Effective - 28 Aug 2010
375.1152. Definitions. — For purposes of sections 375.570 to 375.750 and 375.1150 to 375.1246, the following words and phrases shall mean:
(1) "Allocated loss adjustment expenses", those fees, costs or expenses reasonably chargeable to the investigation, negotiation, settlement or defense of an individual claim or loss or to the protection and perfection of the subrogation rights of any insolvent insurer arising out of a policy of insurance issued by the insolvent insurer. "Allocated loss adjustment expenses" shall include all court costs, fees and expenses; fees for service of process; fees to attorneys; costs of undercover operative and detective services; fees of independent adjusters or attorneys for investigation or adjustment of claims beyond initial investigation; costs of employing experts for preparation of maps, photographs, diagrams, chemical or physical analysis or for advice, opinion or testimony concerning claims under investigation or in litigation; costs for legal transcripts or testimony taken at coroner's inquests, criminal or civil proceedings; costs for copies of any public records; costs of depositions and court-reported or -recorded statements. "Allocated loss adjustment expenses" shall not include the salaries of officials, administrators or other employees or normal overhead charges such as rent, postage, telephone, lighting, cleaning, heating or similar expenses;
(2) "Ancillary state", any state other than a domiciliary state;
(3) "Creditor", a person having any claim, whether matured or unmatured, liquidated or unliquidated, secured or unsecured, absolute, fixed or contingent;
(4) "Delinquency proceeding", any proceeding instituted against an insurer for the purpose of liquidating, rehabilitating, reorganizing or conserving such insurer, and any summary proceeding under sections 375.1160, 375.1162 and 375.1164;
(5) "Director", the director of the department of commerce and insurance;
(6) "Doing business" includes any of the following acts, whether effected by mail or otherwise:
(a) The issuance or delivery of contracts of insurance to persons resident in this state;
(b) The solicitation of applications for such contracts, or other negotiations preliminary to the execution of such contracts;
(c) The collection of premiums, membership fees, assessments, or other consideration for such contracts;
(d) The transaction of matters subsequent to execution of such contracts and arising out of them; or
(e) Operating under a license or certificate of authority, as an insurer, issued by the department of commerce and insurance;
(7) "Domiciliary state", the state in which an insurer is incorporated or organized or, in the case of an alien insurer, its state of entry;
(8) "Fair consideration" is given for property or obligation:
(a) When in exchange for such property or obligation, as a fair equivalent thereof, and in good faith, property is conveyed or services are rendered or an obligation is incurred or an antecedent debt is satisfied; or
(b) When such property or obligation is received in good faith to secure a present advance or antecedent debt in an amount not disproportionately small as compared to the value of the property or obligation obtained;
(9) "Foreign country", any jurisdiction not in the United States;
(10) "Formal delinquency proceeding", any liquidation or rehabilitation proceeding;
(11) "General assets", all property, real, personal, or otherwise, not specifically mortgaged, pledged, deposited or otherwise encumbered for the security or benefit of specified persons or classes of persons. As to specifically encumbered property, "general assets" includes all such property or its proceeds in excess of the amount necessary to discharge the sum or sums secured thereby. Assets held in trust and on deposit for the security or benefit of all policyholders or all policyholders and creditors, in more than a single state, shall be treated as general assets;
(12) "Guaranty association", the Missouri property and casualty insurance guaranty association created by sections 375.771 to 375.779, as amended, the Missouri life and health insurance guaranty association created by sections 376.715 to 376.758, as amended, and any other similar entity now or hereafter created by the laws of this state for the payment of claims of insolvent insurers. "Foreign guaranty association" means any similar entities now in existence or hereafter created by the laws of any other state;
(13) "Insolvency" or "insolvent" means:
(a) For an insurer issuing only assessable fire insurance policies:
a. The inability to pay an obligation within thirty days after it becomes payable; or
b. If an assessment be made within thirty days after such date, the inability to pay such obligation thirty days following the date specified in the first assessment notice issued after the date of loss;
(b) For any other insurer, that it is unable to pay its obligations when they are due, or when its admitted assets do not exceed its liabilities plus the greater of:
a. Any capital and surplus required by law for its organization; or
b. The total par or stated value of its authorized and issued capital stock;
(c) As to any insurer licensed to do business in this state as of August 28, 1991, which does not meet the standards established under paragraph (b) of this subdivision, the term "insolvency" or "insolvent" shall mean, for a period not to exceed three years from August 28, 1991, that it is unable to pay its obligations when they are due or that its admitted assets do not exceed its liabilities plus any required capital contribution ordered by the director under any other provisions of law;
(d) For purposes of this subdivision "liabilities" shall include but not be limited to reserves required by statute or by the department of commerce and insurance regulations or specific requirements imposed by the director upon a subject company at the time of admission or subsequent thereto;
