379.1388. Recognition of admitted assets--value of assets. - Missouri Statutes

Recognition of admitted assets--value of assets.

379.1388. 1. A SPLRC may recognize as an admitted asset on itsfinancial statements filed with the director:

(1) Permitted investments;

(2) Letters of credit;

(3) Financial guarantee policies issued for the sole benefit of theceding company by an insurer having a rating of no less than AAA byStandard and Poor's or less than AAA by Moody's Investor Service; and

(4) Surety bonds issued for the sole benefit of the ceding company byan insurer having a rating of no less than AAA by Standard and Poor's or noless than AAA by Moody's Investors Service.

2. (1) The assets of a SPLRC shall be valued in the same manner asthe assets of a Missouri domestic life insurer; however, letters of credit,financial guarantee policies, and surety bonds issued without recourse tothe SPLRC, or with recourse to the SPLRC with a priority no higher thanafforded to class 7 claims under section 375.1218, RSMo, shall be valued asfollows. Letters of credit shall be valued at the amount available fordrawings by the SPLRC or its ceding company as of the time of valuation. Afinancial guarantee policy shall be valued at the amount available to payaggregate claims as of the time of valuation. A surety bond shall bevalued at the amount available to pay aggregate claims as of the time ofvaluation.

(2) Notwithstanding the preceding, the director may by orderauthorize a SPLRC to value one or more of its assets through an alternativemethod.

(L. 2007 S.B. 215, A.L. 2009 H.B. 577)