380.021. Authority to do business on not-for-profit basis--property of members, authority to insure--limitation of area--reserve fund, and reinsurance requirements.

MISSOURI STATUTES AND CODES

380.021. Authority to do business on not-for-profit basis--property of members, authority to insure--limitation of area--reserve fund, and reinsurance requirements.

Authority to do business on not-for-profit basis--property of members,authority to insure--limitation of area--reserve fund, andreinsurance requirements.

380.021. 1. All Missouri mutual insurance companies operating under theprovisions of sections 380.011 to 380.151 shall be authorized to do thebusiness of insurance on an assessable, mutual and not-for-profit basis. Allsuch companies shall have authority to insure the property of their membersfrom loss or damage caused by fire; lightning; tornado; windstorm; cyclone;hail; explosion; riot; riot attending a strike; civil commotion; aircraft;vehicles; smoke; physical damage to livestock; overturn or collision of farmmachinery; theft; burglary; vandalism; malicious mischief; removal; breakageof glass; falling objects; weight of ice, snow or sleet; collapse ofbuildings; freezing, accidental discharge, leakage or overflow of water orsteam; other damage caused by steam; and sudden and accidental injury fromelectrical currents. Nothing contained in these sections shall be construedas to allow any Missouri mutual insurance company to insure its membersagainst loss to their motor vehicles, as defined in section 301.010, RSMo,from any peril whatsoever or liability occasioned by the use of such motorvehicles, or to insure property pursuant to or in connection with a specificloan or other credit transaction.

2. All Missouri mutual insurance companies shall do business only in thecounty or counties in which they are organized or in adjoining counties. AnyMissouri mutual insurance company may write insurance against loss or damageto the crops of their members from the perils enumerated in subsection 1 ofthis section in any and all counties of this state so long as the companymaintains a reserve fund of at least three hundred thousand dollars andreinsurance sufficient to protect the financial stability of the company. Thedirector of the department of insurance, financial institutions andprofessional registration may require additional reinsurance if he deems itnecessary to protect the policyholders of the company.

3. The corporation shall have all the powers, rights, privileges, dutiesand obligations of a corporation organized under chapter 355, RSMo, exceptinsofar as such provisions are inconsistent with the provisions of sections380.011 to 380.151. Nothing herein shall be construed as prohibiting anyMissouri mutual insurance company from distributing underwriting or investmentgain to its members or from accumulating a reasonable reserve fund for thepayment of losses and other expenses.