Missouri Revised Statutes

Chapter 377
Assessment Plan and Stipulated Premium Plan Life Insurance

redbar


Definitions.

377.005. As used in this chapter, unless otherwise clearly indicated by the context, the following words mean:

(1) "Department", the department of insurance, financial institutions and professional registration; and

(2) "Director", the director of the department of insurance, financial institutions and professional registration.

(L. 2008 S.B. 788)

Assessment plan insurance defined.

377.010. Every contract whereby a benefit is to accrue to a person or persons named therein, upon the death or physical disability of a person also named therein, the payment of which said benefit is in any manner or degree dependent upon the collection of an assessment upon persons holding similar contracts, shall be deemed a contract of insurance upon the assessment plan, and the business involving the issuance of such contracts shall be carried on in this state only by duly organized corporations which shall be subject to the provisions and requirements of sections 377.010 to 377.190.

(RSMo 1939 § 5856)

Prior revisions: 1929 § 5745; 1919 § 6155; 1909 § 6950

Incorporation of companies, procedure.

377.020. 1. Any number of persons, not less than seven, being citizens of the state of Missouri, may upon application to the circuit court of the county or city in which it is proposed to locate the chief offices or place of business, become a body politic or corporate under the name and style designated in the application, for the purpose of doing a life or casualty, or life and casualty insurance business on the assessment plan; said application shall in all cases be accompanied by the articles of association, or agreements, setting forth specifically the objects and purposes of the proposed corporation, as well as the methods and plans by which its business shall be conducted, and upon a hearing of the same, the court may grant or reject the application as it may deem best.

2. If the application is granted it shall be the duty of the applicant to cause a copy of said articles, with a copy of the decree of the court duly certified by the clerk thereof, and by him endorsed on or attached thereto, to be recorded in the office of the recorder of deeds in the county in which said corporation is located and then filed in the office of the secretary of state.

3. The secretary of state shall thereupon issue to the applicants aforesaid a certified copy of the said articles, with the several certificates thereon, as filed in his office, which certified copy shall be the charter of incorporation, and thereupon said applicants, their associates and successors, shall be created and be a body politic and corporate by the corporate name as aforesaid, and such charter, together with sections 377.010 to 377.190, shall be received in all courts and places as legal evidence of the incorporation of the said association, society or company; provided, that no decree shall be made, and no certificate of incorporation issued as aforesaid until the director of the department of insurance, financial institutions and professional registration shall certify that the proposed name of the corporation is not the same and does not resemble the name of any other corporations authorized to do business in this state, to the extent of misleading the public, and further that the society, association or company seeking to be incorporated has secured applications for not less than one hundred thousand dollars insurance by not less than one hundred persons, and that thirty thousand dollars in cash or securities, approved by the director of the department of insurance, financial institutions and professional registration has been deposited with the department of insurance, financial institutions and professional registration, which fund shall be held in trust as a beneficiary fund by the said director of the department of insurance, financial institutions and professional registration. The term "casualty insurance" as used in sections 377.010 to 377.190, inclusive, shall be construed to mean only accident, health and hospitalization insurance.

4. After September 1, 1953, no insurance company as described herein may be incorporated to do business on the assessment plan under the provisions of sections 377.010 to 377.190. This provision, however, shall not be construed as restricting or abridging in any manner the right to do business under the provisions of sections 377.010 to 377.190 of any insurance company now incorporated and licensed to do business in this state under the assessment plan.

(RSMo 1939 § 5857, A.L. 1951 p. 268, A.L. 1953 p. 243)

Prior revisions: 1929 § 5746; 1919 § 6156; 1909 § 6951

Release of beneficiary fund--replacement--exemptions.

377.030. 1. On written application by the board of directors, the director of the department of insurance, financial institutions and professional registration shall release to said company from the beneficiary fund the amount herein stated for the purpose of paying policy beneficiaries as provided later herein.

2. The board of directors shall certify the names of the beneficiaries and amounts in claims to the director of the department of insurance, financial institutions and professional registration and that the money so released is for no other purpose than to pay the claims so certified.

3. However, the amount released from this fund by the said director shall not exceed twelve thousand dollars, which shall be used solely for the purpose of paying beneficiaries.

4. Such funds so released shall be replaced on deposit by the company within twelve months in four equal installments, in three, six, nine and twelve months from the date of release. The director of the department of insurance, financial institutions and professional registration at his own discretion may extend time of replacement of said funds, if, in his judgment it is to the best interest of the policyholders.

5. This section and section 377.020 shall not apply to companies already incorporated and existing under the laws of the state of Missouri. Nothing in sections 377.010 to 377.190 shall prevent any such company or association from engaging in both life and casualty insurance and placing both a life and casualty clause in the same policy.

(RSMo 1939 § 5857)

Prior revisions: 1929 § 5746; 1919 § 6156; 1909 § 6951

Qualifications to do business.

