reglab/statecodes huggingface dataset:
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.231 - Reduction of capital stock where same has not been fully subscribed.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1967
375.231. Reduction of capital stock where same has not been fully subscribed. —
Any insurance company incorporated under the laws of this state, the capital stock of which has not been fully subscribed, may, by the vote of a majority of its stockholders and subscribers of its capital stock, reduce its capital stock to the extent prescribed by law in the following manner: The stockholders and subscribers of its capital stock of any company desiring so to reduce its stock, shall file or cause to be filed with the director of the department of commerce and insurance a certified copy of the proceedings of the stockholders and subscribers of its capital stock at which it was determined to reduce the stock, which copy of the proceedings shall set forth in full the amount of the capital stock after the reduction, the number of shares and the par value of each, a list of the stockholders of the company, together with their residences and the amount of stock subscribed by each and the amount paid therefor and such other information as shall be necessary to give the director of the department of commerce and insurance a complete record of all transactions of the insurance company from its incorporation to the time of the reduction of its capital stock as voted by the stockholders and subscribers of its capital stock, and the director of the department of commerce and insurance may, in his discretion, make an examination of the records and books of the insurance company; and if the director of the department of commerce and insurance is satisfied that the provisions of this section have been fully complied with, and that the proceedings were regular, the director shall issue a certificate authorizing the reduction and showing that the capital stock of the company has been reduced, the number and par value of the shares; and the certificate shall be filed and recorded as in sections 375.010 to 375.920 is provided for filing and recording the certificates of incorporation; and thereafter the company shall, with the reduced capital, be subject to the same liabilities that it possessed or was subject to at the time of the reduction of its capital; and the charter or certificate of incorporation of the company shall be deemed to be amended in respect to the amount of capital stock, and the par value and number of shares, so as to conform to the reduction.
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(RSMo 1939 § 6025, A.L. 1967 p. 516)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.236 - Certificate of authority revoked, when.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 2007
375.236. Certificate of authority revoked, when. —
Other provisions of law notwithstanding, the director may suspend or revoke, after a hearing, the certificate of authority or license of any insurance company including a reciprocal or interinsurance exchange for the same reasons and upon the same grounds as set forth in section 374.047.
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(L. 1963 p. 485 § 375.155, A.L. 1967 p. 516, 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 375.251 - Actions by and against companies.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1967
375.251. Actions by and against companies. —
1. Civil actions may be maintained by any insurance corporation formed under the laws of this state against any of its members or stockholders, for any cause relating to the business of the company.
2. Civil actions may also be prosecuted and maintained by any member or stockholder of the corporation against the corporation for loss which may have accrued in favor of any member or stockholder on any risk or policy, if payment is withheld for more than two months after the loss shall have become due; but no action shall be brought or maintained by any person other than the director of the department of commerce and insurance of this state for the winding up or dissolution of any insurance company, or the distribution of its assets among its creditors.
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(RSMo 1939 § 6023, A.L. 1967 p. 516)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.256 - Service of process on companies not authorized to do business in this state.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1967
375.256. Service of process on companies not authorized to do business in this state. —
Any insurance company, association, or other insurer not incorporated or authorized under the laws of this state, which shall do or cause to be done any of the following acts in this state, effected by mail or otherwise: the issuance or delivery of contracts of insurance to residents of this state or to corporations authorized to do business in this state, the solicitation of applications for contracts of insurance, the collection of premiums, membership fees, assessments or other considerations for contracts, or any other transaction of business, shall be deemed to have constituted and appointed the director of the department of commerce and insurance of the state of Missouri, and his successor or successors in office, to be its true and lawful attorney, upon whom may be served all lawful process in any action, suit, or proceeding instituted in any county in this state, by or on behalf of an insured or beneficiary arising out of any contract of insurance, and any such act shall be signification of its agreement that the service of process is of the same legal force and validity as personal service of process in this state upon the insurer, notwithstanding the fact that the insurance company, association, or other insurer has failed or neglected to file written power of attorney appointing and authorizing the director of the department of commerce and insurance of this state to acknowledge or receive service of all lawful process for and on behalf of the insurance company, association or other insurer, as provided in section 375.906.
