4926H.06S
CONFERENCECOMMITTEESUBSTITUTE
FOR
SENATESUBSTITUTE
FOR
SENATECOMMITTEESUBSTITUTE
FOR
HOUSECOMMITTEESUBSTITUTE
FOR
HOUSEBILLNO.2168
ANACT
Torepealsections288.132,303.025,303.041,319.129,
375.159,376.380,376.1800,and379.011,RSMo,andto
enactinlieuthereofninenewsectionsrelatingto
insurance,withpenaltyprovisionsandadelayed
effectivedateforcertainsections.
BEITENACTEDBYTHEGENERALASSEMBLYOFTHESTATEOFMISSOURI,AS
FOLLOWS:
SectionA.Sections288.132,303.025,303.041,319.129,
2 375.159,376.380,376.1800,and379.011,RSMo,arerepealedand
3 ninenewsectionsenactedinlieuthereof,tobeknownassections
4 288.132,288.133,303.025,303.041,319.129,375.159,376.380,
5 376.1800,and379.011,toreadasfollows:
288.132.1.Thereisherebycreatedinthestatetreasury
2 the"UnemploymentAutomationFund",whichshallconsistofmoney
3 collected[undersubsection1ofsection288.131] pursuantto
4 section288.133,andsuchotherstatefundsappropriatedbythe
5 generalassembly. Thestatetreasurershallbecustodianofthe
1 6 fundandmayapprovedisbursementsfromthefundinaccordancewith
7 sections30.170and30.180.Uponappropriation,moneyinthefund
8 shallbeusedsolelyforthepurposeofprovidingautomated
9 systems,andthepaymentofassociatedcosts,toimprovethe
10 administrationofthestate'sunemploymentinsuranceprogram.
11 Notwithstanding theprovisionsofsection33.080tothecontrary,
12 allmoneysremaininginthefundattheendofthebienniumshall
13 notreverttothecreditofthegeneralrevenuefund.Thestate
14 treasurershallinvestmoneysinthefundinthesamemanneras
15 otherfundsareinvested. Anyinterestandmoneyearnedonsuch
16 investmentsshallbecreditedtothefund.
17 2.Theunemploymentautomationfundshallnotbeusedin
18 wholeorinpartforanypurposeorinanymannerthatwouldpermit
19 itssubstitutionfor,oracorrespondingreductionin,federal
20 fundsthatwouldbeavailableinitsabsencetofinance
21 expendituresfortheadministrationofthischapter,orcausethe
22 appropriateagencyoftheUnitedStatesgovernmenttowithholdany
23 partofanadministrativegrantwhichwouldotherwisebemade.
288.133.1.Eachemployerliableforcontributionspursuant
2 tothischapter,exceptemployerswithacontributionrateequalto
3 zero,shallpayanannualunemploymentautomationadjustmentinan
4 amountequaltotwoone-hundredthsofonepercentofsuch
5 employer'stotaltaxablewagesforthetwelve-monthperiodending
6 theprecedingJunethirtieth.
7 2.Notwithstanding subsection1ofthissectiontothe
8 contrary,thedivisionmayreducetheautomationadjustment
9 percentagetoensurethatthetotalamountofadjustmentduefrom
2 10 allemployersunderthissectionshallnotexceedfivemillion
11 dollarsannually.
12 3.Eachemployerliabletopayanautomationadjustmentshall
13 benotifiedoftheamountdueunderthissectionbyMarchthirty-
14 firstofeachyearandsuchamountshallbeconsidereddelinquent
15 thirtydaysthereafter. Delinquentunemploymentautomation
16 adjustmentamountsmaybecollectedinthemannerprovidedunder
17 sections288.160and288.170.Allmoneyscollectedunderthis
18 sectionshallbedepositedintheunemploymentautomationfund
19 establishedinsection288.132.