377.040. 1. Any association, society or company duly incorporated under the laws of this state, having a bona fide membership of not less than five hundred persons in good standing, and who hold policies or certificates of insurance therein in the aggregate of not less than five hundred thousand dollars, may either reincorporate, as herein provided for incorporation, or become entitled to do business in this state under the provisions of sections 377.010 to 377.190 in the manner following: A declaration duly authorized by such corporation, attested by its president and secretary, and with its corporate seal attached, accompanied by a copy of its charter, bylaws, rules and regulations, shall be filed in the office of the director of the department of insurance, financial institutions and professional registration showing the number of its members in good standing, the aggregate amount of insurance held by them, and that it has the amount of one full assessment upon its members paid in and deposited to its credit in bank, and that it accepts fully and unconditionally the provisions and requirements of sections 377.010 to 377.190, and will conform to and abide by the same in good faith.

2. The said director shall thereupon issue his certificate to such corporation, setting out the fact that, having complied with the provisions of sections 377.010 to 377.190 in all respects, it is then permitted and authorized to do business in this state under the supervision and control of said department, and subject to the provisions of sections 377.010 to 377.190.

(RSMo 1939 § 5866)

Prior revisions: 1929 § 5755; 1919 § 6165; 1909 § 6960

Emergency fund--accumulation--purpose--replacement.

377.050. 1. Corporations organized or doing the business of life insurance under sections 377.010 to 377.190 shall provide for the accumulation of an emergency fund, which shall be not less than the proceeds of one death assessment on all policy or certificate holders thereof; corporations organized or doing the business of casualty insurance under sections 377.010 to 377.190 shall provide in like manner for the accumulation of an emergency fund, which shall be equal to the amount of the maximum policy or certificate which they issue. Said fund shall be accumulated by existing corporations within six months from the date of accepting the provisions of sections 377.010 to 377.190, by all others within six months from the date of their incorporation; which fund, together with the income thereon, shall be a trust fund for the payment of death claims or other benefits provided for in their policies or certificates, and shall be invested in securities in which insurance companies are allowed by law to invest their capital.

2. These securities shall be deposited in trust with the director of the department of insurance, financial institutions and professional registration of the state, but the corporation shall at all times have the right to exchange any part of said securities for others of a like amount and character.

3. If, in any period of six months, the death rate of any such corporation shall be in excess of the annual rate of mortality as shown by the American life tables, it shall be lawful for such corporation to draw out any portion of said securities necessary to meet such excess, by requisition signed by two-thirds of its directors, which, upon proper proof of said facts to the state director of the department of insurance, financial institutions and professional registration, shall also be endorsed by him setting forth that the same is to be used for the purposes of said trust.

4. In case the amount so drawn out shall reduce such fund below the amount so required to be provided for, it shall be the duty of said corporation to make up the said deficiency within six months thereafter; said securities to be deposited in some safe deposit in the city of St. Louis, to the joint credit of the director of the department of insurance, financial institutions and professional registration and the corporation making the deposit.

(RSMo 1939 § 5860)

Prior revisions: 1929 § 5749; 1919 § 6159; 1909 § 6954

Policy to specify amount to be paid, when payable.

377.060. Every policy or certificate hereafter issued by any corporation of this state doing business in conformity with the provisions of sections 377.010 to 377.190, and promising a payment to be made upon a contingency of death, sickness, disability or accident, shall specify the exact sum of money which it promises to pay upon each contingency insured against, and the number of days after satisfactory proof of the happening of such contingency at which such payment shall be made, and upon the occurrence of such contingency, unless the contract shall have been voided for fraud or breach of its conditions, the corporation shall be obligated to the beneficiary for such payment at the time and to the amount specified in the policy or certificate; and the said indebtedness shall be a lien upon all the property, effects and bills receivable of the corporation, with priority over all indebtedness thereafter incurred, except as may be provided by the law in case of the distribution of assets of an insolvent corporation.

(RSMo 1939 § 5858)

Prior revisions: 1929 § 5747; 1919 § 6157; 1909 § 6952

Effect of refusal to pay--duty of director.

377.070. If the corporation refuses or fails to make such payment for thirty days after final judgment against said corporation, the failure to pay the amount of such final judgment within said period of thirty days shall ipso facto constitute a forfeiture of the charter of such corporation, and it shall be the duty of the director of the department of insurance, financial institutions and professional registration forthwith to cause proceedings by quo warranto to be instituted against said corporation for the purpose of ousting it of its charter; and upon the dissolution of said corporation, the director of the department of insurance, financial institutions and professional registration shall take charge of its assets and affairs, and wind up the same, as now provided by law in the case of life insurance companies.

(RSMo 1939 § 5858)

Prior revisions: 1929 § 5747; 1919 § 6157; 1909 § 6952

Limitations on the issuance of policies--charitable, benevolent,educational and religious organizations have insurableinterest--fraud or coercion, exception.

377.080. 1. No corporation doing business pursuant to sections 377.010 to 377.190 shall issue a certificate or policy upon the life of any person who at nearest birthday is more than sixty years of age, nor upon any life in which the beneficiary named has no insurable interest, nor as an endowment to any insured person while living, and every call for payments by the policy or certificate holders shall distinctly state the purposes of the same.