(e) For purposes of this subdivision, an obligation is payable within ninety days of the resolution of any dispute regarding the obligation;
(14) "Insurer", any person who has done, purports to do, is doing or is licensed to do insurance business as described in section 375.1150, and is or has been subject to the authority of, or to liquidation, rehabilitation, reorganization, supervision, or conservation by, any insurance department of any state. For purposes of sections 375.1150 to 375.1246, any other persons included under section 375.1150 shall be deemed to be insurers;
(15) "Netting agreement":
(a) A contract or agreement (including terms and conditions incorporated by reference therein), including a master settlement agreement (which master settlement agreement, together with all schedules, confirmations, definitions and addenda thereto and transactions under any thereof, shall be treated as one netting agreement), that documents one or more transactions between the parties to the agreement for or involving one or more qualified financial contracts and that provides for the netting, liquidation, setoff, termination, acceleration, or close out under or in connection with one or more qualified financial contracts or present or future payment or delivery obligations or payment or delivery entitlements thereunder (including liquidation or close-out values relating to such obligations or entitlements) among the parties to the netting agreement;
(b) Any master agreement or bridge agreement for one or more master agreements described in paragraph (a) of this subdivision; or
(c) Any security agreement or arrangement or other credit enhancement or guarantee or reimbursement obligation related to any contract or agreement described in paragraph (a) or (b) of this subdivision; provided that any contract or agreement described in paragraph (a) or (b) of this subdivision relating to agreements or transactions that are not qualified financial contracts shall be deemed to be a netting agreement only with respect to those agreements or transactions that are qualified financial contracts;
(16) "Preferred claim", any claim with respect to which the terms of sections 375.1150 to 375.1246 accord priority of payment from the general assets of the insurer;
(17) "Qualified financial contract", any commodity contract, forward contract, repurchase agreement, securities contract, swap agreement, and any similar agreement that the director determines by rule to be a qualified financial contract for purposes of sections 375.1150 to 375.1246. For purposes of this subdivision, the following terms shall mean:
(a) "Commodity contract":
a. A contract for the purchase or sale of a commodity for future delivery on or subject to the rules of the board of trade or contract market under the Commodity Exchange Act, 7 U.S.C. Section 1, et seq., or a board of trade outside the United States;
b. An agreement that is subject to regulation under Section 19 of the Commodity Exchange Act, 7 U.S.C. Section 1, et seq., and that is commonly known to the commodities trade as a margin account, margin contract, leverage account, or leverage contract;
c. An agreement or transaction that is subject to regulation under Section 4c(b) of the Commodity Exchange Act, 7 U.S.C. Section 1, et seq., and that is commonly known to the commodities trade as a commodity option;
d. Any combination of the agreements or transactions referred to in this paragraph; or
e. Any option to enter into an agreement or transaction referred to in this paragraph;
(b) "Forward contract", "repurchase agreement", "securities contract", and "swap agreement", the same meaning as set forth in the Federal Deposit Insurance Act, 12 U.S.C. Section 1821(e)(8)(D), as amended;
(18) "Receiver", a receiver, liquidator, administrative supervisor, rehabilitator or conservator, as the context requires;
(19) "Reciprocal state", any state other than this state in which in substance and effect, provisions substantially similar to subsection 1 of section 375.1176 and sections 375.1235, 375.1236, 375.1240, 375.1242 and 375.1244 have been enacted and are in force, and in which laws are in force requiring that the director of the state department of commerce and insurance or equivalent official be the receiver of a delinquent insurer, and in which some provision exists for the avoidance of fraudulent conveyances and preferential transfers;
(20) "Secured claim", any claim secured by mortgage, trust deed, pledge, deposit as security, escrow, or otherwise, including a pledge of assets allocated to a separate account established pursuant to section 376.309; but not including special deposit claims or claims against general assets. The term also includes claims which have become liens upon specific deposit claims or claims against general assets. The term also includes claims which have become liens upon specific assets by reason of judicial process;
(21) "Special deposit claim", any claim secured by a deposit made pursuant to statute for the security or benefit of a limited class or classes of persons, but not including any claim secured by general assets;
(22) "State", any state, district, or territory of the United States and the Panama Canal Zone;
(23) "Transfer" shall include the sale and every other and different mode, direct or indirect, of disposing of or of parting with property or with an interest therein, or with the possession thereof, or of fixing a lien upon property or upon an interest therein, absolutely or conditionally, voluntarily, by or without judicial proceedings. The retention of a security title to property delivered to a debtor shall be deemed a transfer suffered by the debtor.
