379.010. 1. Any number of persons, not less than thirteen in number, a majority of whom shall be citizens of this state, may associate and form a corporation, association or company for the purpose of making insurance regarding the following classes:
(1) Property, which shall consist of insurance on the following subclasses:
(a) Marine, inland marine, and transportation;
(b) Animals;
(c) All other real and personal property, intangible or tangible;
(2) Liability, which shall consist of insurance for the following subclasses:
(a) Workers' compensation and employers' liability;
(b) Professional malpractice;
(c) Contractual liability;
(d) All other legal liability of the insured to another;
(3) Fidelity and surety;
(4) Accident and health, including death by accident;
(5) Miscellaneous, consisting of all other legitimate forms of insurance not described above but excluding life and annuities.
2. No company shall commence business or make insurance on one of the classes of insurance named in subsection 1 of this section unless, if it is a stock company, it has and maintains a paid in capital of at least eight hundred thousand dollars and a surplus of at least eight hundred thousand dollars or, if it is a mutual company, it has and maintains a policyholders' surplus of at least one million six hundred thousand dollars. No company shall commence business or make insurance on more than one of the classes of insurance enumerated in subsection 1 of this section unless, if it is a stock company, it has and maintains a paid in capital of at least one million two hundred thousand dollars and a surplus of not less than one million two hundred thousand dollars or, if it is a mutual company, it has and maintains a policyholders' surplus of not less than two million four hundred thousand dollars.
3. Violation of any of the provisions of this section by an insurer is grounds for the revocation of its certificate of authority by the director.
4. Notwithstanding any provision of this section, a mutual company licensed to do:
(1) More than one class of business in this state under this section on July 1, 1987, which did not maintain an aggregate amount of at least two million four hundred thousand dollars as policyholders' surplus on December 31, 1986, may renew its license for business specified therein by maintaining an aggregate amount of at least one million six hundred thousand dollars as policyholders' surplus, if all other conditions have been met, until December 31, 1989, at which time the following provisions relating to minimum policyholders' surplus shall be met:
(a) On and after December 31, 1989, one million eight hundred thousand dollars;
(b) On and after December 31, 1990, two million dollars;
(c) On and after December 31, 1991, two million two hundred thousand dollars;
(d) On and after December 31, 1992, two million four hundred thousand dollars;
(2) One class of business in this state under this section on July 1, 1987, which did not maintain an aggregate amount of at least one million six hundred thousand dollars as a policyholders' surplus on December 31, 1986, may renew its license for business specified therein by maintaining an aggregate amount of at least eight hundred thousand dollars as a policyholders' surplus, if all other conditions have been met, until December 31, 1989, at which time the following provisions relating to policyholders' surplus shall be met:
(a) On and after December 31, 1989, one million dollars;
(b) On and after December 31, 1990, one million two hundred thousand dollars;
(c) On and after December 31, 1991, one million four hundred thousand dollars;
(d) On and after December 31, 1992, one million six hundred thousand dollars.
5. Notwithstanding any provision of this section, a stock company licensed to do:
(1) More than one class of business in this state under this section on August 28, 1989, which did not have a fully paid capital of at least one million two hundred thousand dollars and a surplus of at least one million two hundred thousand dollars on December 31, 1986, may renew its license for business specified therein by maintaining a fully paid capital of at least eight hundred thousand dollars and a surplus of at least eight hundred thousand dollars, if all other conditions have been met, until December 31, 1989, at which time the following provisions relating to minimum capital and surplus shall be met:
(a) On and after December 31, 1989, nine hundred thousand dollars capital, nine hundred thousand dollars surplus;
(b) On and after December 31, 1990, one million dollars capital, one million dollars surplus;
(c) On and after December 31, 1991, one million one hundred thousand dollars capital, one million one hundred thousand dollars surplus;
(d) On and after December 31, 1992, one million two hundred thousand dollars capital, one million two hundred thousand dollars surplus.
(2) One class of business in this state under this section on July 1, 1987, which did not have a fully paid capital of at least eight hundred thousand dollars and a surplus of at least eight hundred thousand dollars on December 31, 1986, may renew its license for business specified therein by maintaining a fully paid capital of not less than four hundred thousand dollars and a surplus of at least four hundred thousand dollars, if all other conditions have been met, until December 31, 1989, at which time the following provisions relating to minimum capital and surplus shall be met:
(a) On and after December 31, 1989, five hundred thousand dollars capital, five hundred thousand dollars surplus;
(b) On and after December 31, 1990, six hundred thousand dollars capital, six hundred thousand dollars surplus;
(c) On and after December 31, 1991, seven hundred thousand dollars capital, seven hundred thousand dollars surplus;
(d) On and after December 31, 1992, eight hundred thousand dollars capital, eight hundred thousand dollars surplus.
(RSMo 1939 § 5904, A.L. 1945 p. 1014, A.L. 1963 p. 485, A.L. 1967 p. 516, A.L. 1977 S.B. 368, A.L. 1987 H.B. 700, A.L. 1989 S.B. 250)Prior revisions: 1929 § 5793; 1919 § 6203; 1909 § 6995
379.017. Every insurance company licensed to do business in this state and authorized to make insurance on classes of insurance enumerated in subdivisions (1), (2) and (3) of subsection 1 of section 379.010 shall have authority to combine in single policies of insurance the perils of fire and allied lines with any one or more perils of casualty, fidelity, surety and inland marine insurance, which such company is authorized to make, and may charge therefor one indivisible premium or rate which may differ from the aggregate premium or rate applicable to separate policies covering the same property and risk or risks, and the difference in rates or premiums shall not be deemed to be unfairly discriminatory under the provisions of chapter 375, RSMo, and this chapter.
(L. 1959 H.B. 249 §§ 1, 2, A.L. 1965 p. 586, A.L. 1967 p. 516, A.L. 1972 S.B. 547, A.L. 1989 S.B. 250)
379.025. Corporations may be formed for the purpose of doing business mentioned in section 379.010, either on the stock or mutual plan; and every corporation so formed on the mutual plan shall have the word "mutual" affixed to the name which it assumes; and it shall not be lawful for any corporation so formed to do business on any other plan than that upon which it is organized, or for a corporation formed upon the mutual plan in any manner to use its name or to make publication thereof, unless the word "mutual" be affixed thereto in plain letters of the size of the letters in which the balance of the name is printed; and no such corporation shall adopt the name of any existing company or corporation transacting the same kind of business, or a name so similar as to be calculated to mislead the public; and the mutual companies shall not issue policies known as stock policies, or do business as joint stock companies, or upon the joint stock plan; but any mutual company upon a majority vote of its members present at an annual meeting, or at any special meeting called for that purpose after one week's notice by advertisement in one or more newspapers printed and published in the city or county where the chief office of said company is located, may charge and receive for the mutual benefit of all its policyholders cash in payment of premiums on such of its policies as shall be, by a majority vote of such meeting, determined upon.
(RSMo 1939 § 5907, A.L. 1989 S.B. 250)Prior revisions: 1929 § 5796; 1919 § 6206; 1909 § 6998
379.030. The persons mentioned in section 379.010 shall be designated as "incorporators", and any such incorporators desiring to form a company for the purpose of transacting the business mentioned in said section, upon either of the plans named in section 379.025, shall file in the office of the director of the insurance department a declaration, signed by each of such incorporators, setting forth their intention to form a corporation for the purpose of transacting the business aforesaid, which declaration shall comprise a copy of the articles of incorporation or association proposed to be adopted by them; and they shall publish a notice of such intention once in each week, or oftener, for at least four weeks, in a newspaper of general circulation, published in the county where such corporation is proposed to be located.
(RSMo 1939 § 5908, A.L. 1989 S.B. 250)Prior revisions: 1929 § 5797; 1919 § 6207; 1909 § 6999
379.035. When such incorporators propose to form a corporation for the purposes designated in section 379.010, on the joint stock plan, the articles of incorporation or association comprised in the declaration in section 379.030 shall set forth:
(1) The name assumed by such corporation, and by which it shall be known;
(2) The place where the principal office for the transaction of its business shall be located;
(3) The specific kind or kinds of business which it proposes to transact;
(4) The amount of its capital stock, and the number of shares into which it shall be divided, and the manner in which it shall be paid up or secured;
(5) The manner in which the corporate powers granted by this chapter shall be exercised, showing the number of directors, which shall not be less than nine nor more than twenty-five; and such other particulars as may be necessary to make manifest the objects and purposes of the corporation, and the manner in which it is to be conducted.
(RSMo 1939 § 5909, A.L. 1989 S.B. 250)Prior revisions: 1929 § 5798; 1919 § 6208; 1909 § 7000
379.040. Whenever the incorporators shall have filed the declaration required by section 379.030, and also proof of the publication therein required, by the affidavit of the publisher of the newspaper in which the publication was made, his foreman or clerk, with the director, it shall be the duty of the director to submit such declaration to the attorney general of this state for examination, and if it shall be found by him to be in accordance with the provisions of sections 379.010 to 379.160, and not inconsistent with the constitution and laws of this state and the United States, he shall so certify, and deliver it back to the director, who shall record the declaration, affidavit, and the certificate of the attorney general, in a book kept for that purpose, and shall furnish a certified copy of the same to the incorporators, and shall also file a certified copy of the same with the secretary of state, who, upon payment to the state director of revenue of the tax required by section 351.065, RSMo, shall issue a certificate of incorporation, upon the receipt of which they may proceed to organize in the manner set forth in their charter, and to open books for subscription to the capital stock of the company, and keep the same open until the whole amount specified in the charter is subscribed; but it shall not be lawful for such companies to issue policies or transact any business of any kind or nature whatever, except as aforesaid, until they have fully complied with the requirements of sections 379.050 and 379.055.
(RSMo 1939 § 5910, A.L. 1947 V. I p. 329, A.L. 1989 S.B. 250)Prior revisions: 1929 § 5799; 1919 § 6209; 1909 § 7001
379.050. Upon notification that the capital stock named in the charter has been subscribed, and the amounts required by section 379.010 to be paid in have been paid in as therein required, the director shall make an examination, or cause one to be made by some disinterested person, especially appointed by him for that purpose; and if it shall be found by himself, or if the person so appointed shall certify, under oath, that such capital and surplus stock, to the amount therein named as commencing capital and surplus, has been paid in and is possessed by the company in investments permitted by section 379.080, then he shall so certify, and the incorporators or officers of such company shall be required to certify under oath that the investments exhibited to the person making the examination, are the bona fide property of such company.
