On Oct. 24, MCH LEG passed bill on producers and fiduciary duty.
MCH LEG passed HB 4376 to amend MCH INS 500.1207 re producers, fiduciary duties.
Bill Provisions
Modified how producer (agent) could hold/return premiums within fiduciary capacity.
Require an agent to treat all premiums and return premiums as fiduciary money.
Agent cannot commingle premiums or return premiums with the agent's own money.
Also cannot deposit money from agent's account except for the deposit to maintain it.
Agents are also required to document the receipt of the fiduciary money.
Cannot accept payment of premium for a Medicare supplemental policy or certificate in the name of the agent, instead of the name of insurer, immediately provide receipt.
Legislative History
On Apr. 11, 2023, bill introduced in House; on May 11, 2023, bill was passed in House.
On May 16, 2023, bill delivered to Senate; on Oct. 19, 2023, bill passed in Senate.
On Oct. 24, 2023, bill ordered enrolled, pending delivery to governor for signature.
Effectiveness
Once approved, bill will take effect 180 days after the date it is enacted into law.
Nov. 2023 MCH LEG Governor Approval
On Nov. 7, 2023, MCH LEG governor signed HB 4376 into law and assigned PA 181.
Act becomes effective 180 days after the date enacted into law, on May 5, 2024.