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(RSMo 1939 § 6008, A.L. 1951 p. 276, A.L. 1967 p. 516)
(1954) Foreign insurance company could not be compelled to produce policy under subpoena duces tecum served on superintendent of insurance under § 375.160 and consequently secondary evidence thereof was admissible in absence of such subpoena. Lawson v. Creely (A.), 268 S.W.2d 41.
(1962) Where insurance agent solicited and sold an insurance policy in Missouri without the knowledge of his company, the substituted service section would not apply to the company. Wash v. Western Empire Life Insurance Co., 298 F.2d 374.
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.261 - Service of process — procedure.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 2008
375.261. Service of process — procedure. —
1. Service of process as provided herein shall be made by delivery of two copies of the summons, with copies of the petition thereto attached, to the director, or in his or her absence to the deputy director of the department, or in the absence of both the director and deputy director, to the chief clerk of the department, at the office of the director of the department of commerce and insurance of this state at Jefferson City, Missouri. The director shall forthwith mail by certified mail, with return receipt requested, one of the copies of the summons, with petition thereto attached, to the defendant at its last known principal place of business, and shall keep a record of all process so served upon the director, deputy director or chief clerk, and the date of service, and the return receipt showing delivery thereof to the defendant shall be filed therewith.
2. The director, upon receiving the return receipt, shall so certify the fact to the clerk of the court in which the action is pending. The service of process shall be deemed sufficient provided notice of service, and a copy of the summons, with a copy of plaintiff's petition thereto attached, are sent certified mail, with return receipt requested, within ten days after service of process upon the director, or his or her deputy or chief clerk, as aforesaid, by plaintiff or plaintiff's attorney to the defendant at its last known principal place of business, and the return receipt therefor issued by the post office and the affidavit of plaintiff or plaintiff's attorney showing compliance with the aforesaid provisions are filed in the office of the clerk of the court in which the action is pending on or before the date the defendant is required to appear and defend the cause of action.
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(L. 1951 p. 276 § 375.161, A.L. 1967 p. 516, A.L. 2008 S.B. 788)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.266 - Service of process valid, when.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1967
375.266. Service of process valid, when. —
Service of process in any action, suit or proceeding referred to in section 375.256 shall, in addition to the manner provided in section 375.261, be valid if served upon any person within this state who, in this state on behalf of the insurer, is:
(1) Soliciting insurance, or
(2) Making, issuing or delivering any contract of insurance, or
(3) Collecting or receiving any premium, membership fee, assessment or other consideration for insurance; and if a copy of the summons issued, with a copy of the officer's return thereon, together with a copy of plaintiff's petition thereto attached, are sent within ten days thereafter by certified mail, with return receipt requested, by the plaintiff or plaintiff's attorney to the defendant at the last known principal place of business of the defendant, and the return receipt and the affidavit of plaintiff or plaintiff's attorney showing compliance therewith are filed with the clerk of the court in which the action is pending on or before the date the defendant is required to appear and defend the cause of action.
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(L. 1951 p. 276 § 375.162, A.L. 1967 p. 516)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.271 - Plaintiff entitled to default judgment, when.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1967
375.271. Plaintiff entitled to default judgment, when. —
No plaintiff shall be entitled to a judgment against the defendant by default under this section until after the expiration of forty-five days from the date of service of summons with copy of plaintiff's petition thereto attached upon the director of the department of commerce and insurance, his deputy or chief clerk as provided in section 375.261, or upon either of the persons referred to in section 375.266.
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(L. 1951 p. 276 § 375.163, A.L. 1967 p. 516)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.276 - Sections 375.256 to 375.271 not to abridge right to serve process in other legal manner.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1967
375.276. Sections 375.256 to 375.271 not to abridge right to serve process in other legal manner. —
Nothing herein contained shall limit or abridge the right of the plaintiff to serve any process, notice or demand upon any insurance company, association, or other insurer in any other manner now or hereafter permitted by law.
