Source: http://www.moga.mo.gov/mostatutes/Chapters/ChapText382.html
Timestamp: 2017-10-22 03:02:53
Document Index: 310490875

Matched Legal Cases: ['§ 1', '§ 5', '§ 6', '§ 7', '§ 9', '§ 10', '§ 11', '§ 12', '§ 13', '§ 15', '§ 16', '§ 17', '§ 18', '§ 19', '§ 20', '§ 21', '§ 22', '§ 23', '§ 25', '§ 26', '§ 27', '§ 28', '§ 30', '§ 31', '§ 32', '§ 33', '§ 7', '§ 8', '§ 9', '§ 10', '§ 11']

Chapter 382 RSMO
←Chapter: 381
Chapter: 383→ August 28, 2016
382.010. As used in sections 382.010 to 382.300, the following words and terms have the meanings indicated unless the context clearly requires otherwise:
(3) "Director", the director of the department of insurance, financial institutions and professional registration, his or her deputies, or the department of insurance, financial institutions and professional registration, as appropriate;
(5) "Insurance holding company system", two or more affiliated persons, one or more of which is an insurer;
(6) "Insurer", an insurance company as defined in section 375.012, including a reciprocal or interinsurance exchange, and which is qualified and licensed by the department of insurance, financial institutions and professional registration of Missouri to transact the business of insurance in this state; but it shall not include any company organized and doing business under chapter 377, 378, or 380, agencies, authorities, or instrumentalities of the United States, its possessions and territories, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state;
(7) "Person", an individual, corporation, limited liability company, partnership, association, joint stock company, trust, unincorporated organization, or any similar entity, or any combination of the foregoing acting in concert, but shall not include any joint venture partnership exclusively engaged in owning, managing, leasing, or developing real or tangible personal property;
(8) A "securityholder" of a specified person is one who owns any security of that person, including common stock, preferred stock, debt obligations, and any other security convertible into or evidencing the right to acquire any of the foregoing;
(9) A "subsidiary" of a specified person is an affiliate controlled by that person directly, or indirectly through one or more intermediaries;
(10) The term "voting security" includes any security convertible into or evidencing a right to acquire a voting security.
(L. 1971 S.B. 101 § 1, A.L. 2015 H.B. 50)
Domestic insurers, authorized investments, ownership and managementpractices.
382.020. 1. Any domestic insurer, either by itself or in cooperation with one or more persons, may invest in, otherwise acquire or operate one or more subsidiaries engaged or registered to engage in one or more of the following businesses:
Disposal of investment required, when.
382.030. If an insurer ceases to control a subsidiary, it shall dispose of any investment therein made pursuant to sections 382.010 to 382.300 within three years from the time of the cessation of control or within such further time as the director may prescribe, unless at any time after the investment has been made, the investment meets the requirements for investment under any other investment law applicable to the insurer, and the insurer has notified the director thereof.
(L. 1971 S.B. 101 § 5)
Securities of domestic insurers, regulation of trading in--divestmentof a controlling interest, procedure.
4. For purposes of this section, a domestic insurer shall include any person controlling a domestic insurer unless such person, as determined by the director, is either directly or through its affiliates primarily engaged in business other than the business of insurance; however, such person shall file a preacquisition notification with the director containing the information set forth in section 382.095 thirty days prior to the proposed effective date of the acquisition. Any person who fails to file the preacquisition notification required by this section shall be subject to the penalties provided in subsection 5 of section 382.095. For the purposes of this section and sections 382.050, 382.060, 382.070, 382.080 and 382.090, "person" shall not include any securities broker holding, in the usual and customary broker's function, less than twenty percent of the voting securities of an insurance company or of any person which controls an insurance company.
(L. 1971 S.B. 101 § 6, A.L. 1983 H.B. 633 merged with S.B. 333, A.L. 1992 H.B. 1574, A.L. 2015 H.B. 50)
Statement, contents.
382.050. 1. The statement to be filed with the director shall be made under oath or affirmation and shall contain the following:
(12) The terms of any agreement, contract or understanding made with or proposed to be made with any broker-dealer as to solicitation of securities referred to in section 382.040 for tender, and the amount of any fees, commissions or other compensation to be paid to broker-dealers with regard thereto;
(13) An agreement by the person required to file the statement referred to in section 382.040 that the annual report specified in section 382.175 will be provided for so long as control exists;
(L. 1971 S.B. 101 § 7, A.L. 1983 H.B. 633 merged with S.B. 333, A.L. 1992 H.B. 1574, A.L. 2015 H.B. 50)
Approval of merger or acquisition of control, when--hearing,notice--consolidated hearing, when--change of control,restoration of capital, when.
382.060. 1. The director shall approve any merger or other acquisition of control referred to in section 382.040 unless after a public hearing the director finds that:
Excepted transactions.