2. Any assignment of a policy or certificate to a person having no insurable interest in the insured life shall render such assignments void and of no effect.

3. A charitable, benevolent, educational or religious institution qualified pursuant to section 501(c)(3) of the federal Internal Revenue Code, as amended, shall be deemed to have an insurable interest in the life of an insured individual if, in the absence of any fraud or coercion:

(1) The individual has designated the institution as a beneficiary;

(2) The individual has made a gift or an assignment of an interest in life insurance on the life of such insured individual; or

(3) The life insurance is owned by such charitable, benevolent, educational or religious institution and such institution has obtained the consent of the person whose life is being insured, as required by section 376.531.

(RSMo 1939 § 5862, A.L. 1992 H.B. 1574, A.L. 1997 H.B. 622)

Prior revisions: 1929 § 5751; 1919 § 6161; 1909 § 6956

Proceeds not liable for debts.

377.090. The money or other benefit, charity, relief or aid to be paid, provided or rendered by any corporation authorized to do business under sections 377.010 to 377.190, shall not be liable to attachment or other process, and shall not be seized, taken, appropriated or applied by any legal or equitable process, nor by operation of law, to pay any debt or liability of a policy or certificate holder, or any beneficiary named in a policy or certificate.

(RSMo 1939 § 5863)

Prior revisions: 1929 § 5752; 1919 § 6162; 1909 § 6957

Statement of affairs.

377.100. Every corporation doing business under sections 377.010 to 377.190 shall annually, on or before the first day of February, return to the director of the department of insurance, financial institutions and professional registration, in such manner and form as he shall prescribe, a statement of its affairs for the year ending on the preceding thirty-first day of December, and the director, in person or by deputy, shall have the power of visitation of and examination into the affairs of any such corporation, which is conferred upon him in the case of life insurance companies by the laws of this state; and all companies are hereby declared to be subject to and required to conform to the provisions of chapters 374 and 375, and sections 376.291 to 376.330, 376.580, 376.610 and 376.620, and governed and controlled by all the provisions in said sections contained; provided, always, that nothing herein contained shall subject any corporation doing business under sections 377.010 to 377.190 to any other provisions or requirements of the general insurance laws of this state, except as distinctly herein set forth and provided.

(RSMo 1939 § 5865, A.L. 1967 p. 516, A.L. 2007 S.B. 66)

Prior revisions: 1929 § 5754; 1919 § 6164; 1909 § 6959

Two-thirds majority to reinsure or transfer risks.

377.120. No corporation of this state, organized or doing business under the provisions of sections 377.010 to 377.190, shall transfer its risks to or reinsure them in any other corporation, unless the contract of transfer or reinsurance is first submitted to and approved by a two-thirds vote of a meeting of the insured, called to consider the same, of which meeting a written or printed notice shall be mailed to each policy or certificate holder, at least ten days before the day fixed for said meeting; and in case said transfer or reinsurance shall be approved, every policy or certificate holder of said corporation who shall file with the secretary thereof, within five days after said meeting, written notice of his preference to be transferred to some other corporation than that named in the contract, shall be accorded all the rights and privileges in aid of such transfer as would have been accorded under the terms of said contract had he been transferred to the corporation named therein; but no such transfer shall be valid until the terms and conditions shall have been fully submitted to the director of the department of insurance, financial institutions and professional registration, and have been approved by him.

(RSMo 1939 § 5859)

Prior revisions: 1929 § 5748; 1919 § 6158; 1909 § 6955

Retaliatory section.

377.150. When any other state or country shall impose any obligations upon such corporation, the like obligations shall be imposed and enforced by the department of insurance, financial institutions and professional registration of this state upon similar corporations and their agents of such state or country doing business in this state.

(RSMo 1939 § 5861)

Prior revisions: 1929 § 5750; 1919 § 6160; 1909 § 6955

Deposit for costs and expenses.

377.160. Before any foreign insurance company doing business under the assessment plan shall be authorized to do business in this state, it shall deposit, and always keep on deposit, with the director of the department of insurance, financial institutions and professional registration of this state, the sum of two thousand dollars, or secure the same to the satisfaction of the director, to indemnify the state against costs and expense for the prosecution of the company for violations of the law, and to pay the costs and expenses of the examination of the company, which the director may make or cause to be made.

(RSMo 1939 § 5861, A.L. 1967 p. 516)

Prior revisions: 1929 § 5750; 1919 § 6160; 1909 § 6955

Acceptance of regular life insurance law by assessment companies--pastcontracts not affected.

377.170. 1. Any domestic life or accident insurance corporation, company or association existing or doing business in this state under sections 377.010 to 377.190, providing for insurance on the assessment plan, may, by a majority vote of its directors or trustees, accept the provisions of sections 376.010 to 376.670 and amend its articles of incorporation and its bylaws to conform to said sections, the same as if it had originally been incorporated thereunder, and shall submit a record of the proceedings of its board of trustees together with the amended articles to the attorney general for his examination and approval of the legal form thereof, and shall file such amended articles in the office of the secretary of state, and a certified copy of the same in the office of the director of the department of insurance, financial institutions and professional registration of the state of Missouri, and deposit with said director such securities as may be required of corporations originally incorporated under sections 376.010 to 376.670.

