MO SB402

Adds section 375.1605 to Missouri law governing workers' compensation large deductible policies (deductibles of $50,000 or more) when an insurer becomes subject to delinquency proceedings

Defines "large deductible policy" as arrangements where the insured agrees to pay or reimburse the insurer for the initial portion of claims up to a specified dollar amount, shifting partial financial responsibility from insurer to insured

Requires guaranty associations to handle all large deductible claims that qualify as "covered claims," with the insured's payment of deductible claims extinguishing the receiver's or guaranty association's obligation to pay

Mandates the receiver to collect reimbursements from insureds using commercially reasonable actions, with insureds having 60 days to pay after billing if no time is specified in the policy

Establishes collateral rules allowing receivers to draw down collateral when insureds fail to meet payment obligations, with claims against collateral satisfied in the order received