382.070. The provisions of sections 382.040, 382.050 and 382.060 shall not apply to:
(1) Any transaction which is subject to the provisions of section 375.355 or 375.861; or
(2) Any offer, request, invitation, agreement or acquisition which the director by order shall exempt therefrom as not having been made or entered into for the purpose and not having the effect of changing or influencing the control of a domestic insurer, or as otherwise not comprehended within the purposes of sections 382.010 to 382.300.
(L. 1971 S.B. 101 § 9, A.L. 1983 H.B. 633 merged with S.B. 333, A.L. 1992 H.B. 1574, A.L. 1993 H.B. 709)
382.080. The following shall be violations of sections 382.040 to 382.090:
(1) The failure to file any statement, amendment, or other material required to be filed pursuant to section 382.040 or 382.050; or
(2) The effectuation or any attempt to effectuate an acquisition of control of, divestiture of, or merger with a domestic insurer covered by sections 382.040 to 382.090, unless the director has given approval.
(L. 1971 S.B. 101 § 10, A.L. 2015 H.B. 50)
Jurisdiction, acceptance of--service, how had.
382.090. The courts of this state are hereby vested with jurisdiction over every person not resident, domiciled, or authorized to do business in this state who files a statement with the director under sections 382.010 to 382.300, and over all actions involving such person arising out of violations of sections 382.010 to 382.300, and each such person shall be deemed to have performed acts equivalent to and constituting an appointment by him of the director to be his true and lawful attorney upon whom may be served all lawful process in any action, suit or proceeding arising out of violations of sections 382.010 to 382.300. Copies of all such lawful process shall be served on the director and transmitted by registered or certified mail by the director to such person at his last known address.
(L. 1971 S.B. 101 § 11)
Acquisitions where change of control of insurer, subject to order,when--contents, requirements--violations, penalties.
382.095. 1. As used in this section, the following terms mean:
382.100. Every insurer which is authorized to do business in this state and which is a member of an insurance holding company system, except a foreign insurer subject to disclosure requirements and standards adopted by statute or regulation in the jurisdiction of its domicile which are substantially similar to those contained in sections 382.010 to 382.300, shall register with the director. Every insurer which is subject to registration under sections 382.010 to 382.300 shall register within sixty days after September 28, 1971, or fifteen days after it becomes subject to registration, whichever is later, and annually thereafter by March first of each year for the previous calendar year, unless the director for good cause shown extends the time for registration, and then within such extended time. The director may require any authorized insurer which is a member of a holding company system which is not subject to registration under this section to furnish a copy of the registration statement, the summary specified in subsection 2 of section 382.110, or other information filed by it with the insurance regulatory authority of its state of domicile.
(L. 1971 S.B. 101 § 12, A.L. 1992 H.B. 1574)
Registration, form, contents, exempted matter.
382.110. 1. Every insurer subject to registration shall file a registration statement on a form provided by the director containing current information about:
(1) The capital structure, general financial condition, ownership and management of the insurer and any person controlling the insurer;
(2) The identity of every member of the insurance holding company system;
(3) The following agreements in force, relationships subsisting, and transactions currently outstanding between the insurer and its affiliates:
(b) Purchases, sales, or exchanges of assets;
(e) All management and service contracts and all cost-sharing arrangements; and
(5) Financial statements of or within an insurance holding company system, including all affiliates, if requested by the director. Financial statements may include, but are not limited to, annual audited financial statements filed with the United States Securities and Exchange Commission (SEC) under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended. An insurer required to file financial statements under this subdivision may satisfy such requirement by providing the director with the most recently filed parent corporation financial statements that have been filed with the SEC;
(6) Statements that the insurer's board of directors oversees corporate governance and internal controls and that the insurer's officers or senior management have approved, implemented, and continue to maintain and monitor corporate governance and internal control procedures;
(7) Other matters concerning transactions between registered insurers and any affiliates as may be included from time to time in any registration forms adopted or approved by the director; and
(8) Any other information required by the director by rule.
2. All registration statements shall contain a summary outlining all items in the current registration statement representing changes from the prior registration statement.
3. No information need be disclosed on the registration statement filed pursuant to subsection 1 of this section if such information is not material for the purposes of that subsection. Unless the director by rule, regulation or order provides otherwise, sales, purchases, exchanges, loans or extensions of credit, or investments, involving one-half of one percent or less of an insurer's admitted assets as of the thirty-first day of December next preceding shall not be deemed material for purposes of subsection 1 of this section.
4. Any person within an insurance holding company system subject to registration shall be required to provide complete and accurate information to an insurer, where such information is reasonably necessary to enable the insurer to comply with the provisions of sections 382.010 to 382.300.
(L. 1971 S.B. 101 §§ 13, 14, A.L. 1992 H.B. 1574, A.L. 2015 H.B. 50)
Information to be kept current, when changes reported.
382.120. Each registered insurer shall keep current the information required to be disclosed in its registration statement by reporting all material changes or additions on amendment forms provided by the director within fifteen days after the end of the month in which it learns of each such change or addition, but, subject to section 382.210, each registered insurer shall so report all dividends and other distributions to shareholders promptly on the declaration thereof. No life or title insurer subject to registration under section 382.100 shall pay any dividend unless it has reported the dividend to the director:
(1) Within five days of its being declared; and
(2) At least ten days before it is paid.
