385.050. Revision of premium schedules, procedure for--refunds paid, when--limit on charge for credit life.

MISSOURI STATUTES AND CODES

385.050. Revision of premium schedules, procedure for--refunds paid, when--limit on charge for credit life.

Revision of premium schedules, procedure for--refunds paid,when--limit on charge for credit life.

385.050. 1. Any insurer may revise its schedules of premium ratesfrom time to time and shall file the revised schedules with the director.No insurer shall issue any credit life insurance policy or credit accidentand sickness insurance policy for which the premium rate exceeds thatdetermined by the schedules of the insurer as then approved by thedirector.

2. Each individual policy or group certificate shall provide that inthe event of termination of the insurance prior to the scheduled maturitydate of the indebtedness, any refund of an amount paid by the debtor forinsurance shall be paid or credited promptly to the person entitledthereto; provided, however, that no refund of less than one dollar need bemade. The formula to be used in computing the refund shall be theactuarial method of calculating refunds which produces a refund equal tothe original premium multiplied by the ratio of the sum of the remaininginsured balances divided by the sum of the original insured balances. Indetermining the number of months for which a premium is earned, the firstmonth's premium may be considered as earned on the first day of coverageand for all successive months' premiums, on the coverage anniversary datein each successive month.

3. If a creditor requires a debtor to make any payment for creditlife insurance or credit accident and sickness insurance and an individualpolicy or group certificate of insurance is not issued, the creditor shallimmediately give written notice to the debtor and shall promptly make anappropriate credit to the account.

4. The amount charged to a debtor for any credit life or creditaccident and sickness insurance shall not exceed the premiums charged bythe insurer, as computed at the time the charge to the debtor isdetermined.

5. Nothing in sections 385.010 to 385.080 shall be construed toauthorize any payments for insurance now prohibited under any statute, orrule thereunder, governing credit transactions.