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(L. 1991 H.B. 385, et al. § 51, A.L. 1992 H.B. 1574, A.L. 1993 H.B. 709, A.L. 2010 S.B. 583)
Structure Missouri Revised Statutes
Title XXIV - Business and Financial Institutions
Chapter 375 - Provisions Applicable to All Insurance Companies
Section 375.001 - Definitions.
Section 375.002 - Grounds for cancellation.
Section 375.003 - Notice of cancellation, how given — reinstatement, when.
Section 375.004 - Refusal to renew, when authorized — exemption, when.
Section 375.005 - Proof of notice, how made.
Section 375.006 - Immunity from liability granted, when, to whom.
Section 375.007 - Cancellation or refusal to issue policy on certain grounds prohibited, exceptions.
Section 375.008 - Certain insurers exempt.
Section 375.012 - Definitions.
Section 375.013 - Promulgation of rules, generally, this chapter.
Section 375.015 - Application for licensure, insurance producers.
Section 375.016 - Examination required for insurance producer's license.
Section 375.017 - Nonresident producer's license.
Section 375.025 - Temporary license — to whom issued.
Section 375.030 - Continuing education, programs approved for another profession.
Section 375.031 - Definitions.
Section 375.033 - Termination of contract, notice — agent not to do business.
Section 375.035 - Renewal after termination of producer's contract.
Section 375.037 - Director's investigation — appeal.
Section 375.046 - Who deemed agent of unauthorized company.
Section 375.051 - Producer held as trustee of money collected.
Section 375.052 - Additional incidental fees — disclosure to applicant or insured.
Section 375.071 - Centralized producer license registry, participation in.
Section 375.076 - No consideration for unlicensed persons.
Section 375.106 - Insurance producers, limitations on negotiated contracts.
Section 375.141 - Suspension, revocation, refusal of license — grounds — procedure.
Section 375.143 - Rulemaking authority.
Section 375.145 - Violations, penalties.
Section 375.146 - Violation, penalty.
Section 375.151 - Acts of managing general agent acts of insurer.
Section 375.152 - Violations, penalties.
Section 375.153 - Managing general agent, director's authority to promulgate rules.
Section 375.161 - Certificate to do business — when terminated.
Section 375.166 - Expense of organization limited.
Section 375.169 - Violation of section 375.166 a misdemeanor, penalty.
Section 375.176 - Proceedings against promoters.
Section 375.181 - Officers required of companies.
Section 375.186 - Seal and bylaws.
Section 375.191 - Voting by proxy.
Section 375.196 - Adoption of same or misleadingly similar name prohibited.
Section 375.198 - Issuance of shares, regulations concerning.
Section 375.201 - Charter, amendment of, procedure for.
Section 375.221 - Certificate of amendment of articles, how executed, contents.
Section 375.231 - Reduction of capital stock where same has not been fully subscribed.
Section 375.236 - Certificate of authority revoked, when.
Section 375.246 - Reinsurance, when allowed as an asset or reduction from liability.
Section 375.251 - Actions by and against companies.
Section 375.256 - Service of process on companies not authorized to do business in this state.
Section 375.261 - Service of process — procedure.
Section 375.266 - Service of process valid, when.
Section 375.271 - Plaintiff entitled to default judgment, when.
Section 375.281 - Company to furnish bond or certificate of authority before pleading.
