Missouri Revised Statutes
Chapter 375
Provisions Applicable to All Insurance Companies
←375.1078
Section 375.1080.1
375.1082→
August 28, 2015
Definitions.
375.1080. As used in sections 375.1080 to 375.1105, the following terms
mean:
(1) "Completed operations liability", liability arising out of the
installation, maintenance, or repair of any product at a site which is not
owned or controlled by:
(a) Any person who performs that work; or
(b) Any person who hires an independent contractor to perform that work;
but shall include liability for activities which are completed or abandoned
before the date of the occurrence giving rise to the liability;
(2) "Director", the director of the department of insurance, financial
institutions and professional registration;
(3) "Domicile", for purposes of determining the state in which a
purchasing group is domiciled, is:
(a) For a corporation, the state in which the purchasing group is
incorporated; and
(b) For an unincorporated entity, the state of its principal place of
business;
(4) "Hazardous financial condition", that, based on its present or
reasonably anticipated financial condition, a risk retention group, although
not yet financially impaired or insolvent, is unlikely to be able:
(a) To meet obligations to policyholders with respect to known claims and
reasonably anticipated claims; or
(b) To pay other obligations in the normal course of business;
(5) "Insurance", primary insurance, excess insurance, reinsurance,
surplus lines insurance, and any other arrangement for shifting and
distributing risk which is determined to be insurance under the laws of this
state;
(6) "Liability":
(a) Legal liability for damages, including costs of defense, legal costs
and fees, and other claims expenses, because of injuries to other persons,
damage to their property, or other damage or loss to such other persons
resulting from or arising out of:
a. Any business whether profit or nonprofit, trade, product, services,
including professional services, premises, or operations; or
b. Any activity of any state or local government, or any agency or
political subdivision thereof; and
(b) Does not include personal risk liability and an employer's liability
with respect to its employees other than legal liability under the Federal
Employers' Liability Act (45 U.S.C. 51 et seq.);
(7) "Personal risk liability", liability for damages because of injury to
any person, damage to property, or other loss or damage resulting from any
personal, familial, or household responsibilities or activities;
(8) "Plan of operation or a feasibility study", an analysis which
presents the expected activities and results of a risk retention group
including, at a minimum:
(a) Information sufficient to verify that its members are engaged in
businesses or activities similar or related with respect to the liability to
which such members are exposed by virtue of any related, similar or common
business, trade, product, services, premises or operations;
(b) For each state in which it intends to operate, the coverages,
deductibles, coverage limits, rates, and rating classification systems for
each line of insurance the group intends to offer;
(c) Historical and expected loss experience of the proposed members and
national experience of similar exposures to the extent that this experience
is reasonably available;
(d) Pro forma financial statements and projections;
(e) Appropriate opinions by a qualified, independent casualty actuary,
including a determination of minimum premium or participation levels required
to commence operations and to prevent a hazardous financial condition;
(f) Identification of management, underwriting and claims procedures,
marketing methods, managerial oversight methods, investment policies and
reinsurance agreements;
(g) Identification of each state in which the risk retention group has
obtained, or sought to obtain, a charter and license, and a description of
its status in each such state; and
(h) Such other matters as may be prescribed by the commissioner of the
state in which the risk retention group is chartered for liability insurance
companies authorized by the insurance laws of that state;
(9) "Product liability", liability for damages because of any personal
injury, death, emotional harm, consequential economic damage, or property
damage, including damages resulting from the loss of use of property, arising
out of the manufacture, design, importation, distribution, packaging,
labeling, lease, or sale of a product, but does not include the liability of
any person for those damages if the product involved was in the possession of
such a person when the incident giving rise to the claim occurred;
(10) "Purchasing group", any group which:
(a) Has as one of its purposes the purchase of liability insurance on a
group basis;
(b) Purchases such insurance only for its group members and only to cover
their similar or related liability exposure, as described in paragraph (c) of
this subdivision;
(c) Is composed of members whose businesses or activities are similar or
related with respect to the liability to which members are exposed by virtue
of any related, similar or common business, trade, product, services,
premises or operations; and
(d) Is domiciled in any state;
(11) "Risk retention group", any corporation or other limited liability
association:
(a) Whose primary activity consists of assuming and spreading all, or any
portion, of the liability exposure of its group members;
(b) Which is organized for the primary purpose of conducting the activity
described under paragraph (a) of this subdivision;
(c) Which:
a. Is chartered and licensed as a liability insurance company and
authorized to engage in the business of insurance under the laws of any
state; or
b. Before January 1, 1985, was chartered or licensed and authorized to
engage in the business of insurance under the laws of Bermuda or the Cayman
Islands and, before such date, had certified to the insurance commissioner of
at least one state that it satisfied the capitalization requirements of such
state, except that any such group shall be considered to be a risk retention
group only if it has been engaged in business continuously since such date
and only for the purpose of continuing to provide insurance to cover product
liability or completed operations liability;
(d) Which does not exclude any person from membership in the group solely
to provide for members of such a group a competitive advantage over such a
person;
(e) Which:
a. Has as its owners only persons who comprise the membership of the
risk retention group and who are provided insurance by such group; or
b. Has as its sole owner an organization which has as its members only
persons who comprise the membership of the risk retention group and has as
its owners only persons who comprise the membership of the risk retention
group and who are provided insurance by such group;
(f) Whose members are engaged in businesses or activities similar or
related with respect to the liability of which such members are exposed by
virtue of any related, similar or common business trade, product, services,
premises or operations;
(g) Whose activities do not include the provision of insurance other than:
a. Liability insurance for assuming and spreading all or any portion of
the liability of its group members; and
b. Reinsurance with respect to the liability of any other risk retention
group or any members of such other group which is engaged in businesses or
activities so that such group or member meets the requirement described in
paragraph (f) of this subdivision from membership in the risk retention group
which provides such reinsurance; and
(h) The name of which includes the phrase "risk retention group";
(12) "State", any state of the United States or the District of Columbia.
(L. 1991 H.B. 385, et al. § 25)
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