HB 577 -- Captive Insurance Companies

Sponsor:  Yates

This bill changes the laws regarding captive insurance companies
and allows an association captive insurance company or an
industrial insured captive insurance company to be organized as a
reciprocal insurer.  It its main provisions, the bill:

(1)  Requires the captive insurance company's subscribers'
advisory committee to meet at least once a year;

(2)  Removes the requirement that a captive insurance company
hold at least 35% of its assets in Missouri;

(3)  Requires organizers of a reciprocal insurer to petition the
Director of the Department of Insurance, Financial Institutions
and Professional Registration to issue a certificate finding that
the proposed association will promote the general good of the
state;

(4)  Specifies that the captive insurance company statutes will
control in cases where there is a conflict between them and the
reciprocal insurance statutes;

(5)  Requires the State Treasurer to deposit 90% of the premium
taxes collected from captive insurance companies and special
purpose life reinsurance captive (SPLRC) companies into the
General Revenue Fund and 10% into the Insurance Dedicated Fund;

(6)  Allows an association captive insurance company or an
industrial insured captive insurance company to be converted to
or merged with and into a reciprocal insurer and specifies the
requirements and procedures for the conversion or merger plan;

(7)  Reduces from two to one the number of Missouri residents
required to incorporate or organize a SPLRC; and

(8)  Changes the way in which the assets of a SPLRC are valued.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:25 am