HCS HB 1764 -- LIQUIDATION OF CERTAIN DOMESTIC INSURANCE
COMPANIES

SPONSOR:  Hobbs (Diehl)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee on
Insurance Policy by a vote of 12 to 0.

This substitute allows a domestic insurance company that is
organized as a stock insurance company to voluntarily dissolve
and liquidate as a corporation if the Director of the Department
of Insurance, Financial Institutions and Professional
Registration approves the articles of dissolution and the company
files with the Secretary of State a copy of the director's
approval along with the articles.

In determining whether to approve a dissolution, the department
director must consider whether the insurers' annual financial
statements show no written insurance premiums for five years, the
insurer has demonstrated that all policyholder claims have been
satisfied or transferred to another insurer, and an examination
has been completed within the last five years.

FISCAL NOTE:  No impact on state funds in FY 2011, FY 2012, and
FY 2013.

PROPONENTS:  Supporters say that when a solvent insurer wants to
stop doing business it currently must go to court and liquidate
its assets which is very costly.  The bill will correct this
problem and allow these companies to stop operations if approved
by the department.

Testifying for the bill was Representative Diehl.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:11 pm