376.301. Tangible personal property interests permitted, when.

MISSOURI STATUTES AND CODES

376.301. Tangible personal property interests permitted, when.

Tangible personal property interests permitted, when.

376.301. 1. (1) Subject to the limitations of section 376.297, aninsurer may acquire tangible personal property or equity interest thereinlocated or used wholly or in part within a domestic jurisdiction directlyor indirectly through limited partnership interest and general partnershipinterest not otherwise prohibited by subsection 4 of section 376.294, jointventures, stock of an investment subsidiary or membership interests in alimited liability company, trust certificates, or other similarinstruments.

(2) Investments acquired under subdivision (1) of this subsectionshall be eligible only if:

(a) The property is subject to a lease or other agreement with aperson whose rated credit instruments in the amount of the purchase pricesof the personal property the insurer could then acquire under section376.298; and

(b) The lease or other agreement provides the insurer the right toreceive rental, purchase, or other fixed payments for this use or purchaseof the property and the aggregate value of the payments, together with theestimated residual value of the property at the end of its useful life andthe estimated tax benefits to the insurer resulting from ownership of theproperty shall be adequate to return the cost of the insurer's investmentin the property plus a return deemed adequate by the insurer.

2. An insurer shall compute the amount of each investment under thissection on the basis of the out-of-pocket purchase price and applicablerelated expenses paid by the insurer for the investment, net of eachborrowing made to finance the purchase price, and expenses to the extentthe borrowing is without recourse to the insurer.

3. An insurer shall not acquire an investment under this section ifas a result of and after giving effect to the investment the aggregateamount of all investments then held by the insurer under this section wouldexceed:

(1) Two percent of its admitted assets; or

(2) One-half of one percent of its admitted assets as to any singleitem of tangible personal property.

4. For purposes of determining compliance with the limitations ofsection 376.297, investments acquired by an insurer under this sectionshall be aggregated with those acquired under section 376.298 and eachlessee of the property under a lease referred to in this section shall bedeemed the issuer of an obligation in the amount of the investment of theinsurer in the property determined as provided in subsection 2 of thissection.

5. Nothing in this section shall be applicable to tangible personalproperty lease arrangements between an insurer and its subsidiaries andaffiliates under a cost-sharing arrangement or agreement permitted underchapter 382, RSMo.