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(L. 1951 p. 276 § 375.164, A.L. 1967 p. 516)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.281 - Company to furnish bond or certificate of authority before pleading.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1967
375.281. Company to furnish bond or certificate of authority before pleading. —
Before any insurance company, association, or other insurer not incorporated or authorized under the laws of this state shall file or cause to be filed in any action, suit or other proceeding instituted against it any answer or other pleading, the insurance company, association, or other insurer aforesaid shall either:
(1) Deposit with the clerk of the court in which the action, suit or proceeding is pending, cash or securities, or shall file with the clerk a bond with good and sufficient sureties to be approved by the court, in any amount to be fixed by the court sufficient to secure the payment of any final judgment which may be rendered against it in the action, together with costs thereof; provided, however, that the court may in its discretion make an order dispensing with the deposit or bond where the insurer makes a showing satisfactory to the court that
*
it maintains in a state of the United States funds or securities, in trust or otherwise, sufficient and available to satisfy any final judgment which may be entered in the action, suit or proceedings; or
(2) Shall procure a certificate of authority to transact the business of insurance in this state.
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(L. 1951 p. 276 § 375.165, A.L. 1967 p. 516)
*Word "that" 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 375.286 - Postponement of action permitted, when.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1967
375.286. Postponement of action permitted, when. —
The court, in any action, suit or proceeding, in which service of process is made in the manner provided in sections 375.256 to 375.301, may, in its discretion, order such postponement as the court shall deem necessary to afford the defendant reasonable opportunity to comply with the provisions of section 375.281 and to defend the action, suit or proceeding.
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(L. 1951 p. 276 § 375.166, A.L. 1967 p. 516)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.291 - Company may file motion to quash service — grounds.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1967
375.291. Company may file motion to quash service — grounds. —
Nothing contained in section 375.281 shall be construed to prevent any defendant insurance company, association, or other insurer, not incorporated or authorized under the laws of this state, who has been served with process under the provisions of sections 375.256 to 375.301, from filing motion to quash service upon the ground either:
(1) That the defendant insurance company, association, or other insurer has not done or committed or caused to be done or committed any of the acts enumerated in section 375.256; or
(2) That the person upon whom service of process was made pursuant to the provisions of section 375.266 was not engaged in or doing any of the acts enumerated therein.
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(L. 1951 p. 276 § 375.167, A.L. 1967 p. 516)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.296 - Additional damages for vexatious refusal to pay.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1967
375.296. Additional damages for vexatious refusal to pay. —
In any action, suit or other proceeding instituted against any insurance company, association or other insurer upon any contract of insurance issued or delivered in this state to a resident of this state, or to a corporation incorporated in or authorized to do business in this state, if the insurer has failed or refused for a period of thirty days after due demand therefor prior to the institution of the action, suit or proceeding, to make payment under and in accordance with the terms and provisions of the contract of insurance, and it shall appear from the evidence that the refusal was vexatious and without reasonable cause, the court or jury may, in addition to the amount due under the provisions of the contract of insurance and interest thereon, allow the plaintiff damages for vexatious refusal to pay and attorney's fees as provided in section 375.420. Failure of an insurer to appear and defend any action, suit or other proceeding shall be deemed prima facie evidence that its failure to make payment was vexatious without reasonable cause.
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(L. 1951 p. 276 § 375.168, A.L. 1967 p. 516)
(1956) This section has no application to a company authorized to do business in this state. Willis v. American National Life Ins. Co. (A.), 287 S.W.2d 98.
(1973) Statute of limitations defense is an "open question of law" and refusal to pay could not, to a legal certainty, be considered vexatious. Crenshaw v. Great Central Insurance Co. (C.A.Mo.), 482 F.2d 1255.
(1986) Actions under sections 375.296, 375.420 and 376.620, RSMo, against a self-insured welfare benefit trust held to have been preempted by provisions of the Employee Retirement Income Security Act of 1974, section 1144 of title 29, United States Code. Hoeflicker v. Central States, Etc., Health & Welfare, 644 F.Supp. 195 (W.D. Mo.).
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.298 - Loan against policy by policyholder, insurer to give notice of interest due.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1998
375.298. Loan against policy by policyholder, insurer to give notice of interest due. —
If a policyholder has taken a loan against an insurance policy, the insurer of such policy shall annually notify the policyholder of any interest due on the loan.