(RSMo 1939 § 5912, A.L. 1989 S.B. 250)Prior revisions: 1929 § 5801; 1919 § 6211; 1909 § 7002
379.055. When the corporators have fully complied with the requirements of section 379.050, and have transferred to and deposited with the director of the insurance department the securities as required by sections 379.080 and 379.098, the director shall furnish them a certificate of deposit and his certificate of authority for them to commence the business proposed in the charter, and a certified copy of the aforesaid declaration and certificates, which, on being filed and recorded in the office of the recorder of the county in which the company is located, shall be its authority to commence business and issue policies; and the certified copy of the declaration and certificates may be used in evidence for or against the company with the same effect as the originals.
(RSMo 1939 § 5913, A.L. 1961 p. 463, A.L. 1967 p. 516)Prior revisions: 1929 § 5802; 1919 § 6212; 1909 § 7003
379.060. When such incorporators propose to form a corporation for the purpose of doing business on the mutual plan, the charter comprised in the declaration mentioned in section 379.030 shall set forth:
(1) The name assumed by such corporation, and by which it shall be known;
(2) The place where the principal office for the transaction of its business shall be located;
(3) The specific kind or kinds of business which it proposes to transact;
(4) The number of persons from whom proposals for insurance shall be received, the amount of premiums to be received on deposit, and the amount of cash to be paid on the same, before the company shall begin to do business and issue policies;
(5) The manner in which the corporate powers granted by sections 379.010 to 379.160 are to be exercised, showing the number of directors and trustees, which shall not be more than thirteen nor less than nine, and their respective powers and duties, and such other particulars as may be necessary to make manifest the object and purposes of the association, and the manner in which it is to be conducted.
(RSMo 1939 § 5914, A.L. 1989 S.B. 250)Prior revisions: 1929 § 5803; 1919 § 6213; 1909 § 7004
379.065. Whenever the incorporators shall have filed the declaration required by section 379.030 and also proof of the publication therein required, by the affidavit of the publisher of the newspaper in which the publication was made, his foreman or clerk, with the director, it shall be the duty of said director to submit such declaration to the attorney general of this state for examination; and if it shall be found by him to be in accordance with the provisions of sections 379.010 to 379.160, and not inconsistent with the constitution and laws of this state and of the United States, he shall so certify and deliver it back to the director, who shall cause the said declaration and affidavit, with the certificate of the attorney general, to be recorded in a book to be kept for that purpose, and shall furnish a certified copy of the same to the corporators, and shall also file a certified copy of the same with the secretary of state, who, upon payment to the state director of revenue of the sum of seventy-five dollars, shall issue a certificate of incorporation, upon the receipt of which they may proceed to organize in the manner set forth in their articles of incorporation or association, to open books and receive subscriptions to the policyholders' surplus mentioned in section 379.010 and issue receipts therefor, and to keep such books open until the whole amount specified in its articles of incorporation or association is received; but it shall not be lawful for such company to issue policies or transact any business of any kind, except as aforesaid, until it has fully complied with the requirements of sections 379.070 and 379.075.
(RSMo 1939 § 5915, A.L. 1947 V. I p. 329, A.L. 1989 S.B. 250)Prior revisions: 1929 § 5804; 1919 § 6214; 1909 § 7005
379.070. Upon notification that subscriptions to the policyholders' surplus mentioned in section 379.065 have been made, and that the subscriptions therein mentioned have been received, the director shall make an examination, or cause one to be made by some disinterested person specially appointed by him for that purpose; and if it shall be found by himself, or if the person so appointed shall certify, under oath, that the policyholders' surplus has been received, in the manner and to the amount required by section 379.010, and that the amount is held by it in investments permitted by section 379.080, then he shall so certify, and the incorporators or officers of such company shall be required to certify, under oath, that the investments exhibited to the person making the examination, have been received on deposit for subscriptions to such policyholders' surplus.
(RSMo 1939 § 5916, A.L. 1989 S.B. 250)Prior revisions: 1929 § 5805; 1919 § 6215; 1909 § 7006
379.075. When the incorporators have fully complied with the requirements of sections 379.010 to 379.070 and the laws of this state governing the organization of private corporations, and such corporation has transferred to and deposited with the director of the insurance department of this state the amount required by section 379.098 it shall be the duty of the director to furnish the association a certified copy of the certificate of such deposit and his certificate of authority for them to commence the business proposed in the charter, and a certified copy of the aforesaid declaration and certificates, which, on being filed and recorded in the office of the recorder of the county in which the association is to be located, shall be its authority to commence business and issue policies; and such certified copies of the declaration, certificate of authority and certificate of deposit may be used in evidence for or against such company, with the same effect as the originals.
(RSMo 1939 § 5917, A.L. 1967 p. 516, A.L. 1989 S.B. 250)Prior revisions: 1929 § 5806; 1919 § 6216; 1909 § 7007
379.080. 1. (1) The amount of the minimum capital required of a stock company to write the lines of business it proposes to transact or is transacting, or if the company is a mutual company an amount equal to the minimum capital required of a stock company transacting the same classes of business, shall be held in cash or invested in:
(a) Treasury notes or bonds of the United States;
(b) Bonds of the state of Missouri;
(c) Bonds issued by any school district of the state of Missouri;
(d) Bonds of any political subdivision of this state;
(2) The remainder of the capital, surplus or policyholders' surplus of these companies and their other assets may be invested, to the extent allowed by this or any other provision of law, in:
(a) The investments authorized by subdivision (1) of subsection 1 of this section;
(b) Loans safely secured by personal property collateral worth, at its cash market value, not less than twenty percent in excess of the amount loaned thereon;
(c) Stocks, bonds or evidences of indebtedness issued by corporations organized under the laws of this state, or of the United States or of any other state;
(d) Bonds or other obligations issued by multinational development banks in which the United States is a member nation, including the African Development Bank;
(e) Bonds of any other state, or of any political subdivision of any other state;
(f) Mortgages or deeds of trust on unencumbered real estate in this or any other state worth not less than twenty percent in excess of the amount loaned thereon;
(g) If a company is authorized to do business in a foreign country or a possession of the United States or has outstanding insurance or reinsurance contracts on risks located in a foreign country or United States' possession, the company may invest the remainder of its capital and other assets in securities, cash or other investments payable in the currency of the foreign country or possession that are of substantially the same kinds and classes as those eligible for investments under this subsection, provided that such investments are made with the approval of the director. The aggregate amount of the foreign investments and cash shall not exceed the greater of one and one-half times the amount of the company's reserves and other obligations under the contracts or the amount that the company is required by law to invest in the foreign country or possession, and the aggregate amount of foreign investments and cash shall not exceed five percent of the company's admitted assets. All foreign investments shall be reported to the director from time to time as he directs;
(h) Loans evidenced by bonds, notes or other evidences of indebtedness guaranteed or insured, but only to the extent guaranteed or insured by the United States, any state, territory or possession of the United States, the District of Columbia, or by any agency, administration, authority or instrumentality of any of the political units enumerated;
(i) Shares of insured state-chartered building and loan associations and federal savings and loan associations, if such shares are insured by the Federal Deposit Insurance Corporation;
(j) Investments permitted by section 99.550, RSMo;
(k) Data processing equipment, automobiles, real estate and put or call options and financial futures contracts to the extent allowed by this section and any other provision of law;
(l) Investments in subsidiaries to the extent allowed by section 382.020, RSMo;
(m) Any other investments not described herein provided the aggregate amount of such investments shall not exceed eight percent of the admitted assets of the company;
(n) Any investments in an investment pool meeting the requirements of section 379.083 and any other provision of law relating to investments made by individual property and casualty companies;
(o) Any other investments expressly authorized in writing by the director of the department of insurance; and
(p) Any investment in a Missouri tax credit certificate or partnership interest which entitles the company to receive Missouri tax credits that may be used as a credit against the gross premium tax.
2. Violation of any of the provisions of this section by an insurer is grounds for the suspension or revocation of its certificate of authority by the director.
(RSMo 1939 § 5918, A.L. 1943 p. 610, A.L. 1947 V. II p. 269, A.L. 1963 p. 485, A.L. 1977 S.B. 368, A.L. 1981 S.B. 11, A.L. 1982 S.B. 729, A.L. 1985 H.B. 589, A.L. 1987 H.B. 700, A.L. 1989 S.B. 250, A.L. 1992 H.B. 1574, A.L. 1993 H.B. 709, A.L. 1997 H.B. 793, A.L. 2002 H.B. 1568 merged with S.B. 1009)CROSS REFERENCES:
Bi-state development agency, bonds of, investment in authorized, RSMo 70.377
Savings accounts in insured savings and loan associations, investment in authorized, RSMo 369.194
379.082. 1. Property or liability domestic insurers shall maintain assets which meet both the following requirements:
(1) The assets shall be diversified both as to type and issue; 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 the insurer to, or for, its policyholders arising out of its policies and to its creditors and includes the liabilities required to be included in the insurer's annual statement, including, but not limited to:
(a) The unearned premium reserve;
(b) Claim or loss reserves, including incurred but not reported claims and including loss adjustment expense reserves;
(c) Minimum capital and minimum surplus or minimum policyholders surplus; and
(d) Ceded reinsurance balances payable. "Policyholder obligations" do not include that portion of the insurer's capital and surplus, or policyholders surplus if a mutual, in excess of the minimum capital and surplus or minimum policyholders surplus required by law for such insurer.
