PURPOSE: This rule describes the method by which a company may obtain from the director an extension of the ten-year limitation on holding title to real estate and describes the accounting procedures for property. This rule was adopted pursuant to the provisions of section 374.045, RSMo and implements section 375.330, RSMo.

1. (1) For good cause shown, the director may extend the present ten (10)-year limitation on holding title to real estate, the limitation being contained in section 375.330(4) and (5), RSMo. The extension must be preceded by a formal petition for extension filed by the insurers requesting same which may contain allegations of due diligence and reasonable efforts to sell or dispose of the realty prior to the expiration of ten (10) years, evidence of late and independent appraisals and any other fact or circumstance pertaining to the realty which would justify the extension prayed for in the petition.
2. (2) If the extension is granted and the insurer carries the realty as an admitted asset on its books, the director may elect to have the property appraised at company expense, the director to select the appraisers. The company may claim the fair market value established by the appraisal and, unless the ledger book value is less than appraised value, may carry same at its fair appraised value. If the insurer’s ledger book value is less than the appraised value, the ledger book value will prevail. In all cases where the book value is greater than the present market value, the difference must be charged off and no longer carried as a company asset.

AUTHORITY: sections 374.045, RSMo 1986 and 375.330, RSMo Supp. 1990.* This rule was previously filed as 4 CSR 190-11.060 and 20 CSR 200-1.100. Original rule filed July 27, 1964, effective Aug. 7, 1964. Amended: Filed Dec. 5, 1969, effective Dec. 15, 1969. Amended: Filed Aug. 5, 1974, effective Aug. 15, 1974. Amended: Filed Aug. 4, 1992, effective April 8, 1993. *Original authority: 374.045, RSMo 1967 and 375.330, RSMo 1939, amended 1945, 1947, 1949, 1957, 1961, 1979, 1985, 1990. Op. Atty. Gen. No. 52, Leggett (12-30-55). Stipulated premium plan life insurance companies are subject to sections 375.330 and 376.300, RSMo (1949). Restrictive provisions in section 375.330, RSMo (1949) touching purchase of realty do not apply to acquisitions by gift without valuable consideration, but do apply to subsequent holding and conveying of real estate. Common capital stock of holding company may be acquired by gift without valuable consideration by stipulated premium plan life insurance company, but subsequent holding of this stock violates section 376.300, RSMo (1949). Method of valuation of real estate acquired by stipulated premium plan life insurance company by gifts is not prescribed by statute and must be left to discretion of superintendent of Division of Insurance and company officers.