Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This rule effectuates or aids in the
interpretation of sections 375.1110- 375.1140, RSMo and prescribes reinsurance
intermediary licensing forms and procedures.
(1) Who must be licensed as a reinsurance
intermediary-
(A) Any person, firm,
association or corporation acting as a reinsurance intermediary-broker (RB) and
maintaining an office in this state either directly or as a member or employee
of a firm or association, or an officer, director or employee of a corporation,
must be a licensed Missouri reinsurance intermediary-broker, insurance
producer;
(B) Any person, firm,
association or corporation acting as an RB and not maintaining an office in
this state must either-
1. Be a licensed
Missouri insurance producer or reinsurance intermediary-broker; or
2. Have a current producer's license from
another state having a law substantially similar to sections 375.1110-375.1140,
RSMo;
(C) Any person
acting as a reinsurance intermediary-manager (RM) for a Missouri domiciled
reinsurer must be a licensed Missouri insurance producer or reinsurance
intermediary-manager;
(D) Any
person acting as an RM in this state and that maintains an office either
directly or as a member or employee of a firm or association, or an officer,
director or employee of a firm or association, or an officer, director or
employee of a corporation, must be a licensed Missouri insurance producer or
reinsurance intermediary-manager; and
(E) Any person, firm, association or
corporation acting as an RM in another state for a nondomestic insurer, if the
RM is not a licensed insurance producer in this state or another state having a
law substantially similar to sections 375.1110-375.1140, RSMo.
(2) Licensed attorneys at law of
this state when acting in this professional capacity shall be exempt from this
rule.
(3) In order to obtain a
license as a reinsurance intermediary-broker (RB), all of the following must be
met:
(A) Complete an application form
supplied by the director; and
(B)
Pay a nonrefundable application fee of one hundred dollars ($100) to the
department; and
(C) If the
applicant is a firm, association or corporation, a list of all reinsurance
intermediaries who will be acting under the license applied for, indicating the
position or relationship to the applicant; and
(D) If the applicant is a firm, association
or corporation, a list of all "controlling persons," as defined in section
375.1112(2),
RSMo, including officers, partners, owners,
and directors; and
(E) If the
applicant is a nonresident, supply a properly executed designation of service
of process, appointing the director as agent for service of process in the
manner and with the same legal effect, provided for by sections
375.1110-375.1140, RSMo along with a name and address of a resident of this
state upon whom notices or orders of the director or process affecting such
nonresident reinsurance intermediary may be served; and
(F) If the applicant is a firm, association
or corporation, the applicant must file a copy of its registration of a
fictitious name as filed with the Missouri Secretary of State or its
Certificate of Good Standing as issued by the Missouri Secretary of State or if
neither of the previous is applicable, a current certification from the state
or federal agency governing the applicant's authority to do business, that the
applicant is then in good standing to do business; and
(G) If the applicant is a nonresident and
does not maintain an office either directly or as a member or employee of a
firm or association, or an officer, director or employee of a corporation in
this state, and has a current producer's license from another state having a
law substantially similar to sections 375.1110-375.1140, RSMo, attach a
certification of the applicant's current license from that state.
(4) In order to obtain a license
as a RM the following must be met:
(A)
Complete an application form supplied by the director; and
(B) Pay a nonrefundable application fee of
one hundred dollars ($100) to the department; and
(C) If the applicant is a firm, association
or corporation, a list of all reinsurance intermediaries who will be acting
under the license applied for, indicating the position or relationship to the
applicant; and
(D) If the applicant
is a firm, association or corporation, a list of all "controlling persons," as
defined in section
375.1112(2),
RSMo, including officers, partners, owners, and directors;
and
(E) If the applicant is
a nonresident, supply a properly executed designation of service of process,
appointing the director as agent for service of process in the manner and with
the same legal effect, provided for by sections 375.1110-375.1140, RSMo along
with a name and address of a resident of this state upon whom notices or orders
of the director or process affecting such nonresident reinsurance intermediary
may be served; and
(F) If the
applicant is a firm, association or corporation, the applicant must file a copy
of its registration of a fictitious name as filed with the Missouri Secretary
of State or its Certificate of Good Standing as issued by the Missouri
Secretary of State or if neither of the previous is applicable, a current
certification from the state or federal agency governing the applicant's
authority to do business, that the applicant is then in good standing to do
business; and
(G) Provide both the
required bond and the required errors and omissions policy; and
(H) If the applicant is a nonresident and
does not maintain an office either directly or as a member or employee of a
firm or association, or an officer, director or employee of a corporation in
this state, and has a current producer's license from another state having a
law substantially similar to sections 375.1110-375.1140, RSMo, attach a
certification of the applicant's current license from that state.
(5) If the applicant, and all
names listed as reinsurance intermediaries on the application, meet the
qualifications under sections 375.1110-375.1140, RSMo, the department will
issue the applicant a reinsurance intermediary license.
(6) A reinsurance intermediary license is
valid for one (1) year from the date of issuance. If the license is not renewed
each year on or before the anniversary date of issuance, the license
terminates. Any license shall be renewed automatically upon receipt of request
and payment of a renewal fee of fifty dollars ($50) on or before the
anniversary date of issuance, unless the director takes action to suspend or
revoke the license.
(7) A
nonresident applicant for a reinsurance intermediary license must appoint the
director as the licensee's agent for receipt of service of process in addition
to meeting other requirements of this rule.
(8) Bond and Errors and Omissions Coverage.
The limits approved by the director for the bond and errors and omissions
coverage are as follows. A fidelity bond is required for each RM and shall be
in the minimum amount of six hundred thousand dollars ($600,000) for the
benefit of each reinsurer with whom the intermediary acts. Any bond must have a
discovery period of at least one (1) year. An errors and omissions policy is
also required for each RM in the minimum amount pursuant to the following
table:
| Prior Calendar Year Aggregate Liability |
Errors and Omissions Policy Limits |
| $0-10,000,000 |
$1,000,000 |
| $10,000,001-25,000,000 |
$2,500,000 |
| $25,000,001 and above |
$5,000,000 |
Evidence of the applicant's prior year's total aggregate
liability limits must be attached to the application.
(9) Forms. The application form required by
subsections (3)(A) and (4)(A) can be accessed at the department's website at
www.insurance.mo.gov. This
form also may be used for renewal under section (6). This form also contains
the nonresident's appointment of the director under section (7).
(10) All reinsurance intermediaries must
immediately notify the director of any changes in any of the information
requested in the application supplied by the director.
*Original authority: 374.045.1(2), RSMo 1967, amended 1993,
1995 and 374.705, RSMo 1983, amended 1993,
2004.
