Effective - 28 Aug 1997
379.083. Insurer investment in investment pools permitted, when — limitations — custodial and pooling agreements. — 1. As used in this section, the following terms mean:
(1) "Affiliate", as defined in section 382.010;
(2) "Business entity", a corporation, limited liability company, association, partnership, joint stock company, joint venture, mutual fund trust, or other similar form of business organization, including such an entity when organized as a not-for-profit entity;
(3) "Qualified bank", a national bank, state bank or trust company that at all times is no less than adequately capitalized as determined by the standards adopted by the United States banking regulators and that is either regulated by state banking laws or is a member of the Federal Reserve System.
2. An insurer may acquire investments in investment pools that invest only in investments which an insurer may acquire pursuant to sections 379.080, 379.082 and other provisions of law. The insurer's proportionate interest in the amount invested in these investments shall not exceed the applicable limits of sections 379.080, 379.082 and other provisions of law. An insurer and its affiliated insurers may invest in a maximum of three investment pools.
3. An investment pool qualified pursuant to this section shall not:
(1) Acquire securities issued, assumed, guaranteed or insured by the insurer or an affiliate of the insurer;
(2) Borrow or incur an indebtedness for borrowed money, except for transactions that meet the requirements of sections 379.080, 379.082 and other provisions of law;
(3) Permit the aggregate value of securities then loaned or sold to, purchased from or invested in any one business entity, which in no event will be an affiliated entity of the participant, to exceed ten percent of the total assets of the investment pool; or
(4) Lend money or other assets to participants in the pool.
4. An insurer shall not acquire an investment in an investment pool pursuant to this section if, as a result of such investment, the aggregate amount of investments then held by the insurer pursuant to this section:
(1) In any one investment pool would exceed ten percent of its admitted assets; or
(2) In all investment pools would exceed thirty percent of its admitted assets.
5. For an investment in an investment pool to be qualified pursuant to this section, the manager of the investment pool shall:
(1) Be organized under the laws of the United States or an individual state and be designated as the pool manager in a pooling agreement;
(2) Be the insurer, an affiliated insurer, a qualified bank, a business entity registered under the federal Investment Advisors Act of 1940 (15 U.S.C. section 80A-1 et seq.) as amended or, in the case of a reciprocal insurer or interinsurance exchange, its attorney-in-fact;
(3) Compile and maintain detailed accounting records setting forth:
(a) The cash receipts and disbursements reflecting each participant's proportionate investment in the investment pool;
(b) A complete description of all underlying assets of the investment pool, including amount, interest rate, maturity date, if any, and other appropriate designations; and
(c) Other records which, on a daily basis, allow third parties to verify each participant's investment in the investment pool; and
(4) Maintain the assets of the investment pool in one custody account, in the name of or on behalf of the investment pool, under a custody agreement with a qualified bank. All custodial agreements shall be filed with the department of commerce and insurance for prior approval. The custody agreement shall:
(a) State and recognize the claims and rights of each participant;
(b) Acknowledge that the underlying assets of the investment pool are held solely for the benefit of each participant in proportion to the aggregate amount of its investments in the investment pool; and
(c) Contain an agreement that the underlying assets of the investment pool shall not be commingled with the general assets of the custodian qualified bank or any other person.
6. The pooling agreement for each investment pool shall be in writing and shall provide that:
(1) An insurer and its affiliated insurers shall, at all times, hold one hundred percent of the interests in the investment pool;
(2) The underlying assets of the investment pool shall not be commingled with the general assets of the pool manager or any other person;
(3) In proportion to the aggregate amount of each pool participant's interest in the investment pool:
(a) Each participant owns an undivided interest in the underlying assets of the investment pool; and
(b) The underlying assets of the investment pool are held solely for the benefit of each participant;
(4) A participant or, in the event of the participant's insolvency, bankruptcy or receivership, its trustee, receiver or other successor-in-interest, may withdraw all or any portion of its investment from the pool under the terms of the pooling agreement;
(5) Withdrawals may be made upon demand without penalty or other assessment on any business day, but settlement of funds shall occur within a reasonable and customary period thereafter not to exceed five business days. Distributions pursuant to this subdivision shall be calculated in each case net of all then applicable fees and expenses of the pool. The pooling agreement shall provide that the pool manager shall distribute to a participant, at the discretion of the pool manager:
(a) In cash, the then fair market value of the participant's pro rata share of each underlying asset of the investment pool;
(b) In kind, a pro rata share of each underlying asset; or
(c) In a combination of cash and in-kind distributions, a pro rata share in each underlying asset; and
(6) The pool manager shall make the records of the investment pool available for inspection by the director of the department of commerce and insurance.