20 4.Forthefirstquarterofeachcalendaryear,thetotal
21 amountofcontributionotherwiseduefromeachemployerliableto
22 paycontributionsunderthischaptershallbereducedbythedollar
23 amountofunemploymentautomationadjustmentduefromsuch
24 employerpursuanttosubsection1ofthissection.However,the
25 amountofcontributionsduefromsuchemployerforthefirst
26 quarterofthecalendaryearinquestionshallnotbereducedbelow
27 zero.
303.025.1.Noownerofamotorvehicleregisteredinthis
2 state,orrequiredtoberegisteredinthisstate,shalloperate,
3 registerormaintainregistrationofamotorvehicle,orpermit
4 anotherpersontooperatesuchvehicle,unlesstheownermaintains
5 thefinancialresponsibilitywhichconformstotherequirementsof
6 thelawsofthisstate.Nononresidentshalloperateorpermit
7 anotherpersontooperateinthisstateamotorvehicleregistered
8 tosuchnonresidentunlessthenonresidentmaintainsthefinancial
9 responsibilitywhichconformstotherequirementsofthelawsof
3 10 thenonresident'sstateofresidence. Furthermore,noperson
11 shalloperateamotorvehicleownedbyanotherwiththeknowledge
12 thattheownerhasnotmaintainedfinancialresponsibilityunless
13 suchpersonhasfinancialresponsibilitywhichcoverstheperson's
14 operationoftheother'svehicle;however,noownerornonresident
15 shallbeinviolationofthissubsectionifheorshefailsto
16 maintainfinancialresponsibilityonamotorvehiclewhichis
17 inoperableorbeingstoredandnotinoperation. Thedirectorof
18 thedepartmentofrevenueshallestablishbyruleaprocessfor
19 voluntarysuspensionofmotorvehicleregistrationforvehicles
20 whichareinoperableorbeingstoredandnotinoperation. The
21 ownerornonresidentshallnotfurtheroperatethevehicleuntil
22 theownerornonresidentnotifiesthedepartmentofrevenuethat
23 thevehiclewillbeinuse,andthedepartmentshallreinstatethe
24 motorvehicleregistrationuponreceiptofproofoffinancial
25 responsibility. Ownersornonresidentswhooperateamotor
26 vehicleduringaperiodofinoperabilityorstorageclaimedunder
27 thissubsectionshallbeguiltyofaclassBmisdemeanorandmay
28 additionallybeguiltyofaviolationofthissubsection.
29 Notwithstanding anyprovisionoflawtothecontrary,the
30 departmentofrevenuemayverifymotorvehiclefinancial
31 responsibilityasprovidedbylaw,butshallnototherwisetake
32 legaloradministrativeactiontoenforcetherequirementsofthis
33 sectionunless,inthediscretionofthedirector,themotor
34 vehicleisdeterminedtohavebeenoperatedinviolationofthis
35 section,amotorvehicleregistrationisappliedforinviolation
36 ofthissection,orthemotorvehicleontwoseparateoccasions
4 37 thirtydaysapartisdeterminedtohaveitsregistration
38 maintainedinviolationofthissection.Thedirectormay
39 prescriberulesandregulationsfortheimplementationofthis
40 section.
41 2.Amotorvehicleownershallmaintaintheowner'sfinancial
42 responsibilityinamannerprovidedforinsection303.160,orwith
43 amotorvehicleliabilitypolicywhichconformstothe
44 requirementsofthelawsofthisstate.Anonresidentmotor
45 vehicleownershallmaintaintheowner'sfinancialresponsibility
46 whichconformstotherequirementsofthelawsofthenonresident's
47 stateofresidence.
