Association subject to certain laws--grace period for certainassociations, limitations--certification filed with annualstatement--rules and regulations, director maypromulgate--impaired association, director's powers, reviewof--rating plans, filing of.
383.035. 1. Any association licensed pursuant to the provisions ofsections 383.010 to 383.040 shall be subject to the provisions of thefollowing provisions of the revised statutes of Missouri:
(1) Sections 374.010, 374.040, 374.046 to 374.049, 374.110, 374.115,374.122*, 374.170, 374.190, 374.210, 374.215, 374.216, 374.230, 374.240,374.250 and 374.280, RSMo, relating to the general authority of the directorof the department of insurance, financial institutions and professionalregistration;
(2) Sections 375.022, 375.031, 375.033, 375.035, 375.037 and 375.039,RSMo, relating to dealings with licensed agents and brokers;
(3) Sections 375.041 and 379.105, RSMo, relating to annual statements;
(4) Section 375.163, RSMo, relating to the competence of managingofficers;
(5) Section 375.246, RSMo, relating to reinsurance requirements, exceptthat no association shall be required to maintain reinsurance, and forinsurance issued to members who joined the association on or before January 1,1993, an association shall be allowed credit, as an asset or as a deductionfrom liability, for reinsurance which is payable to the ceding association'sinsured by the assuming insurer on the basis of the liability of the cedingassociation under contracts reinsured without diminution because of theinsolvency of the ceding association;
(6) Section 375.390, RSMo, relating to the use of funds by officers forprivate gain;
(7) Section 375.445, RSMo, relating to insurers operating fraudulently;
(8) Section 379.080, RSMo, relating to permissible investments, exceptthat limitations in such section shall apply only to assets equal to suchpositive surplus as is actually maintained by the association;
(9) Section 379.102, RSMo, relating to the maintenance of unearnedpremium and loss reserves as liabilities, except that any such loss reservesmay be discounted in accordance with reasonable actuarial assumptions;
(10) Sections 383.100 to 383.125 relating to reports from medicalmalpractice insurers;
(11) Sections 383.200 to 383.209 and 383.225 relating to notification,data reporting, and rating requirements.
2. Any association licensed pursuant to the provisions of sections383.010 to 383.040 shall file with its annual statement a certification by afellow or an associate of the Casualty Actuarial Society. Such certificationshall conform to the National Association of Insurance Commissioners annualstatement instructions unless otherwise provided by the director.
3. The director shall have authority in accordance with section 374.045,RSMo, to make all reasonable rules and regulations to accomplish the purposeof sections 383.010 to 383.040, including the extent to which insuranceprovided by an association may be extended to provide payment to a coveredperson resulting from a specific illness possessed by such covered person;except that no rule or regulation may place limitations or restrictions on theamount of premium an association may write or on the amount of insurance orlimit of liability an association may provide.
4. Other than as provided in this section, no other insurance law of thestate of Missouri shall apply to an association licensed pursuant to theprovisions of this chapter, unless such law shall expressly state it isapplicable to such associations.
5. If, after its second full calendar year of operation, any associationlicensed under the provisions of sections 383.010 to 383.040 shall file anannual statement which shows a surplus as regards policyholders of less thanzero dollars, or if the director has other conclusive and credible evidencemore recent than the last annual statement indicating the surplus as regardspolicyholders of an association is less than zero dollars, the director mayorder such association to submit, within ninety days following such order, avoluntary plan under which the association will restore its surplus as regardspolicyholders to at least zero dollars. The director may monitor theperformance of the association's plan and may order modifications thereto,including assessments or rate or premium increases, if the association failsto meet any targets proposed in such plan for three consecutive quarters.
