November 12, 2014

Chief Regulator Huff addresses Missouri Association of Mutual Insurance Companies at annual conference

MAMIC recognized for 119 years of protecting policyholders

Jefferson City, Mo. - Missouri Department of Insurance Director John M. Huff spoke about the importance of having a diverse insurance market in Missouri at the Missouri Association of Mutual Insurance Companies (MAMIC) awards luncheon this week. He also discussed a new regulation amendment that will update limitations on allowed investments for mutual insurance companies. Huff addressed nearly 500 producers, insurers and industry at the association’s annual awards luncheon in Columbia.

"The modernization of investment rules for 380 Companies will allow for flexibility on investments while maintaining conservative portfolios," said Huff. "As regulators, we worked with the industry to reach a consensus on this rule."

Huff said the department will be filing the rule amendment to 20 CSR 200-12.020 with the Missouri Secretary of State this week. The rule amendment addresses one of the last remaining investment rules in Missouri's insurance code to base investments on percentage of total assets, rather than percentage of total surplus. Total surplus is a superior measure of a company's relative health, as compared to total assets.

Additionally, Huff stressed the importance of maintaining a diverse insurance market. He said it takes internationally active insurance groups, large national carriers, regional carriers, Missouri-only carriers, Missouri mutual companies and captives working in concert to best provide the insurance products needed to protect Missouri consumers and businesses.

MAMIC was established in 1895 to preserve and safeguard the financial security of small county mutual insurance companies. The association's board of directors is composed of leaders who reside in the rural communities that they serve.