2. Insurance corporations, companies and associations complying with the provisions of this section shall thereafter enjoy and exercise all of the rights and privileges accorded by law to companies originally incorporated under sections 376.010 to 376.670.

3. Compliance with this section shall in no wise annul, modify or change any of the existing contracts or obligations of the corporation, and any and all such contracts and liabilities shall continue in force and effect the same as if such corporation had not reincorporated under the provisions of this section, but all contracts and policies made subsequent to the compliance with the provisions of this section shall be interpreted and construed under the provisions of sections 376.010 to 376.670.

4. Compliance with the provisions of this section shall in no wise prejudice, impede or impair any pending action, proceeding or rights previously acquired.

(RSMo 1939 § 5869)

Prior revisions: 1929 § 5758; 1919 § 6168

Not applicable to fraternal societies.

377.180. Nothing in sections 377.010 to 377.190 shall be so construed as to impair or in any manner to interfere with any of the rights or privileges of any corporation, association or organization doing a life or casualty insurance business in this state under the laws as they now exist; nor as applicable to organizations which conduct their business as fraternal societies on the lodge system, and limit their certificate holders to a particular order or fraternity, or to fraternal beneficiary societies which provide for the relief and benefit of its members or the families, widows, orphans or other kindred dependents of deceased members, or assist such as may be sick or disabled, from the proceeds of assessments upon members of such society or association, and, to that end, issue to its members beneficial certificates, payable at such time and in such manner as shall be therein provided.

(RSMo 1939 § 5868)

Prior revisions: 1929 § 5757; 1919 § 6167; 1909 § 6962

Penalty for false statement.

377.190. Any solicitor, agent or examining physician, who shall knowingly or willfully make any false or fraudulent statement or misrepresentation in or with reference to any application for insurance, or for the purpose of obtaining any money or benefit in any corporation doing business under sections 377.010 to 377.190, shall be guilty of a misdemeanor, and upon conviction shall be punished by a fine of not less than one hundred dollars nor more than five hundred dollars, or imprisonment in the county jail for not less than thirty days nor more than one year, or by both such fine and imprisonment, at the discretion of the court; and any person who shall willfully make a false statement of any material fact or thing in a sworn statement as to death or disability of a certificate holder in any such corporation, for the purpose of procuring payment of a benefit named in the certificate of such holder, shall be guilty of perjury, and shall be proceeded against and punished as provided by the statutes of this state in relation to the crime of perjury.

(RSMo 1939 § 5864)

Prior revisions: 1929 § 5753; 1919 § 6163; 1909 § 6958

No companies formed under sections 377.200 to 377.460 after August 29,1959.

377.199. From and after the effective date of this section no stipulated premium plan life insurance company shall be organized or incorporated under the provisions of sections 377.200 to 377.460, but nothing in this section shall be construed as restricting or abridging in any manner the right of any stipulated premium plan life insurance company now incorporated and licensed to do business in this state from continuing to do business under the provisions of sections 377.200 to 377.460.

(L. 1959 H.B. 196 § 1)

Stipulated premium companies defined--penalty for unlawful use ofterm.

377.200. Any corporation, company or association issuing policies or certificates promising money or other benefits to a member or policyholder, or upon his decease to his legal representatives, or to beneficiaries designated by him, which money or benefit is derived from stipulated premiums collected in advance from its members or policyholders, and from interest and other accumulations and wherein the money or other benefits so realized is applied to or accumulated solely for the use and purposes of the corporation as herein specified, and for the necessary expenses of the corporation, and the prosecution and enlargement of its business, and which shall comply with all the provisions of sections 377.200 to 377.460, shall be deemed to be engaged in the business of life insurance upon the stipulated premium plan and shall be subject only to the provisions of sections 377.200 to 377.460, except that the provisions of chapters 374 and 375, and sections 376.291 to 376.330, 376.675, 376.770 to 376.795*, 376.500 to 376.510, and 376.590 to 376.600 shall be applicable. It shall be unlawful for any corporation, company or association not having complied with the provisions of sections 377.200 to 377.460 to use the term "stipulated premium" in its application or contracts, or to print or write the same in its policies or literature.

(RSMo 1939 § 5873, A.L. 1949 p. 310, A.L. 1967 p. 516, A.L. 2007 S.B. 66)

Prior revisions: 1929 § 5762; 1919 § 6172; 1909 § 6966

*Section 376.795 was repealed by H.B. 262, 1967.

Organization--powers.

377.210. Any number of persons, not less than seven, a majority of whom being citizens and residents of the state of Missouri, may associate themselves and form a company, for the purpose of making insurance on the lives of individuals, and every insurance pertaining thereto or connected therewith on the stipulated premium plan, as defined and regulated herein, and may provide for indemnity against death or disability of the insured occasioned by sickness, accident, old age or otherwise.

