reglab/statecodes huggingface dataset:
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1028 - Applicability — exemptions.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 2009
375.1028. Applicability — exemptions. —
1. Sections 375.1025 to 375.1062 shall apply to all insurers as defined by section 375.1025. Insurers having direct premiums written in this state of less than one million dollars in any calendar year and less than one thousand policyholders or certificate holders of direct written policies nationwide at the end of the calendar year shall be exempt from sections 375.1025 to 375.1062, unless the director makes a specific finding that compliance is necessary for the director to carry out statutory responsibilities; except that, insurers having assumed premiums under contracts or treaties of reinsurance of one million dollars or more shall not be so exempt.
2. Foreign or alien insurers filing audited financial reports in another state, pursuant to such other state's requirement for filing of audited financial reports which have been found by the director to be substantially similar to the requirements herein, are exempt from sections 375.1030 to 375.1050 if:
(1) A copy of the audited financial report, communication of internal control-related matters noted in an audit, and the accountant's letter of qualifications that are filed with such other state are filed with the director in accordance with the filing dates specified in sections 375.1030, 375.1047, and 375.1040, respectively. Canadian insurers may submit accountant's reports as filed with the Office of the Superintendent of Financial Institutions, Canada; and
(2) A copy of any notification of adverse financial condition report filed with such other state is filed with the director within the time specified in section 375.1045.
3. Foreign or alien insurers required to file management's report of internal control over financial reporting in another state are exempt from filing such report in this state, provided such other state has substantially similar reporting requirements and such report is filed with such other state's chief insurance regulatory official within the time specified.
4. Sections 375.1025 to 375.1062 shall not prohibit, preclude or in any way limit the director from ordering, conducting, or performing examinations of insurers under any other applicable law.
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(L. 1991 H.B. 385, et al. § 3, A.L. 1992 H.B. 1574, A.L. 2009 H.B. 577)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1030 - Annual audit required, report filed, when — extensions granted, when — audit committee required, when.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 2009
375.1030. Annual audit required, report filed, when — extensions granted, when — audit committee required, when. —
1. All insurers shall have an annual audit by an independent certified public accountant and shall file an audited financial report with the director on or before June first for the year ended December thirty-first immediately preceding. The director may require an insurer to file an audited financial report earlier than June first with ninety days' advance notice to the insurer.
2. Extensions of the June first filing date may be granted by the director for thirty-day periods upon a showing by the insurer and its independent certified public accountant of the reasons for requesting such extension and determination by the director of good cause for an extension. The request for extension must be submitted in writing not less than ten days prior to the due date in sufficient detail to permit the director to make an informed decision with respect to the requested extension.
3. If an extension is granted in accordance with the provisions of subsection 2 of this section, a similar extension of thirty days is granted to the filing of management's report of internal control over financial reporting.
4. Every insurer required to file an annual audited financial report under sections 375.1025 to 375.1062 shall designate a group of individuals as constituting its audit committee, as defined in section 375.1025. The audit committee of an entity that controls an insurer may be deemed to be the insurer's audit committee for purposes of sections 375.1025 to 375.1062 at the election of the controlling person.
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(L. 1991 H.B. 385, et al. § 4, A.L. 1992 H.B. 1574, A.L. 1993 H.B. 709, A.L. 2009 H.B. 577)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1032 - Audited financial report, contents — form.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 2009
375.1032. Audited financial report, contents — form. —
1. The annual audited financial report shall report the financial condition of the insurer as of the end of the most recent calendar year and the results of its operation, cash flows and changes in capital and surplus for the previous year ended in conformity with accounting practices prescribed, or otherwise permitted, by law or rule of the department of insurance of the state of domicile of the insurer.
2. The annual audited financial report shall include the following:
(1) Report of independent certified public accountant;
(2) Balance sheet reporting admitted assets, liabilities, capital and surplus;
(3) Statement of operations;
(4) Statement of cash flow;
(5) Statement of changes in capital and surplus;
(6) Notes to financial statements. These notes shall be those required by the appropriate National Association of Insurance Commissioners' Annual Statement Instructions and
*
the NAIC's Accounting Practices and Procedures Manual as adopted by the director and shall include a reconciliation of differences, if any, between the audited statutory financial statements and the annual statement filed pursuant to section 375.041 and section 354.105, 354.435, 376.350, 377.100, 377.380, 378.350, 379.105, 380.051 or 380.482, with a written description of the nature of these differences.