48 3.Anypersonwhoviolatesthissectionisguiltyofa
49 misdemeanor. Exceptasotherwiseprovidedinthissection,afirst
50 violationofthissectionshallbepunishableasaclassD
51 misdemeanor. Asecondorsubsequentviolationofthissection
52 [shall] maybe[punishable] punishedbyimprisonmentinthecounty
53 jailforatermnottoexceedfifteendays[and/or] andshallbe
54 punishedbyafinenotlessthantwohundreddollarsbutnotto
55 exceedfivehundreddollars.Priorpleasofguiltyandprior
56 findingsofguiltyshallbepleadedandproveninthesamemanner
57 asrequiredbysection558.021.However,nopersonshallbefound
58 guiltyofviolatingthissectioniftheoperatordemonstratesto
59 thecourtthatheorshemetthefinancialresponsibility
60 requirementsofthissectionatthetimethepeaceofficer,
61 commercialvehicleenforcementofficerorcommercialvehicle
62 inspectorwrotethecitation.Inadditiontoanyotherauthorized
63 punishment,thecourtshallnotifythedirectorofrevenueofany
5 64 personconvictedpursuanttothissectionandshalldooneofthe
65 following:
66 (1)Enteranordersuspendingthedrivingprivilegeasofthe
67 dateofthecourtorder.Ifthecourtordersthesuspensionofthe
68 drivingprivilege,thecourtshallrequirethedefendantto
69 surrendertoitanydriver'slicensethenheldbysuchperson.The
70 lengthofthesuspensionshallbeasprescribedinsubsection2of
71 section303.042.Thecourtshallforwardtothedirectorof
72 revenuetheorderofsuspensionofdrivingprivilegeandany
73 licensesurrenderedwithintendays;
74 (2)Forwardtherecordoftheconvictionforanassessmentof
75 fourpoints;
76 (3)Inlieuofanassessmentofpoints,renderanorderof
77 supervisionasprovidedinsection302.303.Anorderof
78 supervisionshallnotbeusedinlieuofpointsmorethanonetime
79 inanythirty-six-month period.Everycourthavingjurisdiction
80 pursuanttotheprovisionsofthissectionshallforwardarecord
81 ofconvictiontotheMissouristatehighwaypatrol,oratthe
82 writtendirectionoftheMissouristatehighwaypatrol,tothe
83 departmentofrevenue,inamannerapprovedbythedirectorofthe
84 departmentofpublicsafety.Thedirectorshallestablish
85 proceduresfortherecordkeepingandadministrationofthis
86 section;or
87 (4)Foranonresident,suspendthenonresident'sdriving
88 privilegesinthisstateinaccordancewithsection303.030and
89 notifytheofficialinchargeoftheissuanceoflicensesand
90 registrationcertificatesinthestateinwhichsuchnonresident
6 91 residesinaccordancewithsection303.080.
92 4.Nothinginsections303.010to303.050,303.060,303.140,
93 303.220,303.290,303.330and303.370shallbeconstruedas
94 prohibitingthedepartmentofcommerceandinsurancefrom
95 approvingorauthorizingthoseexclusionsandlimitationswhich
96 arecontainedinautomobileliabilityinsurancepoliciesandthe
97 uninsuredmotoristprovisionsofautomobileliabilityinsurance
98 policies.
99 5.Ifacourtentersanorderofsuspension,theoffendermay
100 appealsuchorderdirectlypursuanttochapter512andthe
101 provisionsofsection302.311shallnotapply.
102 6.Anyfinesowedtothestatepursuanttothissectionmay
103 beeligibleforpaymentininstallments. Thedirectorshall
104 promulgaterulesfortheapplicationofpaymentplans,whichshall
105 takeintoaccountindividuals'abilitytopay.
