HOUSE BILL NO. 3328 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE CASTEEL.
6999H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal sections 33.080, 325.055, and 375.991, RSMo, and to enact in lieu thereof twenty- eight 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Section A. Sections 33.080, 325.055, and 375.991, RSMo, are repealed and twenty- 2 eight new sections enacted in lieu thereof, to be known as sections 33.080, 325.052, 325.055, 3 375.991, 379.162, 379.163, 379.3000, 379.3005, 379.3010, 379.3015, 379.3020, 379.3025, 4 379.3030, 379.3035, 379.3040, 379.3042, 379.3045, 379.3050, 379.3055, 379.3100, 5 379.3105, 379.3110, 379.3115, 379.3120, 379.3125, 379.3130, 379.3135, and 379.3140, to 6 read as follows: 33.080. 1. All fees, funds and moneys from whatsoever source received by any 2 department, board, bureau, commission, institution, official 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 official 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 discharged 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 official or any
EXPLANATION — 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. HB 3328 2
14 person who shall willfully fail to comply with any of the provisions of this section, and any 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 organizations 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 stronger homes fund created in section [33.295] 379.3115 on [July 29 1, 2013] July 1, 2027, and amounts as specified under section 379.3115 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 receive a commission for services provided under this chapter consisting of an hourly 3 fee, a flat rate, a percentage of the total amount paid by an insurer to resolve a claim, or 4 another method of compensation. The total commission received by a public adjuster 5 shall not, in any circumstance, exceed ten percent of the amount of the total of the 6 insurance settlement on the claim. 7 2. A public adjuster shall not receive a fee or commission based on a percentage 8 of the total amount paid by an insurer to settle a claim if, within ten days of reporting 9 the loss, the insurer either pays or commits in writing to pay the insured the policy 10 limits. 11 3. A public adjuster shall not accept any payment or compensation that violates 12 the provisions of this section. 13 4. A public adjuster is entitled to reasonable compensation from the insured for 14 services provided by a public adjuster on behalf of the insured, based on the actual time 15 spent on a claim that is subject to this section and expenses incurred by a public 16 adjuster, until the claim is paid or the insured receives a written commitment to pay 17 from the insurer. 18 5. Notwithstanding any authorization, contract, or agreement the insured may 19 have given to a public adjuster, a public adjuster shall not sign or endorse any payment 20 draft or check on behalf of an insured. HB 3328 3
21 6. Notwithstanding any authorization, contract, or agreement the insured may 22 have given to a public adjuster, a public adjuster shall not represent himself or herself in 23 any communication as the insured. All communications from a public adjuster shall 24 clearly identify himself or herself as a public adjuster. 25 7. All contracts with a public adjuster shall include the following disclaimer, 26 placed immediately above the signature of the insured, in a bold, twelve-point font: 27 "YOU DON'T HAVE TO HIRE A PUBLIC ADJUSTER TO FILE A 28 CLAIM WITH YOUR INSURANCE COMPANY. IF YOU HIRE A 29 PUBLIC ADJUSTER, YOU WILL HAVE TO PAY ALL THE 30 COSTS. THAT WILL REDUCE THE AMOUNT OF MONEY YOU 31 GET FROM THE INSURANCE COMPANY TO REPAIR OR 32 REBUILD YOUR HOME OR REPLACE YOUR BELONGINGS. 33 IF YOU NEED HELP WITH YOUR CLAIM, THE MISSOURI 34 DEPARTMENT OF COMMERCE AND INSURANCE WILL HELP 35 YOU FOR FREE. YOU CAN CALL THE DEPARTMENT AT 800- 36 726-7390 OR FILE A COMPLAINT ONLINE AT 37 INSURANCE.MO.GOV/CONSUMERS.". 38 8. Any violation of subsections 1 to 7 of this section is a level two violation under 39 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 representing they 9 will or can adjust, negotiate, or settle an insurance claim for which the contractor is 10 providing or may provide contracting services, regardless of whether the contractor 11 holds a license under this chapter or is authorized to act on behalf of the insured under a 12 power of attorney or other agreement; or 13 (2) Advertise, market, offer, contract, or otherwise represent to unjustifiably 14 increase or inflate the value of an insurance claim or to waive, absorb, refund, rebate, 15 pay, or not collect the deductible amount agreed to under or imposed by the terms of the 16 insurance policy. 17 3. For purposes of this section, the following terms shall mean: HB 3328 4
18 (1) "Contractor", a person or entity in the business of contracting or offering to 19 contract with the owner of residential, agricultural, or commercial real estate to repair 20 or replace roof systems or to erect, demolish, alter, or repair improvements or to 21 perform any other repair, replacement, construction, or reconstruction work on any 22 residential, agricultural, or commercial structure situated upon residential, agricultural, 23 or commercial real estate as a general contractor or a subcontractor; 24 (2) "Negotiate", the process of discussing or exchanging offers with an insurance 25 company on an insured's behalf to reach an agreement with the insurance company on a 26 settlement amount for a covered loss; 27 (3) "Roof system", includes roof coverings, roof sheathing, roof 28 weatherproofing, and insulation. 29 4. The director shall adopt rules necessary to implement and enforce this section. 30 Any rule or portion of a rule, as that term is defined in section 536.010, that is created 31 under the authority delegated in this section shall become effective only if it complies 32 with and is subject to all of the provisions 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 review, to delay the effective date, 35 or to disapprove and annul a rule are subsequently held unconstitutional, then the grant 36 of rulemaking authority and any rule proposed or adopted after August 28, 2026, shall 37 be invalid and void. 38 5. The director is authorized to pursue enforcement actions and order relief 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. HB 3328 5