3. An insurer's assets covering policyholder obligations shall meet all of the following standards in order to be deemed diversified under subdivision (1) of subsection 1 of this section:
(1) An insurer may have assets consisting of * investments in, without limitation and notwithstanding the provisions of subdivision (2) of this subsection:
(a) Assets described in paragraphs (a), (b), (c) and (d) of subdivision (1) of subsection 1 of section 379.080;
(b) Bonds and other evidences of indebtedness issued by corporations organized under the laws of this state or of the United States or of any other state, if rated 1 or 2 by the Securities Valuation Office of the National Association of Insurance Commissioners; and
(c) Assets described in paragraphs (e) and (h) of subdivision (2) of subsection 1 of section 379.080, where such bonds, notes or evidences of indebtedness are:
a. Issued, guaranteed or insured by the United States or any agency, administration, authority or instrumentality of the United States; or
b. Rated 1 or 2 by the Securities Valuation Office of the National Association of Insurance Commissioners;
(2) No insurer may have assets to cover policyholder obligations or investments to cover policyholder obligations in:
(a) Subsidiaries in excess of the amount allowed by paragraph (o) of subdivision (2) of subsection 1 of section 379.080;
(b) The securities, including for this purpose partnership and other equity interests, in one institution in excess of five percent of policyholder obligations. For purposes of this paragraph, one institution includes all entities under common ownership or control as defined in subdivision (2) of section 382.010, RSMo. This paragraph is an additional standard applicable to bonds and short term investments under paragraph (c) of this subdivision, common stocks under paragraph (d) of this subdivision, preferred stocks under paragraph (e) of this subdivision, and other invested assets and aggregate write-ins for invested assets under paragraph (f) of this subdivision;
(c) Investments in bonds and short term investments which violate the standards mandated by sections 375.1070 to 375.1075, RSMo. No insurer shall be forced to liquidate or nonadmit bonds purchased before August 28, 1991;
(d) Common stocks in excess of ten percent of policyholder obligations;
(e) Preferred stocks in excess of ten percent of policyholder obligations;
(f) Other invested assets and aggregate write-ins for invested assets, and aggregate write-ins for other than invested assets, as described in the insurer's filed annual statement, in excess of five percent of policyholder obligations;
(g) Mortgage loans on real estate, in excess of:
a. Ten percent of policyholder obligations, regarding the aggregate of such loans; and
b. One percent of policyholder obligations, regarding the amount loaned upon any one particular piece of real estate;
(h) Real estate occupied by the company and for other purposes, in excess of the standards set forth in section 375.330, RSMo;
(i) Collateral loans on personal property in excess of:
a. Five percent of policyholder obligations, regarding the aggregate of such loans; and
b. One percent of policyholder obligations, regarding the amount loaned upon any one particular personal property;
(j) Receivables from parents, subsidiaries or affiliates, as described in the insurer's filed annual statement, in excess of five percent of policyholder obligations;
(k) Assets other than cash and the assets described in paragraphs (c) to (j) of this subdivision, in excess of twenty-five percent of policyholder obligations.
(3) Assets may be invested or held in amounts in excess of the limitations provided by subdivision (2) of this subsection to the extent of that portion of the insurer's capital and surplus, or policyholders surplus if a mutual, in excess of the minimum capital and surplus or minimum policyholders surplus required by law for such insurer.
4. Assets shall be deemed reasonably liquid under subdivision (2) of subsection 1 of this section, if the assets are convertible to cash within a reasonable period of time to discharge timely the insurer's claims and other liabilities.
(L. 1992 H.B. 1574 § 13)*Word "an" appears here in original rolls.
379.083. 1. As used in this section, the following terms mean:
(1) "Affiliate", as defined in section 382.010, RSMo;
(2) "Business entity", a corporation, limited liability company, association, partnership, joint stock company, joint venture, mutual fund trust, or other similar form of business organization, including such an entity when organized as a not-for-profit entity;
(3) "Qualified bank", a national bank, state bank or trust company that at all times is no less than adequately capitalized as determined by the standards adopted by the United States banking regulators and that is either regulated by state banking laws or is a member of the Federal Reserve System.
2. An insurer may acquire investments in investment pools that invest only in investments which an insurer may acquire pursuant to sections 379.080, 379.082 and other provisions of law. The insurer's proportionate interest in the amount invested in these investments shall not exceed the applicable limits of sections 379.080, 379.082 and other provisions of law. An insurer and its affiliated insurers may invest in a maximum of three investment pools.
3. An investment pool qualified pursuant to this section shall not:
(1) Acquire securities issued, assumed, guaranteed or insured by the insurer or an affiliate of the insurer;
(2) Borrow or incur an indebtedness for borrowed money, except for transactions that meet the requirements of sections 379.080, 379.082 and other provisions of law;
(3) Permit the aggregate value of securities then loaned or sold to, purchased from or invested in any one business entity, which in no event will be an affiliated entity of the participant, to exceed ten percent of the total assets of the investment pool; or
(4) Lend money or other assets to participants in the pool.
4. An insurer shall not acquire an investment in an investment pool pursuant to this section if, as a result of such investment, the aggregate amount of investments then held by the insurer pursuant to this section:
(1) In any one investment pool would exceed ten percent of its admitted assets; or
(2) In all investment pools would exceed thirty percent of its admitted assets.
5. For an investment in an investment pool to be qualified pursuant to this section, the manager of the investment pool shall:
(1) Be organized under the laws of the United States or an individual state and be designated as the pool manager in a pooling agreement;
(2) Be the insurer, an affiliated insurer, a qualified bank, a business entity registered under the federal Investment Advisors Act of 1940 (15 U.S.C. section 80A-1 et seq.) as amended or, in the case of a reciprocal insurer or interinsurance exchange, its attorney-in-fact;
(3) Compile and maintain detailed accounting records setting forth:
(a) The cash receipts and disbursements reflecting each participant's proportionate investment in the investment pool;
(b) A complete description of all underlying assets of the investment pool, including amount, interest rate, maturity date, if any, and other appropriate designations; and
(c) Other records which, on a daily basis, allow third parties to verify each participant's investment in the investment pool; and
(4) Maintain the assets of the investment pool in one custody account, in the name of or on behalf of the investment pool, under a custody agreement with a qualified bank. All custodial agreements shall be filed with the department of insurance for prior approval. The custody agreement shall:
(a) State and recognize the claims and rights of each participant;
(b) Acknowledge that the underlying assets of the investment pool are held solely for the benefit of each participant in proportion to the aggregate amount of its investments in the investment pool; and
(c) Contain an agreement that the underlying assets of the investment pool shall not be commingled with the general assets of the custodian qualified bank or any other person.
6. The pooling agreement for each investment pool shall be in writing and shall provide that:
(1) An insurer and its affiliated insurers shall, at all times, hold one hundred percent of the interests in the investment pool;
(2) The underlying assets of the investment pool shall not be commingled with the general assets of the pool manager or any other person;
(3) In proportion to the aggregate amount of each pool participant's interest in the investment pool:
(a) Each participant owns an undivided interest in the underlying assets of the investment pool; and
(b) The underlying assets of the investment pool are held solely for the benefit of each participant;
(4) A participant or, in the event of the participant's insolvency, bankruptcy or receivership, its trustee, receiver or other successor-in- interest, may withdraw all or any portion of its investment from the pool under the terms of the pooling agreement;
(5) Withdrawals may be made upon demand without penalty or other assessment on any business day, but settlement of funds shall occur within a reasonable and customary period thereafter not to exceed five business days. Distributions pursuant to this subdivision shall be calculated in each case net of all then applicable fees and expenses of the pool. The pooling agreement shall provide that the pool manager shall distribute to a participant, at the discretion of the pool manager:
(a) In cash, the then fair market value of the participant's pro rata share of each underlying asset of the investment pool;
(b) In kind, a pro rata share of each underlying asset; or
(c) In a combination of cash and in-kind distributions, a pro rata share in each underlying asset; and
(6) The pool manager shall make the records of the investment pool available for inspection by the director of the department of insurance.
7. The investment pool authorized pursuant to this section shall be a business entity.
8. The pooling agreement and any other arrangements or agreements relating to an investment pool, and any amendments thereto, shall be submitted to the department of insurance for prior approval pursuant to section 382.195, RSMo. Individual financial transactions between the pool and its participants in the ordinary course of the investment pool's operations shall not be subject to the provisions of section 382.195, RSMo. Investment activities of pools and transactions between pools and participants shall be reported annually in the registration statement required by section 382.100, RSMo.
(L. 1997 H.B. 793)
379.085. 1. No company formed upon the mutual plan for the purpose of doing the fire and marine business designated in the first of the three classes of insurance named in section 379.010 shall commence or continue to do business until it has a surplus or guaranty fund of one million six hundred thousand dollars and agreements have been entered into for insurance with at least two hundred applicants, the premiums on which shall amount to not less than one hundred thousand dollars which shall have been paid in cash. Annual cash premiums shall not exceed five hundred dollars each, and no policy shall be issued for a longer term than five years.
2. Except that any mutual company formed upon the mutual plan for the purpose of doing the fire and marine business designated in the first of the three classes of insurance named in section 379.010 and licensed to do business in this state on July 1, 1987, which did not maintain an aggregate amount of at least one million six hundred thousand dollars as a guaranty fund or policyholders' surplus on December 31, 1986, may renew its license for business specified therein if it annually maintains agreements with two hundred applicants, the premiums from which amount to not less than one hundred thousand dollars, and if it maintains an aggregate amount of not less than eight hundred thousand dollars as a guaranty fund or policyholders' surplus, if all other conditions have been met, until December 31, 1989, at which time the provisions of subsection 1 of this section shall be met.
3. Violation of any of the provisions of this section by an insurer is grounds for the revocation of its certificate of authority by the director.
(RSMo 1939 § 5919, A.L. 1963 p. 485, A.L. 1977 S.B. 368, A.L. 1987 H.B. 700)Prior revisions: 1929 § 5808; 1919 § 6218; 1909 § 7009
Effective 7-1-87
CROSS REFERENCE:
Substitution of securities, collection of income therefrom, RSMo 375.460
379.090. 1. Every person who shall insure in such mutual company, whose premium is payable by note, shall, before he receives his policy, deposit with the company a note for such sum or sums of money as may be agreed upon for the premium, a part, not less than ten percent of which, shall be immediately paid in cash before the company shall be liable for any loss; and the remainder of said note shall be made payable at any time, and in part or the whole as the directors of said company may demand, upon an assessment to be made by them whenever they shall deem the same necessary, for the payment of losses, expenses and other liabilities of said company; said note, or such part thereof as shall remain unpaid at the expiration or termination of the policy, shall be given up to the maker of the same, provided all assessments upon such note and all liabilities of said maker to the company shall have been paid.
2. All buildings and other property, real and personal, insured by and with such company, together with all right, title and interest of the insured to the lands on which such buildings are situated, shall be pledged to such company, and the company shall have a lien thereon until the aforesaid note is fully paid; provided, that the maker of said note shall assent to such lien in writing upon the face of the same.
(RSMo 1939 § 5920)Prior revisions: 1929 § 5809; 1919 § 6219; 1909 § 7010
379.095. 1. The board of directors of every mutual insurance company organized under the provisions of sections 379.010 to 379.160 shall have the power, as often as they shall deem it necessary in order to settle the losses insured against, and the expenses and other liabilities of the company, to make an assessment upon the premium notes given by persons effecting insurance of the company.
2. Such assessment shall be made upon each and every note held by the company at the time of the assessment, and which has been in existence for one year prior to the date of the assessment, and shall be for a sum upon each note which bears the same ratio to the whole amount to be raised by the assessment that the full sum for which such note was given bears to the full amount for which all the notes assessed were given.
3. The amount so assessed upon each note shall be due and payable within thirty days after the publication of a notice of such assessment, and after written notice of the same to the maker of such note has been deposited in the post office, postage prepaid, or delivered to him in person; and the amount of said assessment, when paid, shall in every case be endorsed upon said note at the time of the payment.
