354.707. Capital, surplus, security required--cash, securities, bond to be deposited or filed with director, director to return deposit, when--security subject to final judgments--security not require
Capital, surplus, security required--cash, securities, bond to bedeposited or filed with director, director to return deposit,when--security subject to final judgments--security not requiredfor prepaid dental plans funded by government--director may waivecapital, surplus, security requirements, when.
354.707. 1. No prepaid dental plan corporation may commenceor continue to do business with a capital of less than fiftythousand and a surplus of less than fifty thousand dollars.
2. No prepaid dental plan corporation may commence orcontinue to do business until the company has transferred to anddeposited with the director, for the security of its enrollees,cash, securities, or a bond in the amount of the minimum capitalof fifty thousand dollars. Such securities or bond shall be of atype approved by the director. The director shall not receivesecurities at an amount above their par value or above theircurrent market value, whichever is less. If the market value ofthe securities on deposit falls below the minimum capital amountof fifty thousand dollars, the company shall deposit additionalsecurities to equal the minimum amount.
(1) The cash or securities representing the deposit requiredby this section shall be deposited with the director who shallgive receipts for all securities so deposited with him to theprepaid dental care corporation. The director shall upon thereceipt of such securities deposit the same, in the presence ofan authorized officer of the depositing corporation, in a safetydeposit box accessible only to the director or his representativeand an authorized employee of the corporation, or in the vault ofany bank, trust company, or safety deposit company in the stateof Missouri to be selected by the director, and the depositingcorporation shall pay the fees for such boxes. So long as thedepositing corporation continues solvent, the director shallpermit such corporation to collect and receive the interest anddividends on the securities so deposited, and, from time to time,withdraw any such securities on depositing other acceptablesecurities in the place of those so withdrawn. If the directorwillfully fails, refuses, or neglects to faithfully keep,deposit, and account for any such securities received by him, orwillfully fails, refuses, or neglects to furnish propercertificate of securities so held by him, the director shall beresponsible therefor upon his official bond, and suit may bebrought upon such bond by any person damaged by such failure,refusal, or neglect.
(2) An unpaid final judgment arising upon an enrolleecontract or contract certificate shall be a lien on the depositprescribed by this subsection, subject to execution after thirtydays from the entry of final judgment. If the deposit isreduced, it shall be replenished within twenty days by theprepaid dental care corporation.
(3) Upon the liquidation or dissolution of a prepaid dentalplan corporation and the satisfaction of all its debts andliabilities, any balance remaining of the deposit shall bereturned by the director to the prepaid dental plan corporation.
(4) The deposit prescribed by this subsection shall notapply with respect to a prepaid dental plan corporation which isfunded by a federal, state, or municipal government or by anypolitical subdivision thereof to the extent and for such periodof time that the prepaid dental plan corporation can demonstrateto the director the presence of operational commitments from suchsources equivalent to such deposit.
3. The director may waive any of the requirements ofsubsection 1 or 2, or both, of this section for any prepaiddental plan corporation, if it is shown to his satisfaction thatsuch corporation possesses not less than fifty thousand dollarsequity in unencumbered fixed assets.
(L. 1987 S.B. 272 § 5)*Transferred 1988; formerly 379.907