375.490. Payment of judgments out of deposits. - Missouri Statutes

Payment of judgments out of deposits.

375.490. 1. Any court of competent jurisdiction, wherein ajudgment shall have been recovered against any company by whichany securities have been deposited, as by law required, upon apolicy issued by such company, and execution issued upon suchjudgment shall have been returned partly or wholly unsatisfied,shall, upon motion of the plaintiff in such executions, uponthree days' notice to said director, order said director toforthwith dispose of enough of said securities at the best pricehe can obtain for the same to satisfy said judgment, executionand costs, so far as such securities shall suffice; and thedirector shall, upon realizing the amount necessary to pay saidclaim, with interest and costs, pay the same into the hands ofthe officer holding the original execution, and the receipt ofsaid officer to him shall be a full acquittance from any furtherliability for the amount so turned over; provided, however, thatin case of companies organized under the laws of this state, ifthe director has reason to believe that such company isinsolvent, and will not be able to replace the securities to bewithdrawn, he shall make return to the order to that effect, andthereupon the execution of such order shall be stayed until thequestion of solvency is determined; if the company is declaredsolvent, the director shall satisfy said execution out of saidsecurities as above provided; if it is found insolvent, thejudgment upon which said execution or order issued shall beliquidated or disposed of in the same manner as is provided bylaw for the adjustment of policy claims against insolventcompanies.

2. Whenever any securities such as aforesaid shall have beendisposed of by the director as aforesaid, said director, unlessthe company whose securities shall have been withdrawn asaforesaid shall, within ten days thereafter, deposit with himother securities of like kind and value, and for the like purposeas the securities so withdrawn, shall proceed, in respect to suchcompany, in the manner authorized by law in case of insolvent orunsound companies.

(RSMo 1939 § 6047)

Prior revisions: 1929 § 5936; 1919 § 6344; 1909 § 7074

(1958) So long as no action had been taken to impound and subject deposits of foreign company with the insurance superintendent to the payment of claims, although the company was then in the process of liquidation in the foreign jurisdiction, the judgment creditor of the foreign insurance company had an unqualified right to have the deposits with the insurance superintendent applied to the payment of his judgment in the manner provided by this section. Morris v. I.C.T. Insurance Co. (Mo.), 316 S.W.2d 636.