PURPOSE: This regulation explains business entity insurance producer licensing standards and procedures in Missouri.

1. (1) Business Entity Insurance Producers Defined.

   1. (A) An insurance producer license must be obtained for each business entity meeting the definition of insurance producer in section 375.012(6), RSMo.

   2. (B) Sole Proprietors.

      1. 1. An insurance producer who is a sole

proprietor conducting his/her insurance business in his/her legal name, including any first name or nickname, and who is the only licensed person conducting the insurance business under the name, is not required to obtain an additional license as a business entity insurance producer. The insurance producer doing the insurance business as described above may use the terms, “insurance agency,” “agency,” and other similar descriptive terms with the use of the legal name, including any first or nickname, without the necessity of obtaining a separate business entity insurance producer license.

1. 2. An insurance producer who is a sole

proprietor conducting his/her insurance business in his/her legal name, including any first name or nickname, and who has other licensed persons conducting the insurance business under the name of the sole proprietor, is required to obtain a license as a business entity insurance producer.

1. 3. An insurance producer who is a sole

proprietor conducting an insurance business in a name other than his/her legal name, including any first name or nickname, with or without other licensed persons, is required to obtain a business entity insurance producer license.

1. (C) If a business entity is acting as an insurance producer under more than one (1) name or operates subsidiaries under differing names which also come within the definition of insurance producer, all these subentities must be licensed as insurance producers.

1. (2) Corporations, associations, partnerships, limited liability companies, limited liability partnerships, or other legal entities shall submit a copy of its Certificate of Good Standing as issued by the Missouri Secretary of State or a current certification from the state or federal agency governing the applicant’s authority to do business that the applicant is then in good standing to do business. If the other licensed persons are conducting the business of insurance in their own names, no separate business entity producer license is required.

2. (3) Organizational Credit Business Entities.

   1. (A) In addition to the application fee required by section 375.065, RSMo, organizational credit business entities shall submit a fee of eighteen dollars ($18) per employee to whom the business entity pays any salary or commission for the solicitation, negotiation, or sale of credit insurance contracts.
   2. (B) Organizational credit business entity licenses shall be renewed as required under section 375.065, RSMo. At renewal, an organizational credit business entity shall include a list of employees to whom the business entity has paid, within the preceding twelve (12) months, any salary or commission for the solicitation, negotiation, or sale of credit insurance contracts.

AUTHORITY: sections 374.045, 375.013, 375.041, RSMo 2000, 375.012, 375.014, 375.016, 375.017, 375.019, 375.020, 375.022, 375.025, 375.031, 375.033, 375.035, 375.037, 375.039, 375.046, 375.051, RSMo Supp. 2001, 375.018, RSMo Supp. 2002. This rule was previously filed as 4 CSR 190-12.090. Original rule filed Dec. 23, 1975, effective Jan. 2, 1976. Amended: Filed July 15, 1976, effective Dec. 20, 1976. Amended: Filed Oct. 14, 1981, effective Jan. 15, 1982. Amended: Filed April 28, 1994, effective Oct. 30, 1994. Amended: Filed April 23, 1999, effective Nov. 30, 1999. Amended: Filed July 12, 2002, effective Feb. 28, 2003. *Original authority: see Missouri Revised Statutes, 2000 and Cumulative Supplement to the Revised Statutes of the State of Missouri, 2001 and 2002. Op. Atty. Gen. No. 286, Dalton (6-18-68). An insurance agency originally licensed after January 1, 1968, is required to pay an annual license fee of $25 on or before July 1, 1968, under the provisions of section 375.061, RSMo (Supp. 1967). Op. Atty. Gen. No. 177, Dill (5-2-68). “True name” as used in section 375.012, subsection (2), RSMo (Supp. 1967), means a person’s actual and not fictitious name and includes a surname, a first name and a middle name or initial. Op. Atty. Gen. No. 145, Scharz (9-15-66). A corporation may not be a licensed insurance agent. Therefore, an insurance company cannot pay agent’s commission to a corporate insurance agency.