Property and liability companies, assets--requirements, standards.
379.082. 1. Property or liability domestic insurers shallmaintain assets which meet both the following requirements:
(1) The assets shall be diversified both as to type andissue; and
(2) The assets shall be reasonably liquid.
2. As used in this section, the following terms mean:
(1) "Insurer", a property or liability domestic insurer;
(2) "Policyholder obligations", those liabilities of theinsurer to, or for, its policyholders arising out of its policiesand to its creditors and includes the liabilities required to beincluded in the insurer's annual statement, including, but notlimited to:
(a) The unearned premium reserve;
(b) Claim or loss reserves, including incurred but notreported claims and including loss adjustment expense reserves;
(c) Minimum capital and minimum surplus or minimumpolicyholders surplus; and
(d) Ceded reinsurance balances payable."Policyholder obligations" do not include that portion of theinsurer's capital and surplus, or policyholders surplus if amutual, in excess of the minimum capital and surplus or minimumpolicyholders surplus required by law for such insurer.
3. An insurer's assets covering policyholder obligationsshall meet all of the following standards in order to be deemeddiversified under subdivision (1) of subsection 1 of thissection:
(1) An insurer may have assets consisting of * investmentsin, without limitation and notwithstanding the provisions ofsubdivision (2) of this subsection:
(a) Assets described in paragraphs (a), (b), (c) and (d) ofsubdivision (1) of subsection 1 of section 379.080;
(b) Bonds and other evidences of indebtedness issued bycorporations organized under the laws of this state or of theUnited States or of any other state, if rated 1 or 2 by theSecurities Valuation Office of the National Association ofInsurance Commissioners; and
(c) Assets described in paragraphs (e) and (h) ofsubdivision (2) of subsection 1 of section 379.080, where suchbonds, notes or evidences of indebtedness are:
a. Issued, guaranteed or insured by the United States orany agency, administration, authority or instrumentality of theUnited States; or
b. Rated 1 or 2 by the Securities Valuation Office of theNational Association of Insurance Commissioners;
(2) No insurer may have assets to cover policyholderobligations or investments to cover policyholder obligations in:
(a) Subsidiaries in excess of the amount allowed byparagraph (o) of subdivision (2) of subsection 1 of section379.080;
(b) The securities, including for this purpose partnershipand other equity interests, in one institution in excess of fivepercent of policyholder obligations. For purposes of thisparagraph, one institution includes all entities under commonownership or control as defined in subdivision (2) of section382.010, RSMo. This paragraph is an additional standardapplicable to bonds and short term investments under paragraph(c) of this subdivision, common stocks under paragraph (d) ofthis subdivision, preferred stocks under paragraph (e) of thissubdivision, and other invested assets and aggregate write-insfor invested assets under paragraph (f) of this subdivision;
(c) Investments in bonds and short term investments whichviolate the standards mandated by sections 375.1070 to 375.1075,RSMo. No insurer shall be forced to liquidate or nonadmit bondspurchased before August 28, 1991;
(d) Common stocks in excess of ten percent of policyholderobligations;
(e) Preferred stocks in excess of ten percent ofpolicyholder obligations;
(f) Other invested assets and aggregate write-ins forinvested assets, and aggregate write-ins for other than investedassets, as described in the insurer's filed annual statement, inexcess of five percent of policyholder obligations;
(g) Mortgage loans on real estate, in excess of:
a. Ten percent of policyholder obligations, regarding theaggregate of such loans; and
b. One percent of policyholder obligations, regarding theamount loaned upon any one particular piece of real estate;
(h) Real estate occupied by the company and for otherpurposes, in excess of the standards set forth in section375.330, RSMo;
(i) Collateral loans on personal property in excess of:
a. Five percent of policyholder obligations, regarding theaggregate of such loans; and
b. One percent of policyholder obligations, regarding theamount loaned upon any one particular personal property;
(j) Receivables from parents, subsidiaries or affiliates,as described in the insurer's filed annual statement, in excessof five percent of policyholder obligations;
(k) Assets other than cash and the assets described inparagraphs (c) to (j) of this subdivision, in excess oftwenty-five percent of policyholder obligations.
(3) Assets may be invested or held in amounts in excess ofthe limitations provided by subdivision (2) of this subsection tothe extent of that portion of the insurer's capital and surplus,or policyholders surplus if a mutual, in excess of the minimumcapital and surplus or minimum policyholders surplus required bylaw for such insurer.
4. Assets shall be deemed reasonably liquid undersubdivision (2) of subsection 1 of this section, if the assetsare convertible to cash within a reasonable period of time todischarge timely the insurer's claims and other liabilities.