303.041.1.Ifthedirectordetermines[thatasaresultof
2 averificationsampleoraccidentreportthattheownerofamotor
3 vehiclehasnotmaintainedfinancialresponsibility, orifthe
4 directordeterminesasaresultofanorderofsupervision] that
5 theowneroroperatorofamotorvehiclehasnotmaintainedthe
6 financialresponsibilityasrequiredinthischapter,thedirector
7 shallthirty-threedaysaftermailingnotice,suspendthedriving
8 privilegeoftheowneroroperatorand/ortheregistrationofthe
9 vehiclefailingtomeetsuchrequirement. Thenoticeofsuspension
10 shallbemailedtothepersonatthelastknownaddressshownon
11 thedepartment'srecords.Thenoticeofsuspensionisdeemed
12 receivedthreedaysaftermailing.Thenoticeofsuspensionshall
7 13 clearlyspecifythereasonandstatutorygroundsforthe
14 suspensionandtheeffectivedateofthesuspension,therightof
15 thepersontorequestahearing,theprocedureforrequestinga
16 hearing,andthedatebywhichthatrequestforahearingmustbe
17 made.Iftherequestforahearingisreceivedbythedepartment
18 priortotheeffectivedateofthesuspension,theeffectivedate
19 ofthesuspensionwillbestayeduntilafinalorderisissued
20 followingthehearing.
21 2.Exceptasotherwiseprovidedbylaw,neitherthefactthat
22 subsequenttothedateofverificationorconviction,theowner
23 acquiredtherequiredliabilityinsurancepolicynorthefactthat
24 theownerterminatedownershipofthemotorvehicle,shallhaveany
25 bearinguponthedirector'sdecisiontosuspend.Untilitis
26 terminated,thesuspensionshallremaininforceafterthe
27 registrationisrenewedoranewregistrationisacquiredforthe
28 motorvehicle.Thesuspensionalsoshallapplytoanymotor
29 vehicletowhichtheownertransferstheregistration. Effective
30 January1,2000,thedepartmentshallnotextendanysuspensionfor
31 failuretopayadelinquentlatesurrenderfeepursuanttothis
32 subsection.
319.129.1.Thereisherebycreatedaspecialtrustfundto
2 beknownasthe"PetroleumStorageTankInsuranceFund"withinthe
3 statetreasurywhichshallbethesuccessortotheunderground
4 storagetankinsurancefund.Moneysinsuchspecialtrustfund
5 shallnotbedeemedtobestatefunds.Notwithstanding the
6 provisionsofsection33.080tothecontrary,moneysinthefund
7 shallnotbetransferredtogeneralrevenueattheendofeach
8 8 biennium.
9 2.Theowneroroperatorofanyundergroundstoragetank,
10 includingthestateofMissourianditspoliticalsubdivisionsand
11 publictransportationsystems,inserviceonAugust28,1989,
12 shallsubmittothedepartmentafeeofonehundreddollarsper
13 tankonorbeforeDecember31,1989.Theowneroroperatorofany
14 undergroundstoragetankwhoseekstoparticipateinthepetroleum
15 storagetankinsurancefund,includingthestateofMissouriand
16 itspoliticalsubdivisionsandpublictransportationsystems,and
17 whoseundergroundstoragetankisbroughtintoserviceafter
18 August28,1998,shalltransmitonehundreddollarspertanktothe
19 boardwithhisorherinitialapplication. Suchamountshallbea
20 one-timepayment,andshallbeinadditiontothepaymentrequired
21 bysection319.133.Theowneroroperatorofanyaboveground
22 storagetankregulatedbythischapter,includingthestateof
23 Missourianditspoliticalsubdivisionsandpublictransportation
24 systems,whoseekstoparticipateinthepetroleumstoragetank
25 insurancefund,shalltransmitonehundreddollarspertanktothe
26 boardwithhisorherinitialapplication. Suchamountshallbea
27 one-timepaymentandshallbeinadditiontothepaymentrequired
28 bysection319.133.Moneysreceivedpursuanttothissectionshall
29 betransmittedtothedirectorofrevenuefordepositinthe
30 petroleumstoragetankinsurancefund.
