PURPOSE: This regulation prohibits policyholders from settling their own losses, pursuant to the provisions of section 374.045, RSMo (1986) and implements section 375.445, RSMo (1986).

No insurer, agent or representative shall permit or allow a policyholder, whether corporate or individual, to engage in the settlement of third-party liability claims against that policyholder’s liability coverage on behalf of the insurer when premiums payable for third-party liability coverage are calculated or are to be modified on the basis of third-party liability losses, loss payments or settlement expenses.

AUTHORITY: sections 374.045 and 375.445, RSMo (1986). This rule was previously filed as 4 CSR 190-10.055. Original rule filed Aug. 5, 1974, effective Aug. 15, 1974.