Missouri Code of State Regulations
Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE
Division 200 - Insurance Solvency and Company Regulation
Chapter 7 - Security Deposits
Section 20 CSR 200-7.200 - Deposit of Securities Under a Book-Entry System
Universal Citation: 20 MO Code of State Regs 200-7.200
Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This rule provides the procedures to verify insurance company-owned securities being held by a clearing corporation or a federal reserve bank in book-entry form and for withdrawal procedures where these securities are on deposit with the Department of Commerce and Insurance pursuant to section 400.8-108.3, RSMo.
(1) Securities Not Placed on Deposit.
(A) A custodial agreement between the
depository (commercial bank or clearing corporation) and the insurance company
must be in effect.
1. This custodial
agreement must contain provisions which require the depository to provide
verification that securities actually are on deposit.
2. The division may require verification from
the custodian at any time it deems that verification is appropriate. Examples
of appropriate verification documents are attached as Exhibits A-C.
(B) A copy of the custodial
agreement must be furnished to the insurance department for its records on
request.
(2) Securities Placed on Deposit.
(A) An insurance company
which deposits securities in the form of book-entry receipts in order to meet
its deposit requirements shall deposit the securities or the certificates
representing the securities in a depository (commercial bank or clearing
corporation) designated by the director of the Department of Commerce and
Insurance for safekeeping.
(B) The
designated depository shall hold the securities or the certificates
representing the securities separate and apart from the general assets of the
depository and shall provide to the insurance company and the director
verification of securities or certificates representing the securities from
time-to-time as requested by the insurance company or the director.
(C) The depository shall receive and collect
all income from the deposited property and shall deposit the income to the
credit of the insurance company's account.
(D) All or any part of the securities or
certificates representing the securities on deposit with the depository may be
withdrawn only on prior written request for withdrawal signed in the name of
the insurance company and the depository and by the director or his/her
designee.
(E) The treasurer of the
company or other officer authorized to act on his/her behalf from time-to-time
shall certify to the depository the names and signatures of officers of the
insurance company qualified to execute written withdrawal requests.
(F) The depository shall enter into custodial
agreements with all insurance companies depositing securities in the form of
book-entry receipts under this rule.
(G) The depository shall enter into a master
agreement with the department setting out the terms and conditions under which
the depository will act as custodian of amounts deposited pursuant to this
rule.
(H) In order to comply with
the provisions of this rule, insurance companies which have securities
deposited in the form of book-entry receipts shall transfer these securities to
the depository designated by the director within ninety (90) days of the date
of the designation.
*Original authority: 374.045, RSMo 1967, amended 1993, 1995; 375.460, RSMo 1939; and 400.8-108.3, RSMo 1992, amended 1997.
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