Missouri Laws 411.290 – Insurance required, exceptions — rules and regulations
1. Every state licensed public warehouseman shall in his own name at all times keep all the grain contained in his warehouse insured by some reliable insurance company authorized to do business in the state of Missouri. The grain is to be insured for its full market value against loss by fire, inherent explosion, lightning, and windstorm. Failure to do so is a violation of this chapter and shall make the public warehouseman liable for the same on his bond. Except that a warehouseman shall not be required to carry insurance on commodity credit corporation owned grain if the commodity credit corporation elects to be self insured for loss of the grain. The director may promulgate rules governing the submission and acceptance of insurance policies that contain deductible clauses.
2. In case of a fire, inherent explosion, lightning, or windstorm, which shall destroy or damage all or part of the grain stored in any public warehouse, the public warehouseman shall, upon demand by the owner of the grain, or the holder of any warehouse receipt or receipts for such grain, and upon being presented with the warehouse receipt or receipts, or other evidence of ownership, make settlement for the value of the grain covered by the warehouse receipt, or receipts, after deducting the warehouse charges, at the market value of same, basing the value at the average price paid for grain of the same grade and quality at the station where the public warehouse is located on the date of the destruction. In the event settlement is not made within sixty days from the date of the demand, the depositor shall have the right to seek recovery from the insurance company.
Terms Used In Missouri Laws 411.290
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Depositor: any person who deposits grain in a warehouse for storage, handling, shipment, processing, or who is the owner or holder of a warehouse receipt, or who is otherwise lawfully entitled to possession of the grain. See Missouri Laws 411.026
- Director: the director of the Missouri department of agriculture or his designated representative. See Missouri Laws 411.026
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Fraud: Intentional deception resulting in injury to another.
- Grain: all grains for which standards have been established under the United States Grain Standards Act (Sections 71 to 87 of Title 7, United States Code), and any other agricultural commodities, seeds and vegetable oils prescribed by the director by regulation, except the term "grain" shall not include those commodities deemed not to be grain pursuant to section 411. See Missouri Laws 411.026
- Interested person: any person having a contractual or other financial interest in grain stored in a warehouse licensed or required to be licensed under this chapter. See Missouri Laws 411.026
- Person: means and includes any individual, firm, partnership, exchange, association, trustee, receiver, corporation, cooperative, society, public body, political subdivision, or any other business or commercial entity or organization of any kind whatsoever, and any member, officer or employee thereof. See Missouri Laws 411.026
- Public warehouse: a warehouse used for the purpose of storing grain of owners other than the warehouseman, whether grain of the owners be commingled or whether identity of different lots be preserved, or a warehouse used for any purpose for which a license is required under section 411. See Missouri Laws 411.026
- Public warehouseman: any person owning or operating a public warehouse whether that owner or operator resides within the state or not. See Missouri Laws 411.026
- Receipt: a grain warehouse receipt, whether negotiable or nonnegotiable, issued under this chapter. See Missouri Laws 411.026
- rules: rules, regulations and standards promulgated pursuant to this chapter by the director. See Missouri Laws 411.026
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- State: when applied to any of the United States, includes the District of Columbia and the territories, and the words "United States" includes such district and territories. See Missouri Laws 1.020
- Violation: any act contrary to the provisions of this chapter or any failure by a person to act as required by the provisions of this chapter or regulations promulgated hereunder. See Missouri Laws 411.026
- Warehouse: any building, structure or other enclosure in which grain is or may be stored and through which grain is or may be handled or shipped. See Missouri Laws 411.026
- warehouseman: any person who owns, controls, operates or manages any warehouse whether such owner resides within the state or not. See Missouri Laws 411.026
3. Fraud or other criminal act of the warehouseman, to which the holder of a warehouse receipt or other interested person is not a party, shall not deprive the holder of a warehouse receipt, storage receipt or scale ticket, or other interested person, of his right of recovery under such policy of insurance.
4. No insurance policy covering grain shall be cancelled or be allowed to expire by the insurance company on less than ninety days’ notice by certified mail to the director and the principal, except if such policy is being replaced with another policy and evidence of the new policy is filed with the director at the time of cancellation or expiration of the policy on file. The notice shall contain the termination or expiration date. Any replacement insurance shall be provided by, and carried in the name of, the warehouseman. The license of a warehouseman shall automatically be suspended for failure to file new evidence of insurance within thirty days of the director’s receipt of the notice of cancellation or expiration. If replacement insurance is not filed within sixty days of the director’s receipt of notice of cancellation or expiration, the warehouse license shall be automatically revoked. The provisions of subsections 9 and 10 of section 411.275, pertaining to the director, circuit courts, warehousemen, depositors, and other interested persons relating to bond cancellations shall apply similarly to insurance cancellations or expirations.