376.410. Insurance companies to maintain reserves--exemptions.
Insurance companies to maintain reserves--exemptions.
376.410. Except as provided in subdivision (6) of this section, allcompanies organized under the laws of this state, and engaged in writingpolicies of accident or health insurance, or combination policies of accidentand health insurance, and all other companies transacting such kinds ofbusiness in this state, shall maintain reserves thereon in accordance with thefollowing requirements:
(1) On all such policies actually written there shall be maintained anunearned gross premium reserve which reserve may be computed on a pro ratabasis or such reserve may be computed at not less than fifty percent of thegross premiums in force;
(2) On all such policies written on a noncancellable plan and under theterms of which the company is obligated to renew or continue for a statedperiod, or to a stated age or for life, there shall be maintained active lifereserves and reserves for losses in amounts not less than such minimumstandards which the director of the department of insurance, financialinstitutions and professional registration shall determine and prescribe aftergiving proper consideration to the terms and conditions of the policiesinvolved;
(3) On all such policies other than those written on a noncancellableplan there shall be maintained reserves for losses in amounts not less thanthe minimum standards which the director of the department of insurance,financial institutions and professional registration shall determine andprescribe after giving proper consideration to the terms and conditions of thepolicies involved;
(4) In the calculation of reserves required to be maintained under thissection, proper credit shall be allowed for reinsurance in other companieslicensed to do business in this state;
(5) In addition to the minimum reserves mentioned above the director ofthe department of insurance, financial institutions and professionalregistration may also require such companies to maintain reserves forextraordinary losses in amounts not less than such minimum standards which thedirector of the department of insurance, financial institutions andprofessional registration shall determine and prescribe after giving properconsideration to the terms and conditions of the policies involved;
(6) This section shall not be applicable to total and permanentdisability benefits, or to accidental death benefits, contained in orsupplementary to life insurance policies or other contracts and for whichbenefits the standard of valuation is prescribed by section 376.380.
(L. 1945 p. 1000 § 6077a)