(RSMo 1939 § 5870)

Prior revisions: 1929 § 5759; 1919 § 6169; 1909 § 6963

Articles of agreement--approval--filing--issuance of certificate.

377.220. 1. The persons mentioned in section 377.210 shall be designated as corporators, and such persons shall associate themselves by articles of agreement, in writing, duly signed and acknowledged, setting forth:

(1) The corporate name of the proposed corporation, which shall not be the name of any corporation heretofore incorporated or doing business in this state for similar purposes, or any such imitation of such name calculated to mislead the public;

(2) The name of the city, town or county in which the principal office is located;

(3) The amount of the capital stock of the corporation, provided the same be a stock company, which shall not be less than fifty thousand dollars and a surplus of not less than fifty thousand dollars, the number of shares into which the capital stock is divided, and the par value thereof, that the same has been bona fide subscribed, and actually paid up in lawful money of the United States, and is in the custody of the persons named as the first board of directors; the name and place of the several shareholders and the number of shares subscribed by each;

(4) The number of the board of directors or managers, which shall be not less than seven, their powers and duties and the names agreed upon for the first year;

(5) The number of years the corporation is to continue;

(6) A statement that the company is formed for the purpose of carrying on the business of insurance under the provisions of sections 377.200 to 377.460;

(7) Any other provision of this section notwithstanding, a stipulated premium life insurance company licensed to do business in this state on October 13, 1963, may renew its license for business specified therein until December 31, 1965, by maintaining in lieu of the capital and surplus requirements an actual capital of at least twenty-five thousand dollars.

2. Said articles of agreement shall be submitted to the director of the department of insurance, financial institutions and professional registration and attorney general, and if they are found by these officers to comply with the provisions of sections 377.200 to 377.460, they shall approve the same.

3. When approved, they shall be filed and recorded in the office of the secretary of state, who shall issue a certificate of incorporation, upon the receipt of which such persons shall be a body corporate and politic, under the statutes of this state.

(RSMo 1939 § 5871, A.L. 1963 p. 485)

Prior revisions: 1929 § 5760; 1919 § 6170; 1909 § 6964

Completion of organization.

377.230. 1. No such corporation, company or association shall commence the business of life insurance until at least two hundred persons, eligible under the proposed plan of organization, shall have subscribed, in writing, to be insured therein in the aggregate amount of at least two hundred and fifty thousand dollars, and shall have each paid, in cash, the amount of one annual stipulated net premium for their age at entry on the amount of insurance severally subscribed for, and which shall be held in trust for the benefit of the members of said corporation or their beneficiaries; nor until the director of the department of insurance, financial institutions and professional registration and attorney general shall have further certified that it has complied with the provisions of sections 377.200 to 377.460, and is authorized to transact the business of insurance; provided, however, that every corporation incorporating or reincorporating under the provisions of sections 377.200 to 377.460 shall deposit with the director of the department of insurance, financial institutions and professional registration such securities as are required by law to be deposited by insurance companies, the sum of five thousand dollars, before it shall commence business.

2. Said five thousand dollars shall be a part of the insurance fund and an asset of the corporation.

3. The securities deposited with the department of insurance, financial institutions and professional registration pursuant to this section shall be held by the director in trust for the benefit and protection of and as security for the policyholders of such corporation, their legal representatives and beneficiaries.

(RSMo 1939 § 5872)

Prior revisions: 1929 § 5761; 1919 § 6171; 1909 § 6965

Withdrawals of securities upon relinquishment of business.

377.240. 1. When any such corporation, company or association shall desire to relinquish its business in this state, the director shall, on application of such corporation under oath of its president or principal officer and secretary or actuary, give notice of such intention at least twice in a newspaper of general circulation published at the state capitol.

2. After such publication he shall deliver up to said corporation the securities, or any portion thereof, held by him belonging to such corporation upon being satisfied that all the debts and liabilities of every kind are paid or provided for.

(RSMo 1939 § 5892)

Prior revisions: 1929 § 5781; 1919 § 6191; 1909 § 6985

CROSS REFERENCE:

Withdrawal of securities, 375.480

Minimum premiums.

377.250. 1. Every corporation, company or association doing business under the provisions of sections 377.200 to 377.460 shall charge a mortuary premium at least equal to that of yearly term insurance at age of entry according to the actuaries' or combined experience mortality table, with interest at four percent, and such mortuary premium shall be increased by a loading of not less than twenty percent for age twenty and all ages under twenty, and one percent additional for each additional year of age, renewable term policies excepted from such loading.

2. Said premium may be paid annually, semiannually, quarterly, bimonthly or monthly in advance.

(RSMo 1939 § 5874)

Prior revisions: 1929 § 5763; 1919 § 6173; 1909 § 6967

Emergency fund--extra premium--commutation of policies.

