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hb0926p-Perfected Bill Text

FIRST REGULAR SESSION

[PERFECTED]

HOUSE BILL NO. 926

90TH GENERAL ASSEMBLY






INTRODUCED BY REPRESENTATIVES LIESE AND WARD (Co-sponsors).

Read 1st time February 18, 1999, and 1000 copies ordered printed.

Read 2nd time February 22, 1999, and referred to the Committee on Insurance, February 24, 1999.

Reported from the Committee on Insurance March 11, 1999, with recommendation that the bill Do Pass by Consent.

Perfected by Consent March 30, 1999. Bill ordered Perfected and printed.

ANNE C. WALKER, Chief Clerk

L1840.01P




AN ACT

To repeal section 375.1518, RSMo Supp. 1998, relating to life insurance policies, and to enact in lieu thereof one new section relating to the same subject.






Be it enacted by the General Assembly of the state of Missouri, as follows:

Section A. Section 375.1518, RSMo Supp. 1998, is repealed and one new section enacted in lieu thereof, to be known as section 375.1518, to read as follows:

375.1518. 1. (1) If a basic illustration is used by an insurance producer or other authorized representative of the insurer in the sale of a life insurance policy and the policy is applied for as illustrated, a copy of that illustration, signed in accordance with sections 375.1500 to 375.1527, shall be submitted to the insurer at the time of policy application. A copy also shall be provided to the applicant.

(2) If the policy is issued other than as applied for, a revised basic illustration conforming to the policy as issued shall be sent with the policy. The revised illustration shall conform to the requirements of sections 375.1500 to [375.1527] 375.1530, shall be labeled "Revised Illustration" and shall be signed and dated by the applicant or policy owner and producer or other authorized representative of the insurer no later than the time the policy is delivered. A copy shall be provided to the insurer and the policy owner.

2. (1) If no illustration is used by an insurance producer or other authorized representative in the sale of a life insurance policy or if the policy is applied for other than as illustrated, the producer or representative shall certify to that effect in writing on a form provided by the insurer. On the same form the applicant shall acknowledge that no illustration conforming to the policy applied for was provided and shall further acknowledge an understanding that an illustration conforming to the policy as issued will be provided no later than at the time of policy delivery. This form shall be submitted to the insurer at the time of policy application.

(2) If the policy is issued, a basic illustration conforming to the policy as issued shall be sent with the policy and signed no later than the time the policy is delivered. A copy shall be provided to the insurer and the policy owner.

3. If the basic illustration or revised illustration is sent to the applicant or policy owner by mail from the insurer, it shall include instructions for the applicant or policy owner to sign the duplicate copy of the numeric summary page of the illustration for the policy issued and return the signed copy to the insurer. The insurer's obligation pursuant to this subsection shall be satisfied if it can demonstrate that it has made a diligent effort to secure a signed copy of the numeric summary page. The requirement to make a diligent effort shall be deemed satisfied if the insurer includes in the mailing a self-addressed postage prepaid envelope with instructions for the return of the signed numeric summary page.

4. A copy of the basic illustration and a revised basic illustration, if any, signed as applicable, along with any certification that either no illustration was used or that the policy was applied for other than as illustrated, shall be retained by the insurer until three years after the policy is no longer in force. A copy need not be retained if no policy is issued.

5. Any policy marketed with an illustration pursuant to sections 375.1500 to 375.1530 shall not be required to have the policy summary required by section 376.706, RSMo.



Missouri House of Representatives