Missouri Code of State Regulations
Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE
Division 200 - Insurance Solvency and Company Regulation
Chapter 8 - Risk Retention
Section 20 CSR 200-8.100 - Federal Liability Risk Retention Act
Universal Citation: 20 MO Code of State Regs 200-8.100
Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: The proposed amendment removes an annual filing requirement and language duplicative of statutes.
PURPOSE: This rule effectuates or aids in the interpretation of sections 148.310-148.461, 375161., 375786., 384.051 and 384.059, RSMo as these sections relate to risk retention groups and purchasing groups.
(1) Risk retention groups as defined in 15 USC Section 3901(a)(4), purchasing groups as defined in 15 USC Section 3901(a)(5) and representatives of either will be deemed in compliance with sections 375161. and 375786., RSMo and other relevant insurance laws upon compliance with this regulation.
(2) Terms defined in section 3751080., RSMo have the same meaning as used in this regulation.
(3) Risk Retention Group. Every risk retention group chartered in states other than this state, seeking to do business as a risk retention group in this state, shall observe and abide by the laws of this state as follows. Each risk retention group shall register, before offering insurance in this state, with the director by submitting for approval to the director the information concerning the risk retention group as is prescribed in this rule.
(A) Notice of
Operations. Any risk retention group doing business in this state shall submit
to the director notice of operations consisting of-
1. A copy of its certificate of authority or
license authorizing it to transact business as an insurance company, certified
by the state of domicile;
2. A
statement identifying the state(s) in which the risk retention group is
chartered and licensed as a liability insurance company, date of chartering,
its principal place of business, the states in which the group intends to
operate, and such other information, including information on its membership,
as the director may require;
3. The
identity of the initial members of the group, the identity of those individuals
who organized the group or who will provide administrative services or
otherwise influence or control the activities of the group, the amount and
nature of initial capitalization, the coverage to be afforded, and the states
in which the group intends to operate;
4. A copy of its plan of operations or a
feasibility study, and revisions to the plan of operation or feasibility study
if any information contained in it changes; and
5. A statement of registration on a form
provided by the director which designates the director as its agent for the
purpose of receiving service of legal documents or process.
(B) Financial Condition. Any risk
retention group doing business in this state shall submit to the director
financial information consisting of-
1. A
copy of the group's annual financial statement submitted to its state of
domicile, which shall contain a statement of opinion on loss and loss
adjustment expense reserves made by a member of the American Academy of
Actuaries or a qualified loss reserve specialist (under criteria established by
the National Association of Insurance Commissioners (NAIC));
2. Upon request by the director, a copy of
any examination or audit performed with respect to the risk retention group;
and
3. Information as may be
required to verify its continuing qualification as a risk retention
group.
(C) Taxation. All
premiums paid for coverages within this state to risk retention groups shall be
subject to taxation at the same rate and subject to the same interest, fines,
and penalties for nonpayment as applicable to foreign admitted insurers.
Further, each risk retention group shall report all premiums paid to it for
risks insured within the state (see sections
148340. and
148350., RSMo).
(D) Notice to Purchasers. Any policy issued
by a risk retention group, other than a risk retention group which possesses a
currently valid certificate of authority to transact insurance business from
the director, shall contain, in at least ten- (10-) point type on the front
page and the declaration page, the notice as prescribed by section 375.1085.9,
RSMo.
(E) Licensing.
1. A risk retention group shall solicit
members in Missouri only through insurance producers licensed by the director
for the property and casualty line of authority.
2. An insurance producer licensed by the
director for the property and casualty line of authority, on behalf of a client
seeking insurance, may place insurance with any duly registered purchasing
group or risk retention group in the same manner as placing insurance with an
authorized insurance company.
(F) Compliance With Unfair Claims Settlement
Practices Law. Any risk retention group shall observe and comply with the laws
of this state concerning unfair claims settlement practices.
(G) Deceptive, False, or Fraudulent
Practices. Any risk retention group shall comply with the laws of this state
regarding deceptive, false, or fraudulent acts or practices.
(H) Review by Director. The director shall
review the information submitted by each risk retention group as provided in
this rule to determine that the group is not in a hazardous financial condition
or financially impaired. The director is authorized to prohibit the
solicitation or sale of insurance in this state by, or the operation of, a risk
retention group that is in a hazardous financial condition or which is
financially impaired. In any investigation of the financial condition of an
applicant risk retention group, the director may take into account the premium
structure indicated in the rating classification schedules submitted by that
group.
(I) Application for
Registration.
1. All new applicants for
registration must complete and file with the director the Application for
Registration and submit a one hundred dollar ($100) registration fee with the
application.
2. All currently
registered risk retention groups must pay an annual renewal fee of one hundred
dollars ($100) beginning on July 1, 1991. Failure to pay the renewal fee will
result in a forfeiture of registration.
3. Every risk retention group must notify the
director of any material change to the information on the Application for
Registration within thirty (30) days. Failure to update its Application for
Registration accordingly will result in a forfeiture of a risk retention
group's registration status.
(4) Purchasing Group. Every purchasing group seeking to do business in this state shall register with the director by submitting for approval to the director the information concerning the purchasing group as is prescribed in this rule.
(A) Notice of Operations. Any purchasing
group doing business in this state shall submit to the director notice of
operations consisting of a sworn statement-
1. Identifying the state(s) in which the
purchasing group is domiciled, its principal place of business, the state(s) in
which the group intends to operate, and such other information, including
information on its membership, as the director may require;
2. Listing the lines and classifications of
liability insurance which the purchasing group intends to purchase;
3. Identifying the insurance company from
which the group intends to purchase insurance and the domicile of the company;
and
4. Stating that to the best of
the affiant's knowledge the purchasing group has not and will not purchase from
a risk retention group that is not licensed by the director as an insurance
company or an eligible surplus lines insurer in Missouri.
(B) Any purchasing group doing business in
this state shall submit to the director information as may be required to
verify its continuing qualification as a purchasing group.
(C) Service of Process. Any notice of
operation under subsection (4)(A) of this rule shall be accompanied by a
statement of registration on a form provided by the director which designates
the director as the purchasing group's agent for the purpose of service of
process.
(D) Taxes.
1. A purchasing group which purchases
insurance from a non-admitted insurer shall be subject to the surplus line
premium tax under section
384051. or
384059., RSMo, whichever is
applicable, for risks resident, located, or to be performed in this
state.
2. An admitted insurer which
insures the members of a purchasing group shall treat the premiums of members
with risks resident, located, or to be performed in this state as premiums
subject to premium tax under sections 148.310-148.461, RSMo.
(E) Application for Registration.
1. All new applicants for registration must
complete and file with the director the Application for Registration and submit
a one hundred dollar ($100) registration fee with the application.
2. All currently registered purchasing groups
must pay an annual renewal fee of one hundred dollars ($100) beginning on July
1, 1991. Failure to pay the renewal fee will result in a forfeiture of
registration.
3. Every purchasing
group must notify the director of any material change to the information in the
Application for Registration within thirty (30) days. Failure to update its
Application for Registration accordingly will result in a forfeiture of a
purchasing group's registration status.
(F) Licensing.
1. A purchasing group located in Missouri
shall procure insurance with an admitted company only through an insurance
producer licensed by the director for the property and casualty line of
authority, or insurance with a nonadmitted company only through a surplus lines
broker licensed by the director.
2.
Any purchasing group soliciting members in Missouri shall do so only through an
insurance producer licensed by the director for the property and casualty line
of authority.
*Original authority: 374.045, RSMo 1967, amended 1993, 1995.
Disclaimer: These regulations may not be the most recent version. Missouri may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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