3. The financial statements included in the audited financial report shall be prepared in a form and using language and groupings substantially the same as the relevant sections of the annual statement of the insurer filed with the director, and the financial statement shall be comparative, presenting the amounts as of December thirty-first of the current year and the amounts as of the immediately preceding December thirty-first. However, in the first year in which an insurer is required to file an audited financial report, the comparative data may be omitted.
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(L. 1991 H.B. 385, et al. § 5, A.L. 1992 H.B. 1574, A.L. 2009 H.B. 577)
*Word "and" does not appear in original rolls.
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1038 - Consolidated or combined financial statements permitted, when — worksheet , contents.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 2009
375.1038. Consolidated or combined financial statements permitted, when — worksheet , contents. —
An insurer may make written application to the director for approval to file audited consolidated or combined financial statements in lieu of separate annual audited financial statements if the insurer is part of a group of insurance companies that utilizes a pooling or one hundred percent reinsurance agreement that affects the solvency and integrity of the insurer's reserves and the insurer cedes all of its direct and assumed business to the pool. In such cases, a columnar consolidating or combining worksheet shall be filed with the report as follows:
(1) Amounts shown on the consolidated or combined audited financial report shall be shown on the worksheet;
(2) Amounts for each insurer subject to this section shall be stated separately;
(3) Noninsurance operations may be shown on the worksheet on a combined or individual basis;
(4) Explanations of consolidating and eliminating entries shall be included; and
(5) A reconciliation shall be included of any differences between the amounts shown in the individual insurer columns of the worksheet and comparable amounts shown on the annual statements of the insurers.
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(L. 2009 H.B. 577)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1040 - Accountant's letter, contents.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 2009
375.1040. Accountant's letter, contents. —
The accountant shall furnish the insurer in connection with, and for inclusion in, the filing of the annual audited financial report, a letter stating:
(1) Such accountant is independent with respect to the insurer and conforms to the standards of his or her profession as contained in the code of professional ethics and pronouncements of the American Institute of Certified Public Accountants, and the rules of professional conduct of the Missouri board of accountancy, or similar code;
(2) The background and experience in general, and the experience in audits of insurers, of the staff assigned to audit the financial statements of the insurer and whether each is an independent certified public accountant. Nothing within this requirement shall be construed as prohibiting the accountant from utilizing such staff as he or she deems appropriate where use is consistent with the standards prescribed by generally accepted auditing standards;
(3) That the accountant understands the annual audited financial report and his opinion thereon will be filed in compliance with sections 375.1025 to 375.1062 and that the director will be relying on this information in the monitoring and regulation of the financial position of the insurer;
(4) That the accountant consents to the requirements of section 375.1050 and that the accountant consents and agrees to make available for review by the director, the director's designee or appointed agent, the workpapers, as defined in section 375.1050;
(5) That the accountant is properly licensed by an appropriate state licensing authority and that the accountant is a member in good standing in the American Institute of Certified Public Accountants;
(6) That the accountant is in compliance with the requirements of section 375.1037.
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(L. 1991 H.B. 385, et al. § 8, A.L. 1992 H.B. 1574, A.L. 2009 H.B. 577)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1042 - Audit of financial statement by independent accountant.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 2009
375.1042. Audit of financial statement by independent accountant. —
Financial statements of the insurer to be filed pursuant to section 375.1030 shall be examined by an independent certified public accountant. The audit by the independent certified public accountant of the insurer's financial statements shall be conducted in accordance with generally accepted auditing standards. In accordance with AU Section 319 of the Professional Standards of the AICPA, Consideration of Internal Control in a Financial Statement Audit, the independent certified public accountant should obtain an understanding of internal control sufficient to plan the audit. To the extent required by AU 319, for those insurers required to file a Management's Report of Internal Control over Financial Reporting under section 375.1056, the independent certified public accountant should consider, as such term is defined in Statement on Auditing Standards (SAS) No. 102, Defining Professional Requirements in Statements on Auditing Standards or its replacement, the most recently available report in planning and performing the audit of the statutory financial statements. Consideration shall be given to procedures illustrated in the Financial Condition Examiner's Handbook promulgated by the National Association of Insurance Commissioners as the independent certified public accountant deems necessary.
