Corporate Surety Bond or Letter of Credit Filing Procedures

PURPOSE: This rule prescribes and clarifies the filing procedure for corporate surety bonds and letters of credit with the attorney general’s office. (1) In the event that a health spa is required by the provisions of sections 407.325— 407.340, RSMo to obtain and maintain a bond with corporate security from a company authorized by the Division of Insurance of Missouri to do surety business within Missouri or to provide a letter of credit from a bank insured by the Federal Deposit Insurance Corporation, the health spa must provide a certified copy of the surety bond or 4 (2/89)* MATT BLUNT letter of credit with each health spa initial registration statement and health spa annual renewal statement as required by sections 407.325–407.340, RSMo. (2) In the event that a health spa duly registered pursuant to the provisions of section 407.327, RSMo, sells health spa contracts or health spa services on a prepayment basis and posts a bond or letter of credit in the amount of twenty-five thousand dollars ($25,000) in lieu of establishing an account required by section 407.329, RSMo, the bond shall be obtained and maintained with corporate surety from a company authorized by the Department of Insurance of the state of Missouri and the letter of credit must be provided from a bank insured by the Federal Deposit Insurance Corporation. The health spa must provide a certified copy of the surety bond or letter of credit to the office of the attorney general prior to the sale of any health spa contracts or health spa services on a prepayment basis. The bond or letter of credit, required by section 407.329, RSMo, shall be in favor of the state of Missouri and shall be subject to all of the provisions and procedures of section 407.340, RSMo. AUTHORITY: sections 407.145, RSMo 1986, 407.329 and 407.339, RSMo Supp. 1988.* Emergency rule filed Aug. 29, 1988, effective Sept. 9, 1988, expired Dec. 24, 1988. Original rule filed Aug. 29, 1988, effective Jan. 13, 1989. *Original authority: 407.145, RSMo 1986 and 407.327, RSMo 1988. 5 MATT BLUNT (2/89)* 6 (2/89)* MATT BLUNT 7 MATT BLUNT (2/89)* 8 (2/89)* MATT BLUNT 9 MATT BLUNT (2/89)* 10 (2/89)* MATT BLUNT 11 MATT BLUNT (2/89)* 12 (2/89)* MATT BLUNT