382.190. Transactions with affiliates, how conducted. - Missouri Statutes

Transactions with affiliates, how conducted.

382.190. Material transactions by registered insurers withtheir affiliates are subject to the following standards:

(1) The terms shall be fair and reasonable;

(2) Charges or fees for services shall be reasonable;

(3) Expenses incurred and payment received shall beallocated to the insurer in conformity with customary insuranceaccounting practices consistently applied;

(4) The books, accounts and records of each party shall bemaintained so as to clearly and accurately disclose the precisenature and details of the transactions; and

(5) The insurer's surplus as regards policyholdersfollowing any dividends or distributions to shareholderaffiliates shall be reasonable in relation to the insurer'soutstanding liabilities and adequate to its financial needs.

(L. 1971 S.B. 101 § 22, A.L. 1992 H.B. 1574)