MO Rev Stat § 383.035 (2021)
2021 Missouri Revised Statutes|Title XXIV - Business and Financial Institutions|Chapter 383 - Malpractice Insurance|Section 383.035 - Association subject to certain laws — grace period for certain associations, limitations — certification filed with annual statement — rules and regulations, director may promulgate — impaired association, director's powers, review of — rating plans, filing of.

Effective - 28 Aug 2006   383.035. Association subject to certain laws — grace period for certain associations, limitations — certification filed with annual statement — rules and regulations, director may promulgate — impaired association, director's powers, review of — rating plans, filing of. — 1. Any association licensed pursuant to the provisions of sections 383.010 to 383.040 shall be subject to the provisions of the following provisions of the revised statutes of Missouri:  (1) Sections 374.010, 374.040, 374.046 to 374.049, 374.110, 374.115*, 374.122**, 374.170, 374.190, 374.210, 374.215, 374.216, 374.230, 374.240, 374.250 and 374.280, relating to the general authority of the director of the department of commerce and insurance;  (2) Sections 375.022, 375.031, 375.033, 375.035, 375.037 and 375.039, relating to dealings with licensed agents and brokers;  (3) Sections 375.041 and 379.105, relating to annual statements;  (4) Section 375.163, relating to the competence of managing officers;  (5) Section 375.246, relating to reinsurance requirements, except that no association shall be required to maintain reinsurance, and for insurance issued to members who joined the association on or before January 1, 1993, an association shall be allowed credit, as an asset or as a deduction from liability, for reinsurance which is payable to the ceding association's insured by the assuming insurer on the basis of the liability of the ceding association under contracts reinsured without diminution because of the insolvency of the ceding association;  (6) Section 375.390, relating to the use of funds by officers for private gain;  (7) Section 375.445, relating to insurers operating fraudulently;  (8) Section 379.080, relating to permissible investments, except that limitations in such section shall apply only to assets equal to such positive surplus as is actually maintained by the association;  (9) Section 379.102, relating to the maintenance of unearned premium and loss reserves as liabilities, except that any such loss reserves may be discounted in accordance with reasonable actuarial assumptions;  (10) Sections 383.100 to 383.125 relating to reports from medical malpractice insurers;  (11) Sections 383.200 to 383.209 and 383.225 relating to notification, data reporting, and rating requirements.  2. Any association licensed pursuant to the provisions of sections 383.010 to 383.040 shall file with its annual statement a certification by a fellow or an associate of the Casualty Actuarial Society. Such certification shall conform to the National Association of Insurance Commissioners annual statement instructions unless otherwise provided by the director.  3. The director shall have authority in accordance with section 374.045 to make all reasonable rules and regulations to accomplish the purpose of sections 383.010 to 383.040, including the extent to which insurance provided by an association may be extended to provide payment to a covered person resulting from a specific illness possessed by such covered person; except that no rule or regulation may place limitations or restrictions on the amount of premium an association may write or on the amount of insurance or limit of liability an association may provide.  4. Other than as provided in this section, no other insurance law of the state of Missouri shall apply to an association licensed pursuant to the provisions of this chapter, unless such law shall expressly state it is applicable to such associations.  5. If, after its second full calendar year of operation, any association licensed under the provisions of sections 383.010 to 383.040 shall file an annual statement which shows a surplus as regards policyholders of less than zero dollars, or if the director has other conclusive and credible evidence more recent than the last annual statement indicating the surplus as regards policyholders of an association is less than zero dollars, the director may order such association to submit, within ninety days following such order, a voluntary plan under which the association will restore its surplus as regards policyholders to at least zero dollars. The director may monitor the performance of the association's plan and may order modifications thereto, including assessments or rate or premium increases, if the association fails to meet any targets proposed in such plan for three consecutive quarters.  6. If the director issues an order in accordance with subsection 5 of this section, the association may, in accordance with chapter 536, file a petition for review of such order. Any association subject to an order issued in accordance with subsection 5 of this section shall be allowed a period of three years, or such longer period as the director may allow, to accomplish its plan to restore its surplus as regards policyholders to at least zero dollars. If at the end of the authorized period of time the association has failed to restore its surplus to at least zero dollars, or if the director has ordered modifications of the voluntary plan and the association's surplus has failed to increase within three consecutive quarters after such modification, the director may allow an additional time for the implementation of the voluntary plan or may exercise the director's powers to take charge of the association as the director would a mutual casualty company pursuant to sections 375.1150 to 375.1246. Sections 375.1150 to 375.1246 shall apply to associations licensed pursuant to sections 383.010 to 383.040 only after the conditions set forth in this section are met. When the surplus as regards policyholders of an association subject to subsection 5 of this section has been restored to at least zero dollars, the authority and jurisdiction of the director under subsections 5 and 6 of this section shall terminate, but this subsection may again thereafter apply to such association if the conditions set forth in subsection 5 of this section for its application are again satisfied.  7. Any association licensed pursuant to the provisions of sections 383.010 to 383.040 shall place on file with the director, except as to excess liability risks which by general custom are not written according to manual rates or rating plans, a copy of every manual of classifications, rules, underwriting rules and rates, every rating plan and every modification of the foregoing which it uses. Filing with the director within ten days after such manuals, rating plans or modifications thereof are effective shall be sufficient compliance with this subsection. Any rates, rating plans, rules, classifications or systems in effect or in use by an association on August 28, 1992, may continue to be used by the association. Upon written application of a member of an association, stating his or her reasons therefor, filed with the association, a rate in excess of that provided by a filing otherwise applicable may be used by the association for that member. ­­-------- (L. 1975 S.B. 458 § 6, A.L. 1992 S.B. 831, A.L. 2006 H.B. 1837)  *Section 374.115 was repealed by S.B. 982, 2018.  **Section 374.122 was repealed by H.B. 1090, 1998.