Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 200 - Insurance Solvency and Company Regulation › Chapter 15 - Receiverships › Section 20 CSR 200-15.100 - Accounting

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule effectuates or aids in the
				  interpretation of sections
				  376.350 and
				  379.105,
				  RSMo, regarding annual reports by insurers which are in receivership
				  proceedings for rehabilitation or liquidation. In addition, this rule
				  implements the provisions of sections 375.1166.2 and
				  375.1176.6(1),
				  RSMo, regarding periodic financial reports. Insurance companies should be as
				  publicly accountable after rehabilitation or liquidation as before. Section
				  375.1176.1, RSMo contains a legislative finding: "The liquidation of any
				  insurer shall be considered the business of insurance for purposes of
				  application of any law of this state." The business of insurance is affected
				  with public interest.
State ex rel. Mackey v. Hyde
, 315 Mo. 681,
				  286 SW 363 (1926).
Publicly accountable insurance receiverships are,
				  therefore, likewise in the public interest. Indeed, the public interest is even
				  greater with regard to liquidations because the assessments insurance companies
				  pay to guarantee associations due to insolvencies are credited against their
				  premium taxes otherwise due the state under sections 375.774.3 and
				  376.745.1,
				  RSMo. Effectively, therefore, Missouri taxpayers bear the cost of insurance
				  insolvencies to the extent that amounts paid by guaranty associations to
				  policyholders exceed the amounts received by guaranty associations from
				  insurance company receiverships. Public accountability can be achieved only
				  through the application of uniform standards so that the public may compare one
				  receivership with another in the same way that insurers' financial performance
				  are compared.
PUBLISHER'S NOTE: The secretary of state has
				  determined that the publication of the entire text of the material which is
				  incorporated by reference as a portion of this rule would be unduly cumbersome
				  or expensive. Therefore, the material which is so incorporated is on file with
				  the agency who filed this rule, and with the Office of the Secretary of State.
				  Any interested person may view this material at either agency's headquarters or
				  the same will be made available at the Office of the Secretary of State at a
				  cost not to exceed actual cost of copy reproduction. The entire text of the
				  rule is printed here. This note refers only to the incorporated by reference
				  material.
(1) Except as
				otherwise expressly provided in this rule, each insurance company possessing a
				Missouri certificate of authority which is under a court order of
				rehabilitation and each domestic insurance company which is under a court order
				of liquidation shall file a sworn annual statement on or before March 1 of each
				year, for its business and affairs for the year ended the next previous
				December 31, in accordance with the National Association of Insurance
				Commissioners (NAIC) Annual Statement Blank and the instructions for it, or in
				accordance with any other form as the director expressly permits to the
				insurance company. This statement also shall be prepared in accordance with the
Accounting Practices and Procedures Manual for Property and Casualty
				Insurance Companies, Accounting Practices and Procedures Manual for Life and
				Accident and Health Insurance Companies, Valuation of Securities and Examiner's
				Handbook
, or a combination of these, except where the applicable
				provisions of Chapters 354 and 374-385, RSMo, or other specific rules expressly
				provide otherwise.
(2) In addition
				to the sworn annual statement referred to in section (1), each insurance
				company which is under a court order of liquidation or rehabilitation shall
				complete the receivership supplements attached as appendices to this rule as
				part of such sworn annual statement.
(A)
				Receivership Supplement A shall be considered an open public record of the
				Department of Commerce and Insurance when filed, pursuant to Chapter 610 and
				section
				374.070,
				RSMo.
(B) Receivership Supplement B
				shall be considered a closed public record of the Department of Commerce and
				Insurance, when filed, as a confidential communication under sections
				374.070
										610.021(14),
				RSMo.