MO SB60

Repeals and reenacts section 375.246 of Missouri law, effective January 1, 2014, modifying requirements for reinsurance credit allowed to domestic insurers.

Establishes a new "certified reinsurer" category requiring assuming insurers to be domiciled in qualified jurisdictions, maintain minimum capital and surplus, obtain financial strength ratings from two or more rating agencies, and submit to Missouri jurisdiction.

Allows credit for reinsurance ceded to accredited reinsurers maintaining at least $20 million surplus, with modified eligibility language requiring reinsurers to demonstrate adequate financial capacity to meet obligations rather than automatic approval based solely on surplus levels.

Requires domestic insurers to manage reinsurance recoverables and diversify their reinsurance programs, with notification to the director within 30 days when concentrations exceed 50 percent of surplus or 20 percent of gross written premium.

Maintains requirements for reinsurance security through trust funds or letters of credit, with minimum trusteed surplus of $20 million for single assuming insurers and $10 million for multibeneficiary trusts maintained by certified reinsurers.