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(L. 1991 H.B. 385, et al. § 9, A.L. 2009 H.B. 577)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1045 - Report of findings of accountant to insurer, contents.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 2009
375.1045. Report of findings of accountant to insurer, contents. —
1. The insurer required to furnish the annual audited financial report shall require the independent certified public accountant to report, in writing, within five business days to the board of directors or its audit committee any determination by the independent certified public accountant that the insurer has materially misstated its financial condition as reported to the director as of the balance sheet date currently under audit or that the insurer does not meet the minimum capital and surplus requirement of the law as of that date. An insurer who has received a report pursuant to this subsection shall forward a copy of the report to the director within five business days of receipt of such report and shall provide the independent certified public accountant making the report with evidence of the report being furnished to the director. If the independent certified public accountant fails to receive such evidence within the required five-business-day period, the independent certified public accountant shall furnish to the director a copy of its report within the next five business days.
2. No independent public accountant shall be liable in any manner to any person for any statement made in connection with subsection 1 of this section if such statement is made in good faith in compliance with subsection 1 of this section.
3. If the accountant, subsequent to the date of the audited financial report filed under sections 375.1025 to 375.1062, becomes aware of facts which might have affected his or her report, such accountant is required to take such action as prescribed in the professional standards of the American Institute of Certified Public Accountants.
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(L. 1991 H.B. 385, et al. § 10, A.L. 2009 H.B. 577)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1047 - Unremediated material weaknesses to be furnished to director, requirements — insurer to communicate remedial actions taken.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 2009
375.1047. Unremediated material weaknesses to be furnished to director, requirements — insurer to communicate remedial actions taken. —
1. In addition to the annual audited financial report, each insurer shall furnish the director with a written communication as to any unremediated material weaknesses in its internal control over financial reporting noted during the audit. Such communication shall be prepared by the accountant within sixty days after the filing of the annual audited financial report and shall contain a description of any unremediated material weakness, as the term material weakness is defined by Statement on Auditing Standard 60, Communication of Internal Control Related Matters Noted in an Audit, or its replacement, as of December thirty-first immediately preceding in the insurer's internal control over financial reporting noted by the accountant during the course of their audit of the financial statements. If no unremediated material weaknesses were noted, the communication shall so state.
2. The insurer is required to provide a description of remedial actions taken or proposed to correct unremediated material weaknesses, if the actions are not described in the accountant's communication.
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(L. 1991 H.B. 385, et al. § 11, A.L. 2009 H.B. 577)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1050 - Workpapers, defined — availability to insurance examiners — confidentiality of.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 2009
375.1050. Workpapers, defined — availability to insurance examiners — confidentiality of. —
1. As used in this section,
"workpapers"
are the records kept by the independent certified public accountant of the procedures followed, the tests performed, the information obtained and the conclusions reached pertinent to such accountant's audit of the financial statements of an insurer. Workpapers may include audit planning documentation, work programs, analyses, memoranda, letters of confirmation and representation, abstracts of company documents, and schedules or commentaries prepared or obtained by the independent certified public accountant in the course of such accountant's audit of the financial statements of an insurer and which support such accountant's opinion.
2. Every insurer required to file an audited financial report pursuant to sections 375.1025 to 375.1062 shall require the accountant to make available for review by the examiners of the department of commerce and insurance all workpapers prepared in the conduct of the accountant's audit and any communications related to the audit between the accountant and the insurer, at the offices of the insurer, at the department of commerce and insurance or at any other reasonable place designated by the director. The insurer shall require that the accountant retain the audit workpapers and communications until the department has filed a report on examination covering the period of the audit, but no longer than seven years from the date of the audit report.
