379.710. Surplus required--claim reserve fund--phase-in of requirements. - Missouri Statutes

Surplus required--claim reserve fund--phase-in of requirements.

379.710. 1. In order to commence writing the businessenumerated in only one subdivision of subsection 1 of section379.650, a reciprocal or interinsurance exchange shall have as asurplus, in addition to other reserves required, a sum in cash orsecurities amounting to at least one million six hundred thousanddollars.

2. In order to commence writing the business enumerated inmore than one of the subdivisions of subsection 1 of section379.650, a reciprocal or interinsurance exchange shall have as asurplus, in addition to other reserves required, a sum in cash orsecurities amounting to at least two million four hundredthousand dollars.

3. In order to continue writing new business, any reciprocalor interinsurance exchange shall maintain a surplus in the amountrequired to commence business.

4. In addition to the foregoing requirements, in the case ofemployer's liability, public liability, workers' compensation andautomobile insurance, there shall be maintained as a claim orloss reserve in cash or securities, assets sufficient todischarge all liabilities on all outstanding losses arising underpolicies issued, the same to be calculated in accordance with thelaws of the state relating to similar reserves for companiesinsuring similar risks.

5. Violation of any of the provisions of this section by areciprocal or interinsurance exchange is grounds for thesuspension or revocation of its certificate of authority by thedirector.

6. Notwithstanding any other provision of this section, anyreciprocal or interinsurance exchange licensed in this state towrite the business specified in one subdivision of subsection 1of section 379.650 on July 1, 1987, which did not have a surplusof at least one million six hundred thousand dollars on December31, 1986, may renew its license for business specified thereinuntil December 31, 1989, if it maintains as a surplus, inaddition to other sums required, a sum, in cash or securities, ifall other conditions are met, amounting to not less than:

(1) On and after December 31, 1989, one million dollars;

(2) On and after December 31, 1990, one million two hundredthousand dollars;

(3) On and after December 31, 1991, one million four hundredthousand dollars;

(4) On and after December 31, 1992, one million six hundredthousand dollars.

7. Notwithstanding any other provision of this section, anyreciprocal or interinsurance exchange licensed to do business inthis state and to write the business specified in more than oneof the subdivisions of subsection 1 of section 379.650 on July 1,1987, which did not have a surplus of at least two million fourhundred thousand dollars on December 31, 1986, may renew itslicense for business specified therein until December 31, 1989,if it maintains as a surplus, in addition to other sums required,a sum, in cash or securities, if all other conditions are met,amounting to not less than:

(1) On and after December 31, 1989, one million eighthundred thousand dollars;

(2) On and after December 31, 1990, two million dollars;

(3) On and after December 31, 1991, two million two hundredthousand dollars;

(4) On and after December 31, 1992, two million four hundredthousand dollars.

8. Notwithstanding any other provision of this section, anyreciprocal or interinsurance exchange, which before August 28,1989, was lawfully transacting business in this state under thesurplus requirements for a reciprocal or interinsurance exchangetransacting only one class of insurance but which after August28, 1989, will be subject to the surplus requirements for areciprocal or interinsurance exchange transacting more than oneclass of insurance, shall be allowed to continue to transact thesame business under the surplus requirements for a reciprocal orinterinsurance exchange transacting only one class of insuranceuntil December 31, 1990, at which time the surplus requirementsfor a reciprocal or interinsurance exchange transacting more thanone class of insurance shall be met.

(RSMo 1939 § 6083, A. 1949 H.B. 2092, A.L. 1957 p. 216, A.L. 1963 p. 485, A.L. 1967 p. 516, A.L. 1977 S.B. 368, A.L. 1989 S.B. 250)

Prior revisions: 1929 § 5971; 1919 § 6379