Missouri § 375.445 - Company operating fraudulently or in bad faith, penalties.
Full text of Missouri Revised Statutes of Missouri § 375.445 — Company operating fraudulently or in bad faith, penalties., with citation guidance and answers to common questions.
§ 375.445. Company operating fraudulently or in bad faith, penalties.
1. It is unlawful for any insurance company transacting business under the laws of this state to:
(1) Conduct its business fraudulently;
(2) Fail to carry out its contracts in good faith; or
(3) Habitually and as a matter of business practice compelling claimants under policies or liability judgment creditors of the insured to either accept less than the amount due under the terms of the policy or resort to litigation against the company to secure payment of the amount due.
2. If the director determines that a person has engaged, is engaging in, or has taken a substantial step toward engaging in an act, practice or course of business constituting a violation of this section or a rule adopted or order issued pursuant thereto, or that a person has materially aided or is materially aiding an act, practice, omission, or course of business constituting a violation of this section or a rule adopted or order issued pursuant thereto, the director may issue such administrative orders as authorized under section 374.046. Each practice in violation of this section is a level two violation under section 374.049. Each act as a part of a practice does not constitute a separate violation under section 374.049. The director may also suspend or revoke the license or certificate of authority of such person for any willful violation.
3. If the director believes that a person has engaged, is engaging in, or has taken a substantial step toward engaging in an act, practice or course of business constituting a violation of this section or a rule adopted or order issued pursuant thereto, or that a person has materially aided or is materially aiding an act, practice, omission, or course of business constituting a violation of this section or a rule adopted or order issued pursuant thereto, the director may maintain a civil action for relief authorized under section 374.048. Each practice violation of this section is a level two violation under section 374.049. Each act as part of a practice does not constitute a separate violation under section 374.049.
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(L. 1967 p. 516, A.L. 2007 S.B. 66)
---- end of effective 28 Aug 2007 ----
Source: official Missouri text · Last verified 2026-08-27
Frequently Asked Questions About Missouri § 375.445
What does Revised Statutes of Missouri § 375.445 cover?
Section 375.445 ("Company operating fraudulently or in bad faith, penalties.") is part of the Revised Statutes of Missouri, the codified statutory law of Missouri. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Missouri § 375.445?
A common citation format is "Revised Statutes of Missouri § 375.445" (Missouri). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Missouri law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Missouri official source linked on this page or consult a licensed Missouri attorney.
How does Missouri § 375.445 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Missouri can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Missouri.