376.673. Life insurance policies, regulations relative to. - Missouri Statutes

Life insurance policies, regulations relative to.

376.673. 1. No life insurance policy shall be issued ordelivered in this state after October 13, 1967, which:

(1) By its terms expressly provides that the policyholderwill participate in the distribution of earnings or surplus otherthan earnings or surplus attributable, by reasonable andnondiscriminatory standards, to the participating policies of thecompany and allocated to the policyholder on reasonable andnondiscriminatory standards; or

(2) Through sales material or oral presentations, isrepresented by the company or its agent to prospectivepolicyholders as entitling the policyholder to the benefitsdescribed in subdivision (1) of this subsection; or

(3) By its terms expressly provides that the policyholderwill receive some preferential or discriminatory advantage orbenefit not available to persons who purchase insurance from thecompany at future dates or under other circumstances; or

(4) Through sales material or oral presentations isrepresented by the company or its agent to prospectivepolicyholders as entitling the policyholder to the benefitsdescribed in subdivision (3) of this subsection.

2. Life insurance policies providing for the payment of aseries of pure endowments maturing periodically during thepremium paying period of the policy which are issued or deliveredin this state after October 13, 1967, shall be subject to thefollowing provisions:

(1) No detachable coupons or certificates or passbooks maybe used. No other device may be used which tends to emphasizethe periodic pure endowment benefits or which tends to create theimpression that the pure endowments represent interest earningsor anything other than benefits which have been purchased by partof the policyholder's premium payments.

(2) Each pure endowment benefit must have a fixed maturitydate and payment of the pure endowment benefit shall not becontingent upon the payment of any premium becoming due on orafter the maturity date.

(3) The pure endowment benefits must be expressed in dollaramounts rather than as percentages of other quantities or inother ways, both in the policy itself and in the sale thereof.

(4) The pure endowment premiums shall be calculated withmortality, interest, and expense factors which are consistentwith those for the basic policy premium and it shall be noted inbold type on the face of the policy that "a portion of thepremium is used to pay the annual endowment".

(5) No insurance company, insurance agent, solicitor, norinsurance company representative, shall, as a competitive ortwisting device, inform any policyholder or prospectivepolicyholder that any insurance company was required to change apolicy form or related material to comply with the provisions ofthis law.

(L. 1967 p. 516)