Section 379.080

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 379

Effective - 28 Aug 2002   

  379.080.  Capital and surplus of stock or mutual company, investments authorized — violation, penalty. — 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;

  (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;

  (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 commerce and 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.

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(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, 70.377

Savings accounts in insured savings and loan associations, investment in authorized, 369.194