PURPOSE: This regulation explains insurance brokers’ licensing standards and procedures in Missouri.

1. (1) Examination. Any individual who wishes to be licensed as an insurance broker must first take and pass an examination. The procedure to be followed is set out in 20 CSR 700-1.010(1).

2. (2) Application.

   1. (A) Each applicant for a broker license shall file with the director of the Department of Insurance a completed application on the form prescribed by the director.
   2. (B) Every application shall be accompanied by a one hundred dollar ($100)-application fee pursuant to section 375.076, RSMo. Fees are not refundable. Personal checks will not be accepted as payment for any fee.
   3. (C) Every nonresident applicant also shall submit a certified statement from the insurance regulatory official in the applicant’s domiciliary state listing the lines of insurance for which the applicant is licensed in that state.
   4. (D) The fee to accompany a nonresident broker license shall be one hundred dollars ($100).

3. (3) License Renewals.

   1. (A) There will be a biennial renewal fee of one hundred dollars ($100) for a broker license.
   2. (B) If the broker’s license renewal fee is not paid on or before ninety (90) days after the biennial renewal date, the license shall terminate and cannot be reinstated unless and until a late fee of twenty-five dollars ($25) per month or fraction thereof after the biennial anniversary date is paid. Upon payment of the entire amount due under this provision, the license will be reinstated, effective back to the biennial anniversary date.
4. (4) Notification. Every broker shall notify the director of those insurance companies, agents, agencies and surplus lines brokers with whom s/he places risks. This notification shall take place within ten (10) days after s/he places the first risk with the insurance company or surplus lines broker, agent or agency. Every broker also shall notify immediately the director when s/he no longer intends to place these risks with the insurance company or surplus lines broker agent or agency on a regular basis.

5. (5) Brokers’ Service Agreements.

   1. (A) The form set forth in Exhibit A is approved for use as specified in section 375.116, RSMo. Substantially equivalent forms may be approved by the director where they contain additional provisions and do not affect the content of Exhibit A. Any such agreement must be a separate document from any other form or contract.
   2. (B) A separate agreement shall be completed for each contract of insurance negotiated or procured where broker’s compensation falls within the requirements of section 375.116.3, RSMo. Each broker shall retain one (1) copy of this in his/her office for three
6. (3) years and deliver one (1) copy to the insured.
7. (6) Brokers Applying for an Insurance Agent’s License. Any broker who makes application for an insurance agent’s license covering the same line(s) of insurance covered by his/her insurance broker’s license will be deemed to have met the prelicensing educational requirements and the examination requirements for those lines of insurance. If the broker applies for lines of insurance for which s/he is not licensed as a broker, however, the broker will need to fulfill both requirements for those lines before s/he will be issued an insurance agent’s license for those lines.

AUTHORITY: sections 374.045, RSMo (Supp. 1995) and 375.071–375.136, RSMo (1994).* This rule was previously filed as 4 CSR 190-12.080. Original rule filed Dec. 23, 1975, effective Jan. 2, 1976. Amended: Filed Oct. 14, 1981, effective Jan. 15, 1982. Amended: Filed Jan. 17, 1986, effective June 28, 1986. Amended: Filed Oct. 15, 1996, effective May 30, 1997. *Original authority: 374.045, RSMo (1967), amended 1993, 1995 and 375.071–375.136, see Revised Statutes of the State of Missouri, 1994 and Cumulative Supplement, 1996. Missouri Brokers Service 1. The undersigned insured hereby engages the services of _______________, a licensed Missouri insurance broker, license #___________, as his/her agent for the purpose of securing, negotiating and procuring the placement of the following described insurance coverages and to assist the undersigned in the preparation of any and all applications, underwriting data, and other information required by an insurer for the purposes of issuing an insurance policy within this state. The insurance coverage requested is: (Here describe in detail the coverage to be effected.) 2. The undersigned insured authorizes the broker to commit to a maximum premium of not more than ____________ per______________ for the above-stated coverage. The undersigned insured agrees to pay as compensation to the broker, above and in addition to the commission received from the insurer, for the various services of the broker a fee of not more than $________________________. 3. A brief description of those brokers services performed and not described in paragraph 1. above is:______________________________ This agreement is in furtherance of section 375.116, RSMo (1986) and Missouri Department of Insurance Regulation 20 CSR 700-1.100. Dated: Dated: 20 CSR 700-1 Exhibit A Contract (Insured) (Broker)