376.694. Group life, definitions of direct response solicitation and sponsoring or endorsing entity--certain insurers required to give notice of compensation to policyholder or endorsing entity. - Missouri Statutes

Group life, definitions of direct response solicitation andsponsoring or endorsing entity--certain insurers required to givenotice of compensation to policyholder or endorsing entity.

376.694. 1. As used in this section, the following termsshall mean:

(1) "Direct response solicitation", a solicitation through asponsoring or endorsing entity or through the mails, telephone,or other mass communications medium;

(2) "Sponsoring or endorsing entity", an organization whichhas arranged for the offering of a program of insurance in amanner which communicates that eligibility for participation inthe program is dependent upon affiliation with such organizationor that it endorses participation in the program.

2. With respect to a program of insurance, whether issued onan individual basis or a group basis, which would not qualifyunder subdivisions (1), (2), (3), (4) and (6) of section 376.691if issued on a group basis, if compensation of any kind will ormay be paid to a policyholder in the case of a group policy, or asponsoring or endorsing entity in the case of individual, blanketor franchise policies marketed by means of direct responsesolicitation, the insurer shall cause to be distributed toprospective insureds a written notice that compensation will ormay be paid.

3. Such notice shall be distributed whether compensation isdirect or indirect and whether such compensation is paid to orretained by the policyholder or sponsoring or endorsing entity orpaid to or retained by a third party at the direction of thepolicyholder or sponsoring or endorsing entity or any entityaffiliated therewith by way of ownership, contract or employment.

4. The notice required by this section shall be placed on oraccompany any application or enrollment form provided prospectiveinsureds.

(L. 1985 H.B. 623)