MO SB685

Director of insurance may deem a property or casualty insurer in hazardous financial condition if it has any single net retained risk larger than 10 percent of the company's capital and surplus as of December 31st preceding.

Director may consider 20 standards to determine if an insurer's continued operation is hazardous to policyholders, creditors, or the public, including adverse examination reports, operating losses exceeding specified thresholds, reinsurance adequacy, and management competence.

Director may issue orders requiring insurers to reduce liability through reinsurance, limit new business, reduce expenses, increase capital and surplus, suspend dividend payments, file interim reports, or adjust premium rates as necessary.

Insurers subject to director's orders may request hearings under Chapter 536, with notice requiring 10-30 days before hearing and allowing the insurer to request a public hearing.

Establishes "company action level event" procedures requiring insurers to submit Risk-Based Capital (RBC) plans within 45 days identifying contributing conditions and proposing corrective actions with financial projections for five years.