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(L. 1998 H.B. 1374 § 1)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.301 - Exemptions from provisions of sections 375.256 to 375.301.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1977
375.301. Exemptions from provisions of sections 375.256 to 375.301. —
The provisions of sections 375.256 to 375.301 shall not apply to any action, suit or proceeding against any unauthorized insurer arising out of a contract of:
(1) Reinsurance effectuated in accordance with the laws of Missouri;
(2) Insurance effectuated in accordance with chapter 384;
(3) Aircraft insurance;
(4) Insurance on property or operations of railroads engaged in interstate commerce;
(5) Insurance against legal liability arising out of the ownership, operation or maintenance of any property having a permanent situs outside of this state; or
(6) Insurance against loss of or damage to any property having a permanent situs outside this state; where the contract contains a provision designating the insurance commissioner to be its true and lawful attorney upon whom may be served all lawful process in any action, suit or proceeding instituted by or on behalf of an insured or beneficiary arising out of any contract.
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(L. 1951 p. 276 § 375.169, A.L. 1967 p. 516, A.L. 1977 S.B. 274)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.310 - Unauthorized persons or corporations enjoined from transaction of insurance business, penalty.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 01 Jan 2017, 2 histories, see footnote
375.310. Unauthorized persons or corporations enjoined from transaction of insurance business, penalty. —
1. It is unlawful for any person, association of individuals, or any corporation to transact in this state any insurance business unless the person, association, or corporation is duly authorized by the director under a certificate of authority or appropriate licensure, or is an insurance company exempt from certification under section 375.786.
2. If the director determines that a person has engaged, is engaging in, or has taken a substantial step toward engaging in an act, practice or course of business constituting a violation of this section or a rule adopted or order issued pursuant thereto, or that a person has materially aided or is materially aiding an act, practice, omission, or course of business constituting a violation of this section or a rule adopted or order issued pursuant thereto, the director may issue such administrative orders as authorized under section 374.046. A violation of this section is a level four violation under section 374.049.
3. If the director believes that a person has engaged, is engaging in, or has taken a substantial step toward engaging in an act, practice or course of business constituting a violation of this section or a rule adopted or order issued pursuant thereto, or that a person has materially aided or is materially aiding an act, practice, omission, or course of business constituting a violation of this section or a rule adopted or order issued pursuant thereto, the director may maintain a civil action for relief authorized under section 374.048. A violation of this section is a level four violation under section 374.049.
4. Any person who knowingly engages in any act, practice, omission, or course of business in violation of this section is guilty of a class E felony.
5. The director may refer such evidence as is available concerning violations of this chapter to the proper prosecuting attorney, who with or without a criminal reference, or the attorney general under section 27.030, may institute the appropriate criminal proceedings.
6. Nothing in this section shall limit the power of the state to punish any person for any conduct that constitutes a crime under any other state statute.
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(RSMo 1939 § 6020, A.L. 1965 p. 573, A.L. 2007 S.B. 66, A.L. 2014 S.B. 491)
Prior revisions: 1929 § 5909; 1919 § 6322; 1909 § 7054
Effective 1-01-17
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.320 - Not to trade — exception.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 2007
375.320. Not to trade — exception. —
1. No insurance company formed under the laws of this state shall, directly or indirectly, deal or trade in any goods, wares, merchandise or other commodities whatsoever, except such as may be incident to and necessary in connection with the ownership and operation of property held under the provisions of sections 375.330 and 375.340.
2. This section shall not apply to an insurer organized under chapter 376.
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(RSMo 1939 § 6028, A.L. 1945 p. 1011, A.L. 2007 S.B. 66)
Prior revisions: 1929 § 5917; 1919 § 6329; 1909 § 7060
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.325 - Mechanical data processing equipment as assets.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1967
375.325. Mechanical data processing equipment as assets. —
Notwithstanding any prohibitions or restrictions contained in the statutes, any insurance company may acquire by purchase electronic or mechanical machines constituting a data processing system, and thereafter may hold the system as an admitted asset for use in connection with the business of the company if
(1) The system shall have an aggregate cost of not less than twenty-five thousand dollars and its aggregate cost shall not exceed five percent of the admitted assets of the company;
(2) The cost of the component machines constituting the system shall be fully amortized over a period not to exceed ten calendar years. If a data processing system consists of separate component machines which are acquired at different times, then the cost of each component shall be fully amortized over a period not to exceed ten calendar years commencing with the date of acquisition of each component.
