PURPOSE: This rule advises insurance companies of factors that the director will consider in determining what is indirect compensation which might lead to violations of the forty percent commission cap limit that may be paid to creditors under Chapter 385, RSMo.

1. (1) Insurance companies investing in Certificates of Deposit with financial institutions which are the purveyors of the company’s credit insurance shall obtain the highest rates of return available on the investment of similar sums of money in the certificates at the time of investment. To determine the highest rate of return payable on the Certificates of Deposit, the director will review the rate of interest being paid by the financial institution to all commercial investors on similar sums of money and the rate of return received by the insurance company on all other Certificates of Deposit invested at approximately the same time with financial institutions which are not purveyors of its credit insurance together with any other pertinent information.
2. (2) The difference between the rate of return paid to the insurance company on Certificates of Deposit by financial institutions which are the purveyors of the company’s credit insurance and the highest rate of return available at the time of purchase of the Certificates of Deposit will be considered to be direct or indirect compensation under section 385.070.2(3), RSMo 1986.

AUTHORITY: sections 374.045, RSMo Supp. 1993, 385.070, RSMo Supp. 1992 and 385.075, RSMo 1986.* This rule was previously filed as 4 CSR 190-13.210. Original rule filed Aug. 13, 1981, effective Nov. 16, 1981. *Original authority: 374.045, RSMo 1967, amended 1993; 385.070, RSMo 1977, amended 1983, 1991, 1992; and 385.075, RSMo 1977. (4/30/98)* Rebecca McDowell Cook