377.260. 1. After the first policy year the mortuary premium, according to the terms of premium payments of each policy, with the loading of the same as provided in section 377.250, together with all interest and other accumulations of said fund, except the special loading for limited payment policies, with interest thereon as provided in section 377.270, shall constitute the insurance fund of the corporation, company, or association from which all policy obligations shall be paid, and the amount remaining in said fund not required to provide for death, disability and other policy claims, shall be set aside as an emergency fund, and may be deposited with the department of insurance, financial institutions and professional registration. 2. If by any reason of excessive mortality, or other cause, the emergency fund as thus constituted shall become exhausted, then the director of the department of insurance, financial institutions and professional registration shall require the officers of such corporation, company or association to notify all policyholders on or before the first of the next succeeding month to pay, within thirty days from the mailing of such notice, an extra premium, sufficient to meet the amount of the maximum policy issued apportioned equitably.

3. If any member fails to pay such extra premium within the time named his policy shall be commuted proportionately, and the policy as thus commuted shall be the maximum amount for which the corporation shall be liable under said policy. Said thirty days' notice shall clearly state the proportionate amount due from the insured, and shall contain the further statement that in the event of failure to pay the same within thirty days said policy will be commuted as aforesaid.

(RSMo 1939 § 5875)

Prior revisions: 1929 § 5764; 1919 § 6174; 1909 § 6968

Limited payment policies--reserve--deposit.

377.270. 1. Any corporation, company or association transacting business under the provisions of sections 377.200 to 377.460 may issue limited payment or any form of investment policies; provided, that the premiums shall not be less than the net term rate for the kind of policy issued, increased by such sum as will, improved at four percent, equal the net single premium for the attained age, at the end of the paying term of the policy, according to the actuaries' or combined experience table of mortality on which its calculations are based.

2. Said increase of premium shall be reserved in a separate fund for the purpose of sustaining such policies after the cessation of premium payments, and shall be deposited with the department of insurance, financial institutions and professional registration in such securities as are now required by law.

3. If any such corporation doing business under the provisions of sections 377.200 to 377.460 shall fail to state in its limited payment policies the portion of each of the premiums to be held by it for the purpose of sustaining the policy after the years during which the premiums are to be paid, then all such limited payment policies or investment policies that may be issued shall be valued according to the actuaries' or combined experience table and interest at four percent.

(RSMo 1939 § 5876)

Prior revisions: 1929 § 5765; 1919 § 6175; 1909 § 6969

Surrender values.

377.280. Any corporation, company or association transacting business under the provisions of sections 377.200 to 377.460, may allow cash values on its policies or the equivalent of the cash value in extended or paid-up insurance to the extent of the unused portion of the emergency fund equitably apportioned at the dates of surrender, and may allow fixed cash values on its limited payment or investment policies, or the equivalent of the cash value in extended or paid-up insurance; provided, the amount to be set apart for such fixed cash value or its equivalent is plainly stated in the policy; and provided further, that such fixed cash value shall not be in excess of the portion of the premium with interest accretions thereon collected for that purpose.

(RSMo 1939 § 5877)

Prior revisions: 1929 § 5766; 1919 § 6176; 1909 § 6970

Distribution of surplus.

377.290. Any corporation, company or association may provide for a return of any surplus accumulations on its limited payment or investment policies, which may be returned as a dividend, or in extended, paid-up or increased insurance.

(RSMo 1939 § 5878)

Prior revisions: 1929 § 5767; 1919 § 6177; 1909 § 6971

Policy to specify amount to be paid--effect of refusal to pay.

377.300. 1. Every policy hereafter issued by any corporation, company or association doing business under the provisions of sections 377.200 to 377.460 and promising any payments to be made upon a contingency provided for in sections 377.200 to 377.460, shall specify the sum of money which it promises to pay upon each contingency insured against and the time or times of payment after satisfactory proof of the happening of such contingency, unless the contract shall have been voided by fraud or breach of its conditions and warranties, or commuted, as provided for in section 377.260, the company shall be obligated to the beneficiaries of the insured for such payment at the time or times specified and to the amount due under the policy.

2. If any company fail or refuse to make such payment for ninety days after final judgment has been obtained under such claim, the director or other officer charged with the supervision of insurance matters shall notify the company to issue no new policies until such indebtedness is fully paid, and no officer or agent of the company shall make, sign or issue any policy of insurance while such notice is in force.

(RSMo 1939 § 5879)

Prior revisions: 1929 § 5768; 1919 § 6178; 1909 § 6972

Examinations--beneficiary--change in beneficiary--charitable,benevolent, educational and religious organizations have insurableinterest--fraud or coercion, exception.

377.310. 1. No corporation, company or association transacting business pursuant to sections 377.200 to 377.460 shall issue a certificate or policy to any person until the applicant has been examined by a physician duly licensed and appointed by the company as its medical examiner, nor unless the beneficiary named in the certificate or policy is the husband, wife, legal representative, relative, heir, creditor or legatee of the insured, or who may have an insurable interest in the insured.

2. The beneficiary named in the certificate or policy may be changed as may be provided for in the articles of incorporation or bylaws, except that no change shall be made from a wife to a creditor without her written consent.

