the preceding calendar year.

Pursuant to Section 384.071, a fine will be assessed against all licensees for any failure to report a surplus lines placement within thirty (30) days of the effective date of coverage and for any annual tax report not received in this office before March 2. Pursuant to Section 384.071, the first violation of either Section 384.031 or Section 384.057 will result in a fine in the amount of $1,000.00, and every subsequent violation of either section will result in a fine of $2,000.00. It is not necessary that the subsequent violation involve the same statute as the first violation in order for the $2,000.00 fine to be imposed. For example, the first violation may involve Section 384.031 while the second violation may involve Section 384.057; nevertheless, the second violation will result in the imposition of a $2,000.00 fine.