SB 301 - This act creates the Missouri Homeowners Mutual Insurance Company Act. The Missouri Homeowners Mutual Insurance Company is created as an independent public corporation for the purpose of providing insurance coverage for the physical and personal property of Missouri home and apartment owners and renters. The company will be organized as a mutual insurance company and shall not be a state agency. The company shall be a member of the Missouri property and casualty guaranty association and shall be subject to assessments. Members of that association shall bear responsibility in the event the company becomes insolvent.
BOARD OF DIRECTORS - The company shall be administered by a board of directors consisting of 5 members. The initial members shall be appointed by the Governor with the advice and consent of the Senate. The board shall hire an administrator who shall be in charge of the day-to-day operations and management of the company.
RATE SETTING AND INVESTMENTS - The board shall have full power and authority to establish rates to be charged by the company for homeowners insurance. Rates shall be set at amounts sufficient to carry all claims to maturity, meet the reasonable expenses of conducting the business of the company and maintain a reasonable surplus. The board shall invest and reinvest the surplus or reserves of the company.
PRODUCERS MAY SELL COMPANY POLICIES - Any insurance producer licensed to sell professional negligence insurance in Missouri shall be authorized to sell homeowners insurance policies for the company.
STATE APPROPRIATIONS/OPERATING EXPENSES - The company shall not receive any state appropriation, directly or indirectly, except it may receive loans from the State Treasurer. After October 1, 2011, the State Treasurer shall make one or more loans to the company not to exceed $5 million. These monies shall come from a fund known as the Missouri Homeowners Mutual Insurance Company Loan Fund which shall be funded by the legislature by an appropriation. The loans shall be for a term of 10 years and shall bear interest at the annual rate on the rate for linked deposit loans as calculated by the state treasurer pursuant to Section 30.758.
REVENUE BONDS - The board is authorized to issue revenue bonds in an amount not to exceed $50 million. The bonds shall have a maturity of no more than 10 years from the date of issuance. The bonds may be sold at a public or a private sale.
AUDITS - The board shall have an audit of its books, accounts, and funds conducted annually by a competent and independent CPA firm. A copy of the audit shall be filed with the director of the Department of Insurance and the administrator.
The incurred loss experience and expense of the company shall be ascertained each year to include but not be limited to estimates of outstanding liabilities for claims reported to the company but not yet paid and liabilities for claims arising from losses which have occurred but have not yet been reported to the company.
The Department of Insurance shall conduct an examination of the company. The board shall pay the cost of the examination.