4. The publication of the above notice shall be made in some newspaper of general circulation, published in the county or city where said company shall have its principal office, and shall set forth the full aggregate amount for which all the premium notes held by the company were given, upon which the assessment is made, the amount of losses adjusted and unpaid, the amount of losses claimed but unadjusted, giving the names of claimants, the amount of expenses accrued and unpaid, and the amount of cash on hand.
5. If any person shall neglect or refuse to pay the sum so assessed upon him, for thirty days after the publication and mailing or delivery of said notices, the directors of said company may sue for and recover the whole amount of his premium note held by the company, with costs of suit.
6. No person shall, in any case, be liable upon any premium note on account of any and all claims and assessments upon the same for an amount greater than the face of such note.
(RSMo 1939 § 5921)Prior revisions: 1929 § 5810; 1919 § 6220; 1909 § 7011
379.098. No existing insurance company organized under any general or special law of this state, and transacting business of the character designated in this chapter, or any company organized under this chapter, shall commence, continue, or carry on business until the company has transferred to and deposited with the director of the insurance department, for the security of its policyholders and creditors, bonds or treasury notes issued or guaranteed by the United States, or bonds of the state of Missouri, or in bonds issued by any school district of the state of Missouri, or bonds of any political subdivision of this state, and in all cases not to be received at a rate above their par value, nor above their current market value, in the following amounts:
(1) If a stock company, the amount of the minimum capital required of a company to write the lines of business it proposes to or is transacting;
(2) If a mutual company or reciprocal or interinsurance exchange, an amount equal to the amount required to be deposited by a stock company transacting the same kinds of business; provided, however, the deposit required for a mutual company shall not exceed the amount of its policyholders' surplus as required by law.
(L. 1967 p. 516, A.L. 1989 S.B. 250)
379.100. The director of the insurance department of the state shall receive the deposits and securities required by the provisions of sections 379.010 to 379.160 to be deposited with him, and shall furnish a certificate of such deposits to the company making the same.
(RSMo 1939 § 5922)Prior revisions: 1929 § 5811; 1919 § 6221; 1909 § 7012
CROSS REFERENCE:
Deposit of securities, how, where, collection of income therefrom, RSMo 375.460
379.102. Each company shall maintain as liabilities unearned premium and loss reserves.
(L. 1989 S.B. 250)
379.105. 1. It shall be the duty of the president or vice president and secretary or a majority of the directors of every insurance company organized pursuant to sections 379.010 to 379.160, or the laws of this state, or of the United States or any other state of the United States, doing the business mentioned in section 379.010 annually, on the first day of January, or within sixty days thereafter, to prepare under oath and deposit in the office of the director of the insurance department a statement made up for the year ending the thirty-first day of December next preceding, showing:
(1) The amount of capital stock of the company, if it be a joint stock company, or if it be a mutual company, the amount of the face of the premium notes held by it, and the amount thereof remaining unpaid, specifying the amount constituting liens on property, and the amount of guarantee fund, if the company has such fund;
(2) The property or assets held by the company, specifying:
(a) The value of the real estate held by such company;
(b) The amount of cash on hand or deposited in banks to the credit of the company, specifying in what banks the same is deposited;
(c) The amount of cash in the hands of agents, and in the course of transmission;
(d) The amount of loans secured by bonds and mortgages or by deeds of trust;
(e) The amount of notes and bills receivable, matured and remaining unpaid;
(f) The amount of notes and bills receivable maturing;
(g) The amount of other securities held by the company specifying what they are and their cash value;
(h) The amount of debts considered bad or doubtful;
(3) The liabilities of the company, as follows:
(a) The amount due or to become due to banks or other creditors;
(b) Losses adjusted and due;
(c) Losses adjusted and not due;
(d) Losses unadjusted and in suspense and awaiting further proofs;
(e) Premium reserved or amount required to safely reinsure all outstanding risks, to be estimated by taking fifty percent of the gross premiums on all unexpired fire risks that have less than one year to run, and a pro rata of all gross premiums on risks that have more than one year to run, with fifty percent of the gross premiums on all unexpired inland navigation risks, and the whole amount of the gross premiums on all unexpired marine risks, and a pro rata of all gross premiums on all other risks;
(f) All other claims against the company;
(4) Greatest amount insured in any one risk;
(5) The number of agents employed in this state or other states;
(6) The amount of outstanding risks and gross premiums received and receivable thereon at the date of each statement;
(7) The amount of receipts from all sources, and amount of expenditures for all purposes, including dividends for the last fiscal year preceding the date of the statement; and
(8) A statement of any other facts or information concerning the affairs of said company which may be required by the director.
2. Notwithstanding any other provision of law to the contrary, information regarding compensation of any employee or officer contained within a statement required to be filed pursuant to this section shall not be subject to disclosure to any person other than employees of the department.
(RSMo 1939 § 5923, A.L. 1967 p. 516, A.L. 2000 S.B. 896)Prior revisions: 1929 § 5812; 1919 § 6222; 1909 § 7013
379.110. As used in sections 379.110 to 379.120 the following words and terms mean:
(1) "Insurer", any insurance company, association or exchange authorized to issue policies of automobile insurance in the state of Missouri;
(2) "Nonpayment of premium", failure of the named insured to discharge when due any of his or her obligations in connection with the payment of premiums on a policy, or any installment of such premium, whether the premium is payable directly to the insurer or its agent or indirectly under any premium finance plan or extension of credit;
(3) "Policy", an automobile policy providing automobile liability coverage, uninsured motorists coverage, automobile medical payments coverage, or automobile physical damage coverage insuring a private passenger automobile owned by an individual or partnership which has been in effect for more than sixty days or has been renewed. "Policy" does not mean:
(a) Any policy issued under an automobile assigned risk plan or automobile insurance plan;
(b) Any policy insuring more than four motor vehicles;
(c) Any policy covering the operation of a garage, automobile sales agency, repair shop, service station or public parking place;
(d) Any policy providing insurance only on an excess basis, or to any contract principally providing insurance to such named insured with respect to other than automobile hazards or losses even though such contract may incidentally provide insurance with respect to such motor vehicles;
(4) "Renewal" or "to renew", the issuance and delivery by an insurer of a policy superseding at the end of the policy period a policy previously issued and delivered by the same insurer, such renewal policy to provide types and limits of coverage at least equal to those contained in the policy being superseded, or the issuance and delivery of a certificate or notice extending the term of a policy beyond its policy period or term with types and limits of coverage at least equal to those contained in the policy being extended; provided, however, that any policy with a policy period or term of less than six months or any period with no fixed expiration date shall for the purpose of this section be considered as if written for successive policy periods or terms of six months. Nothing in this subdivision shall be construed as superseding the provisions of subsection 9 of section 375.918, RSMo, and the term "third anniversary date of the initial contract" as used in subsection 9 of section 375.918, RSMo, means three years after the date of the initial contract.
(L. 1973 H.B. 354 § 1, A.L. 1974 S.B. 572, A.L. 2004 S.B. 1299)
379.112. The provisions of sections 379.110 to 379.120 shall apply to that portion of policies of automobile insurance providing bodily injury and property damage liability, comprehensive, and collision coverages and to the provisions therein, if any, relating to medical payments and uninsured motorists coverage, which takes effect subsequent to September 28, 1973.
(L. 1973 H.B. 354 § 2, A.L. 1974 S.B. 572)
379.114. 1. Except as provided in sections 379.110 to 379.120, no insurer shall exercise its right to cancel a policy except for the following reasons:
(1) Nonpayment of premium; or
(2) The driver's license of the named insured has been under suspension or revocation at any time during the policy period. Provided, however, in the event more than one person is named as insured and only one of the persons named has his driver's license suspended or revoked then such policy may not be canceled, but the insurer may issue an exclusion providing, by name, that coverage will not be provided under the terms of the policy while such person is operating the insured vehicle during any period of suspension or revocation.
2. Renewal of a policy shall not constitute a waiver or estoppel with respect to grounds for cancellation which existed before the effective date of such renewal and which were unknown to the insurer at the time of such renewal.
3. No insurer shall cancel or refuse to write or refuse to renew a policy of automobile insurance on any person with at least two years' driving experience solely because of the age, residence, race, sex, color, creed, national origin, ancestry or lawful occupation, including the military service, of anyone who is or seeks to become insured or solely because another insurer has refused to write a policy, or has canceled or has refused to renew an existing policy in which that person was the named insured, nor shall any insurance company or its agent or representative require any applicant, policyholder or operator to divulge in a written application or otherwise whether any insurer has canceled or refused to renew or issue to the applicant, policyholder or operator a policy of automobile insurance; provided, however, nothing herein contained shall be construed so as to require any insurer which under its plan of operation insures a particular class of persons or customarily operates in a specific geographical territory to insure any person outside of the class or operate outside the geographical territory.
(L. 1973 H.B. 354 § 3, A.L. 1974 S.B. 572)(1977) This section does not prohibit a cancellation whose effective date would occur more than sixty-one days past the issuance of the policy so long as the cancellation was initiated during the initial sixty-day period. Hudson v. State Security Insurance Co. (A.), 555 S.W.2d 859.
379.116. Any insurer may at any time refuse to write a policy of automobile insurance or may cancel or refuse to renew such a policy if the operator's or chauffeur's license of the applicant or named insured has been suspended or revoked. If the operator's or chauffeur's license of any member of a policyholder's household has been suspended or revoked, an insurer may issue an exclusion providing, by name, that coverage will not be provided under the terms of the policy while such person is operating the insured vehicle during any period of suspension or revocation.
(L. 1973 H.B. 354 § 4, A.L. 1974 S.B. 572)
379.118. 1. If any insurer proposes to cancel or to refuse to renew a policy of automobile insurance delivered or issued for delivery in this state except at the request of the named insured or for nonpayment of premium, it shall, on or before thirty days prior to the proposed effective date of the action, send written notice by certificate of mailing of its intended action to the named insured at his last known address. The notice shall state:
(1) The proposed action to be taken;
(2) The proposed effective date of the action;
(3) The insurer's actual reason for proposing to take such action, the statement of reason to be sufficiently clear and specific so that a person of average intelligence can identify the basis for the insurer's decision without further inquiry. Generalized terms such as "personal habits", "living conditions", "poor morals", or "violation or accident record" shall not suffice to meet the requirements of this subdivision;
(4) That the insured may be eligible for insurance through the assigned risk plan if his insurance is to be canceled.