(L. 1971 S.B. 101 § 15, A.L. 1993 H.B. 709)
Termination of registration, when.
382.130. The director shall terminate the registration of any insurer which demonstrates that it no longer is a member of an insurance holding company system.
(L. 1971 S.B. 101 § 16)
Consolidated registration statements or amendments, when.
382.140. The director may require or allow two or more affiliated insurers subject to registration under the provisions of sections 382.010 to 382.300 to file a consolidated registration statement or consolidated reports amending their consolidated registration statement or their individual registration statements.
(L. 1971 S.B. 101 § 17)
Registration for affiliates authorized.
382.150. The director may allow an insurer which is authorized to do business in this state and which is part of an insurance holding company system to register on behalf of any affiliated insurer which is required to register under section 382.100 and to file all information and material required to be filed under section 382.110.
(L. 1971 S.B. 101 § 18)
Exemption from registration and reports, how and when.
382.160. The provisions of sections 382.100 to 382.180 shall not apply to any insurer, information or transaction if and to the extent that the director by rule, regulation, or order shall exempt the same from such provisions.
(L. 1971 S.B. 101 § 19, A.L. 2015 H.B. 50)
Disclaimer of affiliation, effect of.
382.170. Any person may file with the director a disclaimer of affiliation with any authorized insurer or the disclaimer may be filed by the insurer or any member of an insurance holding company system. The disclaimer shall fully disclose all material relationships and bases for affiliation between such person and such insurer as well as the basis for disclaiming such affiliation. A disclaimer of affiliation shall be deemed to have been granted unless the director, within thirty days following receipt of a complete disclaimer, notifies the filing party that the disclaimer is disallowed. In the event of disallowance, the disclaiming party may request an administrative hearing, which shall be granted. The disclaiming party shall be relieved of its duty to register under this section if approval of the disclaimer has been granted by the director or if the disclaimer is deemed to have been approved.
(L. 1971 S.B. 101 § 20, A.L. 2015 H.B. 50)
Enterprise risk report, contents, filing of, due date.
382.175. Upon request of the director, the ultimate controlling person of every insurer subject to registration shall file an annual enterprise risk report. The report shall be appropriate to the nature, scale, and complexity of the operations of the insurance holding company and shall, to the best of the ultimate controlling person's knowledge and belief, identify the material risks within the insurance holding company system, if any, that could pose enterprise risk to the insurer. The report shall be filed with the lead state insurance commissioner of the insurance holding company system as determined by procedures within the Financial Analysis Handbook adopted by the National Association of Insurance Commissioners. The first enterprise risk report shall be due and filed no later than May 1, 2016, and annually thereafter by the first day of May each year, unless the lead state insurance commissioner extends the time for filing for good cause shown.
Failure to file registration statement, summary, or enterprise riskreport a violation.
382.180. The failure to file a registration statement, summary of the registration statement, or enterprise risk filing required under sections 382.100 to 382.180 within the time specified for the filing is a violation of sections 382.100 to 382.180.
(L. 1971 S.B. 101 § 21, A.L. 2015 H.B. 50)
Transactions with affiliates, how conducted.
382.190. Material transactions by registered insurers with their affiliates are subject to the following standards:
(2) Charges or fees for services shall be reasonable;
(4) The books, accounts and records of each party shall be maintained so as to clearly and accurately disclose the precise nature and details of the transactions including such accounting information as is necessary to support the reasonableness of the charges or fees to the respective parties;
(5) The insurer's surplus as regards policyholders following any dividends or distributions to shareholder affiliates shall be reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs; and
(6) Agreements for cost-sharing services and management shall include such provisions as required by the director by rule.
(L. 1971 S.B. 101 § 22, A.L. 1992 H.B. 1574, A.L. 2015 H.B. 50)
Prohibited transactions, exceptions.
Reasonable surplus, how determined.
382.200. For the purposes of sections 382.010 to 382.300 in determining whether an insurer's surplus as regards policyholders is reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs, the following factors, among others, shall be considered:
(10) The quality and liquidity of investments in subsidiaries made pursuant to sections 382.010 to 382.300. The director may treat any such investment as a disallowed asset for purposes of determining the adequacy of surplus as regards policyholders whenever in his judgment such investment so warrants.
(L. 1971 S.B. 101 § 23, A.L. 1992 H.B. 1574)
Extraordinary dividend, notice of--payment from earned surplus,when--allowed, when.
382.210. 1. No insurer subject to registration under section 382.100 shall pay any extraordinary dividend or make any other extraordinary distribution to its shareholders until thirty days after the director has received notice of the declaration thereof and has not within such period disapproved such payment, or the director has approved the payment within such thirty-day period. For purposes of this section, net income excludes net realized capital gains to the extent that realized capital gains exceed realized capital losses, and an extraordinary dividend or distribution includes any dividend or distribution of cash or other property, whose fair market value together with that of dividends or distributions made within the period of twelve consecutive months ending on the date on which the proposed dividends are scheduled for payment or distribution:
Director, powers of--insurer liable for examination costs.
