375.777. Director, powers and duties.

MISSOURI STATUTES AND CODES

375.777. Director, powers and duties.

Director, powers and duties.

375.777. 1. The director shall:

(1) Notify the association of the existence of an insolvent insurernot later than three days after he receives notice of the determination ofthe insolvency;

(2) Upon request of the board of directors, provide the associationwith a statement of the net direct written premiums of each member insurer;and

(3) Notify the agents of the insolvent insurer of the determinationof insolvency and of the insureds' rights under sections 375.771 to375.779. Such notification shall be by first class mail at their lastknown address, where available, but if sufficient information fornotification by mail is not available, notice by publication in a newspaperof general circulation shall be sufficient.

2. The director may require each agent of the insolvent insurer togive prompt written notice, by first class mail, at the insured's lastknown address, to each insured of the insolvent insurer for whom he wasagent of record, provided the agent has received the notification ofsubsection 1 of this section.

3. It is unlawful for any member insurer to fail to pay an assessmentwhen due or fail to comply with the plan of operation. Every day in whichthe member insurer fails to pay is a separate violation.

4. If the director determines that a person has engaged, is engagingin, or has taken a substantial step toward engaging in an act, practice orcourse of business constituting a violation of this section or a ruleadopted or order issued pursuant thereto, or that a person has materiallyaided or is materially aiding an act, practice, omission, or course ofbusiness constituting a violation of this section or a rule adopted ororder issued pursuant thereto, the director may issue such administrativeorders as authorized under section 374.046, RSMo. A violation of thissection is a level two violation under section 374.049, RSMo. The directormay also suspend or revoke the license or certificate of authority of suchperson for any willful violation.

5. If the director believes that a person has engaged, is engagingin, or has taken a substantial step toward engaging in an act, practice orcourse of business constituting a violation of this section or a ruleadopted or order issued pursuant thereto, or that a person has materiallyaided or is materially aiding an act, practice, omission, or course ofbusiness constituting a violation of this section or a rule adopted ororder issued pursuant thereto, the director may maintain a civil action forrelief authorized under section 374.048, RSMo. A violation of this sectionis a level two violation under section 374.049, RSMo.