MO HB609

Adds new section 375.1605 to Missouri law establishing procedures for handling workers' compensation large deductible policies when an insurer becomes subject to delinquency proceedings

Defines "large deductible policy" as any workers' compensation policy with a deductible of $50,000 or more where the insured agrees to pay or reimburse the initial portion of claims

Requires guaranty associations to handle all large deductible claims that qualify as "covered claims," with the receiver obligated to collect reimbursements from insureds using commercially reasonable actions

Authorizes receivers to draw down collateral (cash, letters of credit, surety bonds) when insureds fail to meet payment obligations, with claims against collateral satisfied in the order received

Specifies that insurer insolvency is not a defense to an insured's reimbursement obligations, and allegations of improper claim handling (except gross negligence) cannot excuse payment requirements