376.708. Required presentations and statements--company to maintain file. - Missouri Statutes

Required presentations and statements--company to maintain file.

376.708. 1. Each insurer shall maintain at its home officeor principal office, a complete file containing one copy of eachdocument authorized by the insurer for use pursuant to sections376.700 to 376.714. Such file shall contain one copy of eachauthorized form for a period of three years following the date ofits last authorized use.

2. An agent shall inform the prospective purchaser, prior tocommencing a life insurance sales presentation, that he is actingas a life insurance agent and inform the prospective purchaser ofthe full name of the insurance company which he is representingto the buyer. In sales situations in which an agent is notinvolved, the insurer shall identify its full name.

3. Terms such as financial planner, investment advisor,financial consultant, or financial counseling shall not be usedin such a way as to imply that the insurance agent is generallyengaged in an advisory business in which compensation isunrelated to sales unless such is actually the case.

4. Any reference to policy dividends must include astatement that dividends are not guaranteed.

5. A system or presentation which does not recognize thetime value of money through the use of appropriate interestadjustments shall not be used for comparing the cost of two ormore life insurance policies. Such a system may be used for thepurpose of demonstrating the cash-flow pattern of a policy ifsuch presentation is accompanied by a statement disclosing thatthe presentation does not recognize that, because of interest, adollar in the future has less value than a dollar today.

6. A presentation of benefits shall not display guaranteedand nonguaranteed benefits as a single sum unless they are shownseparately in close proximity thereto.

7. A statement regarding the use of the life insurance costindexes shall include an explanation to the effect that theindexes are useful only for the comparison of the relative costsof two or more similar policies.

8. A life insurance cost index which reflects dividends oran equivalent level annual dividend shall be accompanied by astatement that it is based on the company's current dividendscale and is not guaranteed.

9. For the purposes of sections 376.700 to 376.714, theannual premium for a basic policy or rider, for which the companyreserves the right to change the premium, shall be the maximumannual premium.

(L. 1979 H.B. 508 § 5)