PURPOSE: This rule specifies certain material transactions involving a domestic insurer and any person in its holding company system, which transactions may not be entered into unless the insurer has notified the director in writing of its intention to enter into such a transaction at least thirty (30) days prior thereto, or such shorter period as the director may permit, and the director has not disapproved such transaction.

1. (1) The transactions specified within or under section (2) of this rule constitute material transactions which the director determines may adversely affect the interests of the insurer’s policyholders within the meaning of section 382.195.1(5), RSMo.

2. (2) Each of the following transactions involving a domestic insurer and any person in its holding company system may not be entered into unless the insurer has notified the director in writing through use of Form D to 20 CSR 200-11.101 of its intention to enter into such transaction at least thirty (30) days prior thereto, or such shorter period as the director may permit, and the director has not disapproved it within such period (see section 382.195.1, RSMo):

   1. (A) Any tax allocation agreement, arrangement or contract; and
   2. (B) Any other agreement, arrangement, or contract, except for those agreements, arrangements or contracts covered by subsection (2)(A) of this rule or subdivisions (1) through (4) of section 382.195.1, RSMo, in FINANCIAL INSTITUTIONS AND PROFESSIONAL REGISTRATION

which the consideration by or from or anticipated by or from the insurer has a value exceeding one-half of one percent (0.5%) of the insurer’s admitted assets as of the thirtyfirst day of December next preceding.

1. (3) A domestic insurer may not enter into transactions, whether described in section (2) of this rule or subsection 1. of section 382.195, RSMo, which are part of a plan or series of like transactions with persons within the holding company system if the purpose of those separate transactions is to avoid the statutory or regulatory threshold amount and thus avoid the review that would occur otherwise. If the director determines that such separate transactions were entered into over any twelve (12)-month period for such purpose, the director may exercise the director’s authority under section 382.265, RSMo.

AUTHORITY: sections 374.045 and 382.195, RSMo 2000.* Original rule filed June 14, 2001, effective Dec. 30, 2001. *Original authority: 374.045, RSMo 1967, amended 1993, 1995; 382.195, RSMo 1992.