2. An insurer shall send an insured written notice of an automobile policy renewal at least fifteen days prior to the effective date of the new policy. The notice shall be sent by first class mail and shall contain the insured's name, the vehicle covered, the total premium amount, and the effective date of the new policy.
(L. 1973 H.B. 354 § 5, A.L. 1974 S.B. 572, A.L. 1989 S.B. 250, A.L. 1990 H.B. 1739)CROSS REFERENCE:
Notice may be given by higher class U.S. mail, RSMo 375.011
379.120. If any insurer refuses to write a policy of automobile insurance, it shall, within thirty days after such refusal, send a written explanation of such refusal to the applicant at his last known address by certified mail or certificate of mailing. The explanation shall state:
(1) The insurer's actual reason for refusing to write the policy, the statement of reason to be sufficiently clear and specific so that a person of average intelligence can identify the basis for the insurer's decision without further inquiry. Generalized terms such as "personal habits", "living conditions", "poor morals", or "violation or accident record" shall not suffice to meet the requirements of this subdivision;
(2) That the applicant may be eligible for insurance through the assigned risk plan if other insurance is not available.
(L. 1973 H.B. 354 § 6, A.L. 1974 S.B. 572, A.L. 1992 S.B. 831)Effective 1-1-93
379.121. As used in sections 379.121 to 379.125, the following words and terms shall mean:
(1) "Adverse underwriting decision", placement by an insurer or agent of a risk with a residual market mechanism, an unauthorized insurer or an insurer which specializes in substandard risks;
(2) "Insurer", any insurance company, association or exchange authorized to issue policies of automobile insurance in the state of Missouri;
(3) "Policy", an automobile policy providing automobile liability coverage, uninsured motorists coverage, automobile medical payments coverage or automobile physical damage coverage insuring a private passenger automobile owned by an individual or partnership.
(L. 2001 S.B. 151)*Transferred 2004; formerly 379.124
379.122. 1. No insurer shall refuse to write a policy for an applicant or base an adverse underwriting decision solely on the fact that the applicant has never purchased such a policy of motor vehicle insurance where the lack of motor vehicle insurance coverage is due to the applicant serving in the armed services and the applicant has not operated a motor vehicle in violation of any financial responsibility or compulsory insurance requirement within the past twelve months.
2. No insurer shall refuse to write a policy for an applicant or base an adverse underwriting decision solely on the fact that the applicant has not owned or been covered by such a policy of motor vehicle insurance during any specified period immediately preceding the date of application where the lack of motor vehicle insurance coverage is due to the applicant serving in the armed services and the applicant has not operated a motor vehicle in violation of any financial responsibility or compulsory insurance requirement within the past twelve months. Nothing in this subsection shall prohibit an insurer from giving a discount for such an applicant that has been covered by a policy of insurance during such a specified period.
3. Nothing in this section shall prohibit an insurer from basing an adverse underwriting decision on an applicant's previous driving record where such record indicates that the applicant is a substandard risk.
4. In order to establish compliance with this section, an insurer may require any applicant claiming to meet the criteria of subsection 1 or 2 of this section to provide proof of eligibility in a manner as the insurer may prescribe.
(L. 2001 S.B. 151)*Transferred 2004; formerly 379.126
379.123. Violation of section 379.122** shall be unfair trade practice as defined by sections 375.930 to 375.948, RSMo, and shall be subject to all of the provisions and penalties provided by such sections.
(L. 2001 S.B. 151)*Transferred 2004; formerly 379.127
**Original rolls contain "375.126", an apparent typographical error.
379.125. Any company or association, other than life, organized under the provisions of chapter 379 may cause itself to be wholly or partially reinsured against any loss arising from any risk which it may have undertaken, and in like manner may reinsure or guarantee any other corporation doing the same kind of business as itself, against loss arising from any risks that shall have been or may be undertaken by such corporation, or may join with any such corporation in any such risk, and may make and enter into all manner of contracts relating to such reinsurance and joint insurance, and the terms upon which the same shall be conducted; provided, however, any company reinsuring the whole of any single risk or risks the same being a substantial portion of all risks insured by the company shall be subject to the provisions of section 375.241, RSMo.
(RSMo 1939 § 5927, A.L. 1967 p. 516)Prior revisions: 1929 § 5816; 1919 § 6226; 1909 § 7017
(1958) Where each of two insurance policies covering the same loss contained provision that when insured had other insurance, the insurance provided by the policy was excess insurance over the other insurance, such provisions are mutually repugnant and are to be disregarded. Arditi v. Mass. Bonding & Ins. Co. (Mo.), 315 S.W.2d 736.
(1962) In garnishment proceeding by judgment creditor of insured against reinsurer of automobile liability policy, where superintendent of insurance as receiver of insolvent original insurer was a party and claimed money payable under reinsurance contract, held that under reinsurance contract indemnity against liability was provided and judgment creditor could recover from reinsurer as third party beneficiary. First National Bank of Kansas City v. Higgins (Mo.), 357 S.W.2d 139.
379.140. In all suits brought upon policies of insurance against loss or damage by fire hereafter issued or renewed, the defendant shall not be permitted to deny that the property insured thereby was worth at the time of the issuing of the policy the full amount insured therein on said property; and in case of total loss of the property insured, the measure of damage shall be the amount for which the same was insured, less whatever depreciation in value, below the amount for which the property is insured, the property may have sustained between the time of issuing the policy and the time of the loss, and the burden of proving such depreciation shall be upon the defendant; and in case of partial loss, the measure of damage shall be that portion of the value of the whole property insured, ascertained in the manner prescribed in this chapter, which the part injured or destroyed bears to the whole property insured.
(RSMo 1939 § 5930)Prior revisions: 1929 § 5819; 1919 § 6229; 1909 § 7020
(1964) Measure of damages in suit on fire insurance policy in absence of fraud is arbitrarily fixed at the amount for which property was insured, less depreciation, and court is foreclosed from considering whether insured, if it recovers on more than one policy, will have received more insurance than property was worth. MFA Mutual Ins. Co. v. Southwest Baptist Col., Inc. (Mo.), 381 S.W.2d 797.
(1964) Where fire loss exceeded aggregate of two fire policies, one insurer could not limit recovery to value of insurer's interest as vendor under sale contract. Miller v. National Fire Insurance Company (A.), 386 S.W.2d 668.
(1969) This section does not preclude insurer from questioning whether original insurable interest has been terminated. Lumbermen's Mutual Insurance Co. v. Edmister (A.), 412 F.2d 351.
(1970) The valued policy laws of Missouri are not limited in their application to insurance against loss by fire of improvements on real property but apply as well to policies of fire insurance on personal property. Prior cases to the contrary were overruled. Duckworth v. United States Fidelity and Guaranty Co. (A.), 452 S.W.2d 280.
379.145. 1. When fire insurance policies shall be hereafter issued or renewed by more than one company upon the same property, and suit shall be brought upon any of said policies, the defendant shall not be permitted to deny that the property insured was worth the aggregate of the several amounts for which it was insured at the time the policy was issued or renewed thereon, unless willful fraud or misrepresentation is shown on part of the insured in obtaining such additional insurance; and in such suit the measure of damage shall be as provided in section 379.140; provided, that whatever depreciation in value below the amount for which the property is insured may be shown, as provided in section 379.140, shall be deducted from the amount insured in each policy, in the proportion which the amount in each such policy bears to the aggregate of all the amounts so insured on such property.
2. This and section 379.140 shall apply only to real property insured.
3. Any condition in any policy of insurance contrary to the provisions of this chapter shall be illegal and void.
(RSMo 1939 § 5931)Prior revisions: 1929 § 5820; 1919 § 6230; 1909 § 7021
(1964) Measure of damages in suit on fire insurance policy in absence of fraud is arbitrarily fixed at the amount for which property was insured, less depreciation, and court is foreclosed from considering whether insured, if it recovers on more than one policy, will have received more insurance than property was worth. MFA Mutual Ins. Co. v. Southwest Baptist Col., Inc. (Mo.), 381 S.W.2d 797.
(1970) The valued policy laws of Missouri are not limited in their application to insurance against loss by fire of improvements on real property but apply as well to policies of fire insurance on personal property. Prior cases to the contrary were overruled. Duckworth v. United States Fidelity and Guaranty Co. (A.), 452 S.W.2d 280.
379.150. Whenever there is a partial destruction or damage to property covered by insurance, it shall be the duty of the party writing the policies to pay the assured a sum of money equal to the damage done to the property, or repair the same to the extent of such damage, not exceeding the amount written in the policy, so that said property shall be in as good condition as before the fire, at the option of the insured.
(RSMo 1939 § 5932)Prior revisions: 1929 § 5821; 1919 § 6231; 1909 § 7022
(1957) Mutual automobile insurance company organized under §§ 379.205 to 379.310 is not subject to § 379.150 which gives insured option to require repair of damaged property or payment of money. Williams v. Farm Bur. Mut. Ins. Co. of Mo. (A.), 299 S.W.2d 587.
(1962) Where plaintiffs who suffered the loss of a house by fire elected to have insurer repair the place which could have been done at that time for less than the policy amount and the insurer upon such election undertook the repairs but abandoned the same and let the property stand whereby it was damaged, the insurer was liable for the amount of repairing the property notwithstanding the cost thereof exceeded the policy amount. Samuels v. Illinois Fire Insurance Co. (A.), 354 S.W.2d 352.
(1963) This statute giving insured, in case of partial destruction of a vehicle, the option of repairing it or claiming an amount equal to the damages done prevails over provisions in policy requiring insured to accept the value of the loss or cost of repair, whichever is the lesser. Boren v. Fidelity & Casualty Co. of New York (A.), 370 S.W.2d 706.
(2002) Section does not prohibit insurer from withholding depreciation from valid replacement cost claim. Dollard v. Depositors Insurance Company, 96 S.W.3d 885 (Mo.App. W.D.).
379.155. No fire insurance policy which may be issued after this section takes effect shall contain any clause or provision requiring the assured to take out or maintain a larger amount of insurance than that covered by such policy, nor in any way providing that the assured shall be liable as coinsurer with the company issuing the policy for any part of the loss or damage which may be occasioned by fire or lightning to the property covered by such policy, nor making provisions for a reduction of such loss or damage, or any part thereof, by reason of the failure of the assured to take out and maintain other insurance upon said property. And all clauses and provisions in fire policies, issued after the taking effect of this section, in contravention of the prohibitions in this section contained, shall be ab initio void and of no effect; provided, that the provisions of this section shall not apply to policies issued upon personal property in cities which now contain or which may hereafter contain one hundred thousand inhabitants or more whenever the insured sign an agreement endorsed across the face of said policy to be exempt from the provisions thereof.
