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| Home > Statutes > Usa Missouri |
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USA Statutes : missouri
Title : BUSINESS AND FINANCIAL INSTITUTIONS
Chapter : Chapter 377 Assessment Plan and Stipulated Premium Plan Life Insurance
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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
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 insurance department 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 insurance has been deposited with the department of
insurance, which fund shall be held in trust as a beneficiary fund by the
said director of insurance. 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
1. On written application by the board of directors, the
director of insurance 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 insurance 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 insurance 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
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 insurance department
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
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
insurance department 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 insurance department,
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 insurance department
and the corporation making the deposit. (RSMo 1939 § 5860)
Prior revisions: 1929 § 5749; 1919 § 6159; 1909 § 6954
CROSS REFERENCE: Bonds and evidence of debt, how valued, RSMo 376.320
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
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 insurance
department 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 insurance department 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
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. (RSMo 1939 § 5862, A.L. 1992 H.B. 1574, A.L. 1997
H.B. 622)
Prior revisions: 1929 § 5751; 1919 § 6161; 1909 § 6956
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
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 insurance department, 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, RSMo, and sections 376.300 to
376.330, 376.580, 376.610 and 376.620, RSMo, 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)
Prior revisions: 1929 § 5754; 1919 § 6164; 1909 § 6959
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
insurance department, and have been approved by him. (RSMo 1939 § 5859)
Prior revisions: 1929 § 5748; 1919 § 6158; 1909 § 6955
When any other state or country shall impose any obligations
upon such corporation, the like obligations shall be imposed and enforced
by the insurance department 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
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
insurance department 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
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, RSMo, 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 insurance 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, RSMo.
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, RSMo.
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, RSMo.
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
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
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
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)
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, RSMo, and sections
376.300 to 376.330, 376.675, 376.770 to 376.795, 376.500 to 376.510, and
376.590 to 376.600, RSMo, 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) Prior revisions: 1929 § 5762; 1919 § 6172; 1909 § 6966
(1954) The supervisory powers of the director of insurance under chapter
375, RSMo and particularly §§ 375.560 and 375.640 relating to the power
to take charge of and wind up the affairs of insurance companies apply to
stipulated premium companies. Old Reliable Soc. v. Leggett, 364 Mo. 630,
265 S.W.2d 302.
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
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
insurance 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
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 insurance 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 insurance 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 insurance department 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
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, RSMo 375.480
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
(1954) Where policy fee which was collected from applicant for insurance
and retained by agent had the effect of continuing insurance in force for
given period, it constituted part of first year's premium, and the period
it covers must be deducted from the year so that amount of annual premium
later collected insofar as it exceeded one full year's premium when added
to policy fee must be credited to insurance fund established under §
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 insurance department.
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 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
(1954) Insurance fund is created solely by crediting to it premiums paid
after the first policy year and first year premiums constitute a trust or
reserve fund. Old Reliable Soc. v. Leggett, 364 Mo. 630, 265 S.W.2d 302.
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 insurance department 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
(1954) Where stipulated premium company took over assets and assumed
liabilities of former funeral benefit societies, the membership and
benefit certificates originally issued by such societies became limited
payment life insurance policies with § 377.270 and company was required
to maintain account and reserves for each such certificate in the same
manner as if the certificate was originally issued by the stipulated
premium company. Old Reliable Soc. v. Leggett, 364 Mo. 630, 265 S.W.2d
302.
(1968) Reserves deposited by insurance company with the superintendent of
insurance for the benefit of policyholders are not included in the
language "par value of its outstanding shares and surplus" contained in
the franchise tax law and are not to be included in the computation of
franchise tax liability of insurance companies. American Life and
Accident Insurance Co. v. Love (Mo.), 431 S.W.2d 177.
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
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
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
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. (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
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
(1960) Alleged misrepresentations in obtaining policy cannot be
considered after expiration of time fixed by policy and statute when
policy became incontestable. Western Life Ins. Co. v. White (A.), 331
S.W.2d 19.
(1960) Where application for reinstatement contained misrepresentation
regarding insured's insurability, health, and consultation of doctors and
at the time it was made insured was suffering a fatal malady, this
section would not bar insurance company from contesting validity of
policy since policy had not been in force for one year after
reinstatement. Randall v. Western Life Ins. Co. (A.), 336 S.W.2d 125.
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
(1955) Where endowment life insurance contract at time of its assignment
to insured's wife had cash surrender value exceeding income taxes due and
where only two premiums remained to be paid, and where such premiums were
later paid and policy matured, the proceeds thereof were subject to be
seized for the enforcement of income tax liens. Reinicke v. Commr. of
Internal Revenue, 220 F.2d 406.
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
(1960) Where application for insurance stated that the insured was in
good health at the time of the application whereas, in fact, he was
suffering from cystitis, a kidney disease, and prostatitis, the policy
could have been voided during his lifetime but after his death from a
coronary occlusion of ten minutes duration the misrepresentations were
immaterial and constituted no defense to an action on the policy. Snead
v. Union Life Insurance Co. (A.), 340 S.W.2d 184.
(1965) Missouri's "misrepresentation" statute applies to insurance
policies, and insurer has burden of showing falsity of answer given on
application. Mahn v. American Life and Accident Insurance Company (A.),
390 S.W.2d 573.
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
(1952) This section applies only to policies issued on the stipulated
premium plan. Toler v. Atlanta Life Ins. Co. (A.), 248 S.W.2d 53.
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, RSMo
376.500, 376.510
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
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
insurance department, and verified under oath by the president and
secretary of the company or association, giving all information in detail
that the insurance department may require, so that its true financial
condition may be known. (RSMo 1939 § 5889)
Prior revisions: 1929 § 5778; 1919 § 6188; 1909 § 6982
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 insurance. (RSMo 1939 §
5881)
Prior revisions: 1929 § 5770; 1919 § 6180; 1909 § 6974
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
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 insurance 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
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, RSMo, 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 insurance department,
and deposit with said director such securities as may be required of
corporations originally incorporated under sections 376.010 to 376.670,
RSMo.
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, RSMo.
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
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
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