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(L. 1961 p. 167 § 1, A.L. 1967 p. 516)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.326 - Automobiles as assets.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1979
375.326. Automobiles as assets. —
1. Notwithstanding any prohibitions or restrictions contained in the statutes or otherwise, any stock, mutual, or reciprocal insurance company doing the business of property and casualty business in this state may acquire by purchase motor vehicles and thereafter may hold them as admitted assets for use in connection with the business of the company if:
(1) The aggregate cost of such motor vehicles shall be at least twenty-five thousand dollars. Such aggregate cost shall not exceed two percent of the admitted assets of the company, and such company shall have a minimum of three million dollars of surplus;
(2) The cost of each such motor vehicle shall be fully amortized over a period not to exceed five years;
(3) The company has obtained in its name proper title or registration from a governmental agency authorized by law or custom to issue such title or registration.
2. Nothing in this section shall be construed to allow insurers to declare motor vehicles to the extent such vehicles are used for personal use and not used in furtherance of activities not necessary to the business of the insurer.
3. No insurance company domiciled in another state which state refuses to allow insurance companies domiciled in this state to declare on any statement to be filed in that state motor vehicles under the provisions of this section shall be allowed to declare such amounts on statements filed in this state.
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(L. 1979 S.B. 227 §§ 1, 2, 3)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.340 - Sale and exchange of real estate.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 2007
375.340. Sale and exchange of real estate. —
1. In all cases in which life insurance companies, benefit societies or other associations doing business in this state shall have legally acquired by foreclosure or in payment of a debt previously contracted any real estate or personal property situated in this state or elsewhere, said company, society or association may upon the sale of said property take in payment or part payment thereof the stocks or bonds of any company or corporation purchasing said property and may exchange any real estate acquired in foreclosure or in payment of debts, in whole or in part, for other real estate.
2. This section shall not apply to an insurer organized under chapter 376.
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(RSMo 1939 § 6030, A.L. 1945 p. 1011, A.L. 2007 S.B. 66)
Prior revision: 1929 § 5919
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.347 - Restriction on ownership of certain assets not exclusively controlled by an insurance company.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 2000
375.347. Restriction on ownership of certain assets not exclusively controlled by an insurance company. —
Securities and other related assets not exclusively controlled by an insurance company shall only be held by banks, trust companies, or securities depositories that are members of or regulated by the Securities and Exchange Commission, the Federal Reserve System or the appropriate bank regulatory authority.
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(L. 2000 S.B. 896)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.350 - Reacquisition and holding of own stock, when — approval of director, when — effect on assets and solvency.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1984
375.350. Reacquisition and holding of own stock, when — approval of director, when — effect on assets and solvency. —
1. No insurance company shall, directly or indirectly, purchase or hold, either absolutely or as collateral, its own stock, after the same has been once issued, without prior approval of the director of the department of commerce and insurance. The written application shall specify the number of shares offered, their description, the price offered by the company, the book value of said shares and any other pertinent information regarding the value of said shares. A copy of said application shall be given to the seller prior to the filing of said written application with the director of the department of commerce and insurance. This section shall not prevent a company from buying its own stock, if the same shall be forfeited and sold to the company for nonpayment of assessments thereon, in which case it shall be treated and issued as part of the original stock. Any person willfully making a false statement or representation in the application mentioned above shall be deemed guilty of a felony and be imprisoned for a period of not less than two years nor more than five years.
