A group that forms this kind of association can start doing business seven days after forming. The association works like a corporation. Members are only responsible for paying their set dues — nothing more. The association cannot share its money or property with members except to pay out claims or when the group shuts down for good. The one exception is that the association can pay dividends to members, but only if it has extra money left over both before and after paying those dividends.
537.635. to be treated as — not to produce profit — may pay , when. — The may, on the seventh day thereafter, commence to do business. The association shall be a , and shall do business as a corporation. No member of the association shall be for any amounts because of his or her membership in the association other than his or her as provided in the and the of the association. The business of the association shall be conducted so as to any of income, profit or property of the association to the individual members thereof except in payment of or or upon the of the association, but the association may pay dividends to its members as long as the association has a positive both before and after any such is declared.
Tap any gold-underlined word to see what it means.
Source & history notes
(L. 1978 H.B. 1650 § 6, A.L. 1999 S.B. 28)
Related Missouri laws
Director to approve articles and issue license
RSMo 537.630
Director to examine
RSMo 537.640
Procedure to form insurance entity
RSMo 537.625
Director may take charge of entity, when
RSMo 537.645
Political subdivisions may jointly create entity to provide insurance
RSMo 537.620
Premium tax not required
RSMo 537.650
Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.