Section 380.071

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 380

Effective - 01 Jan 1985, see footnote   

  380.071.  Unsafe operation of business — reasonable time to remedy — failure to remedy, director's powers. — 1.  If it appears to the director of the department of commerce and insurance from a statement of any company filed pursuant to the provisions of section 380.051, or upon examination of any company made pursuant to the provisions of section 380.061, or from any other knowledge or information in his possession that such company is conducting its business in an unsafe manner or that its assets are insufficient to justify the continuance of business by such company, he shall send written notice of the situation to the officers and directors of the company.

  2.  Such officers and directors may, in the discretion of the director, be allowed a reasonable time in which to remedy the situation.  If the officers and directors fail to remedy the situation after a reasonable time, or if at any time it shall appear to the director of the department of commerce and insurance that the continued operation of the company would not be in the best interests of the policyholders, the director of the department of commerce and insurance shall institute proceedings, in the circuit court in the city or county in which the company has its principal office, to enjoin or restrain the company from further prosecution of its business, either temporarily or permanently, and if the director seeks to enjoin or restrain the company permanently, he shall also institute proceedings to settle and wind up the affairs, and to liquidate and to dissolve the company.

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(L. 1984 H.B. 1498)

Effective 1-01-85