HB 238 -- Regulation of Captive Insurance Companies

Sponsor:  Yates

This bill regulates captive insurance companies.  In its main
provisions, captive insurance companies:

(1)  Are allowed, when permitted, to apply for a license to
provide insurance and annuity contracts under Section 376.010,
RSMo, to parent, affiliated, or controlled unaffiliated
companies;

(2)  Cannot adopt a name that is likely to be confused or
mistaken with an existing company;

(3)  Must maintain adequate paid-in capital and surplus as
required in order to be issued a license.  No dividend can be
paid without prior approval from the Director of the Department
of Insurance, Financial Institutions, and Professional
Registration;

(4)  Are allowed to be incorporated under Section 379.1310;

(5)  Must annually report their financial condition to the
department director as required;

(6)  Will be examined at least once every three years by the
department director or his or her agent;

(7)  Can have their license suspended or revoked by the
department director for cause;

(8)  Must comply with investment requirements contained in
Chapter 375 and Sections 379.080 and 379.082 as applicable;

(9)  May reinsure risks or portions of risks with prior approval
of the department director;

(10)  Cannot be required to join a rating organization or be
allowed to join or contribute financially to a plan, pool,
association, guaranty, or insolvency fund for claims arising out
of the operation of the company; and

(11)  Must pay the taxes required under Section 379.1326 to the
Director of the Department of Revenue on or before May 1 of each
year.  Fees and assessments received by the Department of
Insurance, Financial Institutions, and Professional Registration
will be paid into the Insurance Dedicated Fund.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:18 am