PURPOSE: This rule effectuates and aids in the interpretation of the definitions of insurance agent and broker as stated in sections 375.012, RSMo and 381.031(17), RSMo by outlining those activities for which licensure is required.

1. (1) Solicitation of an Insurance Contract.

   1. (A) Unless otherwise specifically provided by section 375.012, RSMo, no person shall solicit an insurance contract in Missouri unless s/he is a licensed insurance company, its employee or an agent or broker.

   2. (B) Solicitation of an insurance contract includes, but is not limited to, the following activities:

      1. 1. Advising a prospective purchaser on

the effects of his/her age, health or other riskrelated conditions with respect to purchasing a particular policy;

1. 2. Counseling any prospective purchaser

to buy a particular policy or to insure with a particular company;

1. 3. Initiating sales over the telephone;
2. 4. Advising an insured to purchase addi-

tional insurance when receiving payment for existing business;

1. 5. Signing an application or an order for

insurance;

1. 6. Making or proposing to make an

insurance contract;

1. 7. Counseling a prospective purchaser

regarding the terms or rates for a particular policy or policy; and

1. 8. Advising a prospective purchaser on

the terms of existing coverage.

1. (2) Negotiation of an Insurance Contract.

   1. (A) Unless otherwise specifically provided by section 375.012, RSMo, no person shall negotiate an insurance contract between an insured and a third party in Missouri unless s/he is a licensed insurance company, its employee or an agent or broker.

   2. (B) Negotiation of an insurance contract includes, but is not limited to, the following activities:

      1. 1. Advising a prospective purchaser on

the premium cost of a proposed contract of insurance, including the quoting of rates;

1. 2. Advising a prospective purchaser on

the coverages or terms of a proposed contract of insurance, including counseling as to which coverages to buy; or

1. 3. Recommending or independently ini-

tiating additions or deletions to an insured’s policy.

1. (3) Procurement of an Insurance Contract.

   1. (A) Unless otherwise specifically provided by section 375.012, RSMo, no person shall procure an insurance contract in Missouri unless s/he is a licensed insurance company, its employee or an agent or broker.

   2. (B) Procurement of an insurance contract includes, but is not limited to, the following activities:

      1. 1. Signing binders, certificates of insur-

ance, commitments, endorsements, insurance identification cards and insurance policies;

1. 2. Indicating that the requested coverage

is or will be bound or issued; or

1. 3. Issuing certificates of insurance,

endorsements, binders, commitments, insurance policies or insurance identification cards except when done by a group policyholder.

1. (4) Duty to Have Insurance Agent/Broker at Each Place of Business.

   1. (A) Each place of business of an agent, broker or agency must contain the principal office of at least one (1) licensed agent or broker.
   2. (B) A licensed agent or broker shall be held responsible for all insurance-related activities performed by an unlicensed individual under the supervision of that agent or broker.
2. (5) Discipline for Violation. The director of the Missouri Department of Insurance may institute disciplinary action for violations of this regulation in accordance with the provisions of section 375.141, RSMo and any other applicable law.

AUTHORITY: sections 374.045, RSMo Supp. 1993, 375.012, RSMo 1986 and 381.031.17., RSMo Supp. 1989.* This rule was previously filed as 4 CSR 190-12.025. Original rule filed Dec. 1, 1989, effective June 30, 1990. *Original authority: 374.045, RSMo 1967, amended 1993; 375.012, RSMo 1965, amended 1967; and 381.031, RSMo 1987.