374.120. Director to appoint employees--legal counsel--reinsurance analyst, qualifications. - Missouri Statutes

Director to appoint employees--legal counsel--reinsurance analyst,qualifications.

374.120. 1. The director shall appoint and employ such clerks andclerical and other help which are necessary for a proper dispatch of thebusiness of the department of insurance, financial institutions andprofessional registration at salaries as now or hereafter provided by law, andmay employ such actuarial work to be done as may be necessary, all of whichexpense shall be paid as provided for by section 374.160, out of the amountappropriated by law from the fees collected by the department of insurance,financial institutions and professional registration.

2. The director shall appoint and employ legal counsel regarding theenforcing of the insurance laws of the state; provided, however, that withrespect to criminal prosecutions, the attorney general shall be the legaladviser to the director. All counsel employed by the legal section shall beattorneys licensed to practice law in the state of Missouri and the generalcounsel shall be subject to removal at the pleasure of the director. Inaddition, the general counsel shall have had at least two years of experiencein the areas of insurance law, insurance regulation or insurance litigation,or any combination thereof. The general counsel may receive an annual salaryof up to one thousand dollars less than the annual salary paid the director.The director may assign legal counsel to specific divisions establishedpursuant to section 374.075. Legal counsel may act as hearing officers at anyhearing before the department of insurance, financial institutions andprofessional registration, but may not act as a hearing officer in anycontested case brought to the director from a division to which legal counselwas assigned.

3. The director may also employ suitable persons to make examinations asto the solvency or market conduct of companies when he deems it necessary.

4. The director shall also employ a reinsurance analyst to assist thedepartment in carrying out its responsibilities regarding reinsurers as areprovided for by law. The reinsurance analyst shall have knowledge of thestate's insurance laws and regulations, shall have a degree in accounting, andshall be able to meet the requirements of an Associate in Reinsurance of theAmerican Institute of Property and Liability Underwriters within two years ofappointment, or comparable standards as provided for by regulation, and haveat least three years' experience in insurance or reinsurance matters.

5. The director shall not employ any person in any capacity who is anofficer, agent or employee of any insurance company or association.

(RSMo 1939 § 5788, A. 1949 H.B. 2115, A.L. 1990 H.B. 1739, A.L. 1991 H.B. 575)

Prior revisions: 1929 § 5678; 1919 § 6089; 1909 § 6883

Effective 6-26-91

(1956) Counsel employed by the director must be paid in the same way as other expenses of the insurance division and cannot be paid from funds escheated to the state under § 379.395. Jacobs v. Leggett (Mo.), 295 S.W.2d 825.

(1962) Attorneys' fees, arising under 1930 agreement whereby director had agreed to pay attorneys out of unreturned excess premiums which attorneys might be successful in recovering from companies, could not be allowed as department expense payable out of current appropriations and state was not liable for fees by estoppel where method of payment provided in contract was invalid. State ex rel. Johnson v. Leggett (Mo.), 359 S.W.2d 790.