379.235. 1. No such company shall issue policies ortransact any business of insurance unless it holds a license fromthe director authorizing the transaction of such business. Alicense shall not be issued unless the company complies with thefollowing conditions:
(1) It shall hold bona fide applications for insurance uponwhich it shall issue simultaneously, or it shall have in force,at least twenty policies to at least twenty members for the samekind of insurance upon not less than two hundred separate risks,each within the maximum single risk described herein.
(2) The maximum single risk shall not exceed five percent ofthe admitted assets or three times the average risk or onepercent of the insurance in force, whichever is the greater, anyreinsurance taking effect simultaneously with the policy beingdeducted in determining such maximum single risk.
(3) It has collected an annual premium upon eachapplication, which premium shall be equal to not less than fivetimes the maximum single risk assumed nor less than one hundredthousand dollars; provided, however, that the total assets of thecompany shall not be less than one hundred thousand dollars ofpaid-in premiums and a guaranty fund or contributed surplus ofnot less than six hundred thousand dollars which shall be held incash or securities in which these insurance companies areauthorized to invest; and provided further, that any mutualcompany other than life and fire licensed to do business onSeptember 28, 1977, which confines its writings to burglary andtheft, and liability, property damage and collision other thanautomobile and workers' compensation, shall maintain a guarantyfund or contributed surplus of not less than three hundredthousand dollars.
(4) For the purpose of transacting employer's liability andworkers' compensation insurance the applications shall cover notless than one thousand five hundred employees, each employeebeing considered a separate risk for determining the maximumsingle risk.
2. Any other provision of law notwithstanding any mutualcompany other than life and fire licensed to do business in thisstate on September 28, 1977, may renew its license for businessspecified therein until December 31, 1979, if it maintains assetsof not less than three hundred thousand dollars consisting ofpaid-in premiums and a guaranty fund or contributed surplus whichshall be held in cash or securities in which these insurancecompanies are authorized to invest.
3. Violation of any of the provisions of this section by aninsurer is grounds for the revocation of its certificate ofauthority by the director.
(RSMo 1939 § 5956, A.L. 1953 p. 245, A.L. 1963 p. 485, A.L. 1977 S.B. 368)
Prior revisions: 1929 § 5845; 1919 § 6255
(1968) The certificate of authority issued to an insurance company is a license and not a contract with the state. Under its police power, the legislature may amend, repeal or reenact the statutes prescribing the conditions for such a license whenever it deems it necessary and the insurance company has no vested property right in its license. Public Mutual Casualty Co. v. Scharz (Mo.), 422 S.W.2d 301.
379.235. 1. No such company shall issue policies ortransact any business of insurance unless it holds a license fromthe director authorizing the transaction of such business. Alicense shall not be issued unless the company complies with thefollowing conditions:
(1) It shall hold bona fide applications for insurance uponwhich it shall issue simultaneously, or it shall have in force,at least twenty policies to at least twenty members for the samekind of insurance upon not less than two hundred separate risks,each within the maximum single risk described herein.
(2) The maximum single risk shall not exceed five percent ofthe admitted assets or three times the average risk or onepercent of the insurance in force, whichever is the greater, anyreinsurance taking effect simultaneously with the policy beingdeducted in determining such maximum single risk.
(3) It has collected an annual premium upon eachapplication, which premium shall be equal to not less than fivetimes the maximum single risk assumed nor less than one hundredthousand dollars; provided, however, that the total assets of thecompany shall not be less than one hundred thousand dollars ofpaid-in premiums and a guaranty fund or contributed surplus ofnot less than six hundred thousand dollars which shall be held incash or securities in which these insurance companies areauthorized to invest; and provided further, that any mutualcompany other than life and fire licensed to do business onSeptember 28, 1977, which confines its writings to burglary andtheft, and liability, property damage and collision other thanautomobile and workers' compensation, shall maintain a guarantyfund or contributed surplus of not less than three hundredthousand dollars.
(4) For the purpose of transacting employer's liability andworkers' compensation insurance the applications shall cover notless than one thousand five hundred employees, each employeebeing considered a separate risk for determining the maximumsingle risk.
2. Any other provision of law notwithstanding any mutualcompany other than life and fire licensed to do business in thisstate on September 28, 1977, may renew its license for businessspecified therein until December 31, 1979, if it maintains assetsof not less than three hundred thousand dollars consisting ofpaid-in premiums and a guaranty fund or contributed surplus whichshall be held in cash or securities in which these insurancecompanies are authorized to invest.
3. Violation of any of the provisions of this section by aninsurer is grounds for the revocation of its certificate ofauthority by the director.
(RSMo 1939 § 5956, A.L. 1953 p. 245, A.L. 1963 p. 485, A.L. 1977 S.B. 368)
Prior revisions: 1929 § 5845; 1919 § 6255
(1968) The certificate of authority issued to an insurance company is a license and not a contract with the state. Under its police power, the legislature may amend, repeal or reenact the statutes prescribing the conditions for such a license whenever it deems it necessary and the insurance company has no vested property right in its license. Public Mutual Casualty Co. v. Scharz (Mo.), 422 S.W.2d 301.
379.235. 1. No such company shall issue policies ortransact any business of insurance unless it holds a license fromthe director authorizing the transaction of such business. Alicense shall not be issued unless the company complies with thefollowing conditions:
(1) It shall hold bona fide applications for insurance uponwhich it shall issue simultaneously, or it shall have in force,at least twenty policies to at least twenty members for the samekind of insurance upon not less than two hundred separate risks,each within the maximum single risk described herein.
(2) The maximum single risk shall not exceed five percent ofthe admitted assets or three times the average risk or onepercent of the insurance in force, whichever is the greater, anyreinsurance taking effect simultaneously with the policy beingdeducted in determining such maximum single risk.
(3) It has collected an annual premium upon eachapplication, which premium shall be equal to not less than fivetimes the maximum single risk assumed nor less than one hundredthousand dollars; provided, however, that the total assets of thecompany shall not be less than one hundred thousand dollars ofpaid-in premiums and a guaranty fund or contributed surplus ofnot less than six hundred thousand dollars which shall be held incash or securities in which these insurance companies areauthorized to invest; and provided further, that any mutualcompany other than life and fire licensed to do business onSeptember 28, 1977, which confines its writings to burglary andtheft, and liability, property damage and collision other thanautomobile and workers' compensation, shall maintain a guarantyfund or contributed surplus of not less than three hundredthousand dollars.
(4) For the purpose of transacting employer's liability andworkers' compensation insurance the applications shall cover notless than one thousand five hundred employees, each employeebeing considered a separate risk for determining the maximumsingle risk.
2. Any other provision of law notwithstanding any mutualcompany other than life and fire licensed to do business in thisstate on September 28, 1977, may renew its license for businessspecified therein until December 31, 1979, if it maintains assetsof not less than three hundred thousand dollars consisting ofpaid-in premiums and a guaranty fund or contributed surplus whichshall be held in cash or securities in which these insurancecompanies are authorized to invest.
3. Violation of any of the provisions of this section by aninsurer is grounds for the revocation of its certificate ofauthority by the director.
(RSMo 1939 § 5956, A.L. 1953 p. 245, A.L. 1963 p. 485, A.L. 1977 S.B. 368)
Prior revisions: 1929 § 5845; 1919 § 6255
(1968) The certificate of authority issued to an insurance company is a license and not a contract with the state. Under its police power, the legislature may amend, repeal or reenact the statutes prescribing the conditions for such a license whenever it deems it necessary and the insurance company has no vested property right in its license. Public Mutual Casualty Co. v. Scharz (Mo.), 422 S.W.2d 301.