2. Notwithstanding the limitations set out in subsection 1 of this section, an insurance company may purchase or otherwise acquire its own stock, after the same has once been issued, without prior approval of the director of the department of commerce and insurance provided that:
(1) The insurance company does not thereby reduce its capital and surplus below the minimums required by law for such company to continue to do business; and
(2) The insurance company, within ten days after the end of any three-month period in which it acquires more than five percent of any class of its outstanding shares, files a report with the director of the department of commerce and insurance showing:
(a) The date of such purchase;
(b) The class of stock purchased;
(c) The number of shares of each class so purchased;
(d) The aggregate price paid for such shares of each class so purchased; and
(e) The authorized capital, actual capital, and surplus of such company immediately prior to such purchase.
3. No shares which are or have been reacquired, purchased, pledged, or held by an insurance company pursuant to subsection 1 or 2 of this section shall be considered an admitted asset, nor shall be considered in determining the solvency of any insurance company.
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(RSMo 1939 § 6035, A.L. 1957 p. 223, A.L. 1984 S.B. 679)
Prior revisions: 1929 § 5924; 1919 § 6332; 1909 § 7063
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.360 - Note not considered payment — not to loan when insolvent.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1939
375.360. Note not considered payment — not to loan when insolvent. —
No note or obligation given by any stockholder, whether secured by deed of trust, mortgage or otherwise, shall be considered as payment of any part of the capital stock; and no loan of any money shall be made by any such company to any director, trustee, officer or agent thereof when such company is insolvent, and the failure to collect such loans before the company shall have been adjudged insolvent shall be prima facie evidence of its insolvency at the time such loan was made; and if any such loan shall be made, the persons making it, or who shall assent thereto, shall be jointly and severally liable to the company for the amount of such loan and the interest; provided, however, that this shall not apply to premium notes given by directors, trustees, officers or agents who are also policyholders in such company, when given in the usual course of business of such company in issuing policies.
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(RSMo 1939 § 6035)
Prior revisions: 1929 § 5924; 1919 § 6332; 1909 § 7063
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.370 - Collateral to be assigned to company.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1939
375.370. Collateral to be assigned to company. —
All stocks and other evidence of indebtedness, except such as are transferable by delivery, held by insurance companies doing business in this state, as collateral for moneys loaned or other obligations, shall be regularly assigned and transferred over to said companies by the corporations or individuals issuing the same, and shall be surrendered by such companies only when the obligations of the assignors shall have been permanently and satisfactorily fulfilled and discharged.
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(RSMo 1939 § 6035)
Prior revisions: 1929 § 5924; 1919 § 6332; 1909 § 7063
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.380 - Dividends shall not be paid, when — penalty — liability of stockholder.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1939
375.380. Dividends shall not be paid, when — penalty — liability of stockholder. —
1. It shall not be lawful for the directors, trustees or managers of any insurance company to make any dividend, except from the surplus profits arising from their business, nor for any company to solicit or do new business, when its assets are less than three-fourths of its liabilities.
2. Any company violating the provisions aforesaid shall be subject to proceedings for dissolution.
3. Each stockholder in a stock company receiving any dividend made in violation of the above provision shall be liable to the creditors of such company to the extent of the dividend received, with compound interest on the same from the date of its receipt, as well as the costs of collecting the same, and the managers, trustees or directors assenting to the same, or any agent soliciting or doing new business, knowing or having reasonable cause to believe that such company is impaired as aforesaid, shall be deemed guilty of a violation of the provisions of this law, and shall be punished as by sections 375.010 to 375.920 provided.
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(RSMo 1939 § 6036)
Prior revisions: 1929 § 5925; 1919 § 6333; 1909 § 7064
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.390 - Officers not to use funds for private gain — penalty.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1939
375.390. Officers not to use funds for private gain — penalty. —
No officer, stockholder, agent or employee of any insurance company, formed under the laws of this state, or doing business herein, shall, directly or indirectly, use or employ, or permit others to use or employ, any of the money, funds or securities of such company for private profit or gain, and any such use shall be deemed a felony, punishable, upon conviction, by imprisonment in the penitentiary not less than two years nor more than five years for each offense.