6. If the director issues an order in accordance with subsection 5 ofthis section, the association may, in accordance with chapter 536, RSMo, filea petition for review of such order. Any association subject to an orderissued in accordance with subsection 5 of this section shall be allowed aperiod of three years, or such longer period as the director may allow, toaccomplish its plan to restore its surplus as regards policyholders to atleast zero dollars. If at the end of the authorized period of time theassociation has failed to restore its surplus to at least zero dollars, or ifthe director has ordered modifications of the voluntary plan and theassociation's surplus has failed to increase within three consecutive quartersafter such modification, the director may allow an additional time for theimplementation of the voluntary plan or may exercise the director's powers totake charge of the association as the director would a mutual casualty companypursuant to sections 375.1150 to 375.1246, RSMo. Sections 375.1150 to375.1246, RSMo, shall apply to associations licensed pursuant to sections383.010 to 383.040 only after the conditions set forth in this section aremet. When the surplus as regards policyholders of an association subject tosubsection 5 of this section has been restored to at least zero dollars, theauthority and jurisdiction of the director under subsections 5 and 6 of thissection shall terminate, but this subsection may again thereafter apply tosuch association if the conditions set forth in subsection 5 of this sectionfor its application are again satisfied.
7. Any association licensed pursuant to the provisions of sections383.010 to 383.040 shall place on file with the director, except as to excessliability risks which by general custom are not written according to manualrates or rating plans, a copy of every manual of classifications, rules,underwriting rules and rates, every rating plan and every modification of theforegoing which it uses. Filing with the director within ten days after suchmanuals, rating plans or modifications thereof are effective shall besufficient compliance with this subsection. Any rates, rating plans, rules,classifications or systems in effect or in use by an association on August 28,1992, may continue to be used by the association. Upon written application ofa member of an association, stating his or her reasons therefor, filed withthe association, a rate in excess of that provided by a filing otherwiseapplicable may be used by the association for that member.
Association subject to certain laws--grace period for certainassociations, limitations--certification filed with annualstatement--rules and regulations, director maypromulgate--impaired association, director's powers, reviewof--rating plans, filing of.
383.035. 1. Any association licensed pursuant to the provisions ofsections 383.010 to 383.040 shall be subject to the provisions of thefollowing provisions of the revised statutes of Missouri:
(1) Sections 374.010, 374.040, 374.046 to 374.049, 374.110, 374.115,374.122*, 374.170, 374.190, 374.210, 374.215, 374.216, 374.230, 374.240,374.250 and 374.280, RSMo, relating to the general authority of the directorof the department of insurance, financial institutions and professionalregistration;
(2) Sections 375.022, 375.031, 375.033, 375.035, 375.037 and 375.039,RSMo, relating to dealings with licensed agents and brokers;
(3) Sections 375.041 and 379.105, RSMo, relating to annual statements;
(4) Section 375.163, RSMo, relating to the competence of managingofficers;
(5) Section 375.246, RSMo, relating to reinsurance requirements, exceptthat no association shall be required to maintain reinsurance, and forinsurance issued to members who joined the association on or before January 1,1993, an association shall be allowed credit, as an asset or as a deductionfrom liability, for reinsurance which is payable to the ceding association'sinsured by the assuming insurer on the basis of the liability of the cedingassociation under contracts reinsured without diminution because of theinsolvency of the ceding association;
(6) Section 375.390, RSMo, relating to the use of funds by officers forprivate gain;
(7) Section 375.445, RSMo, relating to insurers operating fraudulently;
(8) Section 379.080, RSMo, relating to permissible investments, exceptthat limitations in such section shall apply only to assets equal to suchpositive surplus as is actually maintained by the association;
(9) Section 379.102, RSMo, relating to the maintenance of unearnedpremium and loss reserves as liabilities, except that any such loss reservesmay be discounted in accordance with reasonable actuarial assumptions;
(10) Sections 383.100 to 383.125 relating to reports from medicalmalpractice insurers;
(11) Sections 383.200 to 383.209 and 383.225 relating to notification,data reporting, and rating requirements.
2. Any association licensed pursuant to the provisions of sections383.010 to 383.040 shall file with its annual statement a certification by afellow or an associate of the Casualty Actuarial Society. Such certificationshall conform to the National Association of Insurance Commissioners annualstatement instructions unless otherwise provided by the director.
3. The director shall have authority in accordance with section 374.045,RSMo, to make all reasonable rules and regulations to accomplish the purposeof sections 383.010 to 383.040, including the extent to which insuranceprovided by an association may be extended to provide payment to a coveredperson resulting from a specific illness possessed by such covered person;except that no rule or regulation may place limitations or restrictions on theamount of premium an association may write or on the amount of insurance orlimit of liability an association may provide.