3. In the conduct of any examination or review by the department examiners, it shall be agreed that photocopies of pertinent audit workpapers may be made and retained by the department. Such reviews by the department examiners shall be considered investigations and all working papers and communications obtained during the course of such investigations shall be afforded the same confidentiality as other examination workpapers generated by the department.
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(L. 1991 H.B. 385, et al. § 12, A.L. 1992 H.B. 1574, A.L. 1993 H.B. 709, A.L. 2009 H.B. 577)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1054 - Prohibited acts — violation, penalty.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 2009
375.1054. Prohibited acts — violation, penalty. —
1. No director or officer of an insurer shall, directly or indirectly:
(1) Make or cause to be made a materially false or misleading statement to an accountant in connection with any audit, review, or communication required under sections 375.1025 to 375.1062; or
(2) Omit to state, or cause another person to omit to state, any material fact necessary in order to make statements made, in light of the circumstances under which the statements were made, not misleading to an accountant in connection with any audit, review, or communication required under sections 375.1025 to 375.1062.
2. No officer or director of an insurer, or any other person acting under the direction thereof, shall directly or indirectly take any action to coerce, manipulate, mislead, or fraudulently influence any accountant engaged in the performance of an audit under sections 375.1025 to 375.1062 if such person knew or should have known that the action, if successful, could result in rendering the insurer's financial statements materially misleading.
3. For purposes of subsection 2 of this section, actions that,
"if successful, could result in rendering the insurer's financial statements materially misleading"
include, but are not limited to, actions taken at any time with respect to the professional engagement period to coerce, manipulate, mislead, or fraudulently influence an accountant:
(1) To issue or reissue a report on an insurer's financial statements that is not warranted in the circumstances, due to material violations of statutory accounting principles prescribed by the director, generally accepted auditing standards, or other professional or regulatory standards;
(2) Not to perform audit, review, or other procedures required by generally accepted auditing standards or other professional standards;
(3) Not to withdraw an issued report; or
(4) Not to communicate matters to an insurer's audit committee.
4. Any violation of any provision of this section is a level three violation under section 374.049.
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(L. 2009 H.B. 577)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1057 - Canadian and British insurers, special requirements.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 2009
375.1057. Canadian and British insurers, special requirements. —
1. In the case of Canadian and British insurers, the
"annual audited financial report"
shall be defined as the annual statement of total business on the form filed by such companies with their supervision authority duly audited by an independent chartered accountant.
2. For such Canadian and British insurers, the letter required by subsection 2 of section 375.1035 shall state that the accountant is aware of the requirements relating to the annual audited financial report filed with the director pursuant to section 375.1030 and shall affirm that the opinion expressed is in conformity with such requirements.
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(L. 1991 H.B. 385, et al. § 15, A.L. 2009 H.B. 577)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1058 - Internal audit function — exemption, when — requirements.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 01 Jan 2019, see footnote
375.1058. Internal audit function — exemption, when — requirements. —
1. An insurer is exempt from the requirements of this section if:
(1) The insurer has annual direct written and unaffiliated assumed premium, including international direct and assumed premium but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, totaling less than five hundred million dollars; and
(2) The insurer is a member of a group of insurers that has annual direct written and unaffiliated assumed premium, including international direct and assumed premium but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, totaling less than one billion dollars.
2. An insurer or group of insurers shall establish an internal audit function providing independent, objective, and reasonable assurance to the audit committee and insurer management regarding the insurer's governance, risk management, and internal controls. This assurance shall be provided by performing general and specific audits, reviews, and tests and by employing other techniques deemed necessary to protect assets, evaluate control effectiveness and efficiency, and evaluate compliance with policies and regulations.
3. In order to ensure that internal auditors remain objective, the internal audit function shall be organizationally independent. Specifically, the internal audit function shall not defer ultimate judgment on audit matters to others and shall appoint an individual to head the internal audit function who will have direct and unrestricted access to the board of directors. Organizational independence does not preclude dual-reporting relationships.
4. The head of the internal audit function shall report to the audit committee regularly, but no less than annually, on the periodic audit plan, factors that may adversely impact the internal audit function's independence or effectiveness, material findings from completed audits, and the appropriateness of corrective actions implemented by management as a result of audit findings.