382.220. 1. Subject to the limitation contained in this section and in addition to all the other powers with which the director is vested by law relating to the examination of insurers, the director may examine any insurer registered under the provisions of sections 382.100 to 382.180 and its affiliates to ascertain the financial condition of the insurer including the enterprise risk to the insurer by the ultimate controlling party, by any entity or combination of entities within the insurance holding company system, or by the insurance company system on a consolidated basis.
2. The director may order any insurer registered under sections 382.100 to 382.180 to produce such records, books, or other information papers in the possession of the insurer or its affiliates as are reasonably necessary to determine compliance with this chapter.
4. The director may retain at the registered insurer's expense such attorneys, actuaries, accountants and other experts not otherwise a part of the director's staff as shall be reasonably necessary to assist in the conduct of the examination under this section. Any persons so retained shall be under the direction and control of the director and shall act in a purely advisory capacity.
5. Each registered insurer producing for examination records, books and papers pursuant to this section shall be liable for and shall pay the expense of such examination in accordance with the provisions of section 374.220.
6. In the event the insurer fails to comply with an order, the director shall have the power to examine the affiliates to obtain the information. The director shall have the power to issue subpoenas, administer oaths, and examine under oath any person for purposes of determining compliance with this section. Upon the failure or refusal of any person to obey a subpoena, the director may petition a court of competent jurisdiction, and upon proper showing, the court may enter an order compelling the witness to appear and testify or produce documentary evidence. Failure to obey the court order shall be punishable as contempt of court. Every person shall be obligated to attend as a witness at the place specified in the subpoena, when subpoenaed, anywhere within the state. He or she shall be entitled to the same fees and mileage, if claimed, as a witness in section 491.280, which fees, mileage, and actual expense, if any, necessarily incurred in securing the attendance of witnesses and their testimony, shall be itemized, charged against, and paid by the company being examined.
(L. 1971 S.B. 101 § 25, A.L. 1992 H.B. 1574, A.L. 2015 H.B. 50)
Supervisory college, powers of director--insurer liable for expensesof director's participation in supervisory college.
(3) Clarifying the functions of the supervisory college and the role of other regulators including the establishment of a groupwide supervisor or host, who may be the director;
Certain information confidential, exception--private civil action,director not required to testify--permissible acts of thedirector.
382.230. 1. All information, documents and copies thereof in the possession or control of the director that are obtained by or disclosed to the director or any other person in the course of an examination or investigation made under section 382.220 and all information reported under subdivisions (13) and (14) of subsection 1 of section 382.050 and sections 382.100 to 382.210 shall be given confidential treatment and privileges; shall not be subject to the provisions of chapter 610; shall not be subject to subpoena; shall not be made public by the director, the National Association of Insurance Commissioners, or any other person, except to the chief insurance regulatory official of other states; and shall not be subject to discovery or admissible as evidence in any private civil action. However, the director is authorized to use the documents, materials, or other information in furtherance of any regulatory or legal action brought as a part of the director's official duties. The director shall not otherwise make the documents, materials, or other information public without the prior written consent of the insurer to which it pertains unless the director, after giving the insurer and its affiliates who would be affected thereby, notice and opportunity to be heard, determines that the interests of policyholders, shareholders or the public will be served by the publication thereof, in which event the director may publish all or any part thereof in such manner as he or she may deem appropriate.
(b) Specify that ownership of information shared with the National Association of Insurance Commissioners and its affiliates and subsidiaries under sections 382.010 to 382.300 remains with the director and that the National Association of Insurance Commissioners'* use of such information is subject to the direction of the director;
(L. 1971 S.B. 101 § 26, A.L. 1992 H.B. 1574, A.L. 2015 H.B. 50)
*Word "Commissioner's" appears in original rolls.
Rules and regulations, how issued.
382.240. The director may, upon notice and opportunity for all interested persons to be heard, issue such rules, regulations, and orders as are necessary to carry out the provisions of sections 382.010 to 382.300.
(L. 1971 S.B. 101 § 27)
Injunction, when authorized.
382.250. Whenever it appears to the director that any insurer or any director, officer, employee or agent thereof has committed or has threatened to commit a violation of sections 382.010 to 382.300 or of any rule, regulation, or order issued by the director pursuant to sections 382.010 to 382.300, the director may apply to the circuit court for the county in which the principal office of the insurer is located or to the circuit court for Cole County for an order enjoining the insurer or the director, officer, employee or agent thereof from violating or continuing to violate sections 382.010 to 382.300 or any such rule, regulation or order, and for such other equitable relief as the nature of the case and the interests of the insurer's policyholders, creditors, shareholders, or the public may require.
(L. 1971 S.B. 101 § 28)
Illegally acquired securities, how treated--impending illegalacquisitions, injunctive relief--ownership of securities, where.