31 3.Thestatetreasurermaydepositmoneysinthefundinany
32 ofthequalifieddepositoriesofthestate.Allsuchdeposits
33 shallbesecuredinamanneranduponthetermsasareprovidedby
34 lawrelativetostatedeposits.Interestearnedshallbecredited
9 35 tothepetroleumstoragetankinsurancefund.
36 4.Thegeneraladministrationofthefundandthe
37 responsibilityfortheproperoperationofthefund,includingall
38 decisionsrelatingtopaymentsfromthefund,areherebyvestedin
39 aboardoftrustees. Theboardoftrusteesshallconsistofthe
40 commissionerofadministrationorthecommissioner'sdesignee,the
41 directorofthedepartmentofnaturalresourcesorthedirector's
42 designee,thedirectorofthedepartmentofagricultureorthe
43 director'sdesignee,andeightcitizensappointedbythegovernor
44 withtheadviceandconsentofthesenate.Threeoftheappointed
45 membersshallbeownersoroperatorsofretailpetroleumstorage
46 tanks,includingonetankowneroroperatorofgreaterthanone
47 hundredtanks;onetankowneroroperatoroflessthanonehundred
48 tanks;andoneabovegroundstoragetankowneroroperator. One
49 appointedtrusteeshallrepresentafinanciallendinginstitution,
50 andoneappointedtrusteeshallrepresenttheinsurance
51 underwritingindustry. Oneappointedtrusteeshallrepresent
52 industrialorcommercialusersofpetroleum. Thetworemaining
53 appointedcitizensshallhavenopetroleum-related business
54 interest,andshallrepresentthenonregulatedpublicatlarge.
55 Themembersappointedbythegovernorshallservefour-yearterms
56 exceptthatthegovernorshalldesignatetwooftheoriginal
57 appointeestobeappointedforoneyear,twotobeappointedfor
58 twoyears,twotobeappointedforthreeyearsandtwotobe
59 appointedforfouryears.Anyvacanciesoccurringontheboard
60 shallbefilledinthesamemannerasprovidedinthissection.
61 5.[TheboardshallmeetinJeffersonCity,Missouri,within
10 62 thirtydaysfollowingAugust28,1996.Thereafter,] Theboard
63 shallmeetuponthewrittencallofthechairmanoftheboardorby
64 theagreementofanysixmembersoftheboard.Noticeofeach
65 meetingshallbedeliveredtoallothertrusteesinpersonorby
66 registeredmailnotlessthansixdayspriortothedatefixedfor
67 themeeting.Theboardmaymeetatanytimebyunanimousmutual
68 consent.Thereshallbeatleastonemeetingineachquarter.
69 6.Sixtrusteesshallconstituteaquorumforthetransaction
70 ofbusiness,andanyofficialactionoftheboardshallbebasedon
71 amajorityvoteofthetrusteespresent.
72 7.Thetrusteesshallservewithoutcompensationbutshall
73 receivefromthefundtheiractualandnecessaryexpensesincurred
74 intheperformanceoftheirdutiesfortheboard.
75 8.TheboardoftrusteesshallbeatypeIIIagencyandshall
76 appointanexecutivedirectorandotheremployeesasneeded,who
77 shallbestateemployeesandbeeligibleforallcorresponding
78 benefits.Theexecutivedirectorshallhavechargeoftheoffices,
79 operations,records,andotheremployeesoftheboard,subjectto
80 thedirectionoftheboard.Employeesoftheboardshallreceive
81 suchsalariesandnecessaryexpensesasshallbefixedbythe
82 board.
83 9.StaffresourcesfortheMissouripetroleumstoragetank
84 insurancefundmaybeprovidedbythedepartmentofnatural
85 resourcesoranotherstateagencyasotherwisespecifically
86 determinedbytheboard.Thefundshallcompensatethedepartment
87 ofnaturalresourcesorotherstateagencyforallcostsof
88 providingstaffrequiredbythissubsection. Suchcompensation
11 89 shallbemadepursuanttocontractsnegotiatedