| 12 | | - | SectionA.Section374.190,RSMo,isrepealedandfivenewsectionsenactedinlieu |
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| 13 | | - | 2thereof,tobeknownassections374.190,374.192,375.1183,380.621,and380.631,toread |
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| 14 | | - | 3asfollows: |
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| 15 | | - | 374.190.1.Thedirectorshallexamineandinquireintoallviolationsoftheinsurance |
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| 16 | | - | 2lawsofthestate,andinquireintoandinvestigatethebusinessofinsurancetransactedinthis |
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| 17 | | - | 3statebyanyinsuranceagent,broker,agencyorinsurancecompany. |
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| 18 | | - | 4 2.Heoranyofhisdulyappointedagentsmaycompeltheattendancebeforehim,and |
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| 19 | | - | 5mayexamine,underoath,thedirectors,officers,agents,employees,solicitors,attorneysor |
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| 20 | | - | 6anyotherperson,inreferencetothecondition,affairs,managementofthebusiness,orany |
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| 21 | | - | 7mattersrelatingthereto.Hemayadministeroathsoraffirmations,andshallhavepowerto |
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| 22 | | - | 8summonandcompeltheattendanceofwitnesses,andtorequireandcompeltheproductionof |
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| 23 | | - | 9records,books,papers,contractsorotherdocuments,ifnecessary. |
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| 24 | | - | 10 3.Thedirectormaymakeandconducttheinvestigationinperson,orhemayappoint |
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| 25 | | - | 11oneormorepersonstomakeandconductthesameforhim.Ifmadebyanotherthanthe |
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| 26 | | - | 12directorinperson,thepersondulyappointedbythedirectorshallhavethesamepowersas |
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| 27 | | - | 13abovegrantedtothedirector.Acertificateofappointment,undertheofficialsealofthe |
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| 28 | | - | 14director,shallbesufficientauthorityandevidencethereofforthepersonorpersonstoact. |
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| 29 | | - | EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis |
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| 30 | | - | intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 15Forthepurposeofmakingtheinvestigations,orhavingthesamemade,thedirectormay |
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| 31 | | - | 16employthenecessaryclerical,actuarialandotherassistance. |
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| 32 | | - | 17 4.Notwithstandinganyprovisionoflawtothecontrary,theconfidentiality |
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| 33 | | - | 18provisionsofsection374.205,includingsubdivision(5)ofsubsection3ofsection |
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| 34 | | - | 19374.205,andsubsection4ofsection374.205,shallapplytoallreports,workingpapers, |
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| 35 | | - | 20recordedinformation,documents,andcopiesthereof,producedby,obtainedby,or |
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| 36 | | - | 21disclosedtothedirectororanyotherpersoninthecourseofanymarketconduct |
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| 37 | | - | 22investigationormarketconductaction. |
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| 38 | | - | 374.192.1.Notwithstandinganyprovisionoflawtothecontrary,aregulated |
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| 39 | | - | 2entityshallhavenotlessthanthirtycalendardaystosubmitanyrecordormaterial |
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| 40 | | - | 3requestedbythedepartment.Thissubsectionshallnotapplytorequestsforrecordsor |
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| 41 | | - | 4materialsbythedivisionofconsumeraffairsortorequestsforinformationonforms |
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| 42 | | - | 5submittedundersection375.920. |
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| 43 | | - | 6 2.Notwithstandinganyprovisionoflawtothecontrary,anyrecordor |
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| 44 | | - | 7document,regardlessofphysicalformorcharacteristic,maintainedbeyondtherecord |
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| 45 | | - | 8retentionperiodspecifiedinsection374.205shallnotbesubjecttorequestorreviewby |
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| 46 | | - | 9thedirectorunlessthedirectorhassubstantialandcompetentevidencethatthe |
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| 47 | | - | 10regulatedentityhaswillfullyengagedinanactoromissionconstitutingalevelfouror |
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| 48 | | - | 11fiveviolationofthelawsofthisstaterelatingtoinsurance,includingthischapter, |
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| 49 | | - | 12chapter354,andchapters375to385,orhasbeenconvictedofanyfelonyrelatedtothe |
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| 50 | | - | 13businessofinsurance,inwhichcasethedirectormayrequestorreviewrecordsor |
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| 51 | | - | 14documentsmaintainedbeyondtherecordretentionperiodspecifiedinsection374.205 |
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| 52 | | - | 15thatdirectlyrelatetotheviolationorconviction. |
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| 53 | | - | 375.1183.1.Contractsreinsuringpoliciesoflifeorhealthinsuranceorannuities |
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| 54 | | - | 2referredtoinsection375.1178issuedbyacedinginsurerthathasbeenplacedin |
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| 55 | | - | 3conservationorrehabilitationproceedingsundersections375.1150to375.1246shallbe |
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| 56 | | - | 4continuedorterminatedunderthetermsandconditionsofeachcontractandthe |
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| 57 | | - | 5provisionsofthissection. |
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| 58 | | - | 6 2.Contractsreinsuringpoliciesoflifeorhealthinsuranceorannuitiesreferred |
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| 59 | | - | 7toinsection375.1178issuedbyacedinginsurerthathasbeenplacedintoliquidation |
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| 60 | | - | 8undersections375.1150to375.1246shallbecontinued,subjecttotheprovisionsofthis |
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| 61 | | - | 9section,unless: |
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| 62 | | - | 10 (1)Thecontractswereterminatedpursuanttotheirtermspriortothedateof |
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| 63 | | - | 11theorderofliquidation;or |
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| 64 | | - | 12 (2)Thecontractswereterminatedpursuanttotheorderofliquidation,inwhich |
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| 65 | | - | 13casetheprovisionsofsubsection9ofthissectionshallapply. |
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| 66 | | - | HCSSSSCSSB834 2 14 3.(1)Atanytimewithinonehundredeightydaysofthedateoftheorderof |
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| 67 | | - | 15liquidation,aguarantyassociationcoveringpoliciesoflifeorhealthinsuranceor |
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| 68 | | - | 16annuitiesreferredtoinsection375.1178,inwholeorinpart,mayelecttoassumethe |
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| 69 | | - | 17rightsandobligationsofthecedinginsurerthatrelatetothepoliciesorannuitiesunder |
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| 70 | | - | 18anyoneormorereinsurancecontractsbetweenthecedinginsureranditsreinsurers. |
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| 71 | | - | 19Anysuchassumptionshallbeeffectiveasofthedateoftheorderofliquidation.The |
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| 72 | | - | 20electionshallbemadebytheguarantyassociationorthenationalorganizationoflife |
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| 73 | | - | 21andhealthinsuranceguarantyassociationsonitsbehalfbysendingwrittennotice, |
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| 74 | | - | 22returnreceiptrequested,totheaffectedreinsurers. |
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| 75 | | - | 23 (2)Tofacilitatethedecision,thereceiverandeachaffectedreinsurershallmake |
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| 76 | | - | 24availableuponrequesttotheguarantyassociationortothenationalorganizationoflife |
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| 77 | | - | 25andhealthinsuranceguarantyassociationsonitsbehalf: |
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| 78 | | - | 26 (a)Copiesofin-forcereinsurancecontractsandallrelatedfilesandrecords |
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| 79 | | - | 27relevanttothedeterminationofwhethersuchcontractsshouldbeassumed;and |
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| 80 | | - | 28 (b)Noticesofanydefaultsunderthereinsurancecontractsoranyknownevent |
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| 81 | | - | 29orconditionwhichwiththepassageoftimecouldbecomeadefaultunderthe |
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| 82 | | - | 30reinsurancecontracts. |
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| 83 | | - | 31 (3)Paragraphs(a)through(d)ofthissubdivisionshallapplytoreinsurance |
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| 84 | | - | 32contractssoassumedbyaguarantyassociation: |
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| 85 | | - | 33 (a)Theguarantyassociationshallberesponsibleforallunpaidpremiumsdue |
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| 86 | | - | 34underthereinsurancecontracts,forperiodsbothbeforeandafterthedateoftheorder |
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| 87 | | - | 35ofliquidation,andshallberesponsiblefortheperformanceofallotherobligationstobe |
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| 88 | | - | 36performedafterthedateoftheorderofliquidation. |
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| 89 | | - | 37 (b)Theguarantyassociationshallbeentitledtoanyamountspayablebythe |
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| 90 | | - | 38reinsurerunderthereinsurancecontractswithrespecttolossesoreventsthatoccurin |
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| 91 | | - | 39periodsonorafterthedateoftheorderofliquidation. |
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| 92 | | - | 40 (c)Withinthirtydaysfollowingthedateoftheguarantyassociation'selectionto |
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| 93 | | - | 41assumeareinsurancecontract,theguarantyassociationandthereinsurershall |
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| 94 | | - | 42calculatethebalanceduetoorfromtheguarantyassociationundereachreinsurance |
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| 95 | | - | 43contractasofthedateofsuchelection,andtheguarantyassociationorreinsurershall |
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| 96 | | - | 44payanyremainingbalanceduetheotherwithinthirty-fivedaysofthedateofsuch |
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| 97 | | - | 45election.Anydisputesovertheamountsduetoeithertheguarantyassociationorthe |
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| 98 | | - | 46reinsurershallberesolvedbyarbitrationpursuanttothetermsoftheaffected |
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| 99 | | - | 47reinsurancecontractor,ifthecontractcontainsnoarbitrationclause,pursuanttothe |
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| 100 | | - | 48provisionsofsubdivision(3)ofsubsection9ofthissection. |
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| 101 | | - | 49 (d)Iftheguarantyassociation,orreceiveronbehalfofsuchguaranty |
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| 102 | | - | 50association,withinsixtydaysofthedateoftheguarantyassociation'selectiontoassume |
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| 103 | | - | HCSSSSCSSB834 3 51areinsurancecontract,paystheunpaidpremiumsdueforperiodsbothbeforeandafter |
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| 104 | | - | 52thedateofsuchelectionthatareduepursuanttothereinsurancecontract,thereinsurer |
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| 105 | | - | 53shallnotbeentitledtoterminatethereinsurancecontractforfailuretopaypremiums, |
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| 106 | | - | 54andshallnotbeentitledtosetoffanyunpaidamountsdueunderothercontracts,or |
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| 107 | | - | 55unpaidamountsduefrompartiesotherthantheguarantyassociation,againstamounts |
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| 108 | | - | 56duesuchguarantyassociation. |
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| 109 | | - | 57 4.Ifareceivercontinuespoliciesoflifeorhealthinsuranceorannuitiesreferred |
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| 110 | | - | 58toinsection375.1178inforcefollowinganorderofliquidation,andthepoliciesor |
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| 111 | | - | 59annuitiesarenotcoveredinwholeorinpartbyoneormoreguarantyassociations,the |
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| 112 | | - | 60receivermay,withinonehundredeightydaysofthedateoftheorderofliquidation, |
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| 113 | | - | 61electtoassumetherightsandobligationsofthecedinginsurerunderanyoneormoreof |
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| 114 | | - | 62thereinsurancecontractsthatrelatetothepoliciesorannuities,providedthecontracts |
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| 115 | | - | 63havenotbeenterminatedassetforthinsubsection2ofthissection.Theelectionshall |
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| 116 | | - | 64bemadebysendingwrittennotice,returnreceiptrequested,totheaffectedreinsurers. |
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| 117 | | - | 65Inthatevent,paymentofpremiumsonthereinsurancecontractsforthepoliciesand |
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| 118 | | - | 66annuities,forperiodsbothbeforeandafterthedateoftheorderofliquidation,shallbe |
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| 119 | | - | 67chargeableagainsttheestateasaclass1administrativeexpense.Amountspaidbythe |
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| 120 | | - | 68reinsureronaccountoflossesonthepoliciesandannuitiesshallbetotheestateofthe |
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| 121 | | - | 69cedinginsurer. |
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| 122 | | - | 70 5.Duringtheperiodfromthedateoftheorderofliquidationuntilthedatethe |
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| 123 | | - | 71guarantyassociationorthereceiverelectstoassumetherightsandobligationsofthe |
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| 124 | | - | 72cedinginsurerunderanyoneormoreofthereinsurancecontractsthatrelatetothe |
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| 125 | | - | 73policiesorannuitiesasprovidedforinsubsection3or4ofthissection,theguaranty |
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| 126 | | - | 74association,thereceiver,andthereinsurershallnothaveanyrightsorobligationsunder |
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| 127 | | - | 75anyreinsurancecontractthatiseligibleforassumptionbysuchassociationorthe |
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| 128 | | - | 76receiver. |
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| 129 | | - | 77 6.(1)Iftheguarantyassociationorthereceiver,asthecasemaybe,hastimely |
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| 130 | | - | 78electedtoassumeareinsurancecontractpursuanttosubsection3or4ofthissection,as |
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| 131 | | - | 79applicable,theparties'rightsandobligationsshallbegovernedbytheprovisionsof |
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| 132 | | - | 80subsection3or4ofthissection,asapplicable. |
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| 133 | | - | 81 (2)Wheretheguarantyassociationcoveringpoliciesoflifeorhealthinsurance |
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| 134 | | - | 82orannuitiesreferredtoinsection375.1178orthereceiver,asthecasemaybe,doesnot |
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| 135 | | - | 83timelyelecttoassumeareinsurancecontractpursuanttosubsection3or4ofthis |
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| 136 | | - | 84section,asapplicable,thereinsurancecontractshallbeterminatedretroactively |
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| 137 | | - | 85effectiveonthedateoftheorderofliquidationandsubsection9ofthissectionshall |
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| 138 | | - | 86apply. |
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| 139 | | - | HCSSSSCSSB834 4 87 7.Whenpoliciesoflifeorhealthinsuranceorannuitiesreferredtoinsection |
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| 140 | | - | 88375.1178,ortheobligationsoftheguarantyassociationwithrespectthereto,are |
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| 141 | | - | 89transferredtoanassuminginsurer,reinsuranceonthepoliciesorannuitiesmayalsobe |
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| 142 | | - | 90transferredbytheguarantyassociation,inthecaseofcontractsassumedunder |
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| 143 | | - | 91subsection3ofthissection,orthereceiver,inthecaseofcontractsassumedunder |
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| 144 | | - | 92subsection4ofthissection,subjecttothefollowing: |
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| 145 | | - | 93 (1)Unlessthereinsurerandtheassuminginsureragreeotherwise,the |
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| 146 | | - | 94reinsurancecontracttransferredshallnotcoveranynewpoliciesorannuitiesin |
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| 147 | | - | 95additiontothosetransferred; |
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| 148 | | - | 96 (2)Theobligationsdescribedinsubsections3and4ofthissectionshallno |
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| 149 | | - | 97longerapplywithrespecttomattersarisingaftertheeffectivedateofthetransfer;and |
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| 150 | | - | 98 (3)Noticeshallbegiveninwriting,returnreceiptrequested,bythetransferring |
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| 151 | | - | 99partytotheaffectedreinsurernotlessthanthirtydayspriortotheeffectivedateofthe |
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| 152 | | - | 100transfer. |
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| 153 | | - | 101 8.Theprovisionsofthissectionshall,totheextentprovidedinsections375.1150 |
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| 154 | | - | 102to375.1246,supersedetheprovisionsofanylaworofanyaffectedreinsurancecontract |
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| 155 | | - | 103thatprovidesfororrequiresanypaymentofreinsuranceproceeds,onaccountoflosses |
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| 156 | | - | 104oreventsthatoccurinperiodsafterthedateoftheorderofliquidation,tothereceiver |
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| 157 | | - | 105ofthecedinginsureroranyotherperson.Thereceivershallremainentitledtoany |
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| 158 | | - | 106amountspayablebythereinsurerunderthereinsurancecontractswithrespecttolosses |
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| 159 | | - | 107oreventsthatoccurinperiodspriortothedateoftheorderofliquidation,subjectto |
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| 160 | | - | 108provisionsofsections375.1150to375.1246includingapplicablesetoffprovisions. |
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| 161 | | - | 109 9.Whenareinsurancecontractisterminatedpursuanttosections375.1150to |
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| 162 | | - | 110375.1246,thereinsurerandthereceivershallcommenceamandatorynegotiation |
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| 163 | | - | 111procedureinaccordancewiththissubsection: |
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| 164 | | - | 112 (1)Nolaterthanthirtydaysafterthedateoftermination,eachpartyshall |
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| 165 | | - | 113appointanactuarytodetermineanestimatedsumdueasaresultoftheterminationof |
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| 166 | | - | 114thereinsurancecontractcalculatedinawayexpectedtomakethepartieseconomically |
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| 167 | | - | 115indifferentastowhetherthereinsurancecontractcontinuesorterminates,givingdue |
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| 168 | | - | 116regardtotheeconomiceffectsoftheinsolvency.Thesumshalltakeintoaccountthe |
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| 169 | | - | 117presentvalueoffuturecashflowsexpectedunderthereinsurancecontractandbebased |
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| 170 | | - | 118onagrosspremiumvaluationofnetliabilityusingcurrentassumptionsthatreflectpost- |
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| 171 | | - | 119insolvencyexperienceexpectations,withnoadditionalmargins,netofanyamounts |
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| 172 | | - | 120payableandreceivable,withamarketvalueadjustmenttoreflectprematuresaleof |
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| 173 | | - | 121assetstofundthesettlement; |
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| 174 | | - | 122 (2)Withinninetydaysofthedateoftermination,eachpartyshallprovidethe |
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| 175 | | - | 123otherpartywithitsestimateofthesumdueasaresultoftheterminationofthe |
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| 176 | | - | HCSSSSCSSB834 5 124reinsurancecontract,togetherwithallrelevantdocumentsandotherinformation |
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| 177 | | - | 125supportingtheestimate.Thepartiesshallmakeagoodfaithefforttoreachagreement |
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| 178 | | - | 126onthesumdue; |
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| 179 | | - | 127 (3)Ifthepartiesareunabletoreachagreementwithinninetydaysfollowingthe |
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| 180 | | - | 128submissionofmaterialsrequiredinsubdivision(2)ofthissubsection,eitherpartymay |
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| 181 | | - | 129initiatearbitrationproceedingsasprovidedinthereinsurancecontract.Intheevent |
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| 182 | | - | 130thatthereinsurancecontractdoesnotcontainanarbitrationclause,eitherpartymay |
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| 183 | | - | 131initiatearbitrationpursuanttothissubdivisionbyprovidingtheotherpartywitha |
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| 184 | | - | 132writtendemandforarbitration.Thearbitrationshallbeconductedpursuanttothe |
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| 185 | | - | 133followingprocedures: |
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| 186 | | - | 134 (a)Venueforthearbitrationshallbewithinthecountyofthecourt'sjurisdiction |
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| 187 | | - | 135pursuanttosection375.1154,oranotherlocationagreedtobytheparties; |
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| 188 | | - | 136 (b)Withinthirtydaysoftherespondingparty'sreceiptofthearbitration |
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| 189 | | - | 137demand,eachpartyshallappointanarbitratorwhoisadisinterestedactiveorretired |
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| 190 | | - | 138officerorexecutiveofalifeorhealthinsuranceorreinsurancecompany,orother |
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| 191 | | - | 139professionalwithnolessthantenyears'experienceinorrelatingtothefieldoflifeor |
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| 192 | | - | 140healthinsuranceorreinsurance.Thetwoarbitratorsshallappointanindependent, |
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| 193 | | - | 141impartial,disinterestedumpirewhoisanactiveorretiredofficerorexecutiveofalifeor |
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| 194 | | - | 142healthinsuranceorreinsurancecompany,orotherprofessionalwithnolessthanten |
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| 195 | | - | 143years'experienceinthefieldoflifeorhealthinsuranceorreinsurance.Ifthe |
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| 196 | | - | 144arbitratorsareunabletoagreeonanumpire,eacharbitratorshallprovidetheother |
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| 197 | | - | 145withthenamesofthreequalifiedindividuals,eacharbitratorshallstriketwonames |
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| 198 | | - | 146fromtheother'slist,andtheumpireshallbechosenbydrawinglotsfromtheremaining |
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| 199 | | - | 147individuals; |
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| 200 | | - | 148 (c)Withinsixtydaysfollowingtheappointmentoftheumpire,thepartiesshall, |
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| 201 | | - | 149unlessotherwiseorderedbythepanel,submittothearbitrationpaneltheirestimatesof |
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| 202 | | - | 150thesumdueasaresultoftheterminationofthereinsurancecontract,togetherwithall |
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| 203 | | - | 151relevantdocumentsandotherinformationsupportingtheestimate; |
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| 204 | | - | 152 (d)Thetimeperiodssetforthintheseparagraphsmaybeextendeduponmutual |
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| 205 | | - | 153agreementoftheparties; |
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| 206 | | - | 154 (e)Thepanelshallhaveallpowersnecessarytoconductthearbitration |
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| 207 | | - | 155proceedingsinafairandappropriatemanner,includingthepowertorequestadditional |
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| 208 | | - | 156informationfromtheparties,authorizediscovery,holdhearings,andheartestimony. |
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| 209 | | - | 157Thepanelalsomayappointindependentactuarialexperts,theexpenseofwhichshallbe |
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| 210 | | - | 158sharedequallybetweentheparties; |
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| 211 | | - | 159 (4)Anarbitrationpanelconsideringthematterssetforthinthissubsectionshall |
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| 212 | | - | 160applythestandardssetforthinthissubsectionandshallissueawrittenaward |
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| 213 | | - | HCSSSSCSSB834 6 161specifyinganetsettlementamountduefromonepartyortheotherasaresultofthe |
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| 214 | | - | 162terminationofthereinsurancecontract.Thereceivershipcourtshallconfirmthat |
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| 215 | | - | 163awardabsentproofofstatutorygroundsforvacatingormodifyingarbitrationawards |
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| 216 | | - | 164undertheFederalArbitrationAct; |
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| 217 | | - | 165 (5)Ifthenetsettlementamountagreedorawardedpursuanttothissubsectionis |
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| 218 | | - | 166payablebythereinsurer,thereinsurershallpaytheamountduetotheestatesubjectto |
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| 219 | | - | 167anyapplicableset-offundersection375.1198.Ifthenetsettlementamountagreedor |
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| 220 | | - | 168awardedpursuanttothissubsectionispayablebythecedinginsurer,thereinsurershall |
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| 221 | | - | 169bedeemedtohaveatimelyfiledclaimagainsttheestateforthatamount,whichclaim |
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| 222 | | - | 170shallbepaidpursuanttothepriorityestablishedinsubsection5ofsection375.1218. |
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| 223 | | - | 171Theaffectedguarantyassociationsshallnotbeentitledtoreceivethenetsettlement |
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| 224 | | - | 172amount,excepttotheextenttheyareentitledtoshareintheestateassetsascreditorsof |
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| 225 | | - | 173theestate,andshallhavenoresponsibilityforthenetsettlementamount. |
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| 226 | | - | 174 10.Exceptasotherwiseprovidedinthissection,nothinginthissectionshallalter |
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| 227 | | - | 175ormodifythetermsandconditionsofanyreinsurancecontract.Nothinginthissection |
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| 228 | | - | 176shallabrogateorlimitanyrightsofanyreinsurertoclaimthatitisentitledtorescinda |
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| 229 | | - | 177reinsurancecontract.Nothinginthissectionshallgiveapolicyholderorbeneficiaryan |
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| 230 | | - | 178independentcauseofactionagainstareinsurerthatisnototherwisesetforthinthe |
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| 231 | | - | 179reinsurancecontract.Nothinginthissectionshalllimitoraffectanyguaranty |
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| 232 | | - | 180association'srightsasacreditoroftheestateagainsttheassetsoftheestate.Nothingin |
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| 233 | | - | 181thissectionshallapplytoreinsurancecontractscoveringpropertyorcasualtyrisks. |
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| 234 | | - | 182 11.Thissectionandsubdivision(10)ofsubsection1ofsection376.734shallbe |
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| 235 | | - | 183construedtogetherinamannerthatisconsistentwitheachotherandwiththepurpose |
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| 236 | | - | 184providedforinsection376.715. |
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| 237 | | - | 380.621.1.Thissectionshallbeknownandmaybecitedasthe"Protecting |
|---|
| 238 | | - | 2Missouri'sMutualInsuranceCompaniesAct". |
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| 239 | | - | 3 2.Asusedinthissection,thefollowingtermsshallmean: |
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| 240 | | - | 4 (1)"Adequatereinsurance",commerciallyavailablereinsuranceasdeemed |
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| 241 | | - | 5appropriatebytheboardofdirectorsofthecompany; |
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| 242 | | - | 6 (2)"Unlimitedaggregatereinsurance",aggregatereinsurancecoveragewhere |
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| 243 | | - | 7thelossescoveredbythereinsurerarenotlimited. |
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| 244 | | - | 8 3.Notwithstandinganyprovisionoflawtothecontrary,theauthorityexpressly |
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| 245 | | - | 9grantedinthischaptershallbethesoleauthoritygrantedtothedepartmentoverany |
|---|
| 246 | | - | 10Missourimutualinsurancecompanyoperatingundertheprovisionsofthischapter, |
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| 247 | | - | 11providedthatanyprovisionsregardingpremiumtaxationsetforthinchapter148that |
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| 248 | | - | 12areapplicabletoMissourimutualinsurancecompaniesshallremainapplicableto |
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| 249 | | - | 13Missourimutualinsurancecompaniesandfurther,providedthatchapter382shall |
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| 250 | | - | HCSSSSCSSB834 7 14remainapplicabletoanyMissourimutualinsurancecompanythatisamemberof,oris |
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| 251 | | - | 15seekingtobecomeamemberof,an"insuranceholdingcompanysystem",asthatterm |
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| 252 | | - | 16isdefinedinsection382.010,providedthatanyexaminationauthorizedbychapter382 |
|---|
| 253 | | - | 17shallcomplywithsubsections6and7ofthissectionwhereaMissourimutualinsurance |
|---|
| 254 | | - | 18companyowns,inwholeorpart,anaffiliatesubjecttoexamination.Thedepartment |
|---|
| 255 | | - | 19shallnotrequireanycompanyoperatingundertheprovisionsofthischaptertowaive |
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| 256 | | - | 20anyrights,benefits,orrequirementsspecifiedinthischapter,norshallitconfer |
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| 257 | | - | 21favorabletreatmentinexchangefor,norconditionthegrantingofanyexceptionupon, |
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| 258 | | - | 22anycompanyconcedingadditionalregulatoryoversightbythedepartment.Ifthe |
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| 259 | | - | 23departmentandanycompanyoperatingundertheprovisionsofthischapterhave |
|---|
| 260 | | - | 24enteredintoanyagreementinwhichthedepartmenthasreceivedconcessionsincluding, |
|---|
| 261 | | - | 25butnotlimitedto,additionalregulatoryoversightbeyondtheauthorityexpressly |
|---|
| 262 | | - | 26grantedinthischapter,suchagreementasitrelatestothedepartment'sauthorityis |
|---|
| 263 | | - | 27voidupontheenactmentofthissection,butsuchagreementshallremaininfullforce |
|---|
| 264 | | - | 28andeffectforthestateddurationoftheagreementasitrelatestoanybenefits, |
|---|
| 265 | | - | 29allowances,orexemptionsgrantedtothecompanybytheagreement. |
|---|
| 266 | | - | 30 4.(1)Notwithstandinganyprovisionoflawtothecontrary,nothinginthis |
|---|
| 267 | | - | 31chapternoranyregulationpromulgatedbythedepartmentincluding,butnotlimited |
|---|
| 268 | | - | 32to,anyregulationpromulgatedundersections374.045,380.021,380.271,and380.561, |
|---|
| 269 | | - | 33shallrequireorbeconstruedtorequireanycompanyoperatingundertheprovisionsof |
|---|
| 270 | | - | 34thischaptertoacquireorcarryreinsurancegreaterthanadequatereinsurance |
|---|
| 271 | | - | 35including,butnotlimitedto,unlimitedaggregatereinsurance.Nothinginthissection |
|---|
| 272 | | - | 36shallbeconstruedtolimittheoptionofanofferofunlimitedaggregatereinsurance. |
|---|
| 273 | | - | 37 (2)Missourimutualinsurancecompaniesoperatingundertheprovisionsofthis |
|---|
| 274 | | - | 38chaptershallannuallyfilethefollowingwiththedirectornolaterthanMarchfirstof |
|---|
| 275 | | - | 39eachcalendaryear: |
|---|
| 276 | | - | 40 (a)Documentationfromthereinsurerorbrokerofitsreinsuranceprogram, |
|---|
| 277 | | - | 41suchasthereinsurancecoveragesummaryorothersimilardocumentation;and |
|---|
| 278 | | - | 42 (b)Aresolutionfromthecompany’sboardofdirectorsstatingthat: |
|---|
| 279 | | - | 43 a.Theboardhasreviewedthetermsofthereinsuranceobtainedbythecompany |
|---|
| 280 | | - | 44andbelievesitissufficienttoprotectthefinancialstabilityofthecompanyforthe |
|---|
| 281 | | - | 45upcomingcalendaryear; |
|---|
| 282 | | - | 46 b.Theboardagreestonotifythedirectorwithinfifteendaysafteranyevent,or |
|---|
| 283 | | - | 47assoonaspracticablethereafterifadversedevelopmentoccurstotriggerthis |
|---|
| 284 | | - | 48notification,thatisexpectedtoexceedthecompany'saggregateorcatastrophe |
|---|
| 285 | | - | 49attachmentpointorcouldcausethecompany'sreinsurancecoveragetobeexhausted; |
|---|
| 286 | | - | 50and |
|---|
| 287 | | - | HCSSSSCSSB834 8 51 c.Theboardagreestonotifythedirectorwithinfifteendaysafterthecompany |
|---|
| 288 | | - | 52identifiesliquidityconcernsthatcouldimpactthecompany'sabilitytopayclaimsor |
|---|
| 289 | | - | 53determinesthatthecompany’ssurplusislessthanitsadmittedassetsminusliabilities |
|---|
| 290 | | - | 54plusthereservefundoradequateguarantyfundrequiredbysection380.021or380.271, |
|---|
| 291 | | - | 55asapplicable. |
|---|
| 292 | | - | 56 5.Notwithstandinganyprovisionoflawtothecontraryincluding,butnot |
|---|
| 293 | | - | 57limitedto,theprovisionsofsection380.321,thedirectorshallnothavetheauthorityto |
|---|
| 294 | | - | 58holdahearingregardingaproposedmergerofcompaniesoperatingpursuanttothe |
|---|
| 295 | | - | 59provisionsofthischapterunlessthedirectorhassubstantialandcompetentevidenceto |
|---|
| 296 | | - | 60believetheproposedmergerwillprejudicetheinterestsofthepolicyholdersofthe |
|---|
| 297 | | - | 61companies.Thedirectorshallhavefifteenbusinessdaystoreviewthepetitionfor |
|---|
| 298 | | - | 62mergerand,uponsubstantialandcompetentevidencetobelievetheproposedmerger |
|---|
| 299 | | - | 63willprejudicetheinterestsofthepolicyholdersofthecompanies,sendawrittennotice |
|---|
| 300 | | - | 64ofahearingregardingtheproposedmerger.Thewrittennoticeofhearingshallitemize |
|---|
| 301 | | - | 65thereasonswhythedirectorbelievestheproposedmergerwillprejudicethe |
|---|
| 302 | | - | 66policyholdersofthecompaniesandshallincludethedateofahearingregardingthe |
|---|
| 303 | | - | 67proposedmergernoearlierthanthirtydaysandnolaterthansixtydaysafterthenotice |
|---|
| 304 | | - | 68ofhearingisreceivedbythecompaniesinvolvedintheproposedmerger. |
|---|
| 305 | | - | 69 6.Allworkingpapers,recordedinformation,documents,andcopiesthereof, |
|---|
| 306 | | - | 70producedby,obtainedby,ordisclosedtothedepartmentoranyotherpersoninthe |
|---|
| 307 | | - | 71courseofanexaminationmadeunderthischaptershallbeconfidentialandnotsubject |
|---|
| 308 | | - | 72tosubpoenaandshallnotbemadepublicbythedepartmentorsharedwithanyother |
|---|
| 309 | | - | 73person,exceptasfollows: |
|---|
| 310 | | - | 74 (1)Uponadoption,thedirectormayopenthefinalexaminationreportforpublic |
|---|
| 311 | | - | 75inspection; |
|---|
| 312 | | - | 76 (2)Thedirectormaydisclosethecontentofanexaminationreport,preliminary |
|---|
| 313 | | - | 77examinationreportorresults,oranymatterrelatingthereto,totheinsurance |
|---|
| 314 | | - | 78departmentofthisoranyotherstateorcountry,ortolawenforcementofficialsofthis |
|---|
| 315 | | - | 79oranyotherstateoragencyofthefederalgovernmentatanytime,solongassuch |
|---|
| 316 | | - | 80agencyorofficereceivingthereportormattersrelatingtheretoagreesinwritingtohold |
|---|
| 317 | | - | 81itconfidentialandinamannerconsistentwiththissection;and |
|---|
| 318 | | - | 82 (3)Intheeventthedirectordeterminesthatlegalorregulatoryactionis |
|---|
| 319 | | - | 83appropriateasaresultofanyexamination,heorshemayinitiateanyproceedingsor |
|---|
| 320 | | - | 84actionsasprovidedbylaw. |
|---|
| 321 | | - | 85 7.(1)Notwithstandingtheprovisionsofsection380.491,thedepartmentshall |
|---|
| 322 | | - | 86notchargearateforexaminationsinexcessofareasonablefee.Areasonablefeeis |
|---|
| 323 | | - | HCSSSSCSSB834 9 87determinedbytheaveragemarketratetypicallychargedbythird-partyvendorsfor |
|---|
| 324 | | - | 88suchservices. |
|---|
| 325 | | - | 89 (2)Atanytimeafternotificationofthecommencementofanexaminationand |
|---|
| 326 | | - | 90throughitscompletion,acompanymayrequestonaprospectivebasisthatthe |
|---|
| 327 | | - | 91department’smonthlyexaminationbillingstatementsincludethefollowingadditional |
|---|
| 328 | | - | 92details: |
|---|
| 329 | | - | 93 (a)Hoursbilledforanexaminationshallberecordedinabillingstatement |
|---|
| 330 | | - | 94providedtothecompanyeachmonththatsetsforththetimespent,usingfifteen-minute |
|---|
| 331 | | - | 95increments,foreachbillingexaminermultipliedbytheapplicablehourlyrate; |
|---|
| 332 | | - | 96 (b)Billingstatementsshallincludeashortandconcisestatementofthework |
|---|
| 333 | | - | 97performedduringthemonthtowhichthebillingstatementappliesbythebilling |
|---|
| 334 | | - | 98examinerforeachperiodoftimespentontheexamination; |
|---|
| 335 | | - | 99 (c)Thehourlyrateforadepartmentemployeeshallbelistedonthebilling |
|---|
| 336 | | - | 100statementandshallincludetheemployee’ssalary,benefits,andotherexpensesofthe |
|---|
| 337 | | - | 101examination; |
|---|
| 338 | | - | 102 (d)Thehourlyrateforathird-partyvendorshallbethelowestandbesthourly |
|---|
| 339 | | - | 103rateobtainedbythedepartmentbyandthroughthestateprocurementprocess;and |
|---|
| 340 | | - | 104 (e)Billingstatementsshallalsoincludeanyotherexpensesortheexamination, |
|---|
| 341 | | - | 105includingtravelexpenses,asallowedbysection380.491. |
|---|
| 342 | | - | 106 (3)Atanytimeafternotificationofthecommencementofanexaminationand |
|---|
| 343 | | - | 107throughitscompletion,acompanymayrequestaschedulingconferencewiththe |
|---|
| 344 | | - | 108departmenttodiscussthefollowing: |
|---|
| 345 | | - | 109 (a)Thepurposeandscopeoftheexamination; |
|---|
| 346 | | - | 110 (b)Theestimatedcostsoftheexamination; |
