Blunt says new law will protect consumers from housing schemes

Senate Bill 66, sponsored by Sen. Scott Rupp, R-St. Charles, requires mandatory audits of insurance agency transactions and increases civil penalties for agents who take advantage of customers while selling insurance products or annuities.

Under the legislation, every underwriter must audit its agents at least once a year. Buyers and sellers also will be able to buy an insured closing letter from underwriters to protect their side of the transaction if money is missing.

The legislation also requires licensed title insurance agents to attend eight hours of continuing education every two years.

“No Missourian should have to fall victim to the potentially devastating impacts of insurance fraud,” Gov. Blunt said in a news release. “This bill enacts important provisions to protect Missourians purchasing a new home or investing in their future and cracks down on loopholes to put a stop to unscrupulous insurance agents and ensure all agents protect their customers’ best interest.”

Agents who take advantage of customers face a fine of up to $20,000 per violation with a maximum of $1 million for multiple violations. If the fraud causes a financial loss to the consumer, penalties of up to $1 million per violation with no limit for multiple violations may be issued.