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(RSMo 1939 § 6037)
Prior revisions: 1929 § 5926; 1919 § 6334; 1909 § 7065
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.400 - Investigation by director — duty of prosecuting attorney.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1939
375.400. Investigation by director — duty of prosecuting attorney. —
1. The director of the department of commerce and insurance shall, as often as he may deem proper, make careful inquiry and investigation as to the manner in which the money, funds or securities of insurance companies, doing business in this state, are invested or employed, and record the result of such inquiry or investigation in records kept in his office for the inspection of policyholders and public officials.
2. In the event of a violation of this section or of section 375.390, the prosecuting attorney of the proper county, or in the City of St. Louis, the circuit attorney, shall proceed at once by information or indictment against the offenders.
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(RSMo 1939 § 6038)
Prior revisions: 1929 § 5927; 1919 § 6335; 1909 § 7066
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.410 - Penalty for violation.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1939
375.410. Penalty for violation. —
Any public official failing, neglecting or refusing to comply with any of the provisions of sections 375.390 and 375.400 shall be deemed guilty of a misdemeanor, and, upon conviction, shall be fined not less than five hundred dollars and forfeit his office.
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(RSMo 1939 § 6039)
Prior revisions: 1929 § 5928; 1919 § 6336; 1909 § 7067
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.421 - Prepayment for policy, return of, when — limitations — violation an unfair trade practice.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1992
375.421. Prepayment for policy, return of, when — limitations — violation an unfair trade practice. —
1. For purposes of this section, the following words and phrases shall mean:
(1)
"Insurer"
shall include any insurance company, health services corporation or health maintenance organization, regulated pursuant to chapter 354 or chapters 375 to 385;
(2)
"Policy"
or
"contract"
shall include any insurance policy, subscriber contract or member contract, issued or delivered by any insurer, of any of the following types or description:
(a) Noncommercial fire;
(b) Homeowners';
(c) Noncommercial tenants';
(d) Noncommercial motor vehicle;
(e) Individual life;
(f) Individual health;
(g) Group health, other than employer-provided group health coverage.
2. No insurer which requires, as a condition of or part of any application for any policy or contract, the payment of any sum of money prior to issuance of the policy or contract shall retain such sum or any portion of such sum, except for dues for current membership, for a period in excess of sixty days after the date of such application unless the insurer:
(1) Issues and delivers to the applicant the policy or contract for which application is made on or prior to such sixtieth day; or
(2) Issues and delivers to the applicant a binder, conditional receipt or temporary insurance agreement providing the coverage for which the application was made, to extend from the date that such application was made to the date that such policy or contract is issued.
3. Any insurer required to refund any sum of money to an applicant for a policy or contract pursuant to this section shall do so by negotiable instrument payable on demand, delivered to the applicant on or before the sixtieth day after the date of application for such policy or contract.
4. The provisions of this section shall not bar an insurer which refunds any money pursuant to subsections 2 and 3 of this section from later making a decision relating to an application for a policy or contract, and issuing such policy or contract conditionally upon payment of any required premium, subscriber or member fee or dues, or payment of any other such sum of money.
5. The provisions of this section shall not be construed to affect the right of an insurer, as otherwise provided by law, from voiding any policy from its inception date if the insured made any misrepresentation on his application for such policy, or have any effect on policy cancellation laws.
6. Violation of the provisions of this section shall be an unfair trade practice as defined by sections 375.930 to 375.948, and shall be subject to all of the provisions and penalties provided by such sections.
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(L. 1992 H.B. 1574 § 25)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.422 - Directors and officers of stock companies to report ownership.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1965
375.422. Directors and officers of stock companies to report ownership. —
Every person who is directly or indirectly the beneficial owner of more than ten percent of any class of any equity security of any insurance company organized under the laws of this state and having capital stock, or who is a director or an officer of such company, shall file in the office of the director of the department of commerce and insurance of the state of Missouri on or before January 1, 1966, or within ten days after he becomes such beneficial owner, director or officer, a statement in such form as the director may prescribe, of the amount of all equity securities of such company of which he is the beneficial owner, and within ten days after the close of each calendar month thereafter, if there has been a change in such ownership during such month, any such person shall file in the office of the director a statement, in such form as the director may prescribe, indicating his ownership at the close of each such calendar month and such changes in his ownership as have occurred during such calendar month.