5. If an insurer is a member of an insurance holding company system or included in a group of insurers, the insurer may satisfy the internal audit function requirements set forth in this section at the ultimate controlling parent level, an intermediate holding company level, or the individual legal entity level.
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(L. 2018 S.B. 593)
Effective 1-01-19
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1060 - Certification filed with annual statement, when — director shall promulgate rules, purpose.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1993
375.1060. Certification filed with annual statement, when — director shall promulgate rules, purpose. —
1. Each health services corporation organized pursuant to sections 354.010 to 354.380 shall file with its annual statement required by section 354.105 and section 375.041 a certification by a member in good standing of the American Academy of Actuaries.
2. Each life insurance company organized under chapter 376 shall file with its annual statement required by section 375.041 and section 376.350 a certification by a member in good standing of the American Academy of Actuaries. Filing the opinion required by subsection 4 of section 376.380 will satisfy the requirement of this subsection if such opinion also complies with subsection 6 of this section.
3. Each insurance company other than a life insurance company, organized under chapter 379, shall file with its annual statement required by section 375.041 and section 379.105 a certification by a member in good standing of the American Academy of Actuaries.
4. Except as provided by subsection 6 of this section, the certification required of a health services corporation and a life insurance company by subsections 1 and 2 of this section must conform to the National Association of Insurance Commissioners' annual statement instructions for life and accident and health insurers.
5. Except as provided by subsection 6 of this section, the certification required of an insurance company other than life by subsection 3 of this section must conform to the National Association of Insurance Commissioners' annual statement instructions for property and casualty insurers.
6. Notwithstanding any provision of the National Association of Insurance Commissioners' annual statement instruction for life and accident and health or property and casualty insurers, the certification must be made by a member in good standing of the American Academy of Actuaries.
7. The director shall promulgate such rules as are necessary for the implementation and administration of this section.
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(L. 1991 H.B. 385, et al. § 16, A.L. 1993 H.B. 709)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1062 - Severability.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1991
375.1062. Severability. —
If any section or portion of a section of sections 375.1025 to 375.1062 or the applicability thereof to any person or circumstance is held invalid by a court, the remainder of such section or sections or the applicability of such provision to other persons or circumstances shall not be affected thereby, and the director shall enforce all remaining requirements of sections 375.1025 to 375.1062.
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(L. 1991 H.B. 385, et al. § 17)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1070 - Inapplicability to certain insurers.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 2015, 2 histories
375.1070. Inapplicability to certain insurers. —
Sections 375.1070 to 375.1078 shall not apply to an insurer organized under chapter 376.
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(L. 1991 H.B. 385, et al. § 18, A.L. 2007 S.B. 66, A.L. 2015 S.B. 164)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1072 - Definitions.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 2015, 2 histories
375.1072. Definitions. —
As used in sections 375.1070 to 375.1078, the following terms mean:
(1)
"Admitted assets"
, the amount thereof as of the last day of the most recently concluded annual statement year, computed in the same manner as admitted assets in section 379.080 for insurers other than life;
(2)
"Aggregate amount of medium to lower quality obligations"
, the aggregate statutory statement value thereof;
(3)
"Institution"
, a corporation, a joint-stock company, an association, a trust, a business partnership, a business joint venture or similar entity;
(4)
"Medium to lower quality obligations"
, obligations which are rated three, four, five and six by the Securities Valuation Office of the National Association of Insurance Commissioners.
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(L. 1991 H.B. 385, et al. § 19, A.L. 2007 S.B. 66, A.L. 2015 S.B. 164)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1074 - Limitation on investments, domestic insurers.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 2015
375.1074. Limitation on investments, domestic insurers. —
Except as otherwise specified by Missouri law, no domestic insurer shall acquire an investment directly or indirectly through an investment subsidiary if, as a result of and after giving effect to the investment, the insurer would hold more than five percent of its admitted assets in the investments of all kinds issued, assumed, accepted, insured, or guaranteed by a single person.