Property and liability companies, assets--requirements, standards.
379.082. 1. Property or liability domestic insurers shallmaintain assets which meet both the following requirements:
(1) The assets shall be diversified both as to type andissue; and
(2) The assets shall be reasonably liquid.
2. As used in this section, the following terms mean:
(1) "Insurer", a property or liability domestic insurer;
(2) "Policyholder obligations", those liabilities of theinsurer to, or for, its policyholders arising out of its policiesand to its creditors and includes the liabilities required to beincluded in the insurer's annual statement, including, but notlimited to:
(a) The unearned premium reserve;
(b) Claim or loss reserves, including incurred but notreported claims and including loss adjustment expense reserves;
(c) Minimum capital and minimum surplus or minimumpolicyholders surplus; and
(d) Ceded reinsurance balances payable."Policyholder obligations" do not include that portion of theinsurer's capital and surplus, or policyholders surplus if amutual, in excess of the minimum capital and surplus or minimumpolicyholders surplus required by law for such insurer.
3. An insurer's assets covering policyholder obligationsshall meet all of the following standards in order to be deemeddiversified under subdivision (1) of subsection 1 of thissection:
(1) An insurer may have assets consisting of * investmentsin, without limitation and notwithstanding the provisions ofsubdivision (2) of this subsection:
(a) Assets described in paragraphs (a), (b), (c) and (d) ofsubdivision (1) of subsection 1 of section 379.080;
(b) Bonds and other evidences of indebtedness issued bycorporations organized under the laws of this state or of theUnited States or of any other state, if rated 1 or 2 by theSecurities Valuation Office of the National Association ofInsurance Commissioners; and
(c) Assets described in paragraphs (e) and (h) ofsubdivision (2) of subsection 1 of section 379.080, where suchbonds, notes or evidences of indebtedness are:
a. Issued, guaranteed or insured by the United States orany agency, administration, authority or instrumentality of theUnited States; or
b. Rated 1 or 2 by the Securities Valuation Office of theNational Association of Insurance Commissioners;
(2) No insurer may have assets to cover policyholderobligations or investments to cover policyholder obligations in:
(a) Subsidiaries in excess of the amount allowed byparagraph (o) of subdivision (2) of subsection 1 of section379.080;
(b) The securities, including for this purpose partnershipand other equity interests, in one institution in excess of fivepercent of policyholder obligations. For purposes of thisparagraph, one institution includes all entities under commonownership or control as defined in subdivision (2) of section382.010, RSMo. This paragraph is an additional standardapplicable to bonds and short term investments under paragraph(c) of this subdivision, common stocks under paragraph (d) ofthis subdivision, preferred stocks under paragraph (e) of thissubdivision, and other invested assets and aggregate write-insfor invested assets under paragraph (f) of this subdivision;
(c) Investments in bonds and short term investments whichviolate the standards mandated by sections 375.1070 to 375.1075,RSMo. No insurer shall be forced to liquidate or nonadmit bondspurchased before August 28, 1991;
(d) Common stocks in excess of ten percent of policyholderobligations;
(e) Preferred stocks in excess of ten percent ofpolicyholder obligations;
(f) Other invested assets and aggregate write-ins forinvested assets, and aggregate write-ins for other than investedassets, as described in the insurer's filed annual statement, inexcess of five percent of policyholder obligations;
(g) Mortgage loans on real estate, in excess of:
a. Ten percent of policyholder obligations, regarding theaggregate of such loans; and
b. One percent of policyholder obligations, regarding theamount loaned upon any one particular piece of real estate;
(h) Real estate occupied by the company and for otherpurposes, in excess of the standards set forth in section375.330, RSMo;
(i) Collateral loans on personal property in excess of:
a. Five percent of policyholder obligations, regarding theaggregate of such loans; and
b. One percent of policyholder obligations, regarding theamount loaned upon any one particular personal property;
(j) Receivables from parents, subsidiaries or affiliates,as described in the insurer's filed annual statement, in excessof five percent of policyholder obligations;
(k) Assets other than cash and the assets described inparagraphs (c) to (j) of this subdivision, in excess oftwenty-five percent of policyholder obligations.
(3) Assets may be invested or held in amounts in excess ofthe limitations provided by subdivision (2) of this subsection tothe extent of that portion of the insurer's capital and surplus,or policyholders surplus if a mutual, in excess of the minimumcapital and surplus or minimum policyholders surplus required bylaw for such insurer.
4. Assets shall be deemed reasonably liquid undersubdivision (2) of subsection 1 of this section, if the assetsare convertible to cash within a reasonable period of time todischarge timely the insurer's claims and other liabilities.
