PURPOSE: This regulation explains the fiduciary duty of a broker to the insured. This regulation was adopted pursuant to the provisions of section 374.045, RSMo and implements section 375.121, RSMo.

Broker’s Duty to Insured. The fiduciary duty imposed by law upon an insurance broker shall run from the broker to the insured and not to the insurer. This duty of an insurance broker to a prospective insured shall include the primary duty of first using any funds received from the prospective insured to pay the premium for the insurance requested.

AUTHORITY: sections 374.045, RSMo Supp. 1993 and 375.121, RSMo 1986.* This rule was previously filed as 4 CSR 190-12.060. Original rule filed Dec. 20, 1974, effective Dec. 30, 1974. *Original authority: 374.045, RSMo 1967, amended 1993 and 375.121, RSMo 1961, amended 1967.