HB 69 -- DOMESTIC INSURER INVESTMENTS

SPONSOR:  Rupp

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

This bill allows domestic insurers to invest their capital,
reserve, and surplus in bonds; notes or other evidences of
indebtedness; or preferred or guaranteed stocks or shares issued,
assumed, or guaranteed by a corporation, a joint stock company,
an association, a trust, a business partnership, a business joint
venture, and other similar entities.  These investments must
carry at least the second highest designation rating by the
National Association of Insurance Commissioners or a nationally
recognized rating agency approved by the Department of Insurance.
Life insurance company investments in corporations must also meet
the requirements of Sections 375.1070 to 375.1075, RSMo,
regarding outlines for investing in medium or lower quality
institutions.

FISCAL NOTE:  No impact on state funds in FY 2006, FY 2007, and
FY 2008.

PROPONENTS:  Supporters say that the bill will allow insurers to
invest in preferred stocks which will help them stay current with
market options.  The Department of Insurance supports these
changes.

Testifying for the bill were Representative Rupp; Missouri
Insurance Coalition; America's Health Insurance Plans; Property
Casualty Insurers Association of America; and MetLife.

OPPONENTS:  There was no opposition voiced to the committee.

Marc Webb, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:18 pm