382.260. 1. No security which is the subject of any agreement or arrangement regarding acquisition, or which is acquired or to be acquired, in contravention of the provisions of sections 382.010 to 382.300 or of any rule, regulation or order issued by the director pursuant to sections 382.010 to 382.300 may be voted at any shareholders' meeting, or may be counted for quorum purposes, and any action of shareholders requiring the affirmative vote of a percentage of shares may be taken as though such securities were not issued and outstanding; but no action taken at any such meeting shall be invalidated by the voting of such securities, unless the action would materially affect control of the insurer or unless the courts of this state have so ordered. If an insurer or the director has reason to believe that any security of the insurer has been or is about to be acquired in contravention of the provisions of sections 382.010 to 382.300 or of any rule, regulation or order issued by the director pursuant to sections 382.010 to 382.300, the insurer or the director may apply to the circuit court for Cole County or to the circuit court for the county in which the insurer has its principal place of business to enjoin any offer, request, invitation, agreement or acquisition made in contravention of sections 382.010 to 382.300, or any rule, regulation, or order issued by the director under the provisions of sections 382.010 to 382.300, to enjoin the voting of any security so acquired, to void any vote of such security already cast at any meeting of shareholders, and for such other equitable relief as the nature of the case and the interests of the insurer's policyholders, creditors and shareholders or the public may require.
Penalties, certain actions.
382.265. 1. Any insurer failing, without just cause, to file any registration statement as required in this section shall be required, after notice and hearing, to pay an administrative penalty of five hundred dollars for each day's delay, to be recovered by the director, and the penalty so recovered shall be paid to the state treasurer for deposit to the general revenue fund of this state. The maximum penalty under this section is fifty thousand dollars. The director may reduce the penalty if the insurer demonstrates to the director that the imposition of the penalty would constitute a financial hardship to the insurer.
Criminal proceedings, when and where commenced, penalty.
382.270. Whenever it appears to the director that any insurer or any director, officer, employee or agent thereof has committed a willful violation of sections 382.010 to 382.300, the director may cause criminal proceedings to be instituted in the circuit court for the county in which the principal office of the insurer is located or if such insurer has no such office in the state, then by the attorney general against such insurer or the responsible director, officer, employee or agent thereof. Any insurer which is convicted of willfully violating sections 382.010 to 382.300 may be fined not more than ten thousand dollars. Any individual who is convicted of willfully violating sections 382.010 to 382.300 may be fined not more than three thousand dollars, or if such willful violation involves the deliberate perpetration of a fraud upon the director, he may be imprisoned for not more than two years or by both such fine and imprisonment.
(L. 1971 S.B. 101 § 30)
False reports, filing of, penalty.
382.275. Any officer, director, or employee of an insurance holding company system who knowingly subscribes to or makes or causes to be made any false statements or false reports or false filings with the intent to deceive the director in the performance of his duties under this chapter, upon conviction thereof, shall be guilty of a class E felony. Any fines imposed shall be paid by the officer, director, or employee in his individual capacity.
(L. 1992 H.B. 1574, A.L. 2014 S.B. 491)
Violation, basis for disapproving dividends or distributions andplacing insurer under order of suspension.
382.277. Whenever it appears to the director that any person has committed a violation of sections 382.040 to 382.090 and the violation prevents the full understanding of the enterprise risk to the insurer by affiliates or by the insurance holding company system, the violation may serve as an independent basis for disapproving dividends or distributions and for placing the insurer under an order of suspension in accordance with section 375.1160.
Inapplicability of certain provisions to certain holding companies.
382.278. The provisions of subdivisions (13) and (14) of subsection 1 of section 382.050, subdivision (5) of subsection 1 of section 382.110, and sections 382.175 and 382.220 shall not apply to an insurance holding company or its affiliates if the insurance company affiliates of such insurance holding company had total premiums, direct and ceded, of less than one hundred fifty million dollars in the preceding year and such insurance holding company certifies in writing to the director that more than twenty-five percent of the employees of its affiliates, not including insurance affiliates or the holding company itself, are engaged in agricultural operations.
Director to take possession, when.
382.280. Whenever it appears to the director that any person has committed a violation of sections 382.010 to 382.300 which so impairs the financial condition of a domestic insurer as to threaten insolvency or make the further transaction of business by it hazardous to its policyholders, creditors, shareholders or the public, then the director may proceed as provided by law to take possession of the property of such domestic insurer and to conduct the business thereof.
(L. 1971 S.B. 101 § 31)
Liquidation or rehabilitation, effects--maximum amountrecoverable--liability, parent company, when.
382.285. 1. If an order for liquidation or rehabilitation of a domestic insurer has been entered, the receiver appointed under such order shall have a right to recover on behalf of the insurer, from any parent corporation or holding company or person or affiliate who otherwise controlled the insurer, the amount of distributions, other than distributions of shares of the same class of stock, paid by the insurer on its capital stock, or any payment in the form of a bonus, termination settlement or extraordinary lump sum salary adjustment made by the insurer or its subsidiary to a director, officer or employee, where the distribution or payment is made at any time during the one year preceding the petition for liquidation, conservation or rehabilitation, as the case may be, subject to the limitations of subsections 2, 3, and 4 of this section.
