380.071. Unsafe operation of business--reasonable time to remedy--failure to remedy, director's powers. - Missouri Statutes

Unsafe operation of business--reasonable time to remedy--failure toremedy, director's powers.

380.071. 1. If it appears to the director of the department ofinsurance, financial institutions and professional registration from astatement of any company filed pursuant to the provisions of section 380.051,or upon examination of any company made pursuant to the provisions of section380.061, or from any other knowledge or information in his possession thatsuch company is conducting its business in an unsafe manner or that its assetsare insufficient to justify the continuance of business by such company, heshall send written notice of the situation to the officers and directors ofthe company.

2. Such officers and directors may, in the discretion of the director,be allowed a reasonable time in which to remedy the situation. If theofficers and directors fail to remedy the situation after a reasonable time,or if at any time it shall appear to the director of the department ofinsurance, financial institutions and professional registration that thecontinued operation of the company would not be in the best interests of thepolicyholders, the director of the department of insurance, financialinstitutions and professional registration shall institute proceedings, in thecircuit court in the city or county in which the company has its principaloffice, to enjoin or restrain the company from further prosecution of itsbusiness, either temporarily or permanently, and if the director seeks toenjoin or restrain the company permanently, he shall also instituteproceedings to settle and wind up the affairs, and to liquidate and todissolve the company.

(L. 1984 H.B. 1498)

Effective 1-1-85