MO SB978

Repeals and replaces sections 375.1152 and 375.1155, RSMo, and adds new section 375.1191 governing qualified financial contracts and netting agreements in insurance insolvency proceedings

Defines "qualified financial contract" to include commodity contracts, forward contracts, repurchase agreements, securities contracts, swap agreements, and similar instruments as determined by the director

Defines "netting agreement" as contracts documenting qualified financial transactions that provide for netting, liquidation, setoff, termination, acceleration, or close out of obligations among parties

Prohibits stays or injunctions preventing counterparties from exercising contractual rights to terminate, liquidate, or accelerate qualified financial contracts and netting agreements when an insurer becomes insolvent or enters a delinquency proceeding

Allows counterparties to set off or net termination values and payment obligations under qualified financial contracts, subject to restrictions, and requires receivers to transfer net settlement amounts owed by nondefaulting parties to the insurer's receiver