MO SB301

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 coverage, including earthquake coverage for single-family and multi-family buildings up to six units.

Establishes a five-member board of directors appointed by the governor with senate confirmation by January 1, 2012, with staggered five-year terms; subsequent directors elected by policyholders; board members cannot have interests in other insurance companies and must be of good moral character.

Requires the board to hire an administrator by January 1, 2012, with the company fully operational by January 1, 2013; board has full authority to manage the company, establish rates using independent actuaries, and maintain self-supporting operations.

Authorizes up to $5 million in state loans from the Missouri Homeowners Mutual Insurance Company Loan Fund for ten-year terms at linked deposit loan rates, and allows the company to issue up to $50 million in revenue bonds payable from premiums with no more than 50 percent sold to public entities.

Requires annual independent audits filed with the insurance director, annual reports to the governor and general assembly by March 1st, and subjects the company to all provisions and examinations applicable to private insurance carriers.