Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 400 - Life, Annuities and Health › Chapter 1 - Life Insurance and Annuity Standards › Section 20 CSR 400-1.010 - Policy Approval Criteria for Life Insurance and Annuity Contracts

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule is intended to outline the
				  requirements for all life insurance and annuity contracts which are to be sold
				  in Missouri.
(1) No life
				insurance or annuity contract, including applications, riders, endorsements,
				policies
,
and certificates, shall be approved for use in this
				state unless it conforms to the following:
(A) Each life insurance or annuity contract,
				including applications, riders, endorsements, policies and certificates, shall
				be identified by a form number in the lower left-hand corner of the first page
				or face page;
(B) Each life
				insurance or annuity contract shall contain accurate information regarding all
				coverages and benefits for which premiums are being paid. This information
				shall individually identify each coverage and the respective premium required
				to maintain each coverage;
(C) No
				application for a life insurance or annuity contract or any coverage pertaining
				thereto, shall contain a statement such as, "No information acquired by any
				representative of the company or conveyed to any prospective insured by such
				representative shall be binding upon the company unless written herein." The
				company may specifically disclaim any insurance producer's authority to waive a
				complete answer to any question in the application, pass on insurability, make
				or alter any contract or waive any of the company's other rights or
				requirements;
(D) Effective June
				30, 1990, all individual life insurance or annuity contracts and all mass
				marketed or individually solicited group life insurance or annuity certificates
				for which the insured pays the entire premium must contain a provision which
				states, in substance, that the person to whom the coverage is issued shall have
				an unconditional right to return the coverage within at least ten (10) days of
				its delivery for a full refund of all premium paid. This rule shall not apply
				to-
1. Coverage issued under group contracts
				as defined in section
				376.691,
				RSMo. Mass marketed life insurance for purposes of this rule means the
				insurance under any individual, franchise, group or blanket policy of life or
				health insurance which is offered by means of direct response solicitation
				through a sponsoring organization or through the mails or other mass
				communications media and under which the person insured pays all or
				substantially all of the cost of his/her insurance;
2. Life insurance issued to college students
				and subject to
				20 CSR
				400-5.500;
3. Single premium short duration trip or
				travel-type coverage; or
4. Graded
				benefit life insurance coverage which is subject to
				20 CSR
				400-1.040;
(E) Each individual life insurance or annuity
				contract which develops cash or loan values and which provides the insured the
				right to borrow against this cash or loan values, either by virtue of the
				existence of a policy loan provision or an automatic premium loan provision,
				shall state in substance that the contract will lapse at the expiration of a
				grace period of at least thirty-one (31) days if there is an outstanding policy
				loan or the policy is being maintained by an automatic premium loan and the
				accrued cash value is insufficient to pay the necessary interest, or both,
				premium then due. The contract shall state in substance that the company will
				notify the owner at least thirty-one (31) days prior to discontinuing the
				contract in this manner;
(F) For
				the purposes of any waiver of premium benefit provided in conjunction with a
				life insurance or annuity contract, the contract shall state in substance that
				the owner shall be considered totally disabled if s/he is unable to perform the
				material and substantial duties of any occupation for which s/he is suited by
				means of education, training or experience. Any waiver of premium benefit which
				requires the insured to be totally disabled for a period of time exceeding
				thirty (30) days before benefits are payable, also shall provide in substance
				that all premiums paid by the insured from the date of disability will be
				waived retrospectively. However, no premium need be waived for a period of
				disability originating prior to twelve (12) months from the date of notice of
				disability if proof was not given as soon as reasonably possible. In no
				instance shall the insured be required to be disabled for a period exceeding
				one hundred eighty (180) days before s/he is entitled to benefits under a
				waiver of premium provision;
(G)
				For the purposes of any total disability benefit provided in conjunction with a
				life insurance or annuity contract, the insured shall be considered totally
				disabled if s/he is unable to perform the material and substantial duties of
				his/her regular occupation. After an initial benefit period of twelve (12)
				months, the insured shall be considered totally disabled if s/he is unable to
				perform the material and substantial duties of any occupation for which s/he is
				suited by means of education, training or experience; and
(H) Any accidental death or dismemberment
				benefit provided in or supplemental to a life insurance or annuity contract
				shall not include any language which requires that accidental bodily injury be
				effected solely through external, violent, and accidental means. Any benefit
				for accidental death or dismemberment provided in, or supplemental to, a life
				insurance or annuity contract shall not exclude payment of these benefits for
				any covered loss, as provided in the contract, due to unintentionally
				self-inflicted injuries; unintentional or nonvoluntary inhalation of gas or
				taking of poisons; pyogenic infections which result from an accidental bodily
				injury; bacterial infections which result from the accidental ingestion of
				contaminated substances; or the insured's being under the influence of drugs,
				if the drugs were taken as prescribed by a physician.