MO Rev Stat § 376.360 (2021)
2021 Missouri Revised Statutes|Title XXIV - Business and Financial Institutions|Chapter 376 - Life, Health and Accident Insurance|Section 376.360 - Distribution of surplus funds to participating policyholders — method.

Effective - 28 Aug 1945   376.360. Distribution of surplus funds to participating policyholders — method. — 1. All life insurance companies organized under the laws of this state shall ascertain and distribute annually, and not otherwise, beginning not later than the end of the third policy year, the proportion of any surplus accruing upon every participating policy or contract issued on or after January 1, 1946, entitled as herein provided to share in such surplus. Upon the thirty-first day of December of each year, or as soon thereafter as may be practicable, every such company shall well and truly ascertain the surplus earned by it during the year.  2. After setting aside from such surplus such sums as may be required for the payment of authorized dividends upon the capital stock, if any, such sums as may properly be held for account of outstanding deferred dividend policies, if any, and such sums as may be deemed advisable for the accumulation of a surplus in an amount not exceeding five hundred thousand dollars, or ten percent of its policy reserves and policy liabilities, whichever shall be greater, every such company shall thereupon apportion the remainder of such surplus earnings, if any, derived from participating policies or contracts, as the board of directors charged with the management of the company's affairs may determine, to all policies or contracts entitled to share therein during the full dividend year adopted by the company for such purpose beginning not later than the following July first.  3. Dividends apportioned as aforesaid in the case of a policy or contract, other than an industrial life insurance policy, issued on or after the first day of January, 1946, shall, unless otherwise provided in the policy or contract, be payable upon the anniversary of the policy or contract occurring within the dividend year selected by the company, as aforesaid; and in every case after the first policy or contract year such dividend shall be payable upon the sole condition that the premium payments of the policy or contract year current upon the first day of the dividend year selected by the company, as aforesaid, shall have been completed. Such apportionment in the case of any policy or contract shall not, after the first policy year, be made contingent upon the payment of the whole or any part of the premium for any subsequent year.  4. (1) Except as herein provided, the dividend so apportioned in the case of any participating policy issued on or after the first day of January, 1946, shall, at the option of the person entitled to elect such option, be either  (a) Payable in cash; or  (b) Applicable to the payment of any premium or premiums upon said policy; or  (c) Permitted to accumulate to the credit of the policy or contract at such rate of interest as may be allowed by the company, and with such interest shall be payable upon the maturity of the policy or shall be withdrawable in cash on any anniversary of the date of issue thereof; or  (d) If so provided in the policy, applicable to any paid-up addition thereto.  (2) Unless the insured or owner of the policy notifies the company in writing of his election of one of the foregoing options within the time allowed by the policy, which shall not, in any event, be a period of less than thirty-one days after the dividend apportioned thereto is payable, the effective option shall be that stated in the policy.  5. In case of any extended term or reduced paid-up insurance, the dividends so apportioned, if any, shall be applicable as provided in the policy with the approval of the director of the department of commerce and insurance. In the case of an individual participating term policy issued on or after the first day of January, 1946, the dividend so apportioned shall, at the option of the policyholder, be paid or applied pursuant to paragraph (a) or (b) of subdivision (1) of subsection 4, or, if the policy so provides, pursuant to paragraph (c) of subdivision (1) of subsection 4. In the case of every individual participating annuity or pure endowment contract the dividend so apportioned shall be applicable, at the election of the holder of such contract, in accordance with the options specified in paragraph (a) or (b) of subdivision (1) of subsection 4, or, if the contract so provides, paragraph (c) of subdivision (1) of subsection 4, if such option is applicable to the type of contract in question. In the case of every individual participating accident or health insurance policy, the dividend so apportioned shall be applicable in accordance with the option specified in paragraph (a) of subdivision (1) of subsection 4. In the case of any participating group insurance policy or of any participating group annuity contract, the dividend so apportioned shall, at the option of the policyholder or holder of the master contract, be applied pursuant to paragraph (a) or (b) of subdivision (1) of subsection 4 above. In the case of participating industrial life insurance policies, paragraphs (a), (b), (c) and (d) of subdivision (1) of subsection 4 shall not be applicable, but the dividends apportioned on such policies shall be distributed annually in such manner as may be determined by the company with the approval of the director of the department of commerce and insurance.  6. No stock or stock and mutual life insurance company organized under the laws of this state shall issue, on or after January 1, 1946, any participating policy or contract which does not by its terms give the right to participate in the divisible surplus earnings of such company as provided herein. No mutual life insurance company organized under the laws of this state shall issue, on or after January 1, 1946, any policy or contract, except as herein provided, which does not by its terms give the right to participate in the divisible surplus earnings of such company as provided herein.  7. Both participating and nonparticipating policies or contracts may provide that in addition to any rate of interest guaranteed by the issuing company to be paid on deferred payments of the proceeds thereof, additional interest may be paid thereon at such rate as the company may annually declare; and the inclusion of such provision in any nonparticipating policy shall not be deemed to make the policy participating. With this exception, the inclusion in any policy or contract of any provision to the effect that the owner thereof shall participate in the surplus of the company issuing such policy or contract, shall be deemed to make such policy or contract a participating one, except, that nonparticipating policies, which provide that they may be exchanged for or converted to paid-up participating policies after the completion of premium payments of a given term of years, shall not be deemed to be participating policies until participation begins according to the terms of the policy.  8. This section shall not be deemed to require the apportionment or distribution of dividends on any immediate annuity contract, nor on any deferred annuity contract for the period following the period of deferment of annuity payments, in accordance with the provisions of such contract, nor on any policy of accident or health insurance, nor on extended term insurance, or pure endowment or reduced paid-up life or endowment insurance which take effect in the event of default in the payment of a premium on any policy or contract, nor on any paid-up additions purchased by dividends, nor on any contract or agreement of reinsurance. ­­-------- (RSMo 1939 § 5830, A.L. 1945 p. 1001)  Prior revisions: 1929 § 5719; 1919 § 6130; 1909 § 6924