7. The investment pool authorized pursuant to this section shall be a business entity.
8. The pooling agreement and any other arrangements or agreements relating to an investment pool, and any amendments thereto, shall be submitted to the department of commerce and insurance for prior approval pursuant to section 382.195. Individual financial transactions between the pool and its participants in the ordinary course of the investment pool's operations shall not be subject to the provisions of section 382.195. Investment activities of pools and transactions between pools and participants shall be reported annually in the registration statement required by section 382.100.
--------
(L. 1997 H.B. 793)
Structure Missouri Revised Statutes
Title XXIV - Business and Financial Institutions
Chapter 379 - Insurance Other Than Life
Section 379.005 - Definitions.
Section 379.125 - Reinsurance.
Section 379.155 - Coinsurance provisions declared void — exception.
Section 379.160 - Form of policy to be filed — coinsurance clause.
Section 379.165 - Construction of warranties of fact made in application.
Section 379.170 - Construction of warranties of fact incorporated in policy.
Section 379.175 - Evasion of sections prohibited.
Section 379.180 - Adjustments and examination of books to be made at place of loss.
Section 379.185 - After notice of loss, company to furnish blanks.
Section 379.190 - Failure to furnish blank forms deemed waiver.
Section 379.195 - Accident insurance liability fixed, when — cancellation prohibited.
Section 379.200 - Judgment creditor may collect insurance, when.
Section 379.204 - Underinsured motor vehicle coverage, construction of policy.
Section 379.025 - Plans for formation of companies — name — prohibitions.
Section 379.030 - Declaration preliminary to organizing.
Section 379.035 - Articles of incorporation for stock companies.
Section 379.050 - Examination and certification of stocks, by whom.
Section 379.055 - Director to give certificate — to be filed — evidence.
Section 379.060 - Charter of mutual companies.
Section 379.065 - Organization of corporation — procedure — fee.
Section 379.070 - Director to examine subscriptions, policyholders' surplus.
Section 379.075 - Authority to commence business, when, how issued.
Section 379.082 - Property and liability companies, assets — requirements, standards.
Section 379.090 - Premium notes, how payable.
Section 379.095 - Assessment of premium notes.
Section 379.098 - Securities to be deposited by all companies, kind and amount.
Section 379.100 - Director to receive deposits.
Section 379.102 - Unearned premium and loss reserves, maintained as liabilities.
Section 379.105 - Annual reports — contents.
Section 379.110 - Definitions.
Section 379.112 - Provisions of policy covered.
Section 379.114 - Reasons for cancellation.
Section 379.116 - Refusal to insure or exclusion of named persons, when.
Section 379.120 - Explanation of refusal to write a policy, how given, contents — exemption, when.
Section 379.121 - Definitions.
Section 379.123 - Violation deemed unfair trade practice.
Section 379.205 - Mutual companies other than life and fire insurance.
Section 379.210 - Articles of incorporation shall specify what.
Section 379.215 - Name must contain the word "mutual".
Section 379.230 - Contracts of insurance and reinsurance.
Section 379.235 - License required — conditions to be complied with.
Section 379.240 - Who may hold policies.
Section 379.245 - Voting power of members.
Section 379.255 - Assets, how invested.
Section 379.257 - Deposit of securities required of mutual companies other than life and fire.
Section 379.263 - Mutual companies other than life and fire to file statement of affairs, when.
Section 379.265 - Assessments to meet reserve deficiencies.
Section 379.270 - Director may advance money.
Section 379.275 - Policies need not be countersigned — conditions.
Section 379.290 - Tax to be paid upon premiums.
Section 379.300 - Failure to make return — director to proceed.
Section 379.316 - Scope of act (section 379.017 and sections 379.316 to 379.361).
Section 379.318 - Rates, how made.
Section 379.321 - Rating plans to be filed with director, when — informational filings.
Section 379.326 - Deviation, how filed, effective when — open to public inspection.
Section 379.331 - Joint underwriting regulated — hearings, discontinuance order, when.
Section 379.333 - Insurers may act in concert to make rates.
Section 379.336 - Insurers with common management may act in concert to make rates.
Section 379.338 - Agreement to adhere prohibited, exception.
Section 379.341 - Exchange of information approved.
Section 379.343 - Examinations by director, when, how conducted, cost how paid.
Section 379.346 - Examination, purpose of — hearing — order.
Section 379.348 - Review of rate, rating plan or system, how obtained.
Section 379.356 - Excessive premiums and rebates prohibited.
Section 379.359 - Commissions paid to brokers or agents not affected.
Section 379.361 - Violations, penalties.
Section 379.420 - Citation of law.
Section 379.425 - Law applicable to certain classes of insurance — exceptions.
Section 379.430 - Insurers may act in concert with respect to rates.
Section 379.435 - Rating organization defined.
Section 379.440 - Rating organization must be licensed — who may apply — content of application.
Section 379.445 - Requirements to obtain and retain license.
Section 379.450 - Director to grant or deny license.
Section 379.455 - Advisory organizations.
Section 379.460 - Joint underwriting groups.
Section 379.465 - Exchange of information — agreement to rates.
Section 379.470 - Provisions governing rates.
Section 379.480 - Purpose of examination — hearing — orders.
Section 379.485 - Penalties for failure to comply — powers of director.
Section 379.490 - May use rating plans or systems.
Section 379.495 - Payment of dividends not regulated.
Section 379.500 - Freedom of contract for fees not restricted.
Section 379.510 - Penalty for violation of orders.
Section 379.515 - May reorganize and extend corporate existence.
Section 379.520 - Content of articles of association.
Section 379.525 - Additional requirements for articles of association.
Section 379.530 - Special meeting to be called — notice.
Section 379.540 - Articles to be acknowledged and declaration of proceeding to be made.
Section 379.545 - Duty of director.
Section 379.555 - Examination of company and certificate to do business.
Section 379.565 - Suit in circuit court to determine value.
Section 379.570 - Publication of notice — proceedings.
Section 379.575 - Who may appear — proceedings, how governed.
Section 379.580 - Costs — by whom paid.
Section 379.585 - Company having special charter may accept general insurance laws.
Section 379.590 - Content of articles of association.
Section 379.595 - Additional requirements of articles of association.
Section 379.600 - Special meeting to be called — notice.
Section 379.605 - Proposition to surrender to be voted on.
Section 379.610 - Acknowledgment and declaration to be made.
Section 379.615 - Duty of director.
Section 379.620 - Acceptance by resolution of directors.
Section 379.625 - Certificate to do business.
Section 379.660 - Contracts to be executed through attorney in fact.
Section 379.670 - Application for license, contents — requirements.
Section 379.680 - Service of process on director — method.
Section 379.700 - Reserves required.
Section 379.710 - Surplus required — claim reserve fund — phase-in of requirements.
Section 379.720 - Deficiency how made up — net premium and deposit defined.
Section 379.730 - Annual statement of financial condition required.
Section 379.740 - Corporations generally empowered to become subscribers.
Section 379.770 - Mergers or consolidation of reciprocal exchanges or interinsurers.
Section 379.790 - Penalty for acting without legal authority.
Section 379.800 - Sections 374.030 to 379.790 intended as a continuation of existing law.
Section 379.810 - Program established.
Section 379.815 - Definitions.
Section 379.820 - Inspections and reports.
Section 379.827 - Sinkhole loss policies authorized.
Section 379.830 - Procedure after inspection and submission.
Section 379.835 - Joint reinsurance association.
Section 379.840 - Standard policy coverage and rating procedure.
Section 379.845 - Cancellation or nonrenewal.
Section 379.850 - Right of appeal.
Section 379.855 - Commissions.
Section 379.865 - Annual and special meetings.
Section 379.870 - Duties of the committee.
Section 379.875 - Statistics to be kept, reports.
Section 379.880 - Public education.
Section 379.882 - Definitions for sections 379.882 to 379.886.
Section 379.884 - Policyholder's right to history of policy, when.
Section 379.885 - Proof of mailing notice of cancellation or nonrenewal.
Section 379.890 - Rates, rate plan or rate system filing, when — required actuarial data.
Section 379.901 - Prepaid service plan defined — agent soliciting memberships, disclosures.
Section 379.930 - Small employer health insurance availability act — definitions.
Section 379.946 - Board report, contents, recommendations.
Section 379.948 - Certain law not to apply to basic health benefit plan.
Section 379.950 - Director to promulgate rules, procedure.
Section 379.975 - Insurer to provide information, when.
Section 379.978 - Written disaster plan, insurer to develop, contents.
Section 379.980 - Reorganization of domestic mutual insurance company, authority.
Section 379.1300 - Definitions.
Section 379.1304 - Adoption of a name, deceptive practice.
Section 379.1306 - Capital and surplus requirements.
Section 379.1308 - Approval for payment of dividends required.
Section 379.1310 - Incorporation as a stock insurer permitted, when.
Section 379.1312 - Reports required.
Section 379.1314 - Inspections, when.
Section 379.1316 - Suspension or revocation of licensure, when.
Section 379.1318 - Investment requirements, compliance with.
Section 379.1320 - Reinsurance may be provided, when.
Section 379.1322 - Rating organizations, company not required to join.
Section 379.1324 - Prohibitions on joining or contributing to certain entities and funds.
Section 379.1326 - Premium tax imposed, amount, procedure.
Section 379.1328 - Rulemaking authority.
Section 379.1330 - Inapplicability of insurance laws to captive insurance companies.
Section 379.1332 - Promotion of captive insurance, moneys from dedicated insurance fund to be used.
Section 379.1338 - Standards for risk management of controlled unaffiliated business.
Section 379.1339 - Conversion to reciprocal insurer, when, procedure.
Section 379.1340 - Branch captive may be established, when.
Section 379.1342 - Trust fund required for branch captive insurance company.
Section 379.1344 - Certificate for branch captive insurance companies.
Section 379.1348 - Examination of branch captive insurance companies, limitations.
Section 379.1350 - Applicability of tax to branch companies.
Section 379.1353 - Definitions.
Section 379.1356 - Inapplicability of insurance laws.
Section 379.1361 - Plan of operation to be filed, contents.
Section 379.1364 - License fee, amount.
Section 379.1367 - Approval of application, findings by director.
Section 379.1370 - Corporate status of company.
Section 379.1373 - Limitation on activities and name — number of incorporators required.
Section 379.1376 - Contract requirements.
Section 379.1379 - Swap agreements permitted.
Section 379.1382 - Issuance of securities — approved activities by director.
Section 379.1385 - Management of assets.
Section 379.1388 - Recognition of admitted assets — value of assets.
Section 379.1391 - Prohibited acts.
Section 379.1394 - Dividend-payments, limitations.
Section 379.1397 - Changes in plan of operation, directors approval required.
Section 379.1400 - Affiliated agreements to be filed with director.
Section 379.1403 - Audited financial report required, requirements.
Section 379.1406 - Examination required, when, procedure.
Section 379.1409 - Record-keeping requirements.
Section 379.1412 - Premium tax required, amount, procedure.
Section 379.1415 - Confidentiality of records, exceptions.
Section 379.1418 - Grounds for liquidation — granting of relief, management of assets.
Section 379.1421 - Rulemaking authority.
Section 379.1500 - Definitions.
Section 379.1505 - Vendor license required — application, fee — termination date.
Section 379.1515 - Insurance producers act, applicability of.
Section 379.1520 - Sanctioning of license, when — penalties, when.
Section 379.1525 - Vendor investigation and examination requirements.
Section 379.1530 - Premiums, received by insurer, when — proof of purchase, insurer may require.
Section 379.1535 - Violations, director's authority.
Section 379.1540 - Supervising business entity, sanctioning of license, when.
Section 379.1545 - Insurers, permissible acts.
Section 379.1550 - Rulemaking authority — effective date.
Section 379.1700 - Definitions.
Section 379.1704 - Disclosure of insurance coverage, how made.
Section 379.1706 - Disclosure statement — display.
Section 379.1708 - Exclusions and limitations on coverage.
Section 379.1803 - Master policy issuance, certificates — content of master policy.