2. No such distribution shall be recoverable if the parent or affiliate shows that when paid such distribution was lawful and reasonable, and that the insurer did not know and could not have reasonably known that such distribution might adversely affect the ability of the insurer to fulfill its contractual obligations.
3. Any person who was a parent corporation or holding company or a person who otherwise controlled the insurer or affiliate at the time such distributions were paid shall be liable up to the amount of distributions or payments under subsection 1 of this section such person received. Any person who otherwise controlled the insurer at the time such distributions were declared shall be liable up to the amount of distributions he would have received if they had been paid immediately. If two or more persons are liable with respect to the same distributions, they shall be jointly and severally liable.
4. The maximum amount recoverable under this subsection shall be the amount needed in excess of all other available assets of the impaired or insolvent insurer to pay the contractual obligations of the impaired or insolvent insurer and to reimburse any guaranty funds.
5. To the extent that any person liable under subsection 3 of this section is insolvent or otherwise fails to pay claims due from it pursuant to such subsection, its parent corporation or holding company or person who otherwise controlled it at the time the distribution was paid shall be jointly and severally liable for any resulting deficiency in the amount recovered from such parent corporation or holding company or person who otherwise controlled it.
Revocation of insurer's license, when.
382.290. Whenever it appears to the director that any person has committed a violation of sections 382.010 to 382.300 which makes the continued operation of an insurer contrary to the interests of policyholders or the public, the director may, after giving notice and an opportunity to be heard, determine to suspend, revoke or refuse to renew such insurer's license or authority to do business in this state for such period as he finds is required for the protection of policyholders or the public. Any such determination shall be accompanied by specific findings of fact and conclusions of law.
(L. 1971 S.B. 101 § 32)
Appeals from director's action, procedure.
382.300. 1. Any person aggrieved by any act, determination, rule, regulation, order or any other action of the director pursuant to sections 382.010 to 382.300 may appeal therefrom to the circuit court for Cole County. The court shall conduct its review without a jury and by trial de novo, but if all parties, including the director, so stipulate, the review shall be confined to the record. Portions of the records may be introduced by stipulation into evidence in a trial de novo as to those parties so stipulating.
2. The filing of an appeal pursuant to this section shall stay the application of any rule, regulation, order or other action of the director to the appealing party unless the court, after giving such party notice and an opportunity to be heard, determines that such a stay would be detrimental to the interests of policyholders, shareholders, creditors or the public.
3. Any person aggrieved by any failure of the director to act or make a determination required by sections 382.010 to 382.300 may petition the circuit court for Cole County for a writ in the nature of a mandamus or a peremptory mandamus directing the director to act or make the determination forthwith.
(L. 1971 S.B. 101 § 33)
Disposal of assets or insurer, notice to director--powers ofdirector--voidable when--effect.
382.302. 1. The language and terms used in this section shall be interpreted subject to the definitions contained in section 382.010, unless otherwise indicated. The terms "insolvent", "insolvency" and "receiver" shall be interpreted subject to the definitions contained in section 375.1152.
382.400. As used in sections 382.400 to 382.409, the following terms mean:
(2) "Control" or "controlled" has the meaning prescribed by section 382.010;
(3) "Controlled insurer", a licensed insurer which is controlled, directly or indirectly, by a producer;
(4) "Controlling producer", a producer who, directly or indirectly, controls an insurer;
(5) "Licensed insurer" or "insurer", any person, firm, association or corporation duly licensed to transact a property or casualty insurance business in this state. The following are not licensed insurers for the purposes of sections 382.400 to 382.410*:
(a) All risk retention groups as defined in the federal Superfund Amendments Reauthorization Act of 1986, as amended, and the federal Risk Retention Act, 15 U.S.C. Section 3901, et seq., as amended, and sections 375.1080 to 375.1105;
(c) All captive insurers. For the purposes of sections 382.400 to 382.410*, "captive insurers" are insurance companies owned by another organization whose exclusive purpose is to insure risks of the parent organization and affiliated companies or, in the case of groups and associations, insurance organizations owned by the insureds whose exclusive purpose is to insure risks to member organizations and group members and their affiliates;
(L. 1992 H.B. 1574 § 7, A.L. 2009 H.B. 577)
*Section 382.410 was repealed by S.B. 613 Revision § A, 2007.
382.402. Sections 382.400 to 382.409 shall apply to licensed insurers either domiciled in this state or domiciled in a state that is not an accredited state having in effect laws substantially similar to the provisions of sections 382.400 to 382.409. All provisions of this chapter, to the extent they are not superseded by sections 382.400 to 382.409, shall continue to apply to all parties within holding company systems subject to sections 382.400 to 382.409.
(L. 1992 H.B. 1574 § 8, A.L. 2009 H.B. 577)
Degree of control required, provisions applicable,exemptions--contract between producer and insurer,requirements--insurer to have audit committee, members,purpose--loss ratios, report to director, contents.