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(L. 1965 p. 575 § 1)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.423 - Company may recover profits realized by officer or director in certain transactions — exceptions.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1965
375.423. Company may recover profits realized by officer or director in certain transactions — exceptions. —
For the purpose of preventing the unfair use of information which may have been obtained by such beneficial owner, director or officer by reason of his relationship to such company, any profit realized by him from any purchase and sale, or any sale and purchase, of any equity security of such company within any period of less than six months, unless such security was acquired in good faith in connection with a debt previously contracted shall inure to and be recoverable by the company, irrespective of any intention on the part of such beneficial owner, director or officer in entering into such transaction of holding the security purchased or of not repurchasing the security sold for a period exceeding six months. Suit to recover such profit may be instituted in any court of competent jurisdiction by the company, or by the owner of any security of the company in the name and on behalf of the company if the company shall fail or refuse to bring such suit within sixty days after request or shall fail diligently to prosecute the suit thereafter; but no such suit shall be brought more than two years after the date the profit was realized. This section shall not be construed to cover any transaction where the beneficial owner of the equity security involved was not the owner both at the time of the purchase and sale, or the sale and purchase, or any transaction or transactions which the director by rules and regulations may exempt as not comprehended within the purpose of this section.
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(L. 1965 p. 575 § 2)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.424 - Unlawful for officer or director to sell equity security not owned by him — delivery.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1965
375.424. Unlawful for officer or director to sell equity security not owned by him — delivery. —
It shall be unlawful for any beneficial owner, director or officer, directly or indirectly, to sell any equity security of such company if the person selling the security or his principal does not own the security sold, or if owning the security, does not deliver it against such sale within twenty days thereafter, or does not within five days after such sale deposit it in the mails or other usual channels of transportation; but no person shall be deemed to have violated this section if he proves that notwithstanding the exercise of good faith he was unable to make such delivery or deposit within such time, or that to do so would cause undue inconvenience or expense.
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(L. 1965 p. 575 § 3)
2023 Missouri Revised Statutes › Title XXIV - Business and Financial Institutions › Chapter 375 - Provisions Applicable to All Insurance Companies › Section 375.425 - Provisions of 375.423 and 375.424 not to apply, when — equity security defined.

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS
Chapter 375
• Effective - 28 Aug 1965
375.425. Provisions of 375.423 and 375.424 not to apply, when — equity security defined. —
1. The provisions of section 375.423 shall not apply to any purchase and sale, or sale and purchase, and the provisions of section 375.424 shall not apply to any sale, of an equity security of such insurance company not then or theretofore held by him in an investment account, by a dealer in the ordinary course of his business and incident to the establishment or maintenance by him of a primary or secondary market, otherwise than on an exchange as defined in the Securities Exchange Act of 1934, for such security. The director may, by such rules and regulations as he deems necessary or appropriate in the public interest, define and prescribe terms and conditions with respect to securities held in an investment account and transactions made in the ordinary course of business and incident to the establishment or maintenance of a primary or secondary market.
2. The provisions of sections 375.422, 375.423 and 375.424 shall not apply to foreign or domestic arbitrage transactions unless made in contravention of such rules and regulations as the director may adopt in order to carry out the purposes of this section.
3. The provisions of sections 375.422, 375.423 and 375.424 shall not apply to equity securities of such insurance company if:
(1) Such securities shall be registered, or shall be required to be registered, pursuant to section 12 of the Securities Exchange Act of 1934, as amended; or
(2) If such insurance company shall not have any class of its equity securities held of record by one hundred or more persons on the last business day of the year next preceding the year in which equity securities of the company would be subject to the provisions of sections 375.422, 375.423 and 375.424, except for the provisions of this subdivision.
4. The term
"equity security"
when used in this section means any stock or similar security; or any security convertible, with or without consideration, into such a security, or carrying any warrant or right to subscribe to or purchase such a security; or any such warrant or right; or any other security which the director shall deem to be of similar nature and consider necessary or appropriate, by such rules and regulations as he may prescribe in the public interest or for the protection of investors, to treat as an equity security.
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(L. 1965 p. 575 §§ 4 to 7)