Section 4.20 Missouri “FAIR Plan”

• Library: Insurance Practice 2015

As the direct result of federal legislation, the Missouri Fair Access to Insurance Requirements (FAIR) Plan was created in 1969. Sections 379.810–379.880, RSMo 2000. The purpose of the FAIR Plan is to make basic property insurance available to persons who are unable to procure that coverage in the regular insurance market. Under this program, the Missouri Property Insurance Placement Facility (MPIPF), an amalgam composed of all Missouri property insurance carriers, provides insurance for high-risk property that ordinarily could not be insured. See Graue v. Mo. Prop. Ins. Placement Facility, 847 S.W.2d 779, 784 (Mo. banc 1993).

“Subject to the insurable value thereof, the maximum limits of liability which may be placed through this program are” $100,000 on any habitational property at one location and $1 million on any commercial property at one location. Section 379.825.4, RSMo 2000. Upon application for insurance, the property owner, the insurer, or other producer may request an inspection of the property. Section 379.820, RSMo 2000. Upon receipt of the inspection report, which is due within five business days after the inspection, an underwriter reviews the application and report and, within five business days, determines whether the risk is acceptable. Sections 379.820, 379.830, RSMo 2000. If the risk is acceptable to the facility, the applicant is notified, and a policy insuring the property is issued within three business days of the receipt of the applicable premium. Section 379.830.3. “Neighborhood or area location or...