HB 1903 -- REINSURANCE

SPONSOR:  Liese

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee on
Insurance by a vote of 15 to 0.

This bill revises the method in which reinsurance is allowed to
be counted as an asset or deduction from liability.  The bill
requires the assets of any foreign insurer or reinsurer which are
used as security for insurance or reinsurance to be maintained
within the United States.  The bill exempts from the "vexatious
refusal to pay" statute any lawsuits arising out of a contract of
reinsurance made by a ceding insurer against an assuming insurer.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that the bill protects consumers from
insurers who may try to hide their assets outside the United
States and not under the control of insurance regulators.

Testifying for the bill were Representative Liese; and American
Insurance Association.

OPPONENTS:  There was no opposition voiced to the committee.

Richard Smreker, Senior Legislative Analyst

Missouri House of Representatives
Last Updated October 11, 2002 at 9:02 am