Section 375.286 - Postponement of action permitted, when.
Section 375.291 - Company may file motion to quash service — grounds.
Section 375.296 - Additional damages for vexatious refusal to pay.
Section 375.298 - Loan against policy by policyholder, insurer to give notice of interest due.
Section 375.301 - Exemptions from provisions of sections 375.256 to 375.301.
Section 375.320 - Not to trade — exception.
Section 375.325 - Mechanical data processing equipment as assets.
Section 375.326 - Automobiles as assets.
Section 375.330 - Purchase and ownership of real estate.
Section 375.340 - Sale and exchange of real estate.
Section 375.345 - Derivative transactions permitted, conditions — definitions — rules.
Section 375.360 - Note not considered payment — not to loan when insolvent.
Section 375.370 - Collateral to be assigned to company.
Section 375.380 - Dividends shall not be paid, when — penalty — liability of stockholder.
Section 375.390 - Officers not to use funds for private gain — penalty.
Section 375.400 - Investigation by director — duty of prosecuting attorney.
Section 375.410 - Penalty for violation.
Section 375.420 - Vexatious refusal to pay claim, damages for, exception.
Section 375.422 - Directors and officers of stock companies to report ownership.
Section 375.425 - Provisions of 375.423 and 375.424 not to apply, when — equity security defined.
Section 375.426 - Director to make rules and regulations.
Section 375.430 - Certificate revoked if judgment not satisfied.
Section 375.440 - Revocation of license for failure to comply with judicial decree.
Section 375.445 - Company operating fraudulently or in bad faith, penalties.
Section 375.460 - Director to keep deposits — rights of companies.
Section 375.470 - Penalty for violations by director.
Section 375.480 - Withdrawal of securities — notice — examination by director.
Section 375.490 - Payment of judgments out of deposits.
Section 375.500 - Distribution of assets.
Section 375.510 - Reinsurance — rights and liabilities — insolvency.
Section 375.520 - Costs to be paid from deposits — amount.
Section 375.530 - Accounting among beneficiaries of foreign deposits.
Section 375.532 - Investment in debt of institution permitted, when.
Section 375.570 - Manner of commencing proceedings — petition, contents.
Section 375.580 - Issuance, service and return of process.
Section 375.610 - Hearing by the court, procedures — no continuances or discovery, exceptions.
Section 375.620 - Referee or master to hear and report — exceptions, filed by either party.
Section 375.640 - Insurance director to take charge.
Section 375.660 - Disposition of assets.
Section 375.670 - Allowance of demands — receiver to review claims against receivership.
Section 375.710 - Conflict of interests — power of court — trustees.
Section 375.720 - Penalty for failure or refusal to deliver assets to director.
Section 375.740 - Payment of expenses of proceedings.
Section 375.750 - Reports to court — payment of claims.
Section 375.771 - Citation of law.
Section 375.772 - Association, created — definitions.
Section 375.773 - Accounts, types of insurance — applicability of law.
Section 375.775 - Association, powers and duties.
Section 375.776 - Board of directors, selection, terms — powers and duties.
Section 375.777 - Director, powers and duties.
Section 375.780 - Penalties for violation of this chapter.
Section 375.787 - Complaint filed by director, when — injunction authorized.
Section 375.788 - Transaction of insurance business by unauthorized insurer, effect of.
Section 375.790 - Enforcement — foreign decree, qualified party, reciprocal states, defined.
Section 375.791 - Foreign insurance company admitted, when.
Section 375.811 - Application for certificate of authority, contents (foreign company).
Section 375.821 - Conditions to be met for certificate of authority (foreign company).
Section 375.831 - Certificate issued when all conditions met (foreign company).
Section 375.861 - Foreign company survivor of merger, documents to be filed with director.
Section 375.871 - Admitted foreign company may withdraw, how.
Section 375.881 - Revocation or suspension of certificate of authority, when (foreign company).
Section 375.901 - Foreign companies shall transact business through licensed agents and brokers.
Section 375.906 - Foreign companies to appoint director to receive service — methods — penalty.
Section 375.911 - Service on deputy director valid, when.
Section 375.920 - Policy form approval, disapproval — procedure.
Section 375.921 - Hearing on disapproval — action pending, effect on form.