(RSMo 1939 § 5933)Prior revisions: 1929 § 5822; 1919 § 6232; 1909 § 7023
379.160. 1. Each fire insurance company doing business in the state of Missouri is hereby required to file the form of policy for use by it in the state of Missouri, covering the responsibilities of the companies as well as the duties of the assured, to be classed and known as the standard fire insurance policy. Said policy form may be approved by the director of insurance of the state, and no policy shall be issued in this state carrying risks by fire or lightning by any company which does not embrace the form filed and approved of, as herein provided. There may be printed upon such policy the words "Standard Fire Insurance Policy for Missouri" and there may be inserted before and after the word "Missouri" a designation of any state or states or territory in which such form is standard.
2. All such policies shall have an address of the company in the United States fully printed thereon, to which, in case of loss, the assured may send notice of such loss, and to which notice shall be given within sixty days after the loss.
3. The appearance of an adjuster of any company at the place of fire and loss in which said company is interested by reason of an insurance on such property, shall be considered evidence of notice and to be held as a waiver of the same on the part of the company; provided, that on any policies issued upon property, real or personal, or real and personal, there may be attached a coinsurance clause; and provided further, that when a coinsurance clause is attached to any policy a reduction in rate shall be given therefor, in accordance with coinsurance credits that are now or may hereafter be filed as a part of the public rating record in the office of the director of insurance in this state, by fire insurance companies, that have been or shall hereafter be approved by the director of insurance; provided further, that in all suits brought upon policies of insurance against loss or damage by fire hereafter issued or renewed, the defendant shall not be permitted to deny that the property insured thereby was worth at the time of the issuing of the policy the full amount insured therein on said property covering both real and personal property; and provided further, that nothing in this section shall be construed to repeal or change the provisions of section 379.140.
(RSMo 1939 § 5940, A.L. 1957 p. 214, A.L. 1963 p. 498)Prior revisions: 1929 § 5829; 1919 § 6239; 1909 § 7030
(1960) Insurer would not be heard to deny that the actual value of a house trailer at the time policy issued was the full amount for which it was insured. Gould v. M.F.A. Mut. Ins. Co. (A.), 331 S.W.2d 663.
(1964) Measure of damages in suit on fire insurance policy in absence of fraud is arbitrarily fixed at the amount for which property was insured, less depreciation, and court is foreclosed from considering whether insured, if it recovers on more than one policy, will have received more insurance than property was worth. MFA Mutual Ins. Co. v. Southwest Baptist Col., Inc. (Mo), 381 S.W.2d 797.
(1970) The valued policy laws of Missouri are not limited in their application to insurance against loss by fire of improvements on real property but apply as well to policies of fire insurance on personal property. Prior cases to the contrary were overruled. Duckworth v. United States Fidelity and Guaranty Co. (A.), 452 S.W.2d 280.
(1973) Insuror held liable for value in policy less depreciation from that value, not replacement costs. Citizens Discount and Investment Corp. v. Dixon (A.), 499 S.W.2d 231.
(1985) Where truck mounted drilling rig was destroyed by fire, the insured was entitled under this section to recover the face value of the policy less depreciation since the date of the policy. Snow v. Admiral Insurance Co., 612 F.Supp. 206 (D.C. Ark.).
379.165. The warranty of any fact or condition hereafter made by any person in his or her application for insurance against loss by fire, tornado or cyclone, which application, or any part thereof, shall thereafter be made a part of a policy of insurance, by being attached thereto, or by being referred to therein, or by being incorporated in such policy, shall, if not material to the risk insured against, be deemed, held and construed as representations only, in any suit brought at law or in equity in any of the courts of this state, upon such policy to enforce payment thereof, on account of loss of or damage to any property insured by such policy.
(RSMo 1939 § 5934)Prior revisions: 1929 § 5823; 1919 § 6233; 1909 § 7024
379.170. The warranty of any fact or condition hereafter incorporated in or made a part of any fire, tornado or cyclone policy of insurance, purporting to be made or assented to by the assured which shall not materially affect the risk insured against, shall be deemed, taken and construed as representations only in all suits at law or in equity brought upon such policy in any of the courts of this state.
(RSMo 1939 § 5935)Prior revisions: 1929 § 5824; 1919 § 6234; 1909 § 7025
379.175. No insurance company, corporation or association of persons doing a fire, cyclone or tornado insurance business in this state, shall have the right, power or authority, by contract or otherwise, to contract against or in any manner whatever evade the provisions of sections 379.165 and 379.170.
(RSMo 1939 § 5936)Prior revisions: 1929 § 5825; 1919 § 6235; 1909 § 7026
379.180. All adjustments, arbitrations, settlements and examinations of books, invoices and accounts shall be had at the town, city or neighborhood where the fire occurs, unless some other place be agreed upon between the insurer and the assured after the loss shall have occurred without regard to any provision in the policy to the contrary.
(RSMo 1939 § 5937)Prior revisions: 1929 § 5826; 1919 § 6236; 1909 § 7027
(1960) The conviction of insured of arson in connection with the burning of the insured property held admissible in action to recover the amount of the policy instituted by the insured. Connecticut Fire Insurance Co. v. Ferrara, 277 F.2d 388; Cert. den., 364 U.S. 903, 81 S.Ct. 231.
379.185. Whenever any loss or damage shall be suffered in this state from fire, by any person, persons or corporation, upon property insured under a policy of insurance of any fire insurance company doing business in this state, and notice of the fact that such loss or damage has occurred shall be given by the person, persons or corporation incurring the same, or the agent thereof, to the insurance company issuing such policy, or to the agent thereof nearest the place of loss, within a reasonable time after the date of such loss or damage, the limit to which reasonable time shall be mentioned in said policy and made a part thereof at the time of issuing the same, but the time fixed in the policy shall not be taken or construed to be a condition precedent to the right of recovery, then it shall thereupon become the duty of such insurance company to furnish to the person, persons or corporation incurring such loss or damage, such blank forms of statements and proofs of loss as such insurance company may desire to be filled out, in regard to the time, origin and circumstances of the fire causing such loss or damage, and the knowledge and belief of the insured touching the same, the lists and description and quantity of property destroyed or damaged, and of property saved and the original cost of such property, and the cash value thereof at the time of the fire, the details as to possession, ownership, title and encumbrances, and changes of title, use, occupation, possession, ownership, location and exposures since the time of issuing such policy, if any, and other insurance, if any, and description and schedules in such policy.
(RSMo 1939 § 5938)Prior revisions: 1929 § 5827; 1919 § 6237; 1909 § 7028
379.190. If any such fire insurance company shall fail, neglect or refuse to furnish blank forms of statements and proofs of loss to the insured, in case of loss or damage by fire, as provided in section 379.185, then such company shall be deemed to have waived the requiring of any such statements or proofs of loss at the hands of such insured person, persons or corporation, and upon suit brought upon such policy, such insurance company shall not be heard to complain of the failure of the insured to furnish any such statements or proofs of loss, any provision in any such policy of insurance to the contrary notwithstanding.
(RSMo 1939 § 5939)Prior revisions: 1929 § 5828; 1919 § 6238; 1909 § 7029
379.195. 1. In respect to every contract of insurance made between an insurance company, person, firm or association, whether a stock, a mutual, a reciprocal or other company, association or organization, and any person, firm or corporation, by which such person, firm or corporation is insured against loss or damage on account of the bodily injury or death or damage to property by accident of any person, for which loss or damage such person, firm or corporation is responsible, whenever a loss occurs on account of a casualty covered by such contract of insurance, the liability of the insurance company, if liability there be, shall become absolute, and the payment of said loss shall not depend upon the satisfaction by the assured of a final judgment against him for loss, or damage, or death, or if the insured becomes insolvent or discharged in bankruptcy during the period that the policy is in operation or any part is due or unpaid, occasioned by said casualty.
2. No such contract of insurance shall be canceled or annulled by any agreement between the insurance company and the assured after the said assured has become responsible for such loss or damage, and any such cancellation or annulment shall be void.
(RSMo 1939 § 6009)Prior revision: 1929 § 5898
CROSS REFERENCE:
Claimant and tort-feasor may contract to limit recovery to amount covered by specific insurer, RSMo 537.065
(1957) Oral agreement to provide insurance from March 31, 1955, held not merged in policy issued to cover period beginning April 19, 1955, where such policy was not accepted and such oral contract could not be modified after a loss. Am. Surety Co. of N.Y. v. Williford, 243 F.2d 494.
(1964) In action by injured party against the insurer, after judgment has been obtained by the injured party against insured, the injured party stands in shoes of insured and his rights are no greater and no less than insured's would have been in action against insurer had insured paid the judgment to injured party. Meyers v. Smith (Mo.), 375 S.W.2d 9.
379.200. Upon the recovery of a final judgment against any person, firm or corporation by any person, including administrators or executors, for loss or damage on account of bodily injury or death, or damage to property if the defendant in such action was insured against said loss or damage at the time when the right of action arose, the judgment creditor shall be entitled to have the insurance money, provided for in the contract of insurance between the insurance company, person, firm or association as described in section 379.195, and the defendant, applied to the satisfaction of the judgment, and if the judgment is not satisfied within thirty days after the date when it is rendered, the judgment creditor may proceed in equity against the defendant and the insurance company to reach and apply the insurance money to the satisfaction of the judgment. This section shall not apply to any insurance company in liquidation.
(RSMo 1939 § 6010, A.L. 1991 H.B. 385, et al.)Prior revision: 1929 § 5899
CROSS REFERENCE:
Tax lien to follow and attach to fire or tornado insurance proceeds, RSMo 139.110
(1955) Plaintiff having judgment against insured in action arising out of automobile collision held entitled to assert that rider, excluding liability coverage when car was being operated by certain person, was void for lack of consideration. Wackerle v. Pacific Employers Ins. Co., 219 F.2d 1.
(1961) Equity action based on joint judgment was filed against defendants and their respective insurers. One of the judgment debtors and his insurer were nonresidents. After suit was filed, resident insurer paid half of judgment, nonresident insurer paid two-sevenths of judgment and a judgment for the remainder was rendered against the resident insurer who then filed a cross-claim against the nonresident insurer for contribution. The court ruled that this section applied and that it authorized a direct action on the foreign policy by the judgment debtor and his subrogee. State ex rel. McCubbin v. McMillan (A.), 349 S.W.2d 453.
(1963) Where purchaser of automobile did not receive certificate of title until after he was involved in accident, purchaser was not owner of automobile at time of accident and purchaser was an insured under garage liability of policy covering seller and insurer was liable in equitable garnishment suit for satisfaction of judgment obtained against purchaser. Sabella v. American Indemnity Co. (Mo.), 372 S.W.2d 36.
