Mo. Code Regs. tit. 12 § 40-60.040

Current through Register Vol. 49, No.12, June 17, 2024

Section 12 CSR 40-60.040 - Requirements for Annuity Sellers

PURPOSE: This amendment conforms the rule to current practice.

PURPOSE: The purpose of this rule is to set out the requirements for annuity sellers who may bid to provide periodic prize payments to lottery winners.

(1) To be eligible to contract with the director to provide periodic payments of a prize to a lottery winner through an annuity, the annuity company must meet the following requirements:

(A) A policyholder or general rating of A+ as rated by A.M. Best;

(B) A financial size rating of VIII or higher as rated by A.M. Best;

(C) A portfolio quality rating of Excellent as rated by A.M. Best;

(D) A minimum of seventy-five percent (75%) of the annuity company's gross revenues must be derived from the business of providing life, health and related products (not from the property and casualty business); and

(E) The company must be headquartered in the United States.

(F) The company must possess a current certificate of authority from the director of the Department of Insurance, Financial Institutions and Professional Registration to transact the business of insurance which authorizes the company to issue annuities.

12 CSR 40-60.040

AUTHORITY: section 313.230(2), RSMo 1986.* Original rule filed Jan. 23, 1986, effective Feb. 1, 1986. Amended: Filed March 17, 1987, effective June 11, 1987.

Amended by Missouri Register January 15, 2015/Volume 40, Number 02, effective 2/28/2015

Amended by Missouri Register May 15, 2018/Volume 43, Number 10, effective 7/2/2018

*Original authority: 313.230(2), RSMo 1985, amended 1988, 1990, 1993.