SCS HB 793 -- INSURANCE COMPANIES

This bill pertains to insurance pools, stocks, and records.

INVESTMENT POOLS

This bill allows an insurance company to invest up to 30% of its
assets in investment pools.  All investment activities must meet
standards prescribed by law for insurance companies.  Pooling
agreements and any amendments to these agreements need approval
from the Department of Insurance.  The bill requires annual
reports of investment activities and transactions between pools
and their participants.

STOCK CONSIDERATIONS

The bill exempts a Missouri insurance company from seeking
approval from the Department of Insurance to purchase or sell a
majority of stock of an out-of-state insurance company if the
stock consideration is less than 3% of the Missouri company's
assets or 10% of its capital and surplus.  A Missouri insurance
holding company is also exempt from seeking approval if the
majority stock consideration is less than 3% of its consolidated
assets or 20% of its consolidated stockholders' equity.

RECORDS

This bill requires any company or person subject to a market
conduct examination by the Department of Insurance to produce
requested records within 10 days.  In addition, an insurer must
keep policy records for 2 years after a policy term expires.
Claim files must be kept for 3 years after the year in which a
claim is closed.

HB 793 -- INSURANCE COMPANIES (Auer)

This bill exempts an insurance holding company or Missouri
insurance company from seeking approval from the Department of
Insurance to purchase or sell the stock of an insurance company
domiciled outside of Missouri if the stock consideration is less
than 3 percent of consolidated assets or 20 percent of
consolidated stockholders' equity for the insurance holding
company, or less than 3 percent of assets or 10 percent of
capital and surplus for the Missouri insurance company.

FISCAL NOTE:  No impact on state funds.

HB 793 -- INSURANCE COMPANIES

SPONSOR:  Auer

COMMITTEE ACTION:  Voted "do pass" by consent" by the Committee
on Insurance by a vote of 13 to 0.

This bill exempts an insurance holding company or Missouri
insurance company from seeking approval from the Department of
Insurance to purchase or sell the stock of an insurance company
domiciled outside of Missouri if the stock consideration is less
than 3 percent of consolidated assets or 20 percent of
consolidated stockholders' equity for the insurance holding
company, or less than 3 percent of assets or 10 percent of
capital and surplus for the Missouri insurance company.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that this bill will decrease the
time and expense involved in the acquisition of control of an
out-of-state insurance company.

Testifying for the bill were Representative Auer; General
American Life Insurance; and the Department of Insurance.

OPPONENTS:  There was no opposition voiced to the committee.

Martin Romitti, Research Analyst

HB 793 -- Insurance Companies

Sponsor:  Auer

This bill exempts an insurance holding company or Missouri
insurance company from seeking approval from the Department of
Insurance to purchase or sell the stock of an insurance company
domiciled outside of Missouri if the stock consideration is less
than 3 percent of consolidated assets or 20 percent of
consolidated stockholders' equity for the insurance holding
company, or less than 3 percent of assets or 10 percent of
capital and surplus for the Missouri insurance company.