382.405. 1. (1) The provisions of this section shall apply if in any calendar year the aggregate amount of gross written premium on business placed with a controlled insurer by controlling producer is equal to or greater than five percent of the admitted assets of the controlled insurer, as reported in the controlled insurer's quarterly statement filed as of September thirtieth of the prior year.
(b) The controlled insurer, except for insurance business written through a residual market facility such as the joint underwriting association prescribed by section 303.200, accepts insurance business only from a controlling producer, a producer controlled by the controlled insurer, or a producer that is a subsidiary of the controlled insurer.
2. A controlled insurer shall not accept business from a controlling producer and a controlling producer shall not place business with a controlled insurer unless there is a written contract between the controlling producer and the insurer specifying the responsibilities of each party, which contract has been approved by the board of directors of the insurer and contains the following minimum provisions:
(3) The controlling producer shall remit all funds due under the terms of the contract to the controlled insurer on at least a monthly basis. The due date shall be fixed so that premiums or installments thereof collected shall be remitted no later than ninety days after the effective date of any policy placed with the controlled insurer under the contract;
(4) All funds collected for the controlled insurer's account shall be held by the controlling producer in a fiduciary capacity, in one or more appropriately identified bank accounts in banks that are members of the Federal Reserve System, in accordance with the provisions of applicable insurance law; however, funds of a controlling producer not required to be licensed in this state shall be maintained in compliance with the requirements of the controlling producer's domiciliary jurisdiction;
(8) The rates and terms of the controlling producer's commissions, charges or other fees and the purposes for those charges or fees. The rates of the commissions, charges and other fees shall be no greater than those applicable to comparable business placed with the controlled insurer by producers other than controlling producers. For purposes of this subdivision and subdivision (7) of this subsection, examples of comparable business includes the same lines of insurance, same kinds of insurance, same kinds of risks, similar policy limits, and similar quality of business;
(9) If the contract provides that the controlling producer, on insurance business placed with the insurer, is to be compensated contingent upon the insurer's profits on that business, then such compensation shall not be determined and paid until at least five years after the premiums on liability insurance are earned and at least one year after the premiums are earned on any other insurance. In no event shall the commissions be paid until the adequacy of the controlled insurer's reserves on remaining claims has been independently verified pursuant to subsection 1 of this section;
(11) The controlling producer may negotiate but shall not bind reinsurance on behalf of the controlled insurer, except that the controlling producer may bind facultative reinsurance contracts pursuant to obligatory facultative agreements if the contract with the controlled insurer contains underwriting guidelines including, but both reinsurance assumed and ceded, a list of reinsurers with which such automatic agreements are in effect, the coverages and amounts or percentages that may be reinsured and commission schedules.
4. (1) In addition to any other required loss reserve certification, the controlled insurer shall annually, on April first of each year, file with the director an opinion of an independent casualty actuary, or such other independent loss reserve specialist acceptable to the director, reporting loss ratios for each line of business written and attesting to the adequacy of loss reserves established for losses incurred and outstanding as of year-end, including incurred but not reported, on business placed by the producer; and
(2) The controlled insurer shall annually report to the director the amount of commissions paid to the producer, the percentage such amount represents of the net premiums written and comparable amounts and percentage paid to noncontrolling producers for placements of the same kinds of insurance.
(L. 1992 H.B. 1574 § 9, A.L. 2009 H.B. 577)
Notice to insured, producer to provide, contents.
382.407. The producer, prior to the effective date of the policy, shall deliver written notice to the prospective insured disclosing the relationship between the producer and the controlled insurer, except that if the business is placed through a subproducer who is not a controlling producer, the controlling producer shall retain in his records a signed commitment from the subproducer that the subproducer is aware of the relationship between the insurer and the producer and that the subproducer has or will notify the insured.
(L. 1992 H.B. 1574 § 10, A.L. 2009 H.B. 577)
Noncompliance with law, powers of director--receiver in liquidation,powers.
382.409. 1. (1) If the director believes that the controlling producer or any other person has not materially complied with sections 382.400 to 382.410*, or any regulation or order promulgated hereunder, after notice and opportunity to be heard, the director may order the controlling producer to cease placing business with the controlled insurer; and
2. If an order of liquidation or rehabilitation of the controlled insurer has been entered pursuant to sections 375.1150 to 375.1246, and the receiver appointed under that order believes that the controlling producer or any other person has not materially complied with sections 382.400 to 382.410*, or any regulation or order promulgated hereunder, and the insurer suffered any loss or damage therefrom, the receiver may maintain a civil action for recovery of damages or other appropriate sanctions for the benefit of the insurer.
(L. 1992 H.B. 1574 § 11, A.L. 2009 H.B. 577)
Applicability--findings of general assembly.
382.500. 1. The provisions of sections 382.500 to 382.550 shall apply to all insurers domiciled in this state that are not exempt under section 382.525.
