379.085. Mutual companies doing fire and marine business, agreements and securities--violation, penalty.
Mutual companies doing fire and marine business, agreements andsecurities--violation, penalty.
379.085. 1. No company formed upon the mutual plan for thepurpose of doing the fire and marine business designated in thefirst of the three classes of insurance named in section 379.010shall commence or continue to do business until it has a surplusor guaranty fund of one million six hundred thousand dollars andagreements have been entered into for insurance with at least twohundred applicants, the premiums on which shall amount to notless than one hundred thousand dollars which shall have been paidin cash. Annual cash premiums shall not exceed five hundreddollars each, and no policy shall be issued for a longer termthan five years.
2. Except that any mutual company formed upon the mutualplan for the purpose of doing the fire and marine businessdesignated in the first of the three classes of insurance namedin section 379.010 and licensed to do business in this state onJuly 1, 1987, which did not maintain an aggregate amount of atleast one million six hundred thousand dollars as a guaranty fundor policyholders' surplus on December 31, 1986, may renew itslicense for business specified therein if it annually maintainsagreements with two hundred applicants, the premiums from whichamount to not less than one hundred thousand dollars, and if itmaintains an aggregate amount of not less than eight hundredthousand dollars as a guaranty fund or policyholders' surplus, ifall other conditions have been met, until December 31, 1989, atwhich time the provisions of subsection 1 of this section shallbe met.
3. Violation of any of the provisions of this section by aninsurer is grounds for the revocation of its certificate ofauthority by the director.
(RSMo 1939 § 5919, A.L. 1963 p. 485, A.L. 1977 S.B. 368, A.L. 1987 H.B. 700)Prior revisions: 1929 § 5808; 1919 § 6218; 1909 § 7009
Effective 7-1-87
CROSS REFERENCE:
Substitution of securities, collection of income therefrom, RSMo 375.460