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 organization by engaging in any one or more of the following false billing 18 practices: 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 reasonable cost of goods or 30 services or exaggeration of the extent of damage, injury, or loss by an insured, 31 contractor, health care provider, or other service provider to increase the amount of an 32 insurance claim payment or to offset the amount of the deductible the insured would 33 otherwise be responsible 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 efforts 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 affirmations, serve subpoenas ordering the attendance of witnesses or 42 proffering 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 officials of the state in which the matter HB 3328 6
51 is located, to inspect the matter on its behalf, and it may respond to similar requests from 52 officials of other states. 53 6. A fraudulent insurance act for a first offense 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. 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. 379.162. 1. This section shall apply to all homeowners' policies issued, 2 continued, or renewed 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 residential fire insurance policy covering real property within this 6 state. For purposes of this section, this term shall not include a manufactured home or 7 mobile homeowner's policy, a tenant's or renter's policy, or a condo owner's policy; 8 (2) "Insurer", all insurance companies, reciprocals, interinsurance exchanges 9 licensed under chapters 379 and 380, and the property insurance inspection and 10 placement program (the "FAIR" Plan), issuing and renewing residential property 11 insurance policies; 12 (3) "Qualified inspector", a person who is: 13 (a) A roofing inspector that is accredited by the National Roof Certification and 14 Inspection Association (NRCIA) or a nationally recognized equivalent; 15 (b) A professional engineer or architect licensed under chapter 327; 16 (c) A roofing contractor who has been in the roofing business for not less than 17 ten years and who has evidence of the following: 18 a. A business registration with the Missouri secretary of state; 19 b. A valid Missouri sales tax number; and 20 c. Possesses a local contractor's license, where required by a local municipality 21 or county; or 22 (d) Any other individual or entity recognized by the insurer as possessing the 23 necessary qualifications to properly complete a general inspection of the roof of a 24 residential structure insured under a homeowner's policy. HB 3328 7
25 3. An insurer may not refuse to issue, cancel, or nonrenew a homeowner's policy 26 insuring a residential structure with a roof that is less than fifteen years old solely 27 because of the age of the roof. 28 4. For a roof that is fifteen years of age or older, an insurer shall allow a 29 homeowner to have a roof inspection performed by a qualified inspector at the 30 homeowner's expense before requiring the replacement of the roof of a residential 31 structure as a condition of issuing, continuing, or renewing a homeowner's policy. 32 5. The insurer shall not refuse to issue, cancel, or refuse to renew a homeowner's 33 policy solely because of the roof's age if an inspection of the roof of the residential 34 structure performed by a qualified inspector indicates that the roof has five years or 35 more of useful life remaining. 36 6. For purposes of this section, a roof's age shall be calculated using the last date 37 on which one hundred percent of the roof's surface area was built or replaced or the 38 initial date of a partial roof replacement when subsequent partial roof builds or 39 replacements were completed that resulted in one hundred percent of the roof's surface 40 area being built or replaced. 41 7. This section shall not: 42 (1) Limit the ability of an insurer to refuse to issue, cancel, or nonrenew any 43 homeowner's policy on any other grounds, including, but not limited to, that the 44 structure does not otherwise meet underwriting criteria applicable to replacement cost 45 or law and ordinance coverage or for other reasons not prohibited under Missouri law. 46 (2) Prohibit an insurer from limiting its liability under a policy or endorsement 47 through a deductible or to direct 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 residential property insurance policy or under any commercial 50 property insurance policy issued or renewed on or after January 1, 2027. 51 (2) Any attempt to assign post-loss property insurance benefits under a policy 52 issued or renewed on or after January 1, 2027, is void, invalid, and unenforceable. 379.163. 1. As used in this section, the following terms shall mean: 2 (1) "Replacement cost coverage", "replacement cost value", or "RCV", the 3 coverage that ultimat