384.034. Advisory organization may be formed, purposes--information to be filed--examination when, costs--hearing on report, when--violations, penalty. - Missouri Statutes

Advisory organization may be formed, purposes--information to befiled--examination when, costs--hearing on report,when--violations, penalty.

384.034. 1. An advisory surplus lines organization ofsurplus lines licensees may be formed to:

(1) Facilitate and encourage compliance by its members withthe laws of this state and the rules and regulations of thedirector relative to surplus lines insurance;

(2) Provide means for the examination, which shall remainconfidential, of all surplus lines coverage written by itsmembers to determine whether such coverages comply with such lawsand regulations;

(3) Communicate with organizations of admitted insurers withrespect to the proper use of the surplus lines market; and

(4) Receive and disseminate to its members informationrelative to surplus lines coverages.

2. Every such advisory organization shall file with thedirector:

(1) A copy of its constitution, its articles of agreement orassociation or its certificate of incorporation;

(2) A copy of its bylaws, rules and regulations governingits activities;

(3) A current list of its members;

(4) The name and address of a resident of this state uponwhom notices or orders of the director or processes issued at hisdirection may be served; and

(5) An agreement that the director may examine such advisoryorganization in accordance with the provisions of this section.

3. The director shall, at least once in three years, make orcause to be made an examination of each such advisoryorganization. The reasonable cost of any such examination shallbe paid by the advisory organization upon presentation to it bythe director of a detailed account of each cost. The officers,managers, agents and employees of such advisory organization maybe examined at any time, under oath, and shall exhibit all books,records, accounts, documents or agreements governing its methodof operation. The director shall furnish two copies of theexamination report to the advisory organization examined andshall notify such organization that it may, within twenty daysthereof, request a hearing on the report or on any facts orrecommendations therein. If the director finds such advisoryorganization or any member thereof to be in violation of anyprovision of sections 384.011 to 384.071, he may issue an orderrequiring the discontinuance of such violation.

(L. 1987 H.B. 700 § 8)

Effective 7-1-87