Section 379.1359

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 379

Effective - 28 Aug 2007   

  379.1359.  License application — requirements for transaction of business — licensure requirements — issuance of license, fee. — 1.  A SPLRC, when permitted by its organizational documents, may apply to the director for a license to conduct reinsurance in this state as authorized by sections 379.1353 to 379.1421.

  2.  A SPLRC may only reinsure the risks of its ceding company.  A SPLRC may reinsure risks of more than one ceding company, provided all ceding companies from which a SPLRC assumes risks shall be affiliated with one another.

  3.  A SPLRC may cede all or a portion of its assumed risks under ceded reinsurance agreements.

  4.  A SPLRC may mitigate its risks by purchasing or participating in hedges such as credit default swaps and total return swaps.

  5.  To transact business in this state, a SPLRC shall:

  (1)  Obtain from the director a license authorizing it to conduct reinsurance business in this state;

  (2)  Hold at least one meeting of its board of directors each year within the state of Missouri;

  (3)  Maintain its principal place of business in Missouri;

  (4)  Appoint a resident registered agent to accept service of process and to otherwise act on its behalf in this state;

  (5)  Maintain a minimum surplus in this state, in cash, in the amount of two hundred ^* fifty thousand dollars;

  (6)  Pay all applicable fees as required by sections 379.1353 to 379.1421.

  6.  To obtain a license to transact business as a SPLRC in this state, the SPLRC shall:

  (1)  File an application which must include the following:

  (a)  Certified copies of its organizational documents;

  (b)  A statement under oath from any of the applicant's officers as to the financial condition of the applicant as of the time the application is filed;

  (c)  Evidence of the applicant's assets as of the time of the application;

  (d)  Complete biographical sketches for each officer and director on forms created by the National Association of Insurance Commissioners;

  (e)  A plan of operation as described in section 379.1361;

  (f)  An affidavit signed by the applicant that the SPLRC will operate only in accordance with the provisions of sections 379.1353 to 379.1421 and its plan of operation;

  (g)  A description of the investment strategy the SPLRC will follow;

  (h)  A description of the source and form of the initial minimum capital proposed in the plan of operation;

  (2)  Demonstrate that the minimum surplus described in subdivision (5) of subsection 5 of this section is established and held in this state;

  (3)  Provide copies of any filings made by the ceding company with the ceding company's domiciliary insurance regulator to obtain approval for the ceding company to enter into the SPLRC contract and copies of any filings made by any affiliate of the SPLRC to obtain regulatory approval to contribute capital to the SPLRC or to acquire direct or indirect ownership of the SPLRC;

  (4)  Provide copies of any letters of approval or nondisapproval received from the insurance regulator responding to any filings for which copies were provided as described in subdivision (3) of this subsection.

  7.  No other requirements shall be imposed upon the SPLRC to transact business, except the director may require the SPLRC to revise its plan of operation under section 379.1361 and meet all requirements imposed by a revised plan of operation as approved by the director thereunder.

  8.  The department shall act upon a complete application within sixty days of its filing, provided the requirements identified in subdivisions (2), (3) and (4) of subsection 6 of this section are met five days prior to the end of the sixty-day period.  For purposes of this subsection, an application shall be considered complete when the items listed in subdivision (1) of subsection 6 of this section are filed with the department.  In the event the ceding company is not required to make filings with its domiciliary insurance regulator as described in subdivision (3) of subsection 6 of this section, no such filing shall be required under subdivision (3) of subsection 6 of this section in this state, provided the applicant provides the director with a certification signed by one of its officers attesting that no such filing is required with the ceding company's domiciliary regulator.

  9.  Once granted, a license under sections 379.1353 to 379.1421 shall continue until March first of each year, at this time it may be renewed at the discretion of the director.

  10.  A SPLRC shall pay to the director a nonrefundable application fee of ten thousand dollars for processing its application for a license under sections 379.1353 to 379.1421. Such fee shall be paid at the time the application is filed with the director.  Each SPLRC may take a credit for the application fee against the taxes payable under section 379.1412, notwithstanding the imposition of an annual aggregate minimum tax by section 379.1412.

  11.  The director may retain legal, financial, actuarial, and examination services from outside the department to review the application.  The reasonable cost of such services shall be billed to and paid by the applicant.

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(L. 2007 S.B. 215)

*Word "and" appears in original rolls.