(1971) In action by insured's judgment creditors against insured and insurer, court held that where automobile policy provided coverage for a six month period of February 27 to August 27, was countersigned by insurer's agent and mailed to insured who received it and "put it in the car", neither insured nor plaintiffs were in position to invoke reformation of contract to provide coverage at time of accident, September 1. Galemore v. Haley (A.), 471 S.W.2d 518.
(2001) Section is not judgment creditor's exclusive remedy for obtaining insurance proceeds from judgment debtor's insurer; ordinary postjudgment garnishment process may be used to reach insurance proceeds. Lancaster v. American and Foreign Insurance Co., 272 F.3d 1059 (8th Cir.).
379.201. Every motor vehicle liability insurance policy insuring a motor vehicle licensed in this state must extend its liability coverage to include any other motor vehicle operated by the insured individual if the other motor vehicle is loaned, with or without consideration, to the insured individual for demonstration purposes or as a replacement vehicle while the insured's vehicle is out of use because of breakdown, repair, or servicing and if the other motor vehicle is loaned by a person, firm, or corporation engaged in the business of selling, repairing, or servicing motor vehicles. Such extension of liability coverage must include coverage for damage to the loaned vehicle.
(L. 1985 H.B. 388 § 1)
379.203. 1. No automobile liability insurance covering liability arising out of the ownership, maintenance, or use of any motor vehicle shall be delivered or issued for delivery in this state with respect to any motor vehicle registered or principally garaged in this state unless coverage is provided therein or supplemental thereto, or in the case of any commercial motor vehicle, as defined in section 301.010, RSMo, any employer having a fleet of five or more passenger vehicles, such coverage is offered therein or supplemental thereto, in not less than the limits for bodily injury or death set forth in section 303.030, RSMo, for the protection of persons insured thereunder who are legally entitled to recover damages from owners or operators of uninsured motor vehicles because of bodily injury, sickness or disease, including death, resulting therefrom. Such legal entitlement exists although the identity of the owner or operator of the motor vehicle cannot be established because such owner or operator and the motor vehicle departed the scene of the occurrence occasioning such bodily injury, sickness or disease, including death, before identification. It also exists whether or not physical contact was made between the uninsured motor vehicle and the insured or the insured's motor vehicle. Provisions affording such insurance protection against uninsured motorists issued in this state prior to October 13, 1967, shall, when afforded by any authorized insurer, be deemed, subject to the limits prescribed in this section, to satisfy the requirements of this section.
2. For the purpose of this coverage, the term "uninsured motor vehicle" shall, subject to the terms and conditions of such coverage, be deemed to include an insured motor vehicle where the liability insurer thereof is unable to make payment with respect to the legal liability of its insured within the limits specified herein because of insolvency.
3. An insurer's insolvency protection shall be applicable only to accidents occurring during a policy period in which its insured's uninsured motorist coverage is in effect where the liability insurer of the tort-feasor becomes insolvent within two years after such an accident. Nothing herein contained shall be construed to prevent any insurer from affording insolvency protection under terms and conditions more favorable to its insureds than is provided hereunder.
4. In the event of payment to any person under the coverage required by this section, and subject to the terms and conditions of such coverage, the insurer making such payment shall, to the extent thereof, be entitled to the proceeds of any settlement or judgment resulting from the exercise of any rights of recovery of such person against any person or organization legally responsible for the bodily injury for which such payment is made, including the proceeds recoverable from the assets of the insolvent insurer; provided, however, with respect to payments made by reason of the coverage described in subsections 2 and 3 above, the insurer making such payment shall not be entitled to any right of recovery against such tort-feasor in excess of the proceeds recovered from the assets of the insolvent insurer of said tort-feasor.
5. In any action on a policy of automobile liability insurance coverage providing for the protection of persons insured thereunder who are legally entitled to recover damages from owners or operators of uninsured motor vehicles, the fact that the owner or operator of such uninsured motor vehicle whether known or unknown failed to file the report required by section 303.040, RSMo, shall be prima facie evidence of uninsured status, and such failure to file may be established by a statement of the absence of such a report on file with the office of the director of revenue, certified by the director, which statement shall be received in evidence in any of the courts of this state. In any such action, the report required by section 303.040, RSMo, when filed by the owner or operator of an uninsured motor vehicle, shall be prima facie evidence of lack of insurance coverage and the report, or a copy thereof, certified by the director of revenue, may be introduced into evidence in accordance with section 303.310, RSMo.
(L. 1967 p. 516, A.L. 1971 H.B. 85, A.L. 1972 S.B. 458, A.L. 1982 S.B. 480, A.L. 1991 H.B. 385, et al.)(1974) Held that where vehicle was run off road without actual contact uninsured motorist coverage would apply if vehicle which ran plaintiff off the road could be positively identified and was in fact an uninsured motorist. Ward v. Allstate Insurance Co. (Mo.), 514 S.W.2d 576.
(1975) Where insured was passenger in his car and car was being driven by insured's brother who carried no insurance, insured was denied recovery under the uninsured motorist provisions of his policy after single automobile accident. Term "uninsured motor vehicle" requires insurers to protect their insureds only from collisions with other vehicles lacking liability coverage. Miles v. State Farm Mutual Automobile Insurance Co. (A.), 519 S.W.2d 378.
(1975) Insuror is entitled to reimbursement, up to the amount it has paid under uninsured motorist coverage, from recovery had against uninsured motorist. State Farm ex. rel. Manchester Insurance and Indemnity Co. v. Moss (Mo.), 522 S.W.2d 772.
(1975) Holder of two policies on two different vehicles is entitled to "stack" uninsured motorist coverage of both policies if necessary to satisfy judgment. Galloway v. Farmers Insurance Company, In. (A.), 523 S.W.2d 339.
(1975) "Uninsured motor vehicle" does not mean underinsured vehicle. Mere fact that multiple claims greatly reduced coverage available to claimant does not allow him to come under uninsured motorist provision of his own policy. Brake v. MFA Mutual Insurance Company (A.), 525 S.W.2d 109.
(1975) Passenger in automobile is not a user within the policy provisions covering person "using" the insured automobile and is not covered under uninsured motorist coverage. Waltz v. Cameron Mutual Insurance Co. (A.), 526 S.W.2d 340.
(1976) Public policy expressed in this section prohibited insurer from limiting recovery by insured to only one of two separate uninsured motorist coverages, included in one policy and for which separate premiums were charged, one for each of two cars of which only one car was involved in the accident. Cameron Mutual Insurance Co. v. Madden (Mo.), 533 S.W.2d 538.
(1980) Employee eligible for payment under employer's uninsured motorist coverage was not entitled to "stacking" of the uninsured motorist coverage provided by the fleet policy for each vehicle insured by it. Linderer v. Royal Globe Insurance Co. (A.), 597 S.W.2d 656.
(1980) Person injured in accident involving his employer's vehicle and an uninsured motorist not entitled to a "stacking" of the uninsured motorist coverage provided for each of employer's 1,420 vehicles, but was entitled to a "stacking" of such coverage on his own vehicles. Linderer v. Royal Globe Insurance Co. (A.), 597 S.W.2d 656.
(1980) The term "uninsured motor vehicle" must be construed as referring to a vehicle being operated by a person whose legal responsibility for damages is not caused by any liability insurance provision. Dairyland Ins. Co. v. Hogan (Mo.), 605 S.W.2d 798.
(1980) Use of term "uninsured motorist" in statute requiring inclusion of uninsured motorist insurance within automobile liability policies, is shorthand expression for "owners and operators of uninsured motor vehicles"; therefore, focus of statute is on uninsured vehicle and not whether owner or operator is "uninsured motorist" under circumstances of accident. Harrison v. MFA Mutual Insurance Co. (Mo.), 607 S.W.2d 137.
(1980) Term "uninsured motor vehicle" as used in statutes providing that uninsured motorist insurance shall be included within automobile liability policy for protection of persons insured thereunder refers to vehicle whose operator or owner did not have in effect at time of accident an automobile liability policy with respect to motor vehicle involved in accident. Harrison v. MFA Mutual Insurance Co. (Mo.), 607 S.W.2d 137.
(1980) Uninsured motorist statute has no application in cases where tort-feasor did have automobile liability policy which complied with requirements of Motor Vehicle Safety Responsibility Law. Harrison v. MFA Mutual Insurance Co. (Mo.), 607 S.W.2d 137.
(1980) Provision of uninsured motorist statute which states that "uninsured motor vehicle" includes an insured motor vehicle where liability insurer thereof is unable to make payment with respect to legal liability of its insured because of insolvency applies only where automobile insured under policy is hit by another vehicle and insurer of record vehicle becomes insolvent. Harrison v. MFA Mutual Insurance Co. (Mo.), 607 S.W.2d 137.
(1980) Provision in statute requiring that uninsured motorist insurance be included within automobile liability policies allowing recovery under uninsured motorist provision when insurer of other vehicle involved is insolvent, by use of language "subject to the terms and conditions of such coverage," recognizes insurer's right to define uninsured automobile. Harrison v. MFA Mutual Insurance Co. (Mo.), 607 S.W.2d 137.
(1985) The public policy as declared in this section mandates that when an insured has two separate policies containing uninsured motorist clauses, effect shall be given to both coverages without reduction or limitation by policy provisions, and that both coverages are available to those insured thereby. Bergtholdt v. Farmers Ins. Co., Inc., (A.), 691 S.W.2d 357.
(1986) The term "uninsured motorist" as used in section 379.203, RSMo, includes a motorist who is underinsured by the standards of section 303.030, RSMo. Cook v. Pedigo, 714 S.W.2d 949 (Mo. App. 1986).
(1989) Insurer's prohibition of stacking by the policyholder's minor children is contrary to statute and invalid. Where plaintiff was a pedestrian and was injured by a hit and run driver, he was entitled to stack the uninsured motorist coverage on each of his father's autos. (Mo.App. E.D.) Husch by Husch v. Nationwide Mutual Fire Insurance Co., 772 S.W.2d 692.
(1993) Insurance company's limit of uninsured motorist coverage to injuries which were result of an accident is against public policy and is void because it attempts to narrow mandated uninsured motorist coverage required by section for every automobile liability policy. Thornburg v. Farmers Insurance Co., 859 S.W.2d 847 (Mo. App. W.D.).
(1995) Where plaintiff was otherwise qualified as an insured for liability purposes, insurance policy exclusions limiting uninsured motorist protection in insurance policy limiting coverage to owned vehicles was void as against Missouri law and public policy. Bernardo v. Northland Insurance Co., 45 F.3d 272 (8th Cir.).
