PURPOSE: This rule effectuates or aids in the interpretation of sections 376.350 and 379.105, RSMo, regarding annual reports by insurers which are in receivership proceedings for rehabilitation or liquidation. In addition, this rule implements the provisions of sections 375.1166.2 and 375.1176.6(1), RSMo, regarding periodic financial reports. Insurance companies should be as publicly accountable after rehabilitation or liquidation as before. Section 375.1176.1, RSMo contains a legislative finding: "The liquidation of any insurer shall be considered the business of insurance for purposes of application of any law of this state." The business of insurance is affected with public interest. State ex rel. Mackey v. Hyde, 315 Mo. 681, 286 SW 363 (1926).
Publicly accountable insurance receiverships are, therefore, likewise in the public interest. Indeed, the public interest is even greater with regard to liquidations because the assessments insurance companies pay to guarantee associations due to insolvencies are credited against their premium taxes otherwise due the state under sections 375.774.3 and 376.745.1, RSMo. Effectively, therefore, Missouri taxpayers bear the cost of insurance insolvencies to the extent that amounts paid by guaranty associations to policyholders exceed the amounts received by guaranty associations from insurance company receiverships. Public accountability can be achieved only through the application of uniform standards so that the public may compare one receivership with another in the same way that insurers' financial performance are compared.
PUBLISHER'S NOTE: The secretary of state has determined that the publication of the entire text of the material which is incorporated by reference as a portion of this rule would be unduly cumbersome or expensive. Therefore, the material which is so incorporated is on file with the agency who filed this rule, and with the Office of the Secretary of State. Any interested person may view this material at either agency's headquarters or the same will be made available at the Office of the Secretary of State at a cost not to exceed actual cost of copy reproduction. The entire text of the rule is printed here. This note refers only to the incorporated by reference material.
(1...
