Mo. Code Regs. tit. 20 § 500-1.400
Current through Register Vol. 49, No. 23, December 2, 2024
Section 20 CSR 500-1.400 - Policyholder and Mutual Members ParticipationPURPOSE: This amendment modernizes the rule.
PURPOSE: This regulation specifies requirements for issuance of participating policies of property and casualty insurance and provisions in all mutual policies other than life. This regulation was adopted pursuant to the provisions of section 374.045, RSMo and implements sections 379.160 and 379.265, RSMo.
(1) Prerequisites for Issuance of Participating Policies. (A) Any stock insurance company licensed to do business in Missouri may issue participating property and casualty policies, provided that the company shall first- 1. Submit to the director of the department evidence of proper specific charter authority; and2. File with the director of the department for approval the form of all participating property and casualty policies proposed to be issued in Missouri.(2) Provisions in All Mutual Policies Other Than Life. (A) Each policy issued by any mutual insurance company to insure property located in Missouri shall include the following or words meaning substantially the same: 1. "By acceptance of this policy, the named insured becomes a member of the company and shall be entitled to vote at all meetings of the members and, upon termination of this policy, shall participate in the distribution of dividends as fixed and determined by the directors in accordance with the law";2. If not assessable, "This policy is not assessable. Your liability as a policyholder and member of the company under this policy is limited to payment of premium";3. If assessable, "This policy is assessable under the provisions of section _______ RSMo. As a policyholder and member of the company, you may be required to make additional contributions to help meet excessive losses." (Insert proper statute); and4. Notice of the time, date, and place of the regular annual meetings of the members, unless notified otherwise. AUTHORITY: sections 374.045, 379.160 and 379.265, RSMo 1994.* This rule was previously filed as 4 CSR 190-16.070. This version of rule filed Dec. 5, 1969, effective Dec. 15, 1969. Amended: Filed Dec. 20, 1974, effective Dec. 30, 1974. Amended by Missouri Register June 3, 2019/Volume 44, Number 11, effective 7/31/2019*Original authority: 374.045, RSMo 1967, amended 1993; 379.160, RSMo 1939, amended 1957, 1963; and 379.225, RSMo 1939.