§ 375.1087 — Contributions to guaranty fund prohibited — guaranty fund to cover only specified risks.

Missouri § 375.1087

• Jurisdiction: Missouri
• Title XXIV: BUSINESS AND FINANCIAL INSTITUTIONS
• Ch. 375: Provisions Applicable to All Insurance Companies

Text

1.  No risk retention group shall be required or permitted to join or contribute financially to any insurance insolvency guaranty fund, or similar mechanism, in this state, nor shall any risk retention group, or its insureds or claimants against its insureds, receive any benefit from any such fund for claims arising under the insurance policies issued by such risk retention group.

2.  When a purchasing group obtains insurance covering its members' risks from an insurer not authorized in this state or a risk retention group, no such risks, wherever resident or located, shall be covered by any insurance guaranty fund or similar mechanism in this state.

3.  When a purchasing group obtains insurance covering its members' risks from an authorized insurer, only risks resident or located in this state shall be covered by any applicable state guaranty funds.

4.  The director may require or exempt a risk retention group from participation in any mechanism established or authorized under the laws of this state for the equitable apportionment among insurers of liability insurance losses and expenses incurred on policies written through such mechanism, and such risk retention group shall submit sufficient information to the director to enable the director to apportion on a nondiscriminatory basis the risk retention group's proportionate share of such losses and expenses.

Legislative History

(L. 1991 H.B. 385, et al. § 28)