Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 200 - Insurance Solvency and Company Regulation › Chapter 11 - Control and Management of Insurance Companies › Section 20 CSR 200-11.150 - Dividends

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This amendment modernizes the rule and
				  removes unnecessary language.
(1) Constructive Dividends.
(A) Any payment or other distribution of
				property by an insurer made or attributable to a shareholder with respect to
				its stock shall be deemed a dividend under sections
				375.380
				and
				382.210,
				RSMo, except as stated in subsection (1)(B) of this rule.
(B) From the payments or other distributions
				under subsection (1)(A) of this rule:
1.
				There is allowed as a deduction all the ordinary and necessary expenses paid or
				incurred in carrying on any trade or business, including:
A. A reasonable allowance for salaries or
				other compensation for personal services actually rendered;
B. Traveling expenses (including amounts
				expended for meals and lodging other than amounts which are lavish or
				extravagant under the circumstances) while away from home in the pursuit of a
				trade or business; and
C. Rentals
				or other payments made as a requisite condition to the continued use or
				possession, for purposes of the trade or business, of property to which the
				insurer has not taken or is not taking title or in which it has no equity;
				and
2. There is allowed
				as a deduction, but only to the extent not deducted under paragraph (1)(B)1. of
				this rule, the fair market value of any property, to which the insurer has
				taken or is taking title or in which it has equity, received in consideration
				of that payment or other distribution.
(C) As used in this section of this rule the
				following terms mean:
1. Insurer means only a
				stock insurance company organized under the laws of Missouri; except a foreign
				insurance company is deemed an insurer if the laws of the foreign insurer's
				state of domicile do not include provisions substantially similar to sections
				382.010-382.300, RSMo;
2. Property
				means money, securities, and other property; except that this term does not
				include stock in the insurer making the distribution (or rights to acquire the
				stock); and
3. Shareholder means
				any person directly or indirectly owning or controlling stock in an
				insurer.
(D) A
				shareholder's interest in a partnership, estate, or trust, and a shareholder's
				stock in a corporation, includes the interests or stock owned by the
				shareholder's spouse, children, grandchildren, or parents, as qualified under
				paragraphs (1)(D)2. and 3. of this rule. A payment or other distribution to a
				partnership, estate, or corporation includes any payment or other distribution
				to any entity controlled by that partnership, estate, or corporation. For
				purposes of this section of this rule, a payment or other distribution is
				attributable to a shareholder if it is made-
1. Directly to the shareholder;
2. To the shareholder's spouse (other than a
				spouse who is legally separated from the shareholder under a decree of divorce
				or separate maintenance);
3. To the
				shareholder's children, grandchildren, or parents (a legally adopted child is
				treated as a child by blood);
4. To
				a partnership or estate, in proportion to the shareholder's interest in the
				partnership or estate;
5. To a
				trust, in proportion to the shareholder's actuarial interest as a beneficiary
				of that trust; or
6. To a
				corporation, in proportion to the shareholder's stock in that
				corporation.