Section 375.1175

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 375

Effective - 03 Aug 2010, see footnote   

  375.1175.  Grounds for liquidation — voluntary dissolution and liquidation, conditions. — 1.  The director may petition the court for an order directing him to liquidate a domestic insurer or an alien insurer domiciled in this state on the basis:

  (1)  Of any ground for an order of rehabilitation as specified in section 375.1165, whether or not there has been a prior order directing the rehabilitation of the insurer;

  (2)  That the insurer is insolvent;

  (3)  That the insurer is in such condition that the further transaction of business would be hazardous, financially or otherwise, to its policyholders, its creditors or the public;

  (4)  That the insurer is found to be in such condition after examination that it could not meet the requirements for incorporation and authorization specified in the law under which it was incorporated or is doing business; or

  (5)  That the insurer has ceased to transact the business of insurance for a period of one year.

  2.  Notwithstanding any other provision of this chapter, a domestic insurer organized as a stock insurance company may voluntarily dissolve and liquidate as a corporation under^* sections 351.462 to 351.482, provided that:

  (1)  The director, in his or her sole discretion, approves the articles of dissolution prior to filing such articles with the secretary of state.  In determining whether to approve or disapprove the articles of dissolution, the director shall consider, among other factors, whether:

  (a)  The insurer's annual financial statements filed with the director show no written insurance premiums for five years; and

  (b)  The insurer has demonstrated that all policyholder claims have been satisfied or have been transferred to another insurer in a transaction approved by the director; and

  (c)  An examination of the insurer pursuant to sections 374.202 to 374.207 has been completed within the last five years; and

  (2)  The domestic insurer files with the secretary of state a copy of the director's approval, certified by the director, along with articles of dissolution as provided in section 351.462 or 351.468.

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(L. 1991 H.B. 385, et al. § 65, A.L. 1992 H.B. 1574, A.L. 2010 S.B. 583 with S.B. 834, A.L. 2010 H.B. 1764 referendum, Adopted August 3, 2010)

Effective 8-03-10 (H.B. 1764); 8-28-10 (S.B. 583); 8-28-10 (S.B. 834)

*Words "pursuant to" appear in original rolls of S.B. 834.