Section 375.922 - Rules and regulations not authorized.
Section 375.923 - Exempt forms.
Section 375.930 - Citation of law — purpose — construction.
Section 375.932 - Definitions.
Section 375.934 - Unfair trade practices — conditions.
Section 375.936 - Unfair practices defined.
Section 375.937 - Lenders, duties — prohibited acts.
Section 375.938 - Director may investigate companies.
Section 375.940 - Procedure on charges or belief of unfair practices.
Section 375.942 - Administrative order for prohibited practices — penalty.
Section 375.944 - Judicial review — decree, order — additional evidence — finality of order, when.
Section 375.945 - Director's determination, judicial review.
Section 375.946 - Violation of desist order, penalty.
Section 375.948 - Additional powers of director — promulgation of rules.
Section 375.950 - Definitions.
Section 375.958 - Ancillary receiver, appointed when, entitled to what property, duties.
Section 375.970 - Preferred claims, how determined.
Section 375.974 - Owners of special deposit claims, priority.
Section 375.982 - Limitation on bringing proceedings, certain liens void.
Section 375.986 - Receiver in reciprocal state may sue.
Section 375.990 - Severability clause — interpretation of sections 375.950 to 375.990.
Section 375.992 - Fraudulent claims for benefits — form — notice to department, when — procedure.
Section 375.995 - Sex or marital status discrimination as to benefits or coverage prohibited.
Section 375.1000 - Citation — purpose — construction.
Section 375.1002 - Definitions.
Section 375.1005 - Improper claims practice, conditions.
Section 375.1007 - Improper claims practices.
Section 375.1009 - Director may investigate.
Section 375.1010 - Director may initiate proceedings.
Section 375.1014 - Judicial review.
Section 375.1016 - Violation of cease and desist order.
Section 375.1018 - Director's powers additional to others — rules and regulations.
Section 375.1025 - Definitions.
Section 375.1028 - Applicability — exemptions.
Section 375.1032 - Audited financial report, contents — form.
Section 375.1040 - Accountant's letter, contents.
Section 375.1042 - Audit of financial statement by independent accountant.
Section 375.1045 - Report of findings of accountant to insurer, contents.
Section 375.1050 - Workpapers, defined — availability to insurance examiners — confidentiality of.
Section 375.1054 - Prohibited acts — violation, penalty.
Section 375.1056 - Report required by insurer, when, contents.
Section 375.1057 - Canadian and British insurers, special requirements.
Section 375.1058 - Internal audit function — exemption, when — requirements.
Section 375.1062 - Severability.
Section 375.1070 - Inapplicability to certain insurers.
Section 375.1072 - Definitions.
Section 375.1074 - Limitation on investments, domestic insurers.
Section 375.1075 - Limitations on aggregate of medium or lower quality investments, requirements.
Section 375.1078 - Limitation on Canadian investments.
Section 375.1080 - Definitions.
Section 375.1090 - Purchasing group subject to insurance laws, exceptions.
Section 375.1095 - Insurance purchased by purchasing group, requirements.
Section 375.1097 - Premium taxes, payment of.
Section 375.1100 - Powers of director.
Section 375.1110 - Citation of law.
Section 375.1112 - Definitions.
Section 375.1120 - Records to be maintained by broker, duration — contents.
Section 375.1122 - Insurer's use of broker, restrictions — financial condition statement required.
Section 375.1127 - Reinsurance manager, prohibited acts.
Section 375.1130 - Insurer's use of manager, restrictions — financial condition statement required.
Section 375.1132 - Examination of reinsurance manager, director may conduct.
Section 375.1135 - Penalties, director may assess, procedures.
Section 375.1137 - Application fee, reinsurance intermediary license — renewal.
Section 375.1140 - Effective date.
Section 375.1150 - Citation of law — applicability.
Section 375.1152 - Definitions.
Section 375.1156 - Cooperation with receiver and director required — penalty.
Section 375.1161 - Violations, penalties.
Section 375.1162 - Director may order activities to prevent delinquency proceeding.
Section 375.1164 - Seizure order, director may petition for, when — effects.
Section 375.1165 - Rehabilitation of insurer, director may petition, when — grounds.
Section 375.1170 - Stay of other pending actions, duration — statute of limitations not to run.
