Missouri Laws 376.673 – Life insurance policies, regulations relative to
1. No life insurance policy shall be issued or delivered in this state after October 13, 1967, which:
(1) By its terms expressly provides that the policyholder will participate in the distribution of earnings or surplus other than earnings or surplus attributable, by reasonable and nondiscriminatory standards, to the participating policies of the company and allocated to the policyholder on reasonable and nondiscriminatory standards; or
Terms Used In Missouri Laws 376.673
- following: when used by way of reference to any section of the statutes, mean the section next preceding or next following that in which the reference is made, unless some other section is expressly designated in the reference. See Missouri Laws 1.020
- State: when applied to any of the United States, includes the District of Columbia and the territories, and the words "United States" includes such district and territories. See Missouri Laws 1.020
(2) Through sales material or oral presentations, is represented by the company or its agent to prospective policyholders as entitling the policyholder to the benefits described in subdivision (1) of this subsection; or
(3) By its terms expressly provides that the policyholder will receive some preferential or discriminatory advantage or benefit not available to persons who purchase insurance from the company at future dates or under other circumstances; or
(4) Through sales material or oral presentations is represented by the company or its agent to prospective policyholders as entitling the policyholder to the benefits described in subdivision (3) of this subsection.
2. Life insurance policies providing for the payment of a series of pure endowments maturing periodically during the premium paying period of the policy which are issued or delivered in this state after October 13, 1967, shall be subject to the following provisions:
(1) No detachable coupons or certificates or passbooks may be used. No other device may be used which tends to emphasize the periodic pure endowment benefits or which tends to create the impression that the pure endowments represent interest earnings or anything other than benefits which have been purchased by part of the policyholder’s premium payments.
(2) Each pure endowment benefit must have a fixed maturity date and payment of the pure endowment benefit shall not be contingent upon the payment of any premium becoming due on or after the maturity date.
(3) The pure endowment benefits must be expressed in dollar amounts rather than as percentages of other quantities or in other ways, both in the policy itself and in the sale thereof.
(4) The pure endowment premiums shall be calculated with mortality, interest, and expense factors which are consistent with those for the basic policy premium and it shall be noted in bold type on the face of the policy that “a portion of the premium is used to pay the annual endowment”.
(5) No insurance company, insurance agent, solicitor, nor insurance company representative, shall, as a competitive or twisting device, inform any policyholder or prospective policyholder that any insurance company was required to change a policy form or related material to comply with the provisions of this law.