MO SB886

Repeals and replaces five sections of Missouri law relating to malpractice insurance provided by assessable associations, effective August 28, 2012.

Requires assessable associations to maintain a minimum policyholder's surplus of $600,000, with a phased implementation allowing associations licensed before February 9, 2012 to meet lower interim thresholds ($200,000 by December 31, 2012; $400,000 by December 31, 2013).

Limits the ratio of net written premiums to policyholders' surplus to 3:1 without director approval, with phased implementation allowing existing associations higher ratios until they reach 3:1 by December 31, 2014.

Exempts associations that obtain reinsurance coverage meeting specified percentages based on surplus level, with annual caps of at least 250% of net written premium.

Establishes transition period of 180 days following August 28, 2012 for existing associations to comply with amended requirements or face suspension of certificate of authority and cease-and-desist orders.