Effective - 01 Jan 1985
380.121. Membership fee — business basis, how established — assessment of members — reserve — return of deposits to members, when — liability of policyholder on termination of policy. — 1. Each Missouri mutual insurance company may require the payment of a membership fee, the amount of which is to be determined by the board of directors, before issuing any policy.
2. Missouri mutual insurance companies may do business upon the basis of assessments alone or may do business upon a premium plus assessment basis.
3. If a company chooses to do business on the basis of assessments alone, it shall require each member to deposit with the company, before the issuance of that member's policy, an amount equivalent to a defined percentage of the risk assumed by the company as a result of the issuance of that member's policy. The directors of the company shall determine this percentage.
4. If the company chooses to do business on a premium plus assessment basis, it may accept payment of the premium in full or may accept a promissory note in lieu of the premium. If a company chooses to accept a promissory note, it shall require each member, before the issuance of that member's policy, to pay ten percent of the total premium and provide a promissory note for the remaining balance. The promissory note shall be made payable, on demand, in whole or in part, when the directors of the company shall deem the additional money necessary for the payment of losses or other expenses.
5. Any Missouri mutual insurance company may assess its members in a manner determined by the company's articles and bylaws in anticipation of losses and expenses for the next two calendar years following the date of assessment, and may accumulate and maintain a reasonable reserve fund for the payment of losses and expenses.
6. The company shall return to its members that portion of the annual deposits or premiums which remain unconsumed after all losses and expenses are deducted or cancel those portions of any promissory notes which remain undemanded, consistent with maintaining an adequate reserve fund to pay losses and expenses in a manner determined by the company's articles and bylaws.
7. A policyholder shall not be liable to assessment for any losses or expenses incurred by the company subsequent to the termination of his policy nor shall he be liable to assessment for any obligations incurred by the company prior to such termination unless notice of such assessment be given within one year after such termination.
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(L. 1984 H.B. 1498)
Effective 1-01-85
Structure Missouri Revised Statutes
Title XXIV - Business and Financial Institutions
Chapter 380 - County, Town and Farmers' Mutual Property Insurance Companies
Section 380.005 - Definitions.
Section 380.011 - Classification as Missouri mutual insurance companies — new companies prohibited.
Section 380.031 - Exemption from insurance laws, exceptions.
Section 380.051 - Financial statement filed annually, fee.
Section 380.091 - Forms filed where — disapproval by director, notice, content — judicial review.
Section 380.101 - Policyholder in mutual to be member — eligibility — member's right to sue company.
Section 380.201 - Definitions.
Section 380.211 - New companies prohibited, when.
Section 380.231 - Company operations limited to Missouri.
Section 380.241 - Amendment to articles and bylaws, procedure — fee.
Section 380.261 - Kinds of insurance company may make.
Section 380.271 - Financial reinsurance requirements.
Section 380.281 - Mergers of certain mutual companies, procedure — merger plan, required contents.
Section 380.291 - Meeting to consider merger plan, notice — requirements.
Section 380.301 - Approval of merger plan, votes required.
Section 380.311 - Articles of merger, content — executed by corporate officers.
Section 380.331 - Certificate of merger issued, when — director and secretary of state's duties.
Section 380.341 - Merger effective when.
Section 380.351 - Certificate of merger returned to whom.
Section 380.361 - Surviving corporation after merger, rights and liabilities.
Section 380.371 - Powers of a company, generally.
Section 380.391 - Misuse of company assets for private gain, penalty.
Section 380.411 - Officers, how selected, tenure.
Section 380.421 - Membership in a company, eligibility.
Section 380.461 - Company may borrow to pay losses — assessment to pay loan.
Section 380.471 - Approved investments.
Section 380.482 - Annual statement of company.
Section 380.491 - Director to examine, when — expenses.
Section 380.501 - Company may dissolve — procedure.
Section 380.511 - Company exempt from insurance laws, exception.
Section 380.521 - License for agents — agencies and brokers.
Section 380.531 - Notices, how given.
Section 380.541 - Policy cancellation — exceptions.
Section 380.551 - Waiver of provision or defense, what constitutes — evidence.
Section 380.561 - Rules, authority for, procedure.
Section 380.571 - Violations, penalties.
Section 380.581 - Powers of company in general.
Section 380.591 - Suits against company commenced when — limitation.
Section 380.601 - Conversion to a mutual insurance company — procedure.
Section 380.651 - Provisions inapplicable to mutual companies.