375.510. Reinsurance--rights and liabilities--insolvency. - Missouri Statutes

Reinsurance--rights and liabilities--insolvency.

375.510. 1. If any insolvent and dissolved company shall be reinsuredunder the provisions of law, the securities on deposit with the director atthe date of the dissolution of the said company shall remain on deposit withhim, as a fund for the benefit of the policyholders of the reinsured company,so long as their said policies remain in force; and the same shall not, byvirtue of the reinsurance, be transferred to or become a part of the depositof the reinsuring company, except that said reinsuring company shall have thesame right as to the withdrawal or substitution, and as to receiving theinterest thereon, as the depositing company had; and said reinsuring companyshall be subject to the same liabilities, penalties and obligations as thecompany depositing would have been with respect to policy claims against it.

2. In case the reinsuring company becomes insolvent, the director of thedepartment of insurance, financial institutions and professional registrationshall dispose of the deposits as provided in case of insolvent companies,paying first, out of the net proceeds thereof, the policy claims against thereinsured company, and the remainder, if any, into the general assets of thereinsuring company.

(RSMo 1939 § 6048, A. 1949 H.B. 2092)

Prior revisions: 1929 § 5937; 1919 § 6345; 1909 § 7075