Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This amendment changes the limitations on
approved investments available to extended Missouri mutual companies organized
under the provisions of sections 380.201-380.591, RSMo.
(1) Approved Investments. In addition to the
investments expressly permitted under section
380.471,
RSMo, the following described investments shall be "approved by the director"
under the provisions of section
380.471,
RSMo:
(A) Corporate bonds or bonds of any
state of the United States other than Missouri or of any county or other
political subdivision thereof, with the following ratings:
1. A3 or higher by Moody's Investors
Service;
2. A- or higher by
Standard and Poor's Ratings Group; or
3. A- or higher by Fitch Ratings;
(B) Commercial paper with the
following ratings:
1. P-1 by Moody's
Investors Service;
2. A-1 or
higher by Standard and Poor's Ratings Group;
or
3. F1
or higher by Fitch Ratings;
(C) Home office real estate having an asset
value of no more than twenty-five percent (25%) of the surplus in excess of the
guaranty fund(s) required by section 380.271.1, RSMo, but an extended Missouri
mutual company may invest in home office real estate having an asset value
greater than such twenty-five percent (25%) with the prior approval of the
director;
(D) Shares of mutual
funds, if and to the extent that-
1. With
respect to mutual funds other than money market mutual funds, such mutual fund:
A. Is open-ended; and
B. Invests by prospectus at least seventy
percent (70%) of its funds in bonds described in section
380.471,
RSMo, or in bonds described in subsection (1)(A) of this rule and paragraphs
1., 2., or 3. thereunder.
2. With respect to money market mutual funds,
including money market deposit accounts of financial institutions:
A. The shares of such money market mutual
fund are insured as to principal and accrued interest by the Federal Deposit
Insurance Corporation (FDIC) or an insurance company which is providing
coverage for such fund that is substantially the same (other than as to dollar
amount) as that provided by the FDIC and is authorized to underwrite financial
guarantee insurance in this state; or
B. Such money market mutual fund is rated as
provided in paragraph 1., 2., or 3. of subsection (1)(A) of this
rule;
(2) Limitations. The approved investments
described in section (1) of this rule shall be subject to the following
limitations:
(A) No more than seven percent
(7%) of an extended Missouri mutual's total surplus may be invested in the
bonds or commercial paper described in subsections (1)(A) and (B) in any one
(1) issuer;
(B) No more than fifty
percent (50%) of an extended Missouri mutual's total surplus may be invested in
the aggregate in all bonds or commercial paper described in subsections (1)(A)
and (B);
(C) No more than ten
percent (10%) of an extended Missouri mutual's total surplus may be invested in
any one (1) mutual fund described in paragraph (1)(D)1. of this rule;
(D) No more than twenty percent (20%) of an
extended Missouri mutual's total surplus may be invested in the aggregate in
all mutual funds described in paragraph (1)(D)1. of this rule;
(E) No more than fifty percent (50%) of an
extended Missouri mutual's total surplus may be invested in the aggregate in
all money market mutual funds described in paragraph (1)(D)2. of this rule,
except that in computing such aggregate amount an extended Missouri mutual may
exclude amounts it has invested in any money market mutual fund described in
subparagraph (1)(D)2.A.
(3) If an extended Missouri mutual makes an
investment which was approved under section (1) of this rule when made but such
investment subsequently no longer qualifies as an approved investment under
section (1) of this rule, the extended Missouri mutual shall either consider
such investment as disapproved or make a request in writing to the director for
approval within thirty (30) days after the end of the month in which such
investment first no longer qualifies as an approved investment. The director
shall approve or disapprove in writing, with or without conditions, such
request within thirty (30) days of receipt. If the extended Missouri mutual
makes a request for approval, such investment shall be considered an approved
investment pending the director's written approval or disapproval.
(4) All extended Missouri mutual companies
shall provide at least sixty (60)-days' prior notice to the director of their
intent to invest other than in accordance with the provisions of sections (1)
through (3) of this rule or section
380.471,
RSMo, and obtain the prior approval of the director prior to so
investing.
*Original authority: 374.045, RSMo 1967, amended 1993,
1995, 2008; 380.471, RSMo 1984, amended 1990; and 380.561, RSMo 1984, amended
1993, 1995.