4. Other than as provided in this section, no other insurance law of thestate of Missouri shall apply to an association licensed pursuant to theprovisions of this chapter, unless such law shall expressly state it isapplicable to such associations.
5. If, after its second full calendar year of operation, any associationlicensed under the provisions of sections 383.010 to 383.040 shall file anannual statement which shows a surplus as regards policyholders of less thanzero dollars, or if the director has other conclusive and credible evidencemore recent than the last annual statement indicating the surplus as regardspolicyholders of an association is less than zero dollars, the director mayorder such association to submit, within ninety days following such order, avoluntary plan under which the association will restore its surplus as regardspolicyholders to at least zero dollars. The director may monitor theperformance of the association's plan and may order modifications thereto,including assessments or rate or premium increases, if the association failsto meet any targets proposed in such plan for three consecutive quarters.
6. If the director issues an order in accordance with subsection 5 ofthis section, the association may, in accordance with chapter 536, RSMo, filea petition for review of such order. Any association subject to an orderissued in accordance with subsection 5 of this section shall be allowed aperiod of three years, or such longer period as the director may allow, toaccomplish its plan to restore its surplus as regards policyholders to atleast zero dollars. If at the end of the authorized period of time theassociation has failed to restore its surplus to at least zero dollars, or ifthe director has ordered modifications of the voluntary plan and theassociation's surplus has failed to increase within three consecutive quartersafter such modification, the director may allow an additional time for theimplementation of the voluntary plan or may exercise the director's powers totake charge of the association as the director would a mutual casualty companypursuant to sections 375.1150 to 375.1246, RSMo. Sections 375.1150 to375.1246, RSMo, shall apply to associations licensed pursuant to sections383.010 to 383.040 only after the conditions set forth in this section aremet. When the surplus as regards policyholders of an association subject tosubsection 5 of this section has been restored to at least zero dollars, theauthority and jurisdiction of the director under subsections 5 and 6 of thissection shall terminate, but this subsection may again thereafter apply tosuch association if the conditions set forth in subsection 5 of this sectionfor its application are again satisfied.
7. Any association licensed pursuant to the provisions of sections383.010 to 383.040 shall place on file with the director, except as to excessliability risks which by general custom are not written according to manualrates or rating plans, a copy of every manual of classifications, rules,underwriting rules and rates, every rating plan and every modification of theforegoing which it uses. Filing with the director within ten days after suchmanuals, rating plans or modifications thereof are effective shall besufficient compliance with this subsection. Any rates, rating plans, rules,classifications or systems in effect or in use by an association on August 28,1992, may continue to be used by the association. Upon written application ofa member of an association, stating his or her reasons therefor, filed withthe association, a rate in excess of that provided by a filing otherwiseapplicable may be used by the association for that member.
Association subject to certain laws--grace period for certainassociations, limitations--certification filed with annualstatement--rules and regulations, director maypromulgate--impaired association, director's powers, reviewof--rating plans, filing of.
383.035. 1. Any association licensed pursuant to the provisions ofsections 383.010 to 383.040 shall be subject to the provisions of thefollowing provisions of the revised statutes of Missouri:
(1) Sections 374.010, 374.040, 374.046 to 374.049, 374.110, 374.115,374.122*, 374.170, 374.190, 374.210, 374.215, 374.216, 374.230, 374.240,374.250 and 374.280, RSMo, relating to the general authority of the directorof the department of insurance, financial institutions and professionalregistration;
(2) Sections 375.022, 375.031, 375.033, 375.035, 375.037 and 375.039,RSMo, relating to dealings with licensed agents and brokers;
(3) Sections 375.041 and 379.105, RSMo, relating to annual statements;
(4) Section 375.163, RSMo, relating to the competence of managingofficers;
(5) Section 375.246, RSMo, relating to reinsurance requirements, exceptthat no association shall be required to maintain reinsurance, and forinsurance issued to members who joined the association on or before January 1,1993, an association shall be allowed credit, as an asset or as a deductionfrom liability, for reinsurance which is payable to the ceding association'sinsured by the assuming insurer on the basis of the liability of the cedingassociation under contracts reinsured without diminution because of theinsolvency of the ceding association;
(6) Section 375.390, RSMo, relating to the use of funds by officers forprivate gain;
(7) Section 375.445, RSMo, relating to insurers operating fraudulently;
(8) Section 379.080, RSMo, relating to permissible investments, exceptthat limitations in such section shall apply only to assets equal to suchpositive surplus as is actually maintained by the association;
(9) Section 379.102, RSMo, relating to the maintenance of unearnedpremium and loss reserves as liabilities, except that any such loss reservesmay be discounted in accordance with reasonable actuarial assumptions;
(10) Sections 383.100 to 383.125 relating to reports from medicalmalpractice insurers;
(11) Sections 383.200 to 383.209 and 383.225 relating to notification,data reporting, and rating requirements.