3. A charitable, benevolent, educational or religious institution qualified pursuant to section 501(c)(3) of the federal Internal Revenue Code, as amended, shall be deemed to have an insurable interest in the life of an insured individual if, in the absence of any fraud or coercion:

(1) The individual has designated the institution as a beneficiary;

(2) The individual has made a gift or an assignment of an interest in life insurance on the life of such insured individual; or

(3) The life insurance is owned by such charitable, benevolent, educational or religious institution and such institution has obtained the consent of the person whose life is being insured, as required by section 376.531.

(RSMo 1939 § 5882, A. 1949 H.B. 2094, A.L. 1992 H.B. 1574, A.L. 1997 H.B. 622)

Prior revisions: 1929 § 5771; 1919 § 6181; 1909 § 6975

Policy incontestable after one year.

377.320. In the event of death after any policy of insurance has been issued by any corporation, company or association, doing business under the provisions of sections 377.200 to 377.460, and after the policy has been in force for the period of one full year, then such policy of insurance shall be incontestable for any cause.

(RSMo 1939 § 5882, A. 1949 H.B. 2094)

Prior revisions: 1929 § 5771; 1919 § 6181; 1909 § 6975

Proceeds not liable for debts.

377.330. The money or other benefit, charity, relief or aid to be paid, provided or rendered by any corporation authorized to do business under sections 377.200 to 377.460, shall not be liable to attachment or other process, and shall not be seized, taken, appropriated or applied by any legal or equitable process, nor by operation of law, to pay any debt or liability of a policy or certificate holder, or of any beneficiary named in a policy or certificate.

(RSMo 1939 § 5883)

Prior revisions: 1929 § 5772; 1919 § 6182; 1909 § 6976

Misrepresentations.

377.340. No representation made in obtaining or securing a policy of insurance on the life or lives of any person or persons shall be deemed material, or render the policy void, unless the matter misrepresented shall have actually contributed to the contingency or event on which the policy is to become due and payable, and if so contributed in any case, shall be a question for the jury.

(RSMo 1939 § 5893)

Prior revisions: 1929 § 5782; 1919 § 6192; 1909 § 6986

Copy of application.

377.350. Every corporation, company or association transacting business under the provisions of sections 377.200 to 377.460 shall, upon the issuance of every policy, attach to such policy or endorse thereon the substance of the application upon which such policy was issued, and which is made a part of the contract of insurance, or referred to therein, or which may in any manner affect the validity of such policy.

(RSMo 1939 § 5885)

Prior revisions: 1929 § 5774; 1919 § 6184; 1909 § 6978

Discriminations prohibited--duty of director and attorney general.

377.360. 1. No corporation, company or association transacting business under the provisions of sections 377.200 to 377.460 shall make any discrimination in favor of holders of the same kind of policies, or persons of the same expectation of life, neither in the amount of premiums charged nor in any return of premiums, dividends or other advantages.

2. No agent of such corporation shall make any contract for insurance or agreement as to such contract, other than that which is plainly expressed in the policy issued.

3. If it shall appear to the satisfaction of the director or other official charged with the supervision of insurance matters, that any corporation, company or association is issuing policies or contracts that are in violation of this section, he shall report the same to the attorney general, who shall require such corporation and its officers and agents within thirty days to refrain from issuing any such policy or contract.

4. If any corporation or officer or agent thereof shall fail to comply with the provisions of this section and with the demand of the attorney general, that officer shall at once institute such proceedings at law as may be necessary to restrain such violation of this section.

(RSMo 1939 § 5888)

Prior revisions: 1929 § 5777; 1919 § 6187; 1909 § 6981

CROSS REFERENCE:

Discrimination and rebates prohibited, penalty, 376.500, 376.510

Personal liability.

377.370. No person shall incur any personal liabilities for the losses or liabilities of any corporation, company or association transacting business under the provisions of sections 377.200 to 377.460 by reason of being a member or policyholder in such corporation.

(RSMo 1939 § 5880)

Prior revisions: 1929 § 5769; 1919 § 6179; 1909 § 6973

Annual report.

377.380. The annual business of each and every corporation, company or association transacting business under the provisions of sections 377.200 to 377.460 shall close on the thirty-first day of December of each year, and it shall, within sixty days thereafter, prepare and file in the office of the director or other officer having supervision of insurance matters, a detailed statement, made upon blanks furnished by the department of insurance, financial institutions and professional registration, and verified under oath by the president and secretary of the company or association, giving all information in detail that the department of insurance, financial institutions and professional registration may require, so that its true financial condition may be known.

(RSMo 1939 § 5889)

Prior revisions: 1929 § 5778; 1919 § 6188; 1909 § 6982

Reinsurance and reinstatement.

377.400. No stipulated premium life insurance company or association organized under sections 377.200 to 377.460 shall consolidate with another company or transfer or reinsure its risks with any other company or association or assume or reinstate the whole or any part of the risks of any other company or association, except with the approval of a majority of the policy or stockholders present and voting at a regular or special meeting duly called; provided, however, that any such company may reinsure a fractional part of any single risk, but no such insurance shall in any manner release the company or association from its obligation under contract with the policyholder. All such reinsurance shall be reported annually to the director of the department of insurance, financial institutions and professional registration.

