Form A Statements Filed with the Missouri Department of Commerce & Insurance
Any person seeking to acquire control of a Missouri domestic insurer must file a Form A Statement with and obtain the approval of the Director of the Missouri Department of Commerce and Insurance. See sections 382.040-382.095, RSMo, and 20 CSR 200-11.101. House Bill 50 (2015), effective on August 28, 2015, includes new Form A Statement requirements relating to enterprise risk management (“ERM”) at section 382.050.1(13) and (14), RSMo, and the companion filing of a Form E pre-acquisition notification pursuant to sections 382.040.3 and 382.095, RSMo.
Standards
The Director reviews each Form A Statement to determine:
- If, after the change of control the domestic insurer will be able to satisfy the requirements for the issuance of a license to write the line or lines of insurance for which it is presently licensed;
- The effect of the acquisition of control on competition in insurance in this state;
- If the financial condition of any acquiring person might jeopardize the financial stability of the domestic insurer or prejudice the interest of its policyholders;
- The fairness, reasonableness and public interest of any plans or proposals which the acquiring person has for the insurer, its assets, its business or corporate structure, or its management;
- The competence, experience and integrity of the persons who will control the operations of the domestic insurer; and
- If the acquisition is likely to be hazardous or prejudicial to the insurance buying public.
Under section 382.060, "[t]he director shall approve any merger or other acquisition of control referred to in section 382.040 unless after a public hearing" the director makes certain findings. The director reserves the right to hold a hearing on any given Form A. Under section 382.060.3, the director is required to make a determination within thirty days after the conclusion of any such hearing.
The table below shows the filing and disposition of recent Form A Statements.