380.431. Initial charge--guaranty fund to be maintained, how funded, purpose--policies providing for assessment of member--requirements.

MISSOURI STATUTES AND CODES

380.431. Initial charge--guaranty fund to be maintained, how funded, purpose--policies providing for assessment of member--requirements.

Initial charge--guaranty fund to be maintained, how funded,purpose--policies providing for assessment ofmember--requirements.

380.431. 1. A company operating under the provisions ofsections 380.201 to 380.591 may collect such fee and/or initialcharge as the board of directors shall prescribe and shallcollect a sufficient amount of money annually, or oftener, toenable it to pay losses and expenses, and, in accordance with thearticles of incorporation and bylaws, to create and maintain aguaranty fund. The amount required shall be collected byassessments or through premiums charged by the company on such ofits policies as the board of directors may prescribe. Membersholding policies issued on the premium basis shall pay thestipulated premium at or before the time when the policy isissued and shall not be liable to assessment. Members holdingpolicies not issued on the premium basis may be charged suchadvance assessment, payable at or before the time when the policyis issued as the board of directors may prescribe, but suchmembers shall be liable to further assessment, if any shall berequired, in accordance with the provisions of the company'sarticles of incorporation and sections 380.201 to 380.591. Theterms and conditions of the assessment feature must be clearlydisclosed in the policy.

2. The existence, maintenance and use of the guaranty fundshall be as provided in the articles of incorporation of thecompany. Such fund shall be available only for the payment oflosses and expenses as the board of directors may deem necessary.The existence or maintenance of the fund shall not operate in anyway to relieve any policyholder of any assessment or otherobligation he may owe the company or which has been leviedagainst him by the company. In the event the company bedissolved, the fund shall be treated in the same manner as anyother asset of the company.