MO SB894

Repeals and replaces section 408.040, RSMo, to modify judgment interest rates for both tort and nontort actions in Missouri.

For nontort actions, changes the default interest rate from nine percent to the adjusted rate established by the director of revenue plus two percent, or five percent, whichever is less.

For tort actions, replaces the Federal Funds Rate formula with the adjusted rate established by the director of revenue plus two percent, with a five percent maximum cap on interest rates.

Establishes requirements for tort claimants to qualify for prejudgment interest, including written certified mail demands with supporting documentation and a 90-day waiting period before filing suit.

Allows prejudgment interest on judgments exceeding settlement demands or payment offers, calculated from 90 days after receipt of the demand or from the date of rejection, whichever is earlier.