§ 379.1388 — Recognition of admitted assets — value of assets.

Missouri § 379.1388

• Jurisdiction: Missouri
• Title XXIV: BUSINESS AND FINANCIAL INSTITUTIONS
• Ch. 379: Insurance Other Than Life

Text

1.  A SPLRC may recognize as an admitted asset on its financial statements filed with the director:

(1)  Permitted investments;

(2)  Letters of credit;

(3)  Financial guarantee policies issued for the sole benefit of the ceding company by an insurer having a rating of no less than AAA by Standard and Poor's or less than AAA by Moody's Investor Service; and

(4)  Surety bonds issued for the sole benefit of the ceding company by an insurer having a rating of no less than AAA by Standard and Poor's or no less than AAA by Moody's Investors Service.

2.  (1)  The assets of a SPLRC shall be valued in the same manner as the assets of a Missouri domestic life insurer; however, letters of credit, financial guarantee policies, and surety bonds issued without recourse to the SPLRC, or with recourse to the SPLRC with a priority no higher than afforded to class 7 claims under section 375.1218 , shall be valued as follows.  Letters of credit shall be valued at the amount available for drawings by the SPLRC or its ceding company as of the time of valuation.  A financial guarantee policy shall be valued at the amount available to pay aggregate claims as of the time of valuation.  A surety bond shall be valued at the amount available to pay aggregate claims as of the time of valuation.

(2)  Notwithstanding the preceding, the director may by order authorize a SPLRC to value one or more of its assets through an alternative method.

Legislative History

(L. 2007 S.B. 215, A.L. 2009 H.B. 577)