PURPOSE: This rule implements the provisions of section 380.471, RSMo (Cum. Supp. 1990) defining the approved investments available to extended Missouri mutual companies organized under the provisions of sections 380.201–380.591, RSMo.

1. (1) Approved Investments. The following described investments shall be deemed approved investments under the provisions of section 380.471, RSMo:

   1. (A) Corporate bonds with the following ratings:

      1. 1. Aa3 or higher by Moody’s Investors

Service; and

1. 2. AA minus or higher by Standard and

Poor’s Ratings Group;

1. (B) Commercial paper with the following ratings:

   1. 1. P-1 by Moody’s Investors Service;

and

1. 2. A-1 or higher by Standard and Poor’s

Ratings Group; and

1. (C) Home office real estate having an asset value of no more than fifty percent (50%) of the surplus in excess of the guaranty fund(s) required by section 380.271.1, RSMo, but an extended Missouri mutual company may invest in home office real estate having an asset value greater than such fifty percent (50%) with the prior approval of the director.

1. (2) Limitations. The approved investments described in section (1) of this rule shall be subject to the following limitations:

   1. (A) No more than five percent (5%) of an extended Missouri mutual’s assets may be invested in the bonds or commercial paper described in subsections (1)(A) and (B) in any one (1) issuer; and
   2. (B) No more than twenty percent (20%) of an extended Missouri mutual’s assets may be invested in the aggregate in all bonds or commercial paper described in subsections (1)(A) and (B).
2. (3) For purposes of this rule, commercial paper shall mean bills of exchange, promissory notes, bank-checks and other negotiable instruments.
3. (4) All extended Missouri mutual companies shall provide prior notice to the director of their intent to invest in accordance with the provisions of this rule.

AUTHORITY: sections 374.045, 380.471, and 380.561, RSMo 2000.* Original rule filed Oct. 24, 1991, effective March 9, 1992. Amended: Filed June 14, 2001, effective Dec. 30, 2001.

*Original authority: 374.045, RSMo 1967, amended 1993, 1995; 380.471, RSMo 1984, amended 1990; and 380.561, RSMo 1984, amended 1993, 1995. 20 CSR 200