|---|
| 347 | | - | 111 (c)Thetypesofinformationthatthecompanywillbeaskedtoproduce; |
|---|
| 348 | | - | 112 (d)Themostefficientmeansofconductingtheexamination;and |
|---|
| 349 | | - | 113 (e)Anyalternativeapproachesinconductingtheexaminationthatwouldbe |
|---|
| 350 | | - | 114moreconvenient,lessburdensome,orlessexpensiveforthecompanywhilestill |
|---|
| 351 | | - | 115providingforaneffectiveexaminationbythedepartment. |
|---|
| 352 | | - | 116 (4)(a)Nomorethanthirtydaysaftertheschedulingconference,thedepartment |
|---|
| 353 | | - | 117shallprovidethecompanywithadetailedwrittenbudgetestimatefortheexamination |
|---|
| 354 | | - | 118thatshall,foreachforthcomingphaseoftheexamination: |
|---|
| 355 | | - | 119 a.Identifytheindividualsorfirmsperformingtheexaminationandtheirdaily |
|---|
| 356 | | - | 120orhourlyrates; |
|---|
| 357 | | - | 121 b.Provideanestimateoftravel,lodging,meal,andotheradministrativeor |
|---|
| 358 | | - | 122supplycosts;and |
|---|
| 359 | | - | HCSSSSCSSB834 10 123 c.Estimatethelengthoftimenecessarytoconducton-siteandoff-site |
|---|
| 360 | | - | 124examinationactivities. |
|---|
| 361 | | - | 125 (b)Withinfifteendaysofreceiptofabudgetestimateunderparagraph(a)of |
|---|
| 362 | | - | 126thissubdivision,thecompanyandthedepartmentshallhaveanadditionaldiscussion |
|---|
| 363 | | - | 127regardingthemostefficientmeansofconductingtheexaminationandproducing |
|---|
| 364 | | - | 128information.Ifnecessary,revisionsofthebudgetestimateshallbemade. |
|---|
| 365 | | - | 129 (c)Thetimeperiodsunderparagraphs(a)and(b)ofthissubdivisionmaybe |
|---|
| 366 | | - | 130extendedifthecompanyandthedepartmentmutuallyagreetotheextension. |
|---|
| 367 | | - | 131 (d)Atanytimeduringtheexamination,thedepartmentshallholdanother |
|---|
| 368 | | - | 132schedulingconferencewiththecompanyinaccordancewiththeprovisionsofthis |
|---|
| 369 | | - | 133subsectionandprovidearevisedbudgetestimateassetforthinparagraph(a)ofthis |
|---|
| 370 | | - | 134subdivisionif: |
|---|
| 371 | | - | 135 a.Thedepartmentdeterminesthatthecostoftheexaminationwillexceedthe |
|---|
| 372 | | - | 136statedestimatedbudgetbymorethantenpercent;or |
|---|
| 373 | | - | 137 b.Thereisamaterialchangeinstaffing. |
|---|
| 374 | | - | 380.631.1.Thissectionappliestoanycompanyoperatingundertheprovisions |
|---|
| 375 | | - | 2ofthischapter. |
|---|
| 376 | | - | 3 2.Notwithstandinganyprovisionoflawtothecontraryincluding,butnot |
|---|
| 377 | | - | 4limitedto,thedefinitionof"insolvent"undersection375.1152,acompanyoperating |
|---|
| 378 | | - | 5undertheprovisionsofthischapteris"insolvent"assuchtermisusedinsections |
|---|
| 379 | | - | 6375.1150to375.1246,ifitisunabletopayitsobligationswhentheyaredue,orifits |
|---|
| 380 | | - | 7admittedassetsdonotexceeditsliabilitiesplusthereservefundoradequateguaranty |
|---|
| 381 | | - | 8fundrequiredbysection380.021or380.271,asapplicable. |
|---|
| 382 | | - | 9 3.Notwithstandinganyprovisionoflawtothecontraryincluding,butnot |
|---|
| 383 | | - | 10limitedto,thespecificexceptionundersubdivision(1)ofsubsection2ofsection |
|---|
| 384 | | - | 11375.1150,theprovisionsofsections375.1150to375.1246shallapplytoallcompanies |
|---|
| 385 | | - | 12operatingundertheprovisionsofthischapter,exceptthatsuchcompaniesshallnotbe |
|---|
| 386 | | - | 13subjecttosections375.1160to375.1164.Sections375.570to375.750shallapplytosuch |
|---|
| 387 | | - | 14proceedings. |
|---|
| 388 | | - | 15 4.Notwithstandinganyprovisionoflawtothecontraryincluding,butnot |
|---|
| 389 | | - | 16limitedto,thedefinitionof"insolventinsurer"undersection375.772,acompany |
|---|
| 390 | | - | 17operatingundertheprovisionsofthischapterisan"insolventinsurer"assuchtermis |
|---|
| 391 | | - | 18usedinsections375.771to375.779,upontheentryofafinalorderofliquidationwitha |
|---|
| 392 | | - | 19findingofinsolvencybyacourtofcompetentjurisdictionundertheapplicable |
|---|
| 393 | | - | HCSSSSCSSB834 11 20provisionsofsections375.1150to375.1246,unlesssuchorderofliquidationhasbeen |
|---|
| 394 | | - | 21stayedorbeenthesubjectofawritofsupersedeasorothercomparableorder. |
|---|
| 395 | | - | ✔ |
|---|
| 396 | | - | HCSSSSCSSB834 12 |
|---|
| 15 | + | Section A. Section 374.190, RSMo, is repealed and five 1 |
|---|
| 16 | + | new sections enacted in lieu thereof, to be known as sections 2 |
|---|
| 17 | + | 374.190, 374.192, 375.1183, 380.621, and 380.631, to read as 3 |
|---|
| 18 | + | follows:4 |
|---|
| 19 | + | 374.190. 1. The director shall examine and inquire 1 |
|---|
| 20 | + | into all violations of the insurance laws of the state, and 2 |
|---|
| 21 | + | inquire into and investigate the business of insurance 3 |
|---|
| 22 | + | transacted in this state by any insurance agent, broker, 4 |
|---|
| 23 | + | agency or insurance co mpany. 5 |
|---|
| 24 | + | 2. He or any of his duly appointed agents may compel 6 |
|---|
| 25 | + | the attendance before him, and may examine, under oath, the 7 |
|---|
| 26 | + | directors, officers, agents, employees, solicitors, 8 |
|---|
| 27 | + | attorneys or any other person, in reference to the 9 |
|---|
| 28 | + | condition, affairs, man agement of the business, or any 10 |
|---|
| 29 | + | matters relating thereto. He may administer oaths or 11 |
|---|
| 30 | + | affirmations, and shall have power to summon and compel the 12 |
|---|
| 31 | + | attendance of witnesses, and to require and compel the 13 SS SCS SB 834 2 |
|---|
| 32 | + | production of records, books, papers, contracts or other 14 |
|---|
| 33 | + | documents, if necessary. 15 |
|---|
| 34 | + | 3. The director may make and conduct the investigation 16 |
|---|
| 35 | + | in person, or he may appoint one or more persons to make and 17 |
|---|
| 36 | + | conduct the same for him. If made by another than the 18 |
|---|
| 37 | + | director in person, the person duly appointe d by the 19 |
|---|
| 38 | + | director shall have the same powers as above granted to the 20 |
|---|
| 39 | + | director. A certificate of appointment, under the official 21 |
|---|
| 40 | + | seal of the director, shall be sufficient authority and 22 |
|---|
| 41 | + | evidence thereof for the person or persons to act. For the 23 |
|---|
| 42 | + | purpose of making the investigations, or having the same 24 |
|---|
| 43 | + | made, the director may employ the necessary clerical, 25 |
|---|
| 44 | + | actuarial and other assistance. 26 |
|---|
| 45 | + | 4. Notwithstanding any provision of law to the 27 |
|---|
| 46 | + | contrary, the confidentiality provisions of section 374.205, 28 |
|---|
| 47 | + | including subdivision (5) of subsection 3 of section 29 |
|---|
| 48 | + | 374.205, and subsection 4 of section 374.205, shall apply to 30 |
|---|
| 49 | + | all reports, working papers, recorded information, 31 |
|---|
| 50 | + | documents, and copies thereof, produced by, obtained by, or 32 |
|---|
| 51 | + | disclosed to the director or any other person in the course 33 |
|---|
| 52 | + | of any market conduct investigation or market conduct action. 34 |
|---|
| 53 | + | 374.192. 1. Notwithstanding any provision of law to 1 |
|---|
| 54 | + | the contrary, a regulated entity shall have not less than 2 |
|---|
| 55 | + | thirty calendar days to subm it any record or material 3 |
|---|
| 56 | + | requested by the department. This subsection shall not 4 |
|---|
| 57 | + | apply to requests for records or materials by the division 5 |
|---|
| 58 | + | of consumer affairs. 6 |
|---|
| 59 | + | 2. Notwithstanding any provision of law to the 7 |
|---|
| 60 | + | contrary, any record or document, reg ardless of physical 8 |
|---|
| 61 | + | form or characteristic, maintained beyond the record 9 |
|---|
| 62 | + | retention period specified in section 374.205 shall not be 10 |
|---|
| 63 | + | subject to request or review by the director unless the 11 SS SCS SB 834 3 |
|---|
| 64 | + | director has substantial and competent evidence that the 12 |
|---|
| 65 | + | regulated entity has willfully engaged in an act or omission 13 |
|---|
| 66 | + | constituting a level four or five violation of the laws of 14 |
|---|
| 67 | + | this state relating to insurance, including this chapter, 15 |
|---|
| 68 | + | chapter 354, and chapters 375 to 385, or has been convicted 16 |
|---|
| 69 | + | of any felony relate d to the business of insurance, in which 17 |
|---|
| 70 | + | case the director may request or review records or documents 18 |
|---|
| 71 | + | maintained beyond the record retention period specified in 19 |
|---|
| 72 | + | section 374.205 that directly relate to the violation or 20 |
|---|
| 73 | + | conviction. 21 |
|---|
| 74 | + | 375.1183. 1. Contracts reinsuring policies of life or 1 |
|---|
| 75 | + | health insurance or annuities referred to in section 2 |
|---|
| 76 | + | 375.1178 issued by a ceding insurer that has been placed in 3 |
|---|
| 77 | + | conservation or rehabilitation proceedings under sections 4 |
|---|
| 78 | + | 375.1150 to 375.1246 shall b e continued or terminated under 5 |
|---|
| 79 | + | the terms and conditions of each contract and the provisions 6 |
|---|
| 80 | + | of this section. 7 |
|---|
| 81 | + | 2. Contracts reinsuring policies of life or health 8 |
|---|
| 82 | + | insurance or annuities referred to in section 375.1178 9 |
|---|
| 83 | + | issued by a ceding insurer tha t has been placed into 10 |
|---|
| 84 | + | liquidation under sections 375.1150 to 375.1246 shall be 11 |
|---|
| 85 | + | continued, subject to the provisions of this section, unless: 12 |
|---|
| 86 | + | (1) The contracts were terminated pursuant to their 13 |
|---|
| 87 | + | terms prior to the date of the order of liquidation; or 14 |
|---|
| 88 | + | (2) The contracts were terminated pursuant to the 15 |
|---|
| 89 | + | order of liquidation, in which case the provisions of 16 |
|---|
| 90 | + | subsection 9 of this section shall apply. 17 |
|---|
| 91 | + | 3. (1) At any time within one hundred eighty days of 18 |
|---|
| 92 | + | the date of the order of liquidation, a guaranty association 19 |
|---|
| 93 | + | covering policies of life or health insurance or annuities 20 |
|---|
| 94 | + | referred to in section 375.1178, in whole or in part, may 21 |
|---|
| 95 | + | elect to assume the rights and obligations of the ceding 22 SS SCS SB 834 4 |
|---|
| 96 | + | insurer that relate to the policies or annuities under any 23 |
