MO HB687

Creates the Missouri Homeowners Mutual Insurance Company as an independent public corporation organized as a domestic mutual insurance company to provide homeowners and renters insurance, including earthquake coverage for single-family residences and buildings up to six units.

Establishes a five-member board of directors appointed by the governor with senate confirmation, with staggered five-year terms and subsequent directors elected by policyholders; directors must have no conflicts of interest with insurance entities and be of good moral character.

Authorizes the state treasurer to make loans up to $5 million to the company from a special "Missouri Homeowners Mutual Insurance Company Loan Fund" for a ten-year term at linked deposit loan rates, and permits the company to issue revenue bonds up to $50 million outstanding at any time.

Requires the board to hire an administrator as chief executive officer by January 1, 2012, with the company fully operational by January 1, 2013; rates must be actuarially sound and self-supporting with all claims paid and reasonable surplus maintained.

Mandates annual independent audits, reports to the governor and general assembly, board approval of budgets, and oversight by the Department of Insurance; company is subject to all private insurance carrier regulations and member of the Missouri property and casualty guaranty association.