379.1359. License application--requirements for transaction of business--licensure requirements--issuance of license, fee.
License application--requirements for transaction ofbusiness--licensure requirements--issuance of license, fee.
379.1359. 1. A SPLRC, when permitted by its organizationaldocuments, may apply to the director for a license to conduct reinsurancein this state as authorized by sections 379.1353 to 379.1421.
2. A SPLRC may only reinsure the risks of its ceding company. ASPLRC may reinsure risks of more than one ceding company, provided allceding companies from which a SPLRC assumes risks shall be affiliated withone another.
3. A SPLRC may cede all or a portion of its assumed risks under cededreinsurance agreements.
4. A SPLRC may mitigate its risks by purchasing or participating inhedges such as credit default swaps and total return swaps.
5. To transact business in this state, a SPLRC shall:
(1) Obtain from the director a license authorizing it to conductreinsurance business in this state;
(2) Hold at least one meeting of its board of directors each yearwithin the state of Missouri;
(3) Maintain its principal place of business in Missouri;
(4) Appoint a resident registered agent to accept service of processand to otherwise act on its behalf in this state;
(5) Maintain a minimum surplus in this state, in cash, in the amountof two hundred * fifty thousand dollars;
(6) Pay all applicable fees as required by sections 379.1353 to379.1421.
6. To obtain a license to transact business as a SPLRC in this state,the SPLRC shall:
(1) File an application which must include the following:
(a) Certified copies of its organizational documents;
(b) A statement under oath from any of the applicant's officers as tothe financial condition of the applicant as of the time the application isfiled;
(c) Evidence of the applicant's assets as of the time of theapplication;
(d) Complete biographical sketches for each officer and director onforms created by the National Association of Insurance Commissioners;
(e) A plan of operation as described in section 379.1361;
(f) An affidavit signed by the applicant that the SPLRC will operateonly in accordance with the provisions of sections 379.1353 to 379.1421 andits plan of operation;
(g) A description of the investment strategy the SPLRC will follow;
(h) A description of the source and form of the initial minimumcapital proposed in the plan of operation;
(2) Demonstrate that the minimum surplus described in subdivision (5)of subsection 5 of this section is established and held in this state;
(3) Provide copies of any filings made by the ceding company with theceding company's domiciliary insurance regulator to obtain approval for theceding company to enter into the SPLRC contract and copies of any filingsmade by any affiliate of the SPLRC to obtain regulatory approval tocontribute capital to the SPLRC or to acquire direct or indirect ownershipof the SPLRC;
(4) Provide copies of any letters of approval or nondisapprovalreceived from the insurance regulator responding to any filings for whichcopies were provided as described in subdivision (3) of this subsection.
7. No other requirements shall be imposed upon the SPLRC to transactbusiness, except the director may require the SPLRC to revise its plan ofoperation under section 379.1361 and meet all requirements imposed by arevised plan of operation as approved by the director thereunder.
8. The department shall act upon a complete application within sixtydays of its filing, provided the requirements identified in subdivisions(2), (3) and (4) of subsection 6 of this section are met five days prior tothe end of the sixty-day period. For purposes of this subsection, anapplication shall be considered complete when the items listed insubdivision (1) of subsection 6 of this section are filed with thedepartment. In the event the ceding company is not required to makefilings with its domiciliary insurance regulator as described insubdivision (3) of subsection 6 of this section, no such filing shall berequired under subdivision (3) of subsection 6 of this section in thisstate, provided the applicant provides the director with a certificationsigned by one of its officers attesting that no such filing is requiredwith the ceding company's domiciliary regulator.
9. Once granted, a license under sections 379.1353 to 379.1421 shallcontinue until March first of each year, at this time it may be renewed atthe discretion of the director.
10. A SPLRC shall pay to the director a nonrefundable application feeof ten thousand dollars for processing its application for a license undersections 379.1353 to 379.1421. Such fee shall be paid at the time theapplication is filed with the director. Each SPLRC may take a credit forthe application fee against the taxes payable under section 379.1412,notwithstanding the imposition of an annual aggregate minimum tax bysection 379.1412.
11. The director may retain legal, financial, actuarial, andexamination services from outside the department to review the application.The reasonable cost of such services shall be billed to and paid by theapplicant.
(L. 2007 S.B. 215)*Word "and" appears in original rolls.