|---|
| 97 | + | one or more reinsurance contracts between the ceding insurer 24 |
|---|
| 98 | + | and its reinsurers. Any such assumption shall be effective 25 |
|---|
| 99 | + | as of the date of the order of liquidation. The election 26 |
|---|
| 100 | + | shall be made by the guaranty association or the national 27 |
|---|
| 101 | + | organization of life and health insurance guaranty 28 |
|---|
| 102 | + | associations on its behalf by sending written notice, return 29 |
|---|
| 103 | + | receipt requested, to the affected reinsurers. 30 |
|---|
| 104 | + | (2) To facilitate the decision, the receiver and each 31 |
|---|
| 105 | + | affected reinsurer shall make available upon request to the 32 |
|---|
| 106 | + | guaranty association or to the national organization of life 33 |
|---|
| 107 | + | and health insurance guaranty associations on its behalf: 34 |
|---|
| 108 | + | (a) Copies of in-force reinsurance contracts and all 35 |
|---|
| 109 | + | related files and records relevant to the determination of 36 |
|---|
| 110 | + | whether such contracts should be assumed; and 37 |
|---|
| 111 | + | (b) Notices of any defaults under the reinsurance 38 |
|---|
| 112 | + | contracts or any known event or condition which with the 39 |
|---|
| 113 | + | passage of time could become a default under the reinsurance 40 |
|---|
| 114 | + | contracts. 41 |
|---|
| 115 | + | (3) Paragraphs (a) through (d) of this subdivision 42 |
|---|
| 116 | + | shall apply to reinsurance contracts so assumed by a 43 |
|---|
| 117 | + | guaranty association: 44 |
|---|
| 118 | + | (a) The guaranty association shall be responsible for 45 |
|---|
| 119 | + | all unpaid premiums due under the reinsurance contracts, for 46 |
|---|
| 120 | + | periods both before and after the date of the order of 47 |
|---|
| 121 | + | liquidation, and shall be responsible for the performance of 48 |
|---|
| 122 | + | all other obligations to be performed after the date of the 49 |
|---|
| 123 | + | order of liquidation. 50 |
|---|
| 124 | + | (b) The guaranty association shall be entitled to any 51 |
|---|
| 125 | + | amounts payable by the reinsurer under the reinsurance 52 |
|---|
| 126 | + | contracts with respect to losses or events that occur in 53 |
|---|
| 127 | + | periods on or after the date of the order of liquidation. 54 SS SCS SB 834 5 |
|---|
| 128 | + | (c) Within thirty days following the date of the 55 |
|---|
| 129 | + | guaranty association's election to assume a reinsurance 56 |
|---|
| 130 | + | contract, the guaranty association and the reinsurer shall 57 |
|---|
| 131 | + | calculate the balance due to or from the guaranty 58 |
|---|
| 132 | + | association under each reinsurance contract as of the date 59 |
|---|
| 133 | + | of such election, and the guaranty association or reinsurer 60 |
|---|
| 134 | + | shall pay any remaining balance due the other within thirty - 61 |
|---|
| 135 | + | five days of the date of such election. Any disputes over 62 |
|---|
| 136 | + | the amounts due to either the guaranty association or the 63 |
|---|
| 137 | + | reinsurer shall be resolved by arbitration pursuant to the 64 |
|---|
| 138 | + | terms of the affected rei nsurance contract or, if the 65 |
|---|
| 139 | + | contract contains no arbitration clause, pursuant to the 66 |
|---|
| 140 | + | provisions of subdivision (3) of subsection 9 of this 67 |
|---|
| 141 | + | section. 68 |
|---|
| 142 | + | (d) If the guaranty association, or receiver on behalf 69 |
|---|
| 143 | + | of such guaranty association, within sixty days of the date 70 |
|---|
| 144 | + | of the guaranty association's election to assume a 71 |
|---|
| 145 | + | reinsurance contract, pays the unpaid premiums due for 72 |
|---|
| 146 | + | periods both before and after the date of such election that 73 |
|---|
| 147 | + | are due pursuant to the reinsurance contract, the reinsurer 74 |
|---|
| 148 | + | shall not be entitled to terminate the reinsurance contract 75 |
|---|
| 149 | + | for failure to pay premiums, and shall not be entitled to 76 |
|---|
| 150 | + | set off any unpaid amounts due under other contracts, or 77 |
|---|
| 151 | + | unpaid amounts due from parties other than the guaranty 78 |
|---|
| 152 | + | association, against amount s due such guaranty association. 79 |
|---|
| 153 | + | 4. If a receiver continues policies of life or health 80 |
|---|
| 154 | + | insurance or annuities referred to in section 375.1178 in 81 |
|---|
| 155 | + | force following an order of liquidation, and the policies or 82 |
|---|
| 156 | + | annuities are not covered in whole or in part by one or more 83 |
|---|
| 157 | + | guaranty associations, the receiver may, within one hundred 84 |
|---|
| 158 | + | eighty days of the date of the order of liquidation, elect 85 |
|---|
| 159 | + | to assume the rights and obligations of the ceding insurer 86 SS SCS SB 834 6 |
|---|
| 160 | + | under any one or more of the reinsurance contracts tha t 87 |
|---|
| 161 | + | relate to the policies or annuities, provided the contracts 88 |
|---|
| 162 | + | have not been terminated as set forth in subsection 2 of 89 |
|---|
| 163 | + | this section. The election shall be made by sending written 90 |
|---|
| 164 | + | notice, return receipt requested, to the affected 91 |
|---|
| 165 | + | reinsurers. In that event, payment of premiums on the 92 |
|---|
| 166 | + | reinsurance contracts for the policies and annuities, for 93 |
|---|
| 167 | + | periods both before and after the date of the order of 94 |
|---|
| 168 | + | liquidation, shall be chargeable against the estate as a 95 |
|---|
| 169 | + | class 1 administrative expense. Amounts paid by the 96 |
|---|
| 170 | + | reinsurer on account of losses on the policies and annuities 97 |
|---|
| 171 | + | shall be to the estate of the ceding insurer. 98 |
|---|
| 172 | + | 5. During the period from the date of the order of 99 |
|---|
| 173 | + | liquidation until the date the guaranty association or the 100 |
|---|
| 174 | + | receiver elects to assum e the rights and obligations of the 101 |
|---|
| 175 | + | ceding insurer under any one or more of the reinsurance 102 |
|---|
| 176 | + | contracts that relate to the policies or annuities as 103 |
|---|
| 177 | + | provided for in subsection 3 or 4 of this section, the 104 |
|---|
| 178 | + | guaranty association, the receiver, and the reinsur er shall 105 |
|---|
| 179 | + | not have any rights or obligations under any reinsurance 106 |
|---|
| 180 | + | contract that is eligible for assumption by such association 107 |
|---|
| 181 | + | or the receiver. 108 |
|---|
| 182 | + | 6. (1) If the guaranty association or the receiver, 109 |
|---|
| 183 | + | as the case may be, has timely elected to assume a 110 |
|---|
| 184 | + | reinsurance contract pursuant to subsection 3 or 4 of this 111 |
|---|
| 185 | + | section, as applicable, the parties' rights and obligations 112 |
|---|
| 186 | + | shall be governed by the provisions of subsection 3 or 4 of 113 |
|---|
| 187 | + | this section, as applicable. 114 |
|---|
| 188 | + | (2) Where the guaranty association c overing policies 115 |
|---|
| 189 | + | of life or health insurance or annuities referred to in 116 |
|---|
| 190 | + | section 375.1178 or the receiver, as the case may be, does 117 |
|---|
| 191 | + | not timely elect to assume a reinsurance contract pursuant 118 SS SCS SB 834 7 |
|---|
| 192 | + | to subsection 3 or 4 of this section, as applicable, the 119 |
|---|
| 193 | + | reinsurance contract shall be terminated retroactively 120 |
|---|
| 194 | + | effective on the date of the order of liquidation and 121 |
|---|
| 195 | + | subsection 9 of this section shall apply. 122 |
|---|
| 196 | + | 7. When policies of life or health insurance or 123 |
|---|
| 197 | + | annuities referred to in section 375.1178, or the 124 |
|---|
| 198 | + | obligations of the guaranty association with respect 125 |
|---|
| 199 | + | thereto, are transferred to an assuming insurer, reinsurance 126 |
|---|
| 200 | + | on the policies or annuities may also be transferred by the 127 |
|---|
| 201 | + | guaranty association, in the case of contracts assumed under 128 |
|---|
| 202 | + | subsection 3 of this section, or the receiver, in the case 129 |
|---|
| 203 | + | of contracts assumed under subsection 4 of this section, 130 |
|---|
| 204 | + | subject to the following: 131 |
|---|
| 205 | + | (1) Unless the reinsurer and the assuming insurer 132 |
|---|
| 206 | + | agree otherwise, the reinsurance contract transferred shall 133 |
|---|
| 207 | + | not cover any new policies or annuities in addition to those 134 |
|---|
| 208 | + | transferred; 135 |
|---|
| 209 | + | (2) The obligations described in subsections 3 and 4 136 |
|---|
| 210 | + | of this section shall no longer apply with respect to 137 |
|---|
| 211 | + | matters arising after the effective date of the transfer; and 138 |
|---|
| 212 | + | (3) Notice shall be given in writing, return receipt 139 |
|---|
| 213 | + | requested, by the transferring party to the affected 140 |
|---|
| 214 | + | reinsurer not less than thirty days prior to the effective 141 |
|---|
| 215 | + | date of the transfer. 142 |
|---|
| 216 | + | 8. The provisions of this section shall, to the extent 143 |
|---|
| 217 | + | provided in sections 375.1150 to 375.1246, supersede the 144 |
|---|
| 218 | + | provisions of any law or of any affected reinsurance 145 |
|---|
| 219 | + | contract that provides for or requires any payment of 146 |
|---|
| 220 | + | reinsurance proceeds, on account of losses or events that 147 |
|---|
| 221 | + | occur in periods after the date of the orde r of liquidation, 148 |
|---|
| 222 | + | to the receiver of the ceding insurer or any other person. 149 |
|---|
| 223 | + | The receiver shall remain entitled to any amounts payable by 150 SS SCS SB 834 8 |
|---|
| 224 | + | the reinsurer under the reinsurance contracts with respect 151 |
|---|
| 225 | + | to losses or events that occur in periods prior to the date 152 |
|---|
| 226 | + | of the order of liquidation, subject to provisions of 153 |
|---|
| 227 | + | sections 375.1150 to 375.1246 including applicable setoff 154 |
|---|
| 228 | + | provisions. 155 |
|---|
| 229 | + | 9. When a reinsurance contract is terminated pursuant 156 |
|---|
| 230 | + | to sections 375.1150 to 375.1246, the reinsurer and the 157 |