2. The general assembly finds and declares that an own risk and solvency assessment (ORSA) summary report contains confidential and sensitive information related to an insurer or insurance group's identification of risks material and relevant to the insurer or insurance group filing such report. Such information includes proprietary and trade secret information that has the potential for harm and competitive disadvantage to the insurer or insurance group if such information is made public. An ORSA summary report shall be a confidential document filed with the director, shall be shared only as stated in sections 382.500 to 382.550 to assist the director in the performance of the director's duties, and shall not be subject to public disclosure.
382.505. As used in sections 382.500 to 382.550, the following terms shall mean:
(1) "Director", the director of the department of insurance, financial institutions and professional registration;
(2) "Insurance group", those insurers and affiliates included within an insurance holding company system as defined in sections 382.010 to 382.300;
(3) "Insurer", the same meaning as such term is defined in section 382.010; except that, insurer shall not include agencies, authorities, or instrumentalities of the United States, its possessions and territories, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state;
(4) "NAIC", the National Association of Insurance Commissioners;
(5) "Own risk and solvency assessment" or "ORSA", a confidential internal assessment appropriate to the nature, scale, and complexity of an insurer or insurance group conducted by such insurer or insurance group of the material and relevant risks associated with the insurer's or insurance group's current business plan, and the sufficiency of capital resources to support such risks;
(6) "ORSA guidance manual", the current version of the Own Risk and Solvency Assessment Guidance Manual developed and adopted by the National Association of Insurance Commissioners (NAIC), as amended. A change in the ORSA guidance manual shall be effective on January first following the calendar year in which the changes have been adopted by the NAIC;
(7) "ORSA summary report", a confidential high-level summary of an insurer's or insurance group's own risk and solvency assessment.
Risk management framework to be maintained.
382.510. An insurer shall maintain a risk management framework to assist the insurer with identifying, assessing, monitoring, managing, and reporting on its material and relevant risks. Such requirement may be satisfied if the insurance group of which the insurer is a member maintains a risk management framework applicable to the operations of the insurer.
ORSA to be conducted, when.
382.515. Subject to the provisions of section 382.525, an insurer or the insurance group of which the insurer is a member shall conduct an ORSA consistent with a process comparable to the ORSA guidance manual. An ORSA shall be conducted no less than annually and additionally at any time when there are significant changes to the risk profile of the insurer or the insurance group of which the insurer is a member, as determined by the insurer or the insurance group.
ORSA summary report required, when, contents.
382.520. 1. Upon the director's request and no more than once each year, an insurer shall submit to the director an ORSA summary report or any combination of reports that together contain the information described in the ORSA guidance manual applicable to the insurer and to the insurance group of which the insurer is a member. Notwithstanding any request from the director, if the insurer is a member of an insurance group, the insurer shall submit the report or reports required under this subsection if the director is the lead state regulator of the insurance group as determined by the procedures within the Financial Analysis Handbook adopted by the National Association of Insurance Commissioners.
Exemptions--waiver--ORSA required, when.
382.525. 1. An insurer shall be exempt from the requirements of sections 382.500 to 382.550 if:
ORSA summary report to be prepared consistent with ORSA guidancemanual--review, procedures.
382.530. 1. An ORSA summary report shall be prepared consistent with the ORSA guidance manual, subject to the requirements of subsection 2 of this section. Documentation and supporting information shall be maintained and made available upon examination or upon request of the director.
2. The review of an ORSA summary report and any additional requests for information shall be made using similar procedures currently used in the analysis and examination of multistate or global insurers and insurance groups.
Information and ORSA summary report is proprietary and contains tradesecrets, confidentiality--permissible acts by director--no waiverof confidentiality or privilege.
382.535. 1. Documents, materials, or other information, including the ORSA summary report, in the possession of or control of the department of insurance, financial institutions and professional registration that are obtained by, created by, or disclosed to the director or any other person under sections 382.500 to 382.550 are* recognized by this state as being proprietary and to contain trade secrets. All such documents, materials, or other information shall be confidential by law and privileged, shall not be subject to disclosure under chapter 610, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action; except that, the director is authorized to use such documents, materials, or other information in the furtherance of any regulatory or legal action brought as a part of the director's official duties. The director shall not otherwise make such documents, materials, or other information public without the prior written consent of the insurer.
Violation, failure to file ORSA summary report.
382.540. 1. Subject to subsection 1 of section 374.215, any insurer failing without just cause to timely file an ORSA summary report as required in sections 382.500 to 382.550 commits a level two violation under section 374.049 with respect to each day's delay.
2. The director may enforce the provisions of sections 382.500 to 382.550 under sections 374.046 to 374.049.
382.545. If any provision of sections 382.500 to 382.550 or the application thereof to any person or circumstance is held invalid, such determination shall not affect the provisions or applications of sections 382.500 to 382.550 which may be given effect without the invalid provision or application, and to that end the provisions of sections 382.500 to 382.550 are severable.
Effective date--first filing date.
382.550. Sections 382.500 to 382.550 shall become effective January 1, 2016. The first filing of ORSA summary reports shall be in 2016 in accordance with section 382.520.