SB 660 – Requires Missouri Employers Mutual Insurance Company to transition into a private mutual insurance company by January 1, 2013, and requires it to transfer $127 million of its surplus to General Revenue

• Sponsor: Schmitt
• LR Number: 5367S.01I
• Committee: Small Business, Insurance and Industry
• Last Action: 3/20/2012 - Hearing Conducted S Small Business, Insurance and Industry Committee
• Effective Date: Varies

Current Bill Summary

SB 660 - Before January 1, 2013, the board of directors of the Missouri Employers Mutual Insurance Company (MEMIC) shall perform all acts necessary to establish a successor mutual insurance company. The successor company shall operate to the same extent as any mutual casualty insurer that is licensed and authorized to write insurance in this state, subject to the authority and regulation by the department of insurance, and with all the powers and subject to all the laws, rules, and requirements of a mutual insurance company that is organized under the laws of this state.

As soon as possible between July 1, 2012, and September 1, 2012, the board of directors of the Missouri employers mutual insurance company shall transmit or cause to be transmitted one hundred twenty-seven million dollars from the company's policyholder's surplus funds to the state treasurer, who shall credit such amount to the general revenue fund.

The board of directors shall perform all necessary acts to file articles of incorporation of the successor mutual insurer corporation and shall take all necessary actions to qualify for a certificate of authority as provided by law.

Beginning January 1, 2013, the successor mutual insurance company shall become the successor in interest to all the assets and liabilities of MEMIC without any conveyance or transfer and without any further act or deed and shall be vested by operation of law with title to all property of MEMIC. The successor company shall be responsible for the obligations of the MEMIC to the same extent as though incurred originally by the successor company.

The act further provides that the director of the department of insurance is authorized to supervise MEMIC's transition into a private successor mutual insurance company.

The act repeals MEMIC's enabling legislation. The repeal of these sections become effective January 1, 2013.

The act contains an emergency clause for the provisions relating to privatization and transferring of surplus funds to the general revenue fund.

This act is similar to SB 624 (2012).

STEPHEN WITTE