|---|
| 231 | + | receiver shall commence a mandatory negotiation procedure in 158 |
|---|
| 232 | + | accordance with this subsection: 159 |
|---|
| 233 | + | (1) No later than thirty days after the date of 160 |
|---|
| 234 | + | termination, each party shall appoint an actuary to 161 |
|---|
| 235 | + | determine an estimated sum due as a result of the 162 |
|---|
| 236 | + | termination of the reinsurance contract calculated in a way 163 |
|---|
| 237 | + | expected to make the parties economically indifferent as to 164 |
|---|
| 238 | + | whether the reinsurance contract continues or terminates, 165 |
|---|
| 239 | + | giving due regard to the economic effects of the 166 |
|---|
| 240 | + | insolvency. The sum shall take into account the present 167 |
|---|
| 241 | + | value of future cash flows expected under the reinsurance 168 |
|---|
| 242 | + | contract and be based on a gross premium valuation of net 169 |
|---|
| 243 | + | liability using current assumptions that reflect post - 170 |
|---|
| 244 | + | insolvency experience expectations, with no additional 171 |
|---|
| 245 | + | margins, net of any amounts payable and receivable, with a 172 |
|---|
| 246 | + | market value adjustment to reflect premature sale of assets 173 |
|---|
| 247 | + | to fund the settlement; 174 |
|---|
| 248 | + | (2) Within ninety days of the date of termination, 175 |
|---|
| 249 | + | each party shall provide the other party with its esti mate 176 |
|---|
| 250 | + | of the sum due as a result of the termination of the 177 |
|---|
| 251 | + | reinsurance contract, together with all relevant documents 178 |
|---|
| 252 | + | and other information supporting the estimate. The parties 179 |
|---|
| 253 | + | shall make a good faith effort to reach agreement on the sum 180 |
|---|
| 254 | + | due; 181 SS SCS SB 834 9 |
|---|
| 255 | + | (3) If the parties are unable to reach agreement 182 |
|---|
| 256 | + | within ninety days following the submission of materials 183 |
|---|
| 257 | + | required in subdivision (2) of this subsection, either party 184 |
|---|
| 258 | + | may initiate arbitration proceedings as provided in the 185 |
|---|
| 259 | + | reinsurance contract. In the event that the reinsurance 186 |
|---|
| 260 | + | contract does not contain an arbitration clause, either 187 |
|---|
| 261 | + | party may initiate arbitration pursuant to this subdivision 188 |
|---|
| 262 | + | by providing the other party with a written demand for 189 |
|---|
| 263 | + | arbitration. The arbitration shall be conducted pursua nt to 190 |
|---|
| 264 | + | the following procedures: 191 |
|---|
| 265 | + | (a) Venue for the arbitration shall be within the 192 |
|---|
| 266 | + | county of the court's jurisdiction pursuant to section 193 |
|---|
| 267 | + | 375.1154, or another location agreed to by the parties; 194 |
|---|
| 268 | + | (b) Within thirty days of the responding party's 195 |
|---|
| 269 | + | receipt of the arbitration demand, each party shall appoint 196 |
|---|
| 270 | + | an arbitrator who is a disinterested active or retired 197 |
|---|
| 271 | + | officer or executive of a life or health insurance or 198 |
|---|
| 272 | + | reinsurance company, or other professional with no less than 199 |
|---|
| 273 | + | ten years' experienc e in or relating to the field of life or 200 |
|---|
| 274 | + | health insurance or reinsurance. The two arbitrators shall 201 |
|---|
| 275 | + | appoint an independent, impartial, disinterested umpire who 202 |
|---|
| 276 | + | is an active or retired officer or executive of a life or 203 |
|---|
| 277 | + | health insurance or reinsurance c ompany, or other 204 |
|---|
| 278 | + | professional with no less than ten years' experience in the 205 |
|---|
| 279 | + | field of life or health insurance or reinsurance. If the 206 |
|---|
| 280 | + | arbitrators are unable to agree on an umpire, each 207 |
|---|
| 281 | + | arbitrator shall provide the other with the names of three 208 |
|---|
| 282 | + | qualified individuals, each arbitrator shall strike two 209 |
|---|
| 283 | + | names from the other's list, and the umpire shall be chosen 210 |
|---|
| 284 | + | by drawing lots from the remaining individuals; 211 |
|---|
| 285 | + | (c) Within sixty days following the appointment of the 212 |
|---|
| 286 | + | umpire, the parties shall, unless otherwise ordered by the 213 SS SCS SB 834 10 |
|---|
| 287 | + | panel, submit to the arbitration panel their estimates of 214 |
|---|
| 288 | + | the sum due as a result of the termination of the 215 |
|---|
| 289 | + | reinsurance contract, together with all relevant documents 216 |
|---|
| 290 | + | and other information supporting the estimate; 217 |
|---|
| 291 | + | (d) The time periods set forth in these paragraphs may 218 |
|---|
| 292 | + | be extended upon mutual agreement of the parties; 219 |
|---|
| 293 | + | (e) The panel shall have all powers necessary to 220 |
|---|
| 294 | + | conduct the arbitration proceedings in a fair and 221 |
|---|
| 295 | + | appropriate manner, including the power to request 222 |
|---|
| 296 | + | additional information from the parties, authorize 223 |
|---|
| 297 | + | discovery, hold hearings, and hear testimony. The panel 224 |
|---|
| 298 | + | also may appoint independent actuarial experts, the expense 225 |
|---|
| 299 | + | of which shall be shared equally between the parties; 226 |
|---|
| 300 | + | (4) An arbitration panel considering the matters set 227 |
|---|
| 301 | + | forth in this subsection shall apply the standards set forth 228 |
|---|
| 302 | + | in this subsection and shall issue a written award 229 |
|---|
| 303 | + | specifying a net settlement amount due from one party or the 230 |
|---|
| 304 | + | other as a result of the termination of the reins urance 231 |
|---|
| 305 | + | contract. The receivership court shall confirm that award 232 |
|---|
| 306 | + | absent proof of statutory grounds for vacating or modifying 233 |
|---|
| 307 | + | arbitration awards under the Federal Arbitration Act; 234 |
|---|
| 308 | + | (5) If the net settlement amount agreed or awarded 235 |
|---|
| 309 | + | pursuant to this subsection is payable by the reinsurer, the 236 |
|---|
| 310 | + | reinsurer shall pay the amount due to the estate subject to 237 |
|---|
| 311 | + | any applicable set-off under section 375.1198. If the net 238 |
|---|
| 312 | + | settlement amount agreed or awarded pursuant to this 239 |
|---|
| 313 | + | subsection is payable by the cedin g insurer, the reinsurer 240 |
|---|
| 314 | + | shall be deemed to have a timely filed claim against the 241 |
|---|
| 315 | + | estate for that amount, which claim shall be paid pursuant 242 |
|---|
| 316 | + | to the priority established in subsection 5 of section 243 |
|---|
| 317 | + | 375.1218. The affected guaranty associations shall not be 244 |
|---|
| 318 | + | entitled to receive the net settlement amount, except to the 245 SS SCS SB 834 11 |
|---|
| 319 | + | extent they are entitled to share in the estate assets as 246 |
|---|
| 320 | + | creditors of the estate, and shall have no responsibility 247 |
|---|
| 321 | + | for the net settlement amount. 248 |
|---|
| 322 | + | 10. Except as otherwise provided in this section, 249 |
|---|
| 323 | + | nothing in this section shall alter or modify the terms and 250 |
|---|
| 324 | + | conditions of any reinsurance contract. Nothing in this 251 |
|---|
| 325 | + | section shall abrogate or limit any rights of any reinsurer 252 |
|---|
| 326 | + | to claim that it is entitled to rescind a reinsurance 253 |
|---|
| 327 | + | contract. Nothing in this section shall give a policyholder 254 |
|---|
| 328 | + | or beneficiary an independent cause of action against a 255 |
|---|
| 329 | + | reinsurer that is not otherwise set forth in the reinsurance 256 |
|---|
| 330 | + | contract. Nothing in this section shall limit or affect any 257 |
|---|
| 331 | + | guaranty association's rights as a creditor of the estate 258 |
|---|
| 332 | + | against the assets of the estate. Nothing in this section 259 |
|---|
| 333 | + | shall apply to reinsurance contracts covering property or 260 |
|---|
| 334 | + | casualty risks. 261 |
|---|
| 335 | + | 11. This section and subdivision (10) of subsection 1 262 |
|---|
| 336 | + | of section 376.734 shall be construed together in a manner 263 |
|---|
| 337 | + | that is consistent with each other and with the purpose 264 |
|---|
| 338 | + | provided for in section 376.715. 265 |
|---|
| 339 | + | 380.621. 1. This section shall be known as the 1 |
|---|
| 340 | + | "Protecting Missouri's Mutual Insurance Companies Act". 2 |
|---|
| 341 | + | 2. As used in this section, the following terms shall 3 |
|---|
| 342 | + | mean: 4 |
|---|
| 343 | + | (1) "Adequate reinsurance", commercially available 5 |
|---|
| 344 | + | reinsurance as deemed appropriate by the board of directors 6 |
|---|
| 345 | + | of the company; 7 |
|---|
| 346 | + | (2) "Unlimited aggregate reinsurance", aggregate 8 |
|---|
| 347 | + | reinsurance coverage where the losses covered by the 9 |
|---|
| 348 | + | reinsurer are not limited, including but not limited to the 10 |
|---|
| 349 | + | annual aggregate reinsurance amount set forth in subdivision 11 |
|---|
| 350 | + | (1) of 20 CSR 200-12.030. 12 SS SCS SB 834 12 |
|---|
| 351 | + | 3. Notwithstanding any provision of law to th e 13 |
|---|
| 352 | + | contrary, the authority expressly granted in this chapter 14 |
|---|
| 353 | + | shall be the sole authority granted to the department over 15 |
|---|
| 354 | + | any Missouri mutual insurance company operating under the 16 |
|---|
| 355 | + | provisions of this chapter, provided however that any 17 |
|---|
| 356 | + | provisions regarding premium taxation set forth in chapter 18 |
|---|
| 357 | + | 148 that are applicable to Missouri mutual insurance 19 |
|---|
| 358 | + | companies shall remain applicable to Missouri mutual 20 |
|---|
| 359 | + | insurance companies and further provided however that 21 |
|---|
| 360 | + | chapter 382, as amended, shall remain applicable to a ny 22 |
|---|
| 361 | + | Missouri mutual insurance company which is a member of, or 23 |
|---|
| 362 | + | is seeking to become a member of, an "insurance holding 24 |
|---|
| 363 | + | company system", as that term is defined in section 382.010, 25 |
