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Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 382

Effective - 28 Aug 1991 bottom

  382.302.  Disposal of assets or insurer, notice to director — powers of director — voidable when — effect. — 1.  The language and terms used in this section shall be interpreted subject to the definitions contained in section 382.010, unless otherwise indicated.  The terms "insolvent", "insolvency" and "receiver" shall be interpreted subject to the definitions contained in section 375.1152.

  2.  No person who controls any insurer shall transfer, convey or dispose of such insurer or of all or a substantial portion of his other assets without notifying the director prior to such disposition of his intention to dispose of such insurer or such assets and until the insurer has been examined pursuant to this section and the director approves such transfer, conveyance or disposal.  Upon such notification, the director shall cause an examination to be made of the insurer and its affiliates to ascertain the financial condition of the insurer.  The director shall review the records, books and other papers of the insurer and shall consider, at minimum, the factors contained in section 382.200, when determining the financial condition of the insurer.  The director may petition any court of competent jurisdiction to enjoin any activity of any person or the insurer or its affiliates which impedes or interferes with the authority of the director to conduct the examination required by this subsection, prior to the transfer, conveyance or disposition of the assets.  As used in this subsection, the term "substantial" shall refer to a transfer, conveyance or disposition of any assets of the person, after which the person will own assets of a total value which equals or is less than the total value of the assets of the insurer and the insurer's subsidiaries prior to the time of the intended transfer, conveyance or disposition.

  3.  A transfer, conveyance or disposal of an insurer or of assets which is made in derogation of subsection 2 of this section is voidable, at the election of the director, by an action brought in any court of competent jurisdiction or the circuit court of Cole County within five years of the date that the transaction was completed.  Any person who receives any assets of the insurer as a result of such transfer, conveyance or disposal shall be personally liable to any receiver for the value of the assets received and the costs of recovering such assets.

  4.  No insurer subject to registration pursuant to section 382.100, or any person who controls any insurer, shall pay any dividend in cash, in property, or in shares of stock of the person, the insurer, or any other affiliate of the person or insurer, at any time that the insurer or any subsidiary of the insurer which is authorized to do an insurance business in this or any other state, is insolvent.  Any person who receives a dividend paid in violation of this subsection shall be personally liable to any receiver appointed pursuant to this section and sections 375.1150 to 375.1246 and sections 374.216 and 374.217, with respect to the insurer, for benefit of the receivership, and to the insurer, for the full amount of the dividend unlawfully paid to that person, with interest thereon from the time that the dividend was unlawfully paid.  If a dividend is distributed to the shareholders of a corporation which in turn had received a dividend from the insurer, the persons who received a dividend from the corporation shall be liable in the place and stead of the corporation.  Any action pursuant to this subsection may be brought at any time within ten years of the payment of the dividend.

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(L. 1991 H.B. 385, et al. § 110)


---- end of effective   28 Aug 1991 ----

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