375.537. Impaired insurer, defined--duty to notify director--penalties for failure to notify. - Missouri Statutes

Impaired insurer, defined--duty to notify director--penalties forfailure to notify.

375.537. 1. As used in this section, the following terms mean:

(1) "Chief executive officer", the person, irrespective of his title,designated by the board of directors or trustees of an insurer as the personcharged with the responsibility of administering and implementing theinsurer's policies and procedures;

(2) "Director", the director of the department of insurance, financialinstitutions and professional registration;

(3) "Impaired", a financial situation in which the assets of an insurerare less than the sum of the insurer's minimum required capital, minimumrequired surplus and all liabilities as determined in accordance with therequirements for the preparation and filing of the annual statement of aninsurer;

(4) "Insurer", any insurance company or other insurer licensed to dobusiness in this state.

2. Whenever an insurer is impaired, its chief executive officer shallimmediately notify the director in writing of such impairment and shall alsoimmediately notify in writing all of the board of directors or trustees of theinsurer.

3. Any officer, director or trustee of an insurer shall notify theperson serving as chief executive officer of the impairment of such insurer inthe event such officer, director or trustee knows or has reason to know thatthe insurer is impaired.

4. Any person who knowingly or recklessly violates subsection 2 or 3 ofthis section shall, upon conviction thereof, be fined not more than fiftythousand dollars or be imprisoned for not more than one year, or both. Anyperson who knowingly does any of the following shall be guilty of a class Dfelony:

(1) Conceals any property belonging to an insurer;

(2) Transfers or conceals in contemplation of a state insolvencyproceeding his own property or property belonging to an insurer;

(3) Conceals, destroys, mutilates, alters or makes a false entry in anydocument which affects or relates to the property of an insurer or withholdsany such document from a receiver, trustee or other officer of a courtentitled to its possession;

(4) Gives, obtains or receives a thing of value for acting or forbearingto act in any court proceedings; and any such act or acts results in orcontributes to an insurer's becoming impaired or insolvent.

(L. 1991 H.B. 385, et al. § 23)