The national guide covers negligence, torts, damages, defenses and liability policy structure. This guide covers the Missouri statutes that apply to liability insurance. The main ones are commercial casualty cancellation and nonrenewal (RSMo 379.882–379.886) and the rules that make an auto liability insurer's duty absolute.

Commercial casualty cancellation and nonrenewal (379.882–379.886)

• Commercial casualty insurance is casualty insurance for business or nonprofit interests, not personal, family or household purposes. It must be provided by a policy, not just a binder (379.882). Professional malpractice policies aren't included (383.010).
• Cancellation needs at least 60 days' prior written notice, except for listed reasons (379.883):
  • nonpayment
  • fraud or material misrepresentation
  • materially increased hazards
  • insurer insolvency
  • involuntary loss of reinsurance
• Nonrenewal needs at least 60 days' notice.
• Moving a policy between affiliated insurers in a holding company system isn't a cancellation or nonrenewal.
• Claims history: within 30 days of a written request, the insurer gives the policyholder a statement of claims for up to the prior 3 years (379.884).
• Withdrawing from a line: the insurer gives the Director 90 days' notice before mailing cancellation or nonrenewal notices for an entire line or class (379.886).

Liability insurance and the injured party

• Under an auto liability policy certified under chapter 303, the insurer's liability becomes absolute when the covered injury occurs. No statement by the insured or policy violation defeats it, and payment of a judgment isn't a precondition (303.190.6).
• In products liability claims, Missouri applies pure comparative fault. Damages are reduced in proportion to the claimant's fault and aren't barred (537.765).

Liability policy concepts tested

• The CGL's main exposures are premises and operations and products-completed operations. These are covered in the national CGL guide.
• A claims-made policy responds to claims first made during the policy period for injury after the retroactive date.

Common exam traps

• Commercial casualty: 60 days' notice to cancel (other than the listed reasons) or nonrenew.
• Claims history on request: 3 years, delivered within 30 days.
• Leaving a line requires 90 days' notice to the Director.
• Professional malpractice isn't commercial casualty under these sections.