Property and liability companies, assets--requirements, standards.
379.082. 1. Property or liability domestic insurers shallmaintain assets which meet both the following requirements:
(1) The assets shall be diversified both as to type andissue; and
(2) The assets shall be reasonably liquid.
2. As used in this section, the following terms mean:
(1) "Insurer", a property or liability domestic insurer;
(2) "Policyholder obligations", those liabilities of theinsurer to, or for, its policyholders arising out of its policiesand to its creditors and includes the liabilities required to beincluded in the insurer's annual statement, including, but notlimited to:
(a) The unearned premium reserve;
(b) Claim or loss reserves, including incurred but notreported claims and including loss adjustment expense reserves;
(c) Minimum capital and minimum surplus or minimumpolicyholders surplus; and
(d) Ceded reinsurance balances payable."Policyholder obligations" do not include that portion of theinsurer's capital and surplus, or policyholders surplus if amutual, in excess of the minimum capital and surplus or minimumpolicyholders surplus required by law for such insurer.
3. An insurer's assets covering policyholder obligationsshall meet all of the following standards in order to be deemeddiversified under subdivision (1) of subsection 1 of thissection:
(1) An insurer may have assets consisting of * investmentsin, without limitation and notwithstanding the provisions ofsubdivision (2) of this subsection:
(a) Assets described in paragraphs (a), (b), (c) and (d) ofsubdivision (1) of subsection 1 of section 379.080;
(b) Bonds and other evidences of indebtedness issued bycorporations organized under the laws of this state or of theUnited States or of any other state, if rated 1 or 2 by theSecurities Valuation Office of the National Association ofInsurance Commissioners; and
(c) Assets described in paragraphs (e) and (h) ofsubdivision (2) of subsection 1 of section 379.080, where suchbonds, notes or evidences of indebtedness are:
a. Issued, guaranteed or insured by the United States orany agency, administration, authority or instrumentality of theUnited States; or
b. Rated 1 or 2 by the Securities Valuation Office of theNational Association of Insurance Commissioners;
(2) No insurer may have assets to cover policyholderobligations or investments to cover policyholder obligations in:
(a) Subsidiaries in excess of the amount allowed byparagraph (o) of subdivision (2) of subsection 1 of section379.080;
(b) The securities, including for this purpose partnershipand other equity interests, in one institution in excess of fivepercent of policyholder obligations. For purposes of thisparagraph, one institution includes all entities under commonownership or control as defined in subdivision (2) of section382.010, RSMo. This paragraph is an additional standardapplicable to bonds and short term investments under paragraph(c) of this subdivision, common stocks under paragraph (d) ofthis subdivision, preferred stocks under paragraph (e) of thissubdivision, and other invested assets and aggregate write-insfor invested assets under paragraph (f) of this subdivision;
(c) Investments in bonds and short term investments whichviolate the standards mandated by sections 375.1070 to 375.1075,RSMo. No insurer shall be forced to liquidate or nonadmit bondspurchased before August 28, 1991;
(d) Common stocks in excess of ten percent of policyholderobligations;
(e) Preferred stocks in excess of ten percent ofpolicyholder obligations;
(f) Other invested assets and aggregate write-ins forinvested assets, and aggregate write-ins for other than investedassets, as described in the insurer's filed annual statement, inexcess of five percent of policyholder obligations;
(g) Mortgage loans on real estate, in excess of:
a. Ten percent of policyholder obligations, regarding theaggregate of such loans; and
b. One percent of policyholder obligations, regarding theamount loaned upon any one particular piece of real estate;
(h) Real estate occupied by the company and for otherpurposes, in excess of the standards set forth in section375.330, RSMo;
(i) Collateral loans on personal property in excess of:
a. Five percent of policyholder obligations, regarding theaggregate of such loans; and
b. One percent of policyholder obligations, regarding theamount loaned upon any one particular personal property;
(j) Receivables from parents, subsidiaries or affiliates,as described in the insurer's filed annual statement, in excessof five percent of policyholder obligations;
(k) Assets other than cash and the assets described inparagraphs (c) to (j) of this subdivision, in excess oftwenty-five percent of policyholder obligations.
(3) Assets may be invested or held in amounts in excess ofthe limitations provided by subdivision (2) of this subsection tothe extent of that portion of the insurer's capital and surplus,or policyholders surplus if a mutual, in excess of the minimumcapital and surplus or minimum policyholders surplus required bylaw for such insurer.
4. Assets shall be deemed reasonably liquid undersubdivision (2) of subsection 1 of this section, if the assetsare convertible to cash within a reasonable period of time todischarge timely the insurer's claims and other liabilities.
