Section 379.1353

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 379

Effective - 28 Aug 2007   

  379.1353.  Definitions. — As used in sections 379.1353 to 379.1421, the following terms shall mean:

  (1)  "Affiliate", a company that controls, is controlled by or under common control with the special purpose life reinsurance captive "SPLRC" as defined in this section;

  (2)  "Affiliated agreements", written agreements, including an SPLRC contract, between an SPLRC and its affiliate;

  (3)  "Ceded reinsurance agreements", reinsurance agreements entered into by the SPLRC with affiliates or unaffiliated parties for the purpose of obtaining reinsurance for all or some portion of the risks assumed by the SPLRC under SPLRC contracts;

  (4)  "Ceding company", the insurer ceding business to the SPLRC under the SPLRC contract;

  (5)  "Department", the Missouri department of commerce and insurance;

  (6)  "Director", the director of the Missouri department of commerce and insurance or its successor agency or his or her designee;

  (7)  "Financial guarantee policy", a financial guarantee policy issued by an insurer licensed to issue financial guarantee insurance policies by the director;

  (8)  "Letters of credit", clean, irrevocable, evergreen letters of credit issued meeting the requirements of subdivision (2) of section 375.246, and regulations issued thereunder that are issued or confirmed by a qualified United States financial institution or guaranteed by a financial guarantee insurance company authorized to issue financial guarantee insurance policies in the state of Missouri;

  (9)  "Organizational documents", means the SPLRC's articles of organization, bylaws, operating agreement or other foundational document that establishes the SPLRC as a legal entity or prescribes its existence;

  (10)  "Permitted investments", investments as authorized by sections 376.291 to 376.307 or as specifically authorized by the director by order;

  (11)  "Rule", a rule promulgated by the director in accordance with the authority granted by section 379.1421;

  (12)  "SPLRC" or "special purpose life insurance captive", a captive insurance company that has received a license from the director for the limited purposes provided for in sections 379.1353 to 379.1421;

  (13)  "SPLRC contract", a written contract between the SPLRC and the ceding company under which the SPLRC agrees to provide reinsurance protection to the ceding company for risks associated with the ceding company's written or assumed annuity, life insurance or accident and health insurance business;

  (14)  "State", the state of Missouri;

  (15)  "Surety bond", a surety bond issued by an insurer licensed to issue surety bonds by the director;

  (16)  "Surplus note", an unsecured subordinated debt obligation, including any contingent obligation for the repayment of a sum of money upon a written agreement that the loan or advance with interest shall be repaid only out of funds as specified in the approved plan of operation, or any approved amendment thereto;

  (17)  "Swap agreements", an agreement to exchange or to net payments at one or more times based on the actual or expected price, level, performance or value of one or more underlying interests.

­­--------

(L. 2007 S.B. 215)