2. Any association licensed pursuant to the provisions of sections383.010 to 383.040 shall file with its annual statement a certification by afellow or an associate of the Casualty Actuarial Society. Such certificationshall conform to the National Association of Insurance Commissioners annualstatement instructions unless otherwise provided by the director.
3. The director shall have authority in accordance with section 374.045,RSMo, to make all reasonable rules and regulations to accomplish the purposeof sections 383.010 to 383.040, including the extent to which insuranceprovided by an association may be extended to provide payment to a coveredperson resulting from a specific illness possessed by such covered person;except that no rule or regulation may place limitations or restrictions on theamount of premium an association may write or on the amount of insurance orlimit of liability an association may provide.
4. Other than as provided in this section, no other insurance law of thestate of Missouri shall apply to an association licensed pursuant to theprovisions of this chapter, unless such law shall expressly state it isapplicable to such associations.
5. If, after its second full calendar year of operation, any associationlicensed under the provisions of sections 383.010 to 383.040 shall file anannual statement which shows a surplus as regards policyholders of less thanzero dollars, or if the director has other conclusive and credible evidencemore recent than the last annual statement indicating the surplus as regardspolicyholders of an association is less than zero dollars, the director mayorder such association to submit, within ninety days following such order, avoluntary plan under which the association will restore its surplus as regardspolicyholders to at least zero dollars. The director may monitor theperformance of the association's plan and may order modifications thereto,including assessments or rate or premium increases, if the association failsto meet any targets proposed in such plan for three consecutive quarters.
6. If the director issues an order in accordance with subsection 5 ofthis section, the association may, in accordance with chapter 536, RSMo, filea petition for review of such order. Any association subject to an orderissued in accordance with subsection 5 of this section shall be allowed aperiod of three years, or such longer period as the director may allow, toaccomplish its plan to restore its surplus as regards policyholders to atleast zero dollars. If at the end of the authorized period of time theassociation has failed to restore its surplus to at least zero dollars, or ifthe director has ordered modifications of the voluntary plan and theassociation's surplus has failed to increase within three consecutive quartersafter such modification, the director may allow an additional time for theimplementation of the voluntary plan or may exercise the director's powers totake charge of the association as the director would a mutual casualty companypursuant to sections 375.1150 to 375.1246, RSMo. Sections 375.1150 to375.1246, RSMo, shall apply to associations licensed pursuant to sections383.010 to 383.040 only after the conditions set forth in this section aremet. When the surplus as regards policyholders of an association subject tosubsection 5 of this section has been restored to at least zero dollars, theauthority and jurisdiction of the director under subsections 5 and 6 of thissection shall terminate, but this subsection may again thereafter apply tosuch association if the conditions set forth in subsection 5 of this sectionfor its application are again satisfied.
7. Any association licensed pursuant to the provisions of sections383.010 to 383.040 shall place on file with the director, except as to excessliability risks which by general custom are not written according to manualrates or rating plans, a copy of every manual of classifications, rules,underwriting rules and rates, every rating plan and every modification of theforegoing which it uses. Filing with the director within ten days after suchmanuals, rating plans or modifications thereof are effective shall besufficient compliance with this subsection. Any rates, rating plans, rules,classifications or systems in effect or in use by an association on August 28,1992, may continue to be used by the association. Upon written application ofa member of an association, stating his or her reasons therefor, filed withthe association, a rate in excess of that provided by a filing otherwiseapplicable may be used by the association for that member.
