Missouri § 377.050 - Emergency fund — accumulation — purpose — replacement.

§ 377.050. Emergency fund — accumulation — purpose — replacement.

1.  Corporations organized or doing the business of life insurance under sections 377.010 to 377.190 shall provide for the accumulation of an emergency fund, which shall be not less than the proceeds of one death assessment on all policy or certificate holders thereof; corporations organized or doing the business of casualty insurance under sections 377.010 to 377.190 shall provide in like manner for the accumulation of an emergency fund, which shall be equal to the amount of the maximum policy or certificate which they issue.  Said fund shall be accumulated by existing corporations within six months from the date of accepting the provisions of sections 377.010 to 377.190, by all others within six months from the date of their incorporation; which fund, together with the income thereon, shall be a trust fund for the payment of death claims or other benefits provided for in their policies or certificates, and shall be invested in securities in which insurance companies are allowed by law to invest their capital.

2.  These securities shall be deposited in trust with the director of the department of commerce and insurance of the state, but the corporation shall at all times have the right to exchange any part of said securities for others of a like amount and character.

3.  If, in any period of six months, the death rate of any such corporation shall be in excess of the annual rate of mortality as shown by the American life tables, it shall be lawful for such corporation to draw out any portion of said securities necessary to meet such excess, by requisition signed by two-thirds of its directors, which, upon proper proof of said facts to the state director of the department of commerce and insurance, shall also be endorsed by him setting forth that the same is to be used for the purposes of said trust.

4.  In case the amount so drawn out shall reduce such fund below the amount so required to be provided for, it shall be the duty of said corporation to make up the said deficiency within six months thereafter; said securities to be deposited in some safe deposit in the city of St. Louis, to the joint credit of the director of the department of commerce and insurance and the corporation making the deposit.

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(RSMo 1939 § 5860)

Prior revisions: 1929 § 5749; 1919 § 6159; 1909 § 6954

---- end of effective  28 Aug 1939 ----

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