(RSMo 1939 § 5881)

Prior revisions: 1929 § 5770; 1919 § 6180; 1909 § 6974

Retaliatory section.

377.420. When any state, territory or foreign country shall impose any obligations upon any such corporation of this state, or their agents transacting business in such other state, territory or foreign country, the like obligations are hereby imposed upon similar corporations of such other state, territory or foreign country, their agents or representatives transacting business in this state; and such corporation, company, association or society of such other state, territory or foreign country, and its agents and representatives shall pay all licenses, fees or penalties to, and make deposits with the director of insurance imposed by the laws of such other state, territory or foreign country upon any corporation of this state doing business therein; and in case of failure to pay the same, the director shall refuse the certificate of authority herein provided for or cancel such certificate, if one shall have been previously issued.

(RSMo 1939 § 5890)

Prior revisions: 1929 § 5779; 1919 § 6189; 1909 § 6983

Requirements for foreign corporations--tax on premiums.

377.430. 1. No foreign corporation, company, association or society shall be authorized to transact any business authorized by sections 377.200 to 377.460 within this state, unless it furnish evidence satisfactory to the director of the department of insurance, financial institutions and professional registration that it has a reserve or emergency fund equal in amount to that required by sections 377.200 to 377.460, and the same is held for the benefit of policyholders only, and invested as required by the insurance laws of its home state.

2. Neither shall any foreign corporation, company, association or society be authorized to do business in this state under sections 377.200 to 377.460, unless it collects in advance for the benefit of its policyholders a net premium equal to at least that provided for by the terms of sections 377.200 to 377.460; provided, that all such foreign corporations shall annually pay a tax on the gross premiums received in this state on account of business done in the state at the rate of one percent per annum, which shall be in lieu of all other taxes as herein otherwise provided; said tax shall be levied and collected as is provided for in the collection of taxes on other insurance companies.

(RSMo 1939 § 5890)

Prior revisions: 1929 § 5779; 1919 § 6189; 1909 § 6983

Acceptance of provisions of regular life law--not to affect pastcontracts.

377.450. 1. Any domestic life or accident insurance corporation, company or association existing or doing business in this state under the stipulated premium plan law, may, by a majority vote of its directors or trustees, accept the provisions of sections 376.010 to 376.670 and amend its articles of incorporation and its bylaws to conform to said law, the same as if it had originally been incorporated thereunder, and shall submit a record of the proceedings of its board of trustees, together with the amended articles, to the attorney general for his examination and approval of the legal form thereof, and shall file such amended articles in the office of the secretary of state and a certified copy of same in the office of the director of the department of insurance, financial institutions and professional registration, and deposit with said director such securities as may be required of corporations originally incorporated under sections 376.010 to 376.670.

2. Insurance corporations, companies and associations complying with the provisions of this section shall thereafter enjoy and exercise all of the rights and privileges accorded by law to companies originally incorporated under sections 376.010 to 376.670.

3. Compliance with this section shall in no wise annul, modify or change any of the existing contracts or obligations of the corporation, and any and all such contracts and liabilities shall continue in force and effect the same as if such corporation had not reincorporated under the provisions of this section; compliance with the provisions of this section shall in no way prejudice, impede or impair any pending action, proceeding or rights previously acquired.

(RSMo 1939 § 5887)

Prior revisions: 1929 § 5776; 1919 § 6186; 1909 § 6980

Penalty for false statements.

377.460. Any solicitor, agent, examining physician or other person who shall make a false or fraudulent statement or misrepresentation in or with reference to any application for insurance, or for the purpose of obtaining any money or benefit in any corporation doing business under sections 377.200 to 377.460, shall be guilty of a misdemeanor, and upon conviction, shall be punished by a fine of not less than one hundred dollars nor more than five hundred dollars, or by imprisonment in the county jail for not less than thirty days nor more than one year, or by both such fine and imprisonment, at the discretion of the court; and any person who shall make a false statement of any material fact or thing in a sworn statement as to the death or disability of a certificate holder in any such corporation, for the purpose of procuring payment of a benefit named in the certificate of such holder, shall be guilty of perjury and shall be proceeded against and punished as provided by the statutes of this state in relation to the crime of perjury; and any person who shall make any false or fraudulent statement or misrepresentation with reference to any corporation, company or association transacting business under the provisions of sections 377.200 to 377.460 shall be guilty of a misdemeanor, and upon conviction, shall be punished by a fine of not less than one hundred dollars nor more than five hundred dollars, or imprisonment in the county jail for not less than thirty days nor more than one year, or both such fine and imprisonment, at the discretion of the court.

(RSMo 1939 § 5884)

Prior revisions: 1929 § 5773; 1919 § 6183; 1909 § 6977


Top
bottom Missouri General Assembly

Copyright © Missouri Legislature, all rights reserved.