missouri statutes, rules and regulations pertinent to life only

suicide exclusion

-MO may restrict/exclude liability of death as a result of suicide if it was committed within 1 year from date of policy issue whether they were insane or sane -insurer is responsible of refund of paid premiums -suicide exclusion or restriction must be stated in policy

policy rates and forms

-all insurance life policies and annuities must be approved by director before -director usually has 45 days to approve or disapprove policy after filing

conservation

-any attempt by existing insurer to dissuade current policy owner from replacement of existing life insurance or annuity

policy replacement

-any transaction in which new life insurance or a new annuity is purchased and the existing life insurance or annuity has been or will be: --lapsed, forfeited, surrendered, or terminated --reissued with any reduction in cash value --converted to reduced paid-up insurance, continued as extended term insurance or otherwise reduced in value by the use of nonforfeiture benefits or other policy values --amended so as to affect either a reduction in benefits or in the term for which coverage would otherwise remain in force or for which benefits would be paid

policy terms and limits

-can only be a term plan -if insurer requires evidence of insurability and evidence is provided 30 days after the date the debtor becomes obligated to creditor, the term begins on the date the company determines the evidence of insurability to be good -director will approve of policy within 65 days after filing

reports and exams

-companies that issue individual variable contract are required to mail contract holder a statement reporting investments held in separate account annually -company must submit annual statement of business of separate accounts to the director -each company is subject to exams by director

variable products: company qualifications

-must be licensed to transact insurance in this state and are in good standing -have and maintain capital and/or surplus of at least $2,500,000

suitability and sales materials

-must follow strict standards on suitability of variable products for customers

death benefits must comply with

-be offered on guaranteed-issue basis or underwriting standards that justify grading of death benefit -provide accidental death benefits in amount of at least face amount of the policy during graded-death benefit -if insured is 65 and under, can't grade death benefit in excess of 3 years unless policy provides 50% of face amount as a first-year death benefit -if insured is between age of 66 and 75, can't grade death benefit in excess of 2 years unless policy provides at lest 50% of face amount as first-year death benefit --2 year period can be extended to 3 years if death benefit during 3rd policy year equals or exceeds 65% of ultimate death benefit -if insured is 76 or older, can't be issued unless policy provides at least 50% of face amount as a first-year death benefit

replacing insurer

-company that issues new policy

existing insurer

-company whose policy is being replaced

group insurance provision: other provisions

-entire contract: copy of app must be attached to policy -representation: all statements made by insured are considered representations and not warranties -evidence of insurability: insurer reserves right to require evidence of individual insurability -misstatement of age: specifying equitable adjustment of premium or benefits in case of misstatement of age -certificate of insurance: state insurer will issue policyholder for delivery to each individual insured a certificate specifying the insurance protection

assignability

-insured under group policy may assign incidents of ownership under policy --right to designate beneficiary --have individual policy --pay premium

war and aviation exclusion

-life insurance policies must include notice of war or aviation exclusions

variable life insurance policies must comply with

-mortality and expense risk will be carried by insurer -minimum death benefit will be provided in amount at least equal to initial face amount of the policy -policy must reflect investment experience of one or more separate accounts maintained by the insurer -each variable life insurance policy must be credited with full amount of net-investment return applied benefit base -any changes in variable death benefits will be determined annually -cash value of each variable insurance policy will be determined at least monthly -computation of values required for each variable life insurance policy may be based on reasonable and necessary approximations that are acceptable to director

universal life: mandatory provisions

-periodic disclosure to policy owner: at least one a year, policy owner must receive without any additional charge, a policy status report for period ending no earlier than 3 month before the report mailing date -current illustrations: annual report must include not that the policy holder has right to request illustration of current and future benefit values -policy guarantees: must provide guarantees of minimum interest credits and max mortality and expense charges. figures based on non guarantees can't be included in policy --policies must contain at least general description of the calculation of cash surrender values -changes in basic coverage: policies must state if policy owners have the right to change the basic coverage -grace period and lapse: written notice of termination of coverage must be sent to policy oner at least 30 days before -misstatement of age and sex: death benefit will be adjusted to amount that would have been purchased in accordance with the most recent mortality charge at the correct age or sex -maturity date: whenever a policy provides maturity end date, it must contain statement that its possible that coverage can't continue to the maturity date even if schedule premiums are paid in a timely manner

group insurance provision: grace period

-policy holders are entitled to 31 days for payment of premium except the first -may require pro rate premium in first

graded death benefit

-policy intended to be used for substandard risks -death benefit increases over time and is issued with little or no underwriting -if insured dies soon, theres a little death benefit and if they live longer, death benefit increases

duties of the replacing producer

-present to the applicant a notice regarding replacement that is signed by both the applicant and producer --copy must be left with applicant -obtain a list of all existing life insurance and/or annuity policies to be replaced including policy numbers and the names of all companies being replaced -leave applicant with the original or copy of written or printed communications used for presentation to applicant -submit to replacing insurance company a copy of the replacement notice with application -each producer who initiates application must submit a statement signed by applicant whether replacement of existing life insurance or annuity is involved in transaction and a signed statement as to whether the producer knows replacement is or may be involved in the transaction

duties to replacing insurance company

-require from producer a list of the applicants life insurance or annuity contracts to be replaced and a copy of the replacement notice provided to the applicant -send each existing insurance company a written communication advising the proposed replacement within specified period of time of the date the app is received in the replacing insurance companies home or regional office -policy summary or ledger statement containing policy data on proposed life insurance or annuity must be included

credit life insurance

-special type of coverage written to insure life of the debtor and pay off balance of loan in the event of death of debtor -annually written as decreasing term insurance -if written as group policy, the creditor is the owner of master policy, and each debtor receives certificate of insurance -creditor is owner and beneficiary of policy and premiums are paid by borrower -cant pay out more than balance of debt

these provisions don't apply to following policies

-those issued in connection with employer-sponsored insurance or pension profit-sharing plans -policies that included jumping juvenile provision -term policies that automatically convert to permanent plans for an increased amount at a specified age -policies that provide gradation of death benefit applicable only for the period prior to attained age five

group insurance provision: incontestability

-validity may not be contested after the policy has been in force for 2 years unless nonpayment of premium or fraudulent misstatements by applicant or insured

policy loan rates

state regulations on max interest rate on policy loans are: --may not exceed 8% a year --life insurers are allowed to establish adjustable max rate which can't exceed the higher of published monthly average for calendar month 2 months before the date where the rate is determined or rate used to compute the cash surrender values under the policy plus annual 1% --the max rate for each policy must be determined at regular intervals at least once a year but not more frequently than every 3 months -policy owner can borrow against security of cash surrender value of their life policy --amount borrowed can't exceed legal reserve the insurer is required to maintain on policy