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(L. 2015 S.B. 164)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1075 - Limitations on aggregate of medium or lower quality investments, requirements.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 2007
375.1075. Limitations on aggregate of medium or lower quality investments, requirements. —
1. No domestic insurer shall acquire, directly or indirectly, any medium or lower quality obligation of any institution if, after giving effect to any such acquisition, the aggregate amount of all medium and lower quality obligations then held by the domestic insurer would exceed twenty percent of its admitted assets, and no more than ten percent of its admitted assets consists of obligations rated four, five or six by the Securities Valuation Office, and no more than three percent of its admitted assets consists of obligations rated five or six by the Securities Valuation Office, and no more than one percent of its admitted assets consists of obligations rated six by the Securities Valuation Office. Attaining or exceeding the limit of any one category shall not preclude an insurer from acquiring obligations in other categories subject to the specific and multicategory limits.
2. The provisions of this section shall not prohibit a domestic insurer from acquiring any obligations which it has committed to acquire if the insurer would have been permitted to acquire that obligation pursuant to this section on the date on which such insurer committed to purchase that obligation.
3. Notwithstanding the other provisions of this section, a domestic insurer may acquire an obligation of an institution in which the insurer already has one or more obligations, if the obligation is acquired in order to protect an investment previously made in the obligations of the institution, provided that all such acquired obligations shall not exceed one-half of one percent of the insurer's admitted assets.
4. The board of directors of any domestic insurance company which acquires or invests in, directly or indirectly, medium or lower quality obligations of any institution shall adopt a written plan for the making of such investments. The plan, in addition to guidelines with respect to the quality of the obligations invested in, shall contain diversification standards including, but not limited to, standards for issuer, industry, duration, liquidity and geographic location.
5. No investments in excess of the limitations provided by this act shall be recognized as an asset of the insurer pursuant to section 379.080.
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(L. 1991 H.B. 385, et al. § 20, A.L. 2007 S.B. 66)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1078 - Limitation on Canadian investments.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 2015
375.1078. Limitation on Canadian investments. —
1. No insurer shall acquire, directly or indirectly through an investment subsidiary, a Canadian investment otherwise permitted under Missouri law if, after giving effect to the investment, the aggregate amount of the investments then held by the insurer would exceed twenty-five percent of its admitted assets.
2. For any insurer that is authorized to do business in Canada or that has outstanding insurance, annuity, or reinsurance contracts on lives or risks resident or located in Canada and denominated in Canadian currency, the limitations of subsection 1 of this section shall be increased by the greater of:
(1) The amount the insurer is required by applicable Canadian law to invest in Canada or to be denominated in Canadian currency; or
(2) One hundred twenty-five percent of the amount of the insurer's reserves and other obligations under contracts on risks resident or located in Canada.
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(L. 2015 S.B. 164)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1082 - Type of insurance allowed — annual statement, form — requirements for charter, contents of application.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1992
375.1082. Type of insurance allowed — annual statement, form — requirements for charter, contents of application. —
1. A risk retention group shall be chartered and licensed to write only liability insurance pursuant to sections 375.1080 to 375.1105 and, except as provided elsewhere in sections 375.1080 to 375.1105, shall comply with all of the laws, rules, regulations and requirements applicable to such insurers chartered and licensed in this state and with section 375.1085 to the extent such requirements are not a limitation on laws, rules, regulations or requirements of this state. Notwithstanding any other provision to the contrary, all risk retention groups chartered in this state shall file with the department and the National Association of Insurance Commissioners an annual statement in a form prescribed by the National Association of Insurance Commissioners, and in disketted form if required by the director, and completed in accordance with its instructions and the National Association of Insurance Commissioners Accounting Practices and Procedures Manual.
2. Before it may offer insurance in any state, each risk retention group shall also submit for approval to the director a plan of operation or feasibility study. The risk retention group shall submit an appropriate revision in the event of any subsequent material change in any item of the plan of operation or feasibility study, within ten days of any such change. The group shall not offer any additional kinds of liability insurance, in this state or in any other state, until a revision of such plan or study is approved by the director.
