375.1506. Policies marketed without an illustration, notice to department--illustration requirements--quotation required, when. - Missouri Statutes

Policies marketed without an illustration, notice todepartment--illustration requirements--quotation required, when.

375.1506. 1. Each insurer marketing policies to which sections 375.1500to 375.1527 are applicable shall notify the director of the department ofinsurance, financial institutions and professional registration whether apolicy form is to be marketed with or without an illustration. For all policyforms being actively marketed on August 28, 1998, the insurer shall identifyin writing those forms and whether or not an illustration will be used withthem. For policy forms filed after August 28, 1998, the identification shallbe made at the time of filing. Any previous identification may be changed bynotice to the director of the department of insurance, financial institutionsand professional registration.

2. If the insurer identifies a policy form as one to be marketed withoutan illustration, any use of an illustration for any policy using that formprior to the first policy anniversary is prohibited.

3. If a policy form is identified by the insurer as one to be marketedwith an illustration, a basic illustration prepared and delivered inaccordance with sections 375.1500 to 375.1527 is required, except that a basicillustration need not be provided to individual members of a group or toindividuals insured under multiple lives coverage issued to a single applicantunless the coverage is marketed to these individuals. The illustrationfurnished an applicant for a group life insurance policy or policies issued toa single applicant on multiple lives may be either an individual or compositeillustration representative of the coverage on the lives of members of thegroup or the multiple lives covered.

4. Potential enrollees of nonterm group life subject to sections375.1500 to 375.1527 shall be furnished a quotation with the enrollmentmaterials. The quotation shall show potential policy values for sample agesand policy years on a guaranteed and nonguaranteed basis appropriate to thegroup and the coverage. This quotation shall not be considered anillustration for purposes of sections 375.1500 to 375.1527, but allinformation provided shall be consistent with the illustrated scale. A basicillustration shall be provided at delivery of the certificate to enrollees fornonterm group life who enroll for more than the minimum premium necessary toprovide pure death benefit protection. In addition, the insurer shall make abasic illustration available to any nonterm group life enrollee who requestsit.

(L. 1998 S.B. 722 § 8)