(1996) Uninsured motorist coverage is not based on the vehicle in which the insured is operating or riding, but is personal coverage which follows the insured. Schmidt v. City of Gladstone, 913 S.W.2d 937 (Mo.App. W.D.).
379.204. Any underinsured motor vehicle coverage with limits of liability less than two times the limits for bodily injury or death pursuant to section 303.020, RSMo, shall be construed to provide coverage in excess of the liability coverage of any underinsured motor vehicle involved in the accident.
(L. 1999 S.B. 19)(2002) Requirement for insurers to provide excess underinsured motorist coverage under certain circumstances, effective August 28, 1999, does not apply retroactively. Melton v. Country Mutual Insurance Company, 75 S.W.3d 321 (Mo.App. E.D.).
379.205. A number of persons, not less than twenty-five, a majority of whom shall be bona fide residents of this state, by complying with the provisions of sections 379.205 to 379.310, may become together with others who may hereafter be associated with them or their successors, a body corporate for the purpose of carrying on the business of mutual insurance as herein provided.
(RSMo 1939 § 5950)Prior revisions: 1929 § 5839; 1919 § 6249
379.210. Any persons proposing to form any such company shall subscribe and acknowledge articles of incorporation specifying:
(1) The name, the purpose for which formed, and the location of its principal or home office, which shall be within this state;
(2) The names and addresses of those composing the board of directors in which the management shall be vested until the first meeting of the members;
(3) The names and places of residence of the incorporators.
(RSMo 1939 § 5951)Prior revisions: 1929 § 5840; 1919 § 6250
379.215. No name shall be adopted by such company which does not contain the word "mutual" or which is so similar to any name already in use by any such existing corporation, company or association, organized or doing business in the United States, as to be confusing or misleading.
(RSMo 1939 § 5952)Prior revisions: 1929 § 5841; 1919 § 6251
379.220. 1. Such articles shall be submitted to the director of the insurance department, herein called "director".
2. Such publication shall be made as required by section 379.030, and upon proof of publication being made and approval of said articles by the attorney general as required by section 379.040, such articles shall be recorded by the director, who shall furnish a certified copy thereof to the incorporators and shall file a certified copy thereof with the secretary of state.
3. The secretary of state shall thereupon issue to the company a certificate of incorporation, which shall be its authority to begin business.
4. Such articles may be amended in the manner provided for other corporations or as may be provided in such articles.
(RSMo 1939 § 5953)Prior revisions: 1929 § 5842; 1919 § 6252
379.225. 1. The company shall have legal existence from and after date of such certificate.
2. The board of directors named in such articles may thereupon adopt bylaws, accept applications for insurance, and proceed to transact the business of such company; provided, that no insurance shall be put into force until the company has been licensed to transact insurance as provided by sections 379.205 to 379.310.
3. Such bylaws and any amendments thereto shall within thirty days after adoption be filed with said director.
(RSMo 1939 § 5954)Prior revisions: 1929 § 5843; 1919 § 6253
379.230. Any company organized under the provisions of sections 379.205 to 379.310 is empowered and authorized to make contracts of insurance or to reinsure or accept reinsurance on any portion thereof, to the extent specified in its articles for the kinds of insurance following:
(1) Liability insurance. Against loss, expense or liability by reason of bodily injury or death by accident, disability, sickness or disease suffered by others for which the insured may be liable or have assumed liability, including workers' compensation.
(2) Disability insurance. Against bodily injury or death by accident and disability by sickness.
(3) Automobile insurance. Against any or all loss, expense and liability resulting from the ownership, maintenance or use of any automobile or other vehicle; provided, no policies shall be issued under this subsection against the hazard of fire alone.
(4) Steam boiler insurance. Against loss or liability to persons or property resulting from explosions or accidents to boilers, containers, pipes, engines, flywheels, elevators and machinery in connection therewith and against loss of use and occupancy caused thereby and to make inspection and issue certificates of inspection thereon.
(5) Use and occupancy insurance. Against loss from interruption of trade or business or loss of rents which may be the result of any accident or casualty.
(6) Miscellaneous insurance. Against loss or damage by any hazard upon any risk not provided for in this section, which is not prohibited by statute or at common law from being the subject of insurance, excepting life insurance and fire insurance.
(RSMo 1939 § 5955)Prior revisions: 1929 § 5844; 1919 § 6254
379.235. 1. No such company shall issue policies or transact any business of insurance unless it holds a license from the director authorizing the transaction of such business. A license shall not be issued unless the company complies with the following conditions:
(1) It shall hold bona fide applications for insurance upon which it shall issue simultaneously, or it shall have in force, at least twenty policies to at least twenty members for the same kind 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 of the admitted assets or three times the average risk or one percent of the insurance in force, whichever is the greater, any reinsurance taking effect simultaneously with the policy being deducted in determining such maximum single risk.
(3) It has collected an annual premium upon each application, which premium shall be equal to not less than five times the maximum single risk assumed nor less than one hundred thousand dollars; provided, however, that the total assets of the company shall not be less than one hundred thousand dollars of paid-in premiums and a guaranty fund or contributed surplus of not less than six hundred thousand dollars which shall be held in cash or securities in which these insurance companies are authorized to invest; and provided further, that any mutual company other than life and fire licensed to do business on September 28, 1977, which confines its writings to burglary and theft, and liability, property damage and collision other than automobile and workers' compensation, shall maintain a guaranty fund or contributed surplus of not less than three hundred thousand dollars.
(4) For the purpose of transacting employer's liability and workers' compensation insurance the applications shall cover not less than one thousand five hundred employees, each employee being considered a separate risk for determining the maximum single risk.
2. Any other provision of law notwithstanding any mutual company other than life and fire licensed to do business in this state on September 28, 1977, may renew its license for business specified therein until December 31, 1979, if it maintains assets of not less than three hundred thousand dollars consisting of paid-in premiums and a guaranty fund or contributed surplus which shall be held in cash or securities in which these insurance companies are authorized to invest.
3. Violation of any of the provisions of this section by an insurer is grounds for the revocation of its certificate of authority 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.
379.240. 1. Any public or private corporation, board or association in this state or elsewhere may make applications, enter into agreements for and hold policies in any such mutual insurance company.
2. Any officer, stockholder, trustee or legal representative of any such corporation, board, association or estate may be recognized as acting for or on its behalf for the purpose of such membership, but shall not be personally liable upon such contract of insurance by reason of acting in such representative capacity.
3. The right of any corporation organized under the laws of this state to participate as a member of any such mutual insurance company is hereby declared to be incidental to the purpose for which such corporation is organized and as much granted as the rights and powers expressly conferred.
(RSMo 1939 § 5957)Prior revisions: 1929 § 5846; 1919 § 6256
379.245. Every member of the company shall be entitled to one vote, or to a number of votes based upon the insurance in force, the number of policies held, or the amount of premiums paid, as may be provided in the bylaws.
(RSMo 1939 § 5958)Prior revisions: 1929 § 5847; 1919 § 6257
379.250. 1. The maximum premium payable by any member shall be expressed in the policy or in the application for the insurance.
2. Such maximum premium may be a cash premium and an additional contingent premium not less than the cash premium, or may be solely a cash premium.
3. No policy shall be issued for a cash premium without an additional contingent premium unless the company has a surplus of at least one hundred thousand dollars or a surplus which is not less in amount than the capital stock required of domestic stock insurance companies transacting the same kinds of insurance.
(RSMo 1939 § 5959)Prior revisions: 1929 § 5848; 1919 § 6258
379.255. No such company shall invest any of its assets except in accordance with the laws of this state relating to the investment of the assets of domestic stock companies transacting the same kinds of insurance.
(RSMo 1939 § 5960)Prior revisions: 1929 § 5849; 1919 § 6259
379.257. Any company organized or doing business under sections 379.205 to 379.310 shall comply with the provisions of section 379.098.
(L. 1967 p. 516)
379.260. Such company shall maintain unearned premium and other reserves separately for each kind of insurance, upon the same basis as that required of domestic stock insurance companies transacting the same kind of insurance; provided, that any reserve for losses or claims based upon the premium income shall be computed upon the net premium income after deducting any so-called dividend or premium returned or credited to the member.
(RSMo 1939 § 5961)Prior revisions: 1929 § 5850; 1919 § 6260
379.263. Any company organized under the provisions of sections 379.205 to 379.310 shall on the first day of January of each year or within sixty days thereafter, file with the director of the insurance department a statement of its affairs in the same manner and form as provided in section 379.105.
(L. 1967 p. 516)
379.265. Such company not possessed of assets at least equal to the unearned premium reserve and other liabilities shall make an assessment upon its members liable to assessment to provide for such deficiency, such assessment to be against each such member in proportion to such liability as expressed in his policy; provided, the director may, by written order, relieve the company from an assessment or other proceedings to restore such assets during the time fixed in such order; and provided, that any domestic company which shall be deficient in providing the unearned premium reserve required hereby may, notwithstanding such deficiency, come under this law on the condition that it shall each year thereafter reduce such deficiency at least fifteen percent of the original amount thereof, and in such case it may increase its assessments accordingly.
(RSMo 1939 § 5962)Prior revisions: 1929 § 5851; 1919 § 6261
379.270. 1. Any director, officer or member of any such company, or any other person, may advance to such company any sum or sums of money necessary for the purpose of its business or to enable it to comply with any of the requirements of the law, and such moneys and such interest thereon as may have been agreed upon, not exceeding ten percent per annum, shall be payable only out of the surplus remaining after providing for all reserves and other liabilities, and shall not otherwise be a liability or claim against the company or any of its assets.
2. No commission or promotion expenses shall be paid in connection with the advance of any such money to the company, and the amount of such advance shall be reported in each annual statement.
(RSMo 1939 § 5963)Prior revisions: 1929 § 5852; 1919 § 6262
379.275. 1. Any law requiring that policies be countersigned and delivered through a resident agent shall not apply to any policy of such mutual company on which no commission shall be paid to any local agent.
2. Such mutual company may insert in any form of policy prescribed by the law of this state any provisions or conditions required by its plan of insurance which are not inconsistent or in conflict with any law of this state.
(RSMo 1939 § 5964)Prior revisions: 1929 § 5853; 1919 § 6263
379.290. Every mutual insurance company or association admitted to Missouri under the provisions of sections 379.205 to 379.310 shall annually pay to the director of revenue a tax upon the direct premiums received, whether in cash or in notes, in this state, for the insurance of property or risks in this state at the rate of two percent per annum; provided, that such companies or associations shall be credited with canceled or return premiums actually pa