PURPOSE: This rule provides requirements for use and recordkeeping for insurance companies or reciprocal interinsurance exchanges using rate variations (consent to rate). This rule was adopted pursuant to the provisions of section 374.045, RSMo and implements sections 375.031, 375.136, 379.318.2., 379.321.3. and 379.470.6., RSMo.

1. (1) Standards for the Use of Consent to Rate.

   1. (A) No insurance company or reciprocal interinsurance exchange using rates subject to section 379.318 or 379.470, RSMo shall effect a policy of insurance or a renewal at a rate varying from the rate properly filed for its use on that specific risk unless the form contained as Exhibit A or one (1) substantially similar is completed by the insured.

   2. (B) Reasons for any individual modifications in rate for private passenger automobile or homeowners or occupied residential dwelling fire policies must be entered in Exhibit A and must—

      1. 1. Be highly unusual and have a docu-

mentably probable effect upon losses, stating specifically why the proposed insured is not within a reasonable class or classification system;

1. 2. Be clearly and specifically stated as

to each specific risk factor (such general statements as “Risk does not meet normal rates” are not acceptable);

1. 3. Not be based solely upon the actions

of another insurer toward that insured or that person’s age, residence, race, sex, color, creed, national origin, ancestry or lawful occupation; and

1. 4. The following statement must be a

part of each form 20 CSR 500-4.300 Exhibit A and signed by the insured: “I,_________________, declare that I have been unable to obtain this insurance from other companies and hereby consent to pay the higher rates which I am being charged for this insurance. I understand that any deductible amount stated in my policy will be deducted from each claim I may make under the policy issued me.”

1. (C) Schedule experience rated policies, or both, approved and filed by the Missouri Department of Insurance (MDI) are exempt from this rule.
2. (D) Policies rated on any substandard dwelling schedule or rating plan filed with the MDI are considered special rating policies for the purposes of the record requirements of section (2) of this rule. 20 CSR 500-4

1. (2) Recordkeeping Requirements.

   1. (A) All insurance companies subject to this rule shall—

      1. 1. Complete and execute monthly, with

the signature of a person authorized by the company to do so, Exhibit B;

1. 2. File and preserve the original com-

pleted Exhibits A and B in the company’s policy file and a duplicate copy of each in the company’s Missouri records file; and

1. 3. Transmit to the Department of Insurance a completed signed copy of Exhibit B before the end of the next monthly period.
2. (B) Exhibits A and B or forms substantially similar may be prepared by each company concerned.

AUTHORITY: sections 374.045, RSMo Supp. 1998 and 375.031, 375.136, 379.318(2), 379.321(3) and 379.470(6), RSMo 1994.* This rule was previously filed as 4 CSR 190- 16.080. Original rule filed Dec. 20, 1974, effective Dec. 30, 1974. Amended: Filed April 23, 1999, effective Nov. 30, 1999.

*Original authority: 374.045, RSMo 1967, amended 1993, 1995; 375.031, RSMo 1979, amended 1985, 1986; 375.136, RSMo 1967, amended 1977; 379.318, RSMo 1972; and 379.321, RSMo 1972; and 379.470, RSMo 1947.