|---|
| 364 | + | as amended, provided however that any examination authorized 26 |
|---|
| 365 | + | by chapter 382 shall comply with subsection 6 below where a 27 |
|---|
| 366 | + | Missouri mutual insurance company owns, in whole or part, an 28 |
|---|
| 367 | + | affiliate subject to examination. The department shall not 29 |
|---|
| 368 | + | require any company operating under the provisions of this 30 |
|---|
| 369 | + | chapter to waive any ri ghts, benefits, or requirements 31 |
|---|
| 370 | + | specified in this chapter, nor shall it confer favorable 32 |
|---|
| 371 | + | treatment in exchange for, nor condition the granting of any 33 |
|---|
| 372 | + | exception upon, any company conceding additional regulatory 34 |
|---|
| 373 | + | oversight by the department. If the department and any 35 |
|---|
| 374 | + | company operating under the provisions of this chapter have 36 |
|---|
| 375 | + | entered into any agreement in which the department has 37 |
|---|
| 376 | + | received concessions, including but not limited to 38 |
|---|
| 377 | + | additional regulatory oversight beyond the authority 39 |
|---|
| 378 | + | expressly granted in this chapter, then such agreement as it 40 |
|---|
| 379 | + | relates to the department's authority is void upon the 41 |
|---|
| 380 | + | enactment of this section, but such agreement shall remain 42 |
|---|
| 381 | + | in full force and effect for the stated duration of the 43 SS SCS SB 834 13 |
|---|
| 382 | + | agreement as it relates to any benefits , allowances, or 44 |
|---|
| 383 | + | exemptions granted to the company by the agreement. 45 |
|---|
| 384 | + | 4. Notwithstanding any provision of law to the 46 |
|---|
| 385 | + | contrary, nothing in this chapter nor any regulation 47 |
|---|
| 386 | + | promulgated by the department, including but not limited to 48 |
|---|
| 387 | + | any regulation promulgated pursuant to sections 374.045, 49 |
|---|
| 388 | + | 380.021, 380.271, and 380.561, shall require or be construed 50 |
|---|
| 389 | + | to require any company operating under the provisions of 51 |
|---|
| 390 | + | this chapter to acquire or carry reinsurance greater than 52 |
|---|
| 391 | + | adequate reinsurance, including but not limited to unlimited 53 |
|---|
| 392 | + | aggregate reinsurance. Nothing in this section shall be 54 |
|---|
| 393 | + | construed to limit the option of an offer of unlimited 55 |
|---|
| 394 | + | aggregate reinsurance. 56 |
|---|
| 395 | + | 5. Notwithstanding any provision of law to the 57 |
|---|
| 396 | + | contrary, including but not limited to the provisions of 58 |
|---|
| 397 | + | section 380.321, the director shall not have the authority 59 |
|---|
| 398 | + | to hold a hearing regarding a proposed merger of companies 60 |
|---|
| 399 | + | operating pursuant to the provisions of this chapter, unless 61 |
|---|
| 400 | + | the director has substantial and competent evidence to 62 |
|---|
| 401 | + | believe the proposed merger will prejudice the interests of 63 |
|---|
| 402 | + | the policyholders of the companies. The director shall have 64 |
|---|
| 403 | + | fifteen business days to review the petition for merger and, 65 |
|---|
| 404 | + | upon substantial and competent evidence to believe the 66 |
|---|
| 405 | + | proposed merger will prejudice the interests of the 67 |
|---|
| 406 | + | policyholders of the companies, send a written notice of a 68 |
|---|
| 407 | + | hearing regarding the proposed merger. The written notice 69 |
|---|
| 408 | + | of hearing shall itemize the reasons why the director 70 |
|---|
| 409 | + | believes the proposed merger will prejudic e the 71 |
|---|
| 410 | + | policyholders of the companies and shall include the date of 72 |
|---|
| 411 | + | a hearing regarding the proposed merger no earlier than 73 |
|---|
| 412 | + | thirty days and no later than sixty days after the notice of 74 SS SCS SB 834 14 |
|---|
| 413 | + | hearing is received by the companies involved in the 75 |
|---|
| 414 | + | proposed merger. 76 |
|---|
| 415 | + | 6. Notwithstanding the provisions of section 380.491, 77 |
|---|
| 416 | + | the department shall not charge a rate for examinations in 78 |
|---|
| 417 | + | excess of a reasonable fee. A reasonable fee is determined 79 |
|---|
| 418 | + | by the average market rate typically charged by third party 80 |
|---|
| 419 | + | vendors for such services. All working papers, recorded 81 |
|---|
| 420 | + | information, documents, and copies thereof, produced by, 82 |
|---|
| 421 | + | obtained by, or disclosed to the department or any other 83 |
|---|
| 422 | + | person in the course of an examination made under this 84 |
|---|
| 423 | + | chapter shall be confidential and no t subject to subpoena, 85 |
|---|
| 424 | + | and shall not be made public by the department or shared 86 |
|---|
| 425 | + | with any other person, except as follows: 87 |
|---|
| 426 | + | (1) Upon adoption, the director may open the final 88 |
|---|
| 427 | + | examination report for public inspection; 89 |
|---|
| 428 | + | (2) The director may discl ose the content of an 90 |
|---|
| 429 | + | examination report, preliminary examination report or 91 |
|---|
| 430 | + | results, or any matter relating thereto, to the insurance 92 |
|---|
| 431 | + | department of this or any other state or country, or to law 93 |
|---|
| 432 | + | enforcement officials of this or any other state or agency 94 |
|---|
| 433 | + | of the federal government at any time, so long as such 95 |
|---|
| 434 | + | agency or office receiving the report or matters relating 96 |
|---|
| 435 | + | thereto agrees in writing to hold it confidential and in a 97 |
|---|
| 436 | + | manner consistent with this section; and 98 |
|---|
| 437 | + | (3) In the event the director de termines that legal or 99 |
|---|
| 438 | + | regulatory action is appropriate as a result of any 100 |
|---|
| 439 | + | examination, he or she may initiate any proceedings or 101 |
|---|
| 440 | + | actions as provided by law. 102 |
|---|
| 441 | + | 7. (1) At any time after notification of the 103 |
|---|
| 442 | + | commencement of an examination and through its completion, a 104 |
|---|
| 443 | + | company may request a scheduling conference with the 105 |
|---|
| 444 | + | department to discuss the following: 106 SS SCS SB 834 15 |
|---|
| 445 | + | (a) The purpose and scope of the examination; 107 |
|---|
| 446 | + | (b) The estimated costs of the examination; 108 |
|---|
| 447 | + | (c) The types of information that the company will be 109 |
|---|
| 448 | + | asked to produce; 110 |
|---|
| 449 | + | (d) The most efficient means of conducting the 111 |
|---|
| 450 | + | examination; and 112 |
|---|
| 451 | + | (e) Any alternative approaches in conducting the 113 |
|---|
| 452 | + | examination that would be more convenient, less burdensome, 114 |
|---|
| 453 | + | or less expensive for the compan y while still providing for 115 |
|---|
| 454 | + | an effective examination by the department. 116 |
|---|
| 455 | + | (2) (a) No more than thirty days after the scheduling 117 |
|---|
| 456 | + | conference, the department shall provide the company with a 118 |
|---|
| 457 | + | detailed written budget estimate for the examination that 119 |
|---|
| 458 | + | shall, for each forthcoming phase of the examination: 120 |
|---|
| 459 | + | a. Identify the individuals or firms performing the 121 |
|---|
| 460 | + | examination and their daily or hourly rates; 122 |
|---|
| 461 | + | b. Provide an estimate of travel, lodging, meal, and 123 |
|---|
| 462 | + | other administrative or supply costs; a nd 124 |
|---|
| 463 | + | c. Estimate the length of time necessary to conduct on - 125 |
|---|
| 464 | + | site and off-site examination activities. 126 |
|---|
| 465 | + | (b) Within fifteen days of receipt of a budget 127 |
|---|
| 466 | + | estimate under paragraph (a) of this subdivision, the 128 |
|---|
| 467 | + | company and the department shall have an additional 129 |
|---|
| 468 | + | discussion regarding the most efficient means of conducting 130 |
|---|
| 469 | + | the examination and producing information. If necessary, 131 |
|---|
| 470 | + | revisions of the budget estimate shall be made. 132 |
|---|
| 471 | + | (c) The time periods under paragraphs (a) and (b) of 133 |
|---|
| 472 | + | this subdivision may be extended if the company and the 134 |
|---|
| 473 | + | department mutually agree to the extension. 135 |
|---|
| 474 | + | (d) At any time during the examination, the department 136 |
|---|
| 475 | + | shall hold another scheduling conference with the company in 137 |
|---|
| 476 | + | accordance with the provisions of this subsect ion and 138 SS SCS SB 834 16 |
|---|
| 477 | + | provide a revised budget estimate as set forth in paragraph 139 |
|---|
| 478 | + | (a) of this subdivision if: 140 |
|---|
| 479 | + | a. The department determines that the cost of the 141 |
|---|
| 480 | + | examination will exceed the stated estimated budget by more 142 |
|---|
| 481 | + | than ten percent; or 143 |
|---|
| 482 | + | b. There is a material change in staffing. 144 |
|---|
| 483 | + | 380.631. 1. This section applies to any company 1 |
|---|
| 484 | + | operating under the provisions of this chapter. 2 |
|---|
| 485 | + | 2. A company operating under the provisions of chapter 3 |
|---|
| 486 | + | 380 is "insolvent" if it is unable to pay its obligations 4 |
|---|
| 487 | + | when they are due, or if its admitted assets do not exceed 5 |
|---|
| 488 | + | its liabilities plus the reserve fund or adequate guaranty 6 |
|---|
| 489 | + | fund required by section 380.021 or 380.271, as applicable. 7 |
|---|
| 490 | + | 3. Notwithstanding any provision of law to the 8 |
|---|
| 491 | + | contrary, including but not limited to the specific 9 |
|---|
| 492 | + | exception in subdivision (1) of subsection 2 of section 10 |
|---|
| 493 | + | 375.1150, as amended, the proceedings authorized by sections 11 |
|---|
| 494 | + | 375.1150 to 375.1246 may be applied to all companies 12 |
|---|
| 495 | + | operating under the provisions of chapt er 380, except that 13 |
|---|
| 496 | + | such companies shall not be subject to sections 375.1160 to 14 |
|---|
| 497 | + | 375.1164. Sections 375.570 to 375.750, as amended, shall 15 |
|---|
| 498 | + | apply to such proceedings. 16 |
|---|
| 499 | + |  |
|---|