Material Transactions Between Affiliates Under Section

382.195.1(7), RSMo PURPOSE: This rule specifies certain material transactions involving a domestic insurer and any person in its holding company system, which transactions are not to be entered into unless the insurer has notified the director in writing of its intention to enter into such a transaction at least thirty (30) days prior thereto, or such shorter period as the director may permit, and the director has not disapproved such transaction. (1) The transactions specified within or under section (2) of this rule constitute material transactions which the director determines may adversely affect the interests of the insurer’s policyholders within the meaning of section 382.195.1(7), RSMo. (2) Any agreement, arrangement, or contract, except for those agreements, arrangements, or contracts covered by subdivisions (1) through (6) of section 382.195.1, RSMo, in which the consideration to or from or anticipated to or from the domestic insurer has a value exceeding one-half of one percent (0.5%) of the domestic insurer’s admitted assets as of the thirty-first day of December next preceding, involving a domestic insurer and any person in its insurance holding company system, including amendments or modifications of affiliate agreements previously filed under section 382.195, RSMo, shall not be entered into unless the insurer has notified the director in writing through use of Form D to 20 CSR 200-11.101 of its intention to enter into such transaction at least thirty (30) days prior thereto, or such shorter period as the director may permit, and the director has not disapproved it within such period (see section 382.195.1, RSMo). (3) Section 382.195.1, RSMo requires that the notice for amendments or modifications include the reasons for the change and the financial impact on the domestic insurer. (4) A domestic insurer shall not enter into transactions, whether described in section (2) of this rule or subsection 1. of section 382.195, RSMo, which are part of a plan or series of like transactions with persons within the insurance holding company system if the purpose or effect of those separate transactions is to avoid the statutory or regulatory threshold amount and thus avoid the review that would occur otherwise. If the director determines that such separate transactions were entered into over any twelve- (12-) month period for such purpose, the director may exercise the director’s authority under section 382.265, RSMo. AUTHORITY: sections 374.045 and 382.195, RSMo 2016.* Original rule filed June 14, 2001, effective Dec. 30, 2001. Amended: Filed Dec. 13, 2018, effective July 30, 2019. *Original authority: 374.045, RSMo 1967, amended 1993, 1995, 2008 and 382.195, RSMo 1992, amended 2015.