Section 375.1172 - Records deemed public, when — exceptions.
Section 375.1175 - Grounds for liquidation — voluntary dissolution and liquidation, conditions.
Section 375.1178 - Life and health policies, termination of, when.
Section 375.1180 - Dissolution order, director may petition for — effect.
Section 375.1185 - Notices provided by liquidator, procedures.
Section 375.1186 - Agent of insurer, duty to provide information to liquidator — penalty.
Section 375.1188 - Stay of other actions — liquidator may bring certain actions, when.
Section 375.1190 - List of insurer's assets to be prepared — filing — not needed, when.
Section 375.1192 - Fraudulent and voidable transfers — requirements — effects.
Section 375.1194 - Transfer of real property not voidable, when.
Section 375.1196 - Claims of creditor, surrender of preference required.
Section 375.1198 - Mutual credits or debts, setoffs allowed — exceptions.
Section 375.1204 - Payment of unearned premiums required — violation, penalties.
Section 375.1206 - Proof of claim, filed when — effect of late filing.
Section 375.1210 - Contingent claims, allowed when, exceptions.
Section 375.1212 - Third party claims for actions against insureds, filed how — procedures.
Section 375.1214 - Denial of claim — appeal procedure.
Section 375.1215 - Subrogated claim, allowed when.
Section 375.1216 - Valuation of security, procedure.
Section 375.1218 - Classes of claims — priority of distribution.
Section 375.1222 - Payment of claims — duties of liquidator.
Section 375.1224 - Unclaimed funds, deemed unclaimed property — effect.
Section 375.1225 - Discharge of liquidator, when.
Section 375.1226 - Reopening of proceedings, when.
Section 375.1228 - Records may be destroyed after discharge, exceptions.
Section 375.1230 - Audit of receivership may be ordered, when.
Section 375.1234 - Foreign insurers, petition to liquidate assets, grounds — granted when — effects.
Section 375.1236 - Ancillary receiver, director may be appointed as — powers and duties.
Section 375.1238 - Power of director to institute proceedings, when.
Section 375.1240 - Nonresident claims, filed where.
Section 375.1242 - Proof of claims, nonresident insurer — procedures.
Section 375.1244 - Stay of actions during liquidation proceedings.
Section 375.1245 - Priority of nonresident claims, reciprocal states — special deposits, priority.
Section 375.1246 - Nonresident ancillary receiver, claims filed with — priority.
Section 375.1250 - Definitions.
Section 375.1260 - Authorized control level event, occurrence of, when — effect, duties of director.
Section 375.1262 - Mandatory control level event, occurrence of, when — effect, duties of director.
Section 375.1272 - Notices, effective when.
Section 375.1280 - Scope of law.
Section 375.1282 - Application of law — not applicable, when.
Section 375.1285 - Definitions.
Section 375.1292 - Consent to transfer, effect.
Section 375.1294 - Hazardous financial condition of transferring insurer, automatic transfer, when.
Section 375.1295 - Effective date — application dates.
Section 375.1300 - Definitions.
Section 375.1303 - Genetic testing by insurer, limitations — penalty — health plan, defined.
Section 375.1306 - Genetic information, prohibited uses by employers — penalty for violation.
Section 375.1309 - Confidentiality of genetic information, exceptions — penalty for violation.
Section 375.1500 - Sections 375.1500 to 375.1527 apply to life insurance policies, exceptions.
Section 375.1503 - Definitions.
Section 375.1512 - Basic illustration, requirements, contents.
Section 375.1515 - Supplemental illustrations permitted, when — notice required.
Section 375.1521 - Annual report to policy owner, contents.
Section 375.1524 - Illustration actuaries, qualifications, duties — annual certification.
Section 375.1527 - Violation of sections 375.1500 to 375.1527, penalties.
Section 375.1530 - Application of sections 375.1500 to 375.1527.
Section 375.1575 - Denial of claim, disclosure by applicant not required.
Section 375.1730 - Costs of coverage reported to department — rates.
Section 375.1800 - Residency of insurance companies, domestic and foreign.
Section 375.1803 - Court actions against insurance company, venue where — inapplicability, when.
Section 375.1806 - Uninsured and underinsured motorist coverage, venue, where.