384.021. Requirements and qualifications for nonadmitted insurers to furnish coverage--list of eligibles to be published.
Requirements and qualifications for nonadmitted insurers to furnishcoverage--list of eligibles to be published.
384.021. No surplus lines licensee shall place any coverage with anonadmitted insurer, unless at the time of placement, such nonadmittedinsurer:
(1) Has established satisfactory evidence of good repute and financialintegrity;
(2) Qualified under one of the following paragraphs:
(a) Has capital and surplus or its equivalent under the laws of itsdomiciliary jurisdiction, which equals this state's minimum capital andsurplus requirements under the laws of this state as defined in sections379.010 and 379.080, RSMo; or
(b) In the case of Lloyd's or other similar groups includingincorporated and individual unincorporated underwriters, the incorporatedmembers of which shall not be engaged in any business other than underwritingas a member of the group and shall be subject to the same level of solvencyregulation and control by the group's domiciliary regulator as are theunincorporated members, maintains a trust fund of not less than fifty milliondollars as security to the full amount thereof for all policyholders andcreditors in the United States of each member of the group, and such trustshall likewise comply with the terms and conditions established in subdivision(1) of this section for alien insurers; and
(c) In the case of an "insurance exchange" created by the laws ofindividual states, maintain capital and surplus, or the substantial equivalentthereof, of not less than fifteen million dollars in the aggregate. Forinsurance exchanges which maintain funds for the protection of all insuranceexchange policyholders, each individual syndicate shall maintain minimumcapital and surplus, or the substantial equivalent thereof, of not less thanone million five hundred thousand dollars. In the event the insuranceexchange does not maintain funds for the protection of all insurance exchangepolicyholders, each individual syndicate shall meet the minimum capital andsurplus requirements of paragraph (a) of this subdivision;
(3) Has caused to be provided to the director a copy of its currentannual statement certified by such insurer, such statement to be provided nomore than six months after the close of the period reported upon and which iseither:
(a) Filed with and approved by the regulatory authority in the domicileof the nonadmitted insurer; or
(b) Certified by an accounting or auditing firm licensed in thejurisdiction of the insurer's domicile; or
(c) In the case of an insurance exchange, the statement may be anaggregate combined statement of all underwriting syndicates operating duringthe period reported;
(4) In addition to meeting the requirements in subdivisions (1) to (3)of this section, an insurer shall be an eligible surplus lines insurer if itappears on the most recent list of eligible surplus lines insurers publishedby the director from time to time but at least semiannually. The directorshall be required to place and maintain the name of any nonadmitted insurerwhich is eligible and which makes a request to be on the list of eligiblesurplus lines insurers.
(L. 1987 H.B. 700 § 3, A.L. 1989 S.B. 250, A.L. 1994 H.B. 1449 merged with S.B. 687)Effective 5-10-94 (S.B. 687) 6-3-94 (H.B. 1449)