3. At the time of filing its application for charter, the risk retention group shall provide to the director in summary form the following information: the identity of the initial members of the group, the identity of those individuals who organized the group or who will provide administrative services or otherwise influence or control the activities of the group, the amount and nature of initial capitalization, the coverages to be afforded, and the states in which the group intends to operate. Upon receipt of this information, the director shall forward such information to the National Association of Insurance Commissioners. Providing notification to the National Association of Insurance Commissioners is in addition to and shall not be sufficient to satisfy the requirements of sections 375.1080 to 375.1105.
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(L. 1991 H.B. 385, et al. § 26, A.L. 1992 H.B. 1574)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1087 - Contributions to guaranty fund prohibited — guaranty fund to cover only specified risks.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1991
375.1087. Contributions to guaranty fund prohibited — guaranty fund to cover only specified risks. —
1. No risk retention group shall be required or permitted to join or contribute financially to any insurance insolvency guaranty fund, or similar mechanism, in this state, nor shall any risk retention group, or its insureds or claimants against its insureds, receive any benefit from any such fund for claims arising under the insurance policies issued by such risk retention group.
2. When a purchasing group obtains insurance covering its members' risks from an insurer not authorized in this state or a risk retention group, no such risks, wherever resident or located, shall be covered by any insurance guaranty fund or similar mechanism in this state.
3. When a purchasing group obtains insurance covering its members' risks from an authorized insurer, only risks resident or located in this state shall be covered by any applicable state guaranty funds.
4. The director may require or exempt a risk retention group from participation in any mechanism established or authorized under the laws of this state for the equitable apportionment among insurers of liability insurance losses and expenses incurred on policies written through such mechanism, and such risk retention group shall submit sufficient information to the director to enable the director to apportion on a nondiscriminatory basis the risk retention group's proportionate share of such losses and expenses.
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(L. 1991 H.B. 385, et al. § 28)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1090 - Purchasing group subject to insurance laws, exceptions.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1991
375.1090. Purchasing group subject to insurance laws, exceptions. —
A purchasing group and its insurer or insurers shall be subject to all applicable laws of this state, except that a purchasing group and its insurer or insurers shall be exempt, in regard to liability insurance for the purchasing group, from any law that would:
(1) Prohibit the establishment of a purchasing group;
(2) Make it unlawful for an insurer to provide or offer to provide insurance on a basis providing, to a purchasing group or its members, advantages based on their loss and expense experience not afforded to other persons with respect to rates, policy forms, coverages or other matters;
(3) Prohibit a purchasing group or its members from purchasing insurance on a group basis described in subdivision (2) of this section;
(4) Prohibit a purchasing group from obtaining insurance on a group basis because the group has not been in existence for a minimum period of time or because any member has not belonged to the group for a minimum period of time;
(5) Require that a purchasing group must have a minimum number of members, common ownership or affiliation, or certain legal form;
(6) Require that a certain percentage of a purchasing group must obtain insurance on a group basis;
(7) Otherwise discriminate against a purchasing group or any of its members; or
(8) Require that any insurance policy issued to a purchasing group or any of its members be countersigned by an insurance agent or broker residing in this state.
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(L. 1991 H.B. 385, et al. § 29)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1095 - Insurance purchased by purchasing group, requirements.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1991
375.1095. Insurance purchased by purchasing group, requirements. —
1. A purchasing group may not purchase insurance from a risk retention group that is not chartered in a state or from an insurer not admitted in the state in which the purchasing group is located, unless the purchase is effected through a licensed agent or broker acting pursuant to the surplus lines laws and regulations of such state.
2. A purchasing group which obtains liability insurance from an insurer not admitted in this state or a risk retention group shall inform each of the members of such group which has a risk resident or located in this state that such risk is not protected by an insurance insolvency guaranty fund in this state, and that such risk retention group or such insurer may not be subject to all insurance laws and regulations of this state.
3. No purchasing group may purchase insurance providing for a deductible or self-insured retention applicable to the group as a whole; however, coverage may provide for a deductible or self-insured retention applicable to individual members.
4. Purchases of insurance by purchasing groups are subject to the same standards regarding aggregate limits which are applicable to all purchases of group insurance.
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(L. 1991 H.B. 385, et al. § 31)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1097 - Premium taxes, payment of.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1991
375.1097. Premium taxes, payment of. —
Premium taxes and taxes on premiums paid for coverage of risks resident or located in this state by a purchasing group or any members of the purchasing groups shall be:
(1) Imposed at the same rate and subject to the same interest, fines and penalties as that applicable to premium taxes and taxes on premiums paid for similar coverage from a similar insurance source by other insureds; and
(2) Paid first by such insurance source, and if not by such source by the agent or broker for the purchasing group, and if not by such agent or broker then by the purchasing group, and if not by such purchasing group then by each of its members.
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(L. 1991 H.B. 385, et al. § 32)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1100 - Powers of director.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1991
375.1100. Powers of director. —
The director may make use of any of the powers established under chapters 374 to 385 to enforce the laws of this state not specifically preempted by the Risk Retention Act of 1986, including the director's administrative authority to investigate, issue subpoena, conduct depositions and hearings, issue orders, impose penalties and seek injunctive relief. With regard to any investigation, administrative proceedings or litigation, the director can rely on the procedural laws of this state. The injunctive authority of the director, in regard to risk retention groups, is restricted by the requirement that any injunction be issued by a court of competent jurisdiction.
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(L. 1991 H.B. 385, et al. § 33)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1102 - Broker required for purchase of insurance — nonresident broker acceptable — notice to insured, contents.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1991
375.1102. Broker required for purchase of insurance — nonresident broker acceptable — notice to insured, contents. —
1. No person, firm, association or corporation shall act or aid in any manner in soliciting, negotiating or procuring liability insurance in this state from a risk retention group unless such person, firm, association or corporation is licensed as an insurance agent or broker in accordance with this chapter.
2. No person, firm, association or corporation shall act or aid in any manner in soliciting, negotiating or procuring liability insurance in this state for a purchasing group from an authorized insurer or a risk retention group chartered in a state unless such person, firm, association or corporation is licensed as an insurance agent or broker in accordance with this chapter. No person, firm, association or corporation shall act or aid in any manner in soliciting, negotiating or procuring liability insurance coverage in this state for any member of a purchasing group under a purchasing group's policy unless such person, firm, association or corporation is licensed as an insurance agent or broker in accordance with this chapter. No person, firm, association or corporation shall act or aid in any manner in soliciting, negotiating or procuring liability insurance from an insurer not authorized to do business in this state on behalf of a purchasing group located in this state unless such person, firm, association or corporation is licensed as a surplus lines agent or excess line broker in accordance with this chapter.
3. For purposes of acting as a surplus lines agent or broker for a risk retention group or purchasing group pursuant to subsections 1 and 2 of this section, the requirement of residence in this state shall not apply.
4. Every person, firm, association or corporation licensed pursuant to the provisions of chapters 374 to 385, on business placed with risk retention groups or written through a purchasing group, shall inform each prospective insured of the provisions of the notice required by subsection 7 of section 375.1085 in the case of a risk retention group and subsection 3 of section 375.1095 in the case of a purchasing group.
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(L. 1991 H.B. 385, et al. § 34)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1105 - Hazardous financial condition of group, prohibited from selling insurance, when — director may establish rules.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1991
375.1105. Hazardous financial condition of group, prohibited from selling insurance, when — director may establish rules. —
1. An order issued by any district court of the United States enjoining a risk retention group from soliciting or selling insurance, or operating in any state, or in all states or in any territory or possession of the United States, upon a finding that such a group is in hazardous financial or financially impaired condition shall be enforceable in the courts of the state.
2. The director may establish and from time to time amend such rules relating to risk retention groups as may be necessary or desirable to carry out the provisions of sections 375.1080 to 375.1105.
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(L. 1991 H.B. 385, et al. § 35)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.1110 - Citation of law.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 01 Jul 1992, see footnote
375.1110. Citation of law. —
Sections 375.1110 to 375.1140 may be cited as the "Reinsurance Intermediary Act".
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(L. 1991 H.B. 385, et al. § 37)
Effective 7-01-92