Effective - 28 Aug 1991
380.271. Financial reinsurance requirements. — 1. In order to commence or continue writing the classes of insurance enumerated in section 380.261, any company operating under the provisions of sections 380.201 to 380.591 shall comply with the following financial and reinsurance requirements:
(1) To make fire insurance as described in section 380.261, a company shall maintain a guaranty fund of not less than fifty thousand dollars or one-tenth of one percent of the net fire insurance in force, whichever is greater. Reinsurance sufficient to protect the financial stability of the company shall also be required. The director may require additional reinsurance if he deems it necessary to protect the policyholders of the company.
(2) To make windstorm insurance as described in section 380.261, a company shall maintain a guaranty fund of not less than fifty thousand dollars or one-tenth of one percent of the net wind insurance in force, whichever is greater. Reinsurance sufficient to protect the financial stability of the company shall also be required. The director may require additional reinsurance if he deems it necessary to protect the policyholders of the company.
(3) To make liability insurance as described in section 380.261, a company shall maintain a guaranty fund of not less than fifty thousand dollars or twenty-five percent of net premiums written less deductions for pro rata, quota-share or per-risk excess of loss reinsurances directly covering the company's casualty premiums or assessments, whichever is greater. Reinsurance sufficient to protect the financial stability of the company shall also be required. The director may require additional reinsurance if he deems it necessary to protect the policyholders of the company.
(4) To make crop insurance as described in section 380.261, a company shall maintain a guaranty fund of not less than fifty thousand dollars or one-half of one percent of the net crop insurance in force, whichever is greater. Reinsurance sufficient to protect the financial stability of the company shall also be required. The director may require additional reinsurance if he deems it necessary to protect the policyholders of the company.
(5) To make insurance as described in subdivision (5) of section 380.261, a company shall maintain a guaranty fund of not less than one million six hundred thousand dollars. Reinsurance sufficient to protect the financial stability of the company shall also be required. The director may require additional reinsurance if he deems it necessary to protect the policyholders of the company.
2. The financial requirements of this section are to be construed cumulatively except that a company shall be required to have a guaranty fund of not more than one million six hundred thousand dollars plus reinsurance.
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(L. 1984 H.B. 1498, A.L. 1991 H.B. 592)
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.