375.306. Not to act for insolvent company--guarantee fund, where deposited--advertisements--penalty for violation.
Not to act for insolvent company--guarantee fund, wheredeposited--advertisements--penalty for violation.
375.306. 1. It is unlawful for any person to act within this stateas agent, producer, or otherwise, in receiving or procuring applicationsfor insurance, or in any manner to aid in transacting the business referredto in this chapter for any company or association doing business in thisstate, unless the company is possessed of the amount of capital and ofactual paid-up capital, or of premium notes, cash premiums or guaranteefund, of the kind, character and amounts required of companies organizedunder the provisions of this chapter.
2. The guarantee fund of companies other than those of this stateshall be deposited with the proper officer of the state or country underthe laws of which the company is organized, or with the director, in themanner provided by section 379.050, RSMo, in regard to the making of suchdeposit by companies organized under this chapter.
3. Whenever any insurance company doing business in this stateadvertises its assets, either in any newspaper or periodical, or by anysign, circular, card, policy of insurance or certificate of renewalthereof, it shall, in the same connection, equally conspicuously advertiseits liabilities, and the amount of its assets available for fire and lifelosses separately, the same to be determined in the manner required inmaking statement to the department, and all advertisements purporting toshow the amount of capital of the company shall show only the amount ofcapital actually paid up in cash.
4. If the director determines that a person has engaged, is engagingin, or has taken a substantial step toward engaging in an act, practice orcourse of business constituting a violation of this section or a ruleadopted or order issued pursuant thereto, or that a person has materiallyaided or is materially aiding an act, practice, omission, or course ofbusiness constituting a violation of this section or a rule adopted ororder issued pursuant thereto, the director may issue such administrativeorders as authorized under section 374.046, RSMo. A violation of thissection is a level two violation under section 374.049, RSMo.
5. If the director believes that a person has engaged, is engagingin, or has taken a substantial step toward engaging in an act, practice orcourse of business constituting a violation of this section or a ruleadopted or order issued pursuant thereto, or that a person has materiallyaided or is materially aiding an act, practice, omission, or course ofbusiness constituting a violation of this section or a rule adopted ororder issued pursuant thereto, the director may maintain a civil action forrelief authorized under section 374.048, RSMo. A violation of this sectionis a level two violation under section 374.049, RSMo.
(RSMo 1939 § 6017, A.L. 1967 p. 516, A.L. 2007 S.B. 66)