In Missouri, the long silence is over. In signing House Bill 709, Governor Jay Nixon has removed the standing order that Insurance Department Director John M Huff keep his opinions to himself.
That order had been in place since a Missouri Supreme Court decision in 2011 had put state agencies on notice their informal bulletins could be reasonably interpreted as rules. Department spokesperson Chris Cline explained that because of the ruling, state agencies could not make statements of a general nature, could not interpret or clarify statutes without first going through a formal rulemaking process.
House Bill 709 specifically allows the department to once again issue bulletins for the purpose of educating consumers and insurers about regulatory topics or issues of interest.
“This is a key piece of legislation that allows regulators to do our jobs more effectively and efficiently,” said Huff. “The department can now proactively communicate with both the industry and consumers about important insurance topics. House Bill 709 is a great example of how the insurance industry and the department can work together to find common sense solutions to reduce regulatory uncertainty and reduce unnecessary regulatory costs that are ultimately passed on to consumers,” he said.
Matt Barton, vice president of government and industry affairs for the Missouri Association of Insurance Agents, said his group supported the bill. “We support measures that facilitate a more productive relationship between the department and the industry,” he said. “The industry is under no illusion that this legislation requires the department to issue regulatory guidance to insurance agents and companies, but it will hopefully improve the current regulatory landscape in which there is an absence of guidance.”
