377.050. Emergency fund--accumulation--purpose--replacement.
Emergency fund--accumulation--purpose--replacement.
377.050. 1. Corporations organized or doing the business of lifeinsurance under sections 377.010 to 377.190 shall provide for the accumulationof an emergency fund, which shall be not less than the proceeds of one deathassessment on all policy or certificate holders thereof; corporationsorganized or doing the business of casualty insurance under sections 377.010to 377.190 shall provide in like manner for the accumulation of an emergencyfund, which shall be equal to the amount of the maximum policy or certificatewhich they issue. Said fund shall be accumulated by existing corporationswithin six months from the date of accepting the provisions of sections377.010 to 377.190, by all others within six months from the date of theirincorporation; which fund, together with the income thereon, shall be a trustfund for the payment of death claims or other benefits provided for in theirpolicies or certificates, and shall be invested in securities in whichinsurance companies are allowed by law to invest their capital.
2. These securities shall be deposited in trust with the director of thedepartment of insurance, financial institutions and professional registrationof the state, but the corporation shall at all times have the right toexchange any part of said securities for others of a like amount andcharacter.
3. If, in any period of six months, the death rate of any suchcorporation shall be in excess of the annual rate of mortality as shown by theAmerican life tables, it shall be lawful for such corporation to draw out anyportion of said securities necessary to meet such excess, by requisitionsigned by two-thirds of its directors, which, upon proper proof of said factsto the state director of the department of insurance, financial institutionsand professional registration, shall also be endorsed by him setting forththat the same is to be used for the purposes of said trust.
4. In case the amount so drawn out shall reduce such fund below theamount so required to be provided for, it shall be the duty of saidcorporation to make up the said deficiency within six months thereafter; saidsecurities to be deposited in some safe deposit in the city of St. Louis, tothe joint credit of the director of the department of insurance, financialinstitutions and professional registration and the corporation making thedeposit.
(RSMo 1939 § 5860)Prior revisions: 1929 § 5749; 1919 § 6159; 1909 § 6954
CROSS REFERENCE:
Bonds and evidence of debt, how valued, RSMo 376.320