PURPOSE: The purpose of this rule is to prescribe forms and procedures to be followed in forming an insurance company organized under the laws of the state of Missouri. This rule also effectuates and aids in the interpretation of sections 376.010–376.120, RSMo (life insurance companies) and sections 379.010–379.065, RSMo (insurance companies other than life).

1. (1) The procedures outlined in section (2) of this rule are the procedures required for the successful formation of a Missouri domestic insurance company authorized to transact an insurance business in this state. The steps outlined in subsections (A) through (E) of section (2) are set forth in the required chronological order beginning with the first step.

2. (2) A Missouri domestic insurance company shall be formed in accordance with the following procedures and forms:

   1. (A) The incorporators form the corporation that will become an insurance company organized under the laws of the state of Missouri. The incorporators must:

      1. 1. Issue a declaration of intent to form

an insurance company and state its articles of incorporation to comply with the requirements of Missouri law. See sections 376.010 to 376.120, RSMo (life insurance companies) and sections 379.010 to 379.065, RSMo (other than life). Particular attention should be paid to the requirements for the number and residence of the members of the board of directors and the place where the principal office for the conduct of the insurance company’s business will be conducted. Such place must be stated with sufficient specificity so that an examiner can verify that in fact the insurance company’s principal business will be located at the address stated;

1. 2. Publish the declaration and the arti-

cles as required by law; and

1. 3. File with the Division of Financial

Regulation (DFR) of the Missouri Department of Insurance (MDI) an affidavit of publication from the publisher of the declaration and articles, and the articles in triplicate original;

1. (B) If the insurance company’s filings under paragraph 3 of subsection (A) are in compliance with the applicable laws and regulations relating to a Missouri domestic insurance company, the DFR will cause the articles to be reviewed by the Missouri attorney general (AG). Upon receipt of the AG’s certification, the DFR will file the articles and a copy of the AG’s certification with the Missouri secretary of state for the issuance of a certificate of incorporation. (The secretary of state may require the payment of certain fees and taxes before issuing the certificate of incorporation);

2. (C) Upon receipt of a copy of the certificate of incorporation, the company shall:

   1. 1. Form its board of directors, appoint

officers, issue stock (if a stock company) or take deposits if a mutual company;

1. 2. Place the proceeds from the stock

subscription or deposits into accounts (including the deposit with Department of Insurance);

1. 3. File with the MDI’s Property and

Casualty Section or the Life and Health Section (whichever is applicable) any premium rates, policy forms or endorsements as may be needed to transact the insurance company’s business; and

1. 4. Submit to the DFR a completed

Uniform Certificate of Authority Application (UCAA)—primary application. Upon request, the DFR will provide information regarding:

1. A. How to obtain the appropriate

UCAA form (including any forms specific to Missouri under the UCAA review process); and

1. B. The application of the statutory

standards for evaluating an application for a certificate of authority;

1. (D) Upon notice from the company that the steps listed in subsection (C) have been completed, the DFR will contact the insurance company to schedule a pre-licensing examination. Among other things, the examination will verify the statutory deposit, compliance with financial requirements, the location of the insurance company’s principal place of business, the filing of any necessary policy or endorsement forms, and the competency and integrity of the insurance company’s officers and directors; and
2. (E) Based upon the recommendation in the report of the pre-licensing examination, the DFR will cause the completion of the formation process. Formation is complete upon the issuance by the director of the MDI of a certificate of authority to transact the business of insurance in this state.

AUTHORITY: section 374.045, RSMo 2000.* Original rule filed June 14, 2001, effective Dec. 30, 2001. 20 CSR 200-17

*Original authority: 374.045, RSMo 1967, emended 1993, 1995.