376.295. Additional prohibited acts--authorized actions.
Additional prohibited acts--authorized actions.
376.295. 1. (1) Except as provided in subsection 2 of this section,an insurer shall not without written approval of the director, directly orindirectly:
(a) Make a loan to or other investment in an officer or director ofthe insurer or a person in which the officer has any direct or indirectfinancial interest;
(b) Make a guarantee for the benefit of or in favor of an officer ordirector of the insurer or a person in which the officer or director hasany direct or indirect financial interest; or
(c) Enter into an agreement for the purchase or sale of property fromor to an officer or director of the insurer or a person in which theofficer or director has any direct or indirect financial interest.
(2) For purposes of this section, an officer or director shall not bedeemed to have a financial interest by reason of an interest that is helddirectly or indirectly through the ownership of equity interestsrepresenting less than two percent of all outstanding equity interestissued by a person that is a party to the transaction or solely by reasonof that individual's position as a director or officer of a person that isa party to the transaction.
(3) This subsection shall not permit an investment that is prohibitedby section 376.294.
(4) This subsection shall not apply to a transaction between aninsurer and any of its subsidiaries or affiliates that is entered into incompliance with chapter 382, RSMo, other than a transaction between aninsurer and its officer or director.
2. An insurer may, without the prior written approval of the directormake:
(1) Policy loans in accordance with the terms of the policy orcontract and section 376.306;
(2) Advances to officers or directors for expenses reasonablyexpected to be incurred in the ordinary course of the insurer's business orguarantees associated with credit or charge cards issued or credit extendedfor the purpose of financing these expenses;
(3) Loans secured by the principal residence of an existing or newofficer of the insurer made in connection with the officer's relocation atthe insurer's request if the loans comply with the requirements of section376.302 and the terms and conditions otherwise are the same as thosegenerally available from unaffiliated third parties;
(4) Loans and advances to officers or directors made in compliancewith state or federal law specifically related to the loans and advances bya regulated noninsurance subsidiary or affiliate of the insurer in theordinary course of business and on terms no more favorable than availableto other customers of the entity; and
(5) Secured loans to an existing or new officer of the insurer madein connection with the officer's relocation at the insurer's request, ifthe loans:
(a) Do not have a term exceeding two years;
(b) Are required to finance mortgage loans outstanding at the sametime on the prior and new residences of the officer;
(c) Do not exceed an amount equal to the equity of the officer in theprior residence;
(d) Are required to be fully repaid upon the earlier of the end ofthe two-year period or the sale of the prior residence.
(L. 2007 S.B. 66)