Missouri § 380.131 - Loss or judgment against company, business basis to determine procedure — failure to pay assessment, effect.
Full text of Missouri Revised Statutes of Missouri § 380.131 — Loss or judgment against company, business basis to determine procedure — failure to pay assessment, effect., with citation guidance and answers to common questions.
§ 380.131. Loss or judgment against company, business basis to determine procedure — failure to pay assessment, effect.
1. After receiving notice of any loss or damage to a member's property or after the rendition of any judgment against a company, the directors of a company operating solely on an assessment basis shall verify such loss, damage or judgment and shall assess each member an amount in proportion to the amount of risk such member has with the company. Failure to pay the assessment within thirty days of notification shall justify the company in cancelling a member's policy and returning a member's deposit after deducting the amount of the assessment owed.
2. If a company has chosen to operate on a premium plus assessment basis, it shall pay all losses and judgments from premiums received or amounts collected on promissory notes. The amount deducted from each member's premiums paid or demanded from each member's promissory note shall bear such relationship to the total loss as that member's total premium bears to the total premiums collected in the calendar year that the loss is incurred. If such funds are insufficient to cover the loss or judgment, the directors may assess each member in the same manner; but, there shall not be more than one assessment for losses in any calendar year. The directors may borrow sufficient funds to pay losses until such time as they may collect the assessment. Failure to pay any assessment within thirty days of notification shall justify the company in cancelling a member's policy.
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(L. 1984 H.B. 1498)
Effective 1-01-85
---- end of effective 01 Jan 1985 ----
Source: official Missouri text · Last verified 2026-08-27
Frequently Asked Questions About Missouri § 380.131
What does Revised Statutes of Missouri § 380.131 cover?
Section 380.131 ("Loss or judgment against company, business basis to determine procedure — failure to pay assessment, effect.") is part of the Revised Statutes of Missouri, the codified statutory law of Missouri. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Missouri § 380.131?
A common citation format is "Revised Statutes of Missouri § 380.131" (Missouri). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Missouri law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Missouri official source linked on this page or consult a licensed Missouri attorney.
How does Missouri § 380.131 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Missouri can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Missouri.