376.677. Life policies may be issued that have no cash surrender value prior to death--no policy loans so law regulating not applicable--requirements to issue. - Missouri Statutes

Life policies may be issued that have no cash surrender value prior todeath--no policy loans so law regulating not applicable--requirementsto issue.

376.677. 1. Notwithstanding any provision of section376.670, to the contrary, after September 28, 1987, a company mayissue policies of life insurance which differ from its existingor currently filed policies only in that they do not provide forany cash surrender value prior to the death of the life insured.If a policy provides for any cash surrender value, endowment, orpure endowment prior to the death of the life insured, thisexemption shall not apply. Any policy without cash surrendervalues, for which one or more cash surrender values wouldotherwise have been required, shall contain on its first page aconcise, exact description set out in contrasting type at leastfour points larger than used in the body of that page a statementin a prominent place that such values are not provided and thatno policy loans are available under the policy. The companyshall provide to each prospective purchaser of such a policy apolicy summary, the form of which shall be filed for approvalpursuant to section 376.675, which includes the same descriptionas the policy, similarly displayed, and which shows the premiumsaid company charges for the same policy when cash surrendervalues are included. Such policy summary shall be deliveredbefore any premium is accepted.

2. Except for the requirement of payment upon surrender, thenonforfeiture amounts for such policies shall be subject to allprovisions of chapter 376, which apply to the cash surrendervalues of otherwise similar life insurance policies with cashsurrender values.

3. The insurance laws of this state relating to policy loansshall not apply to policies which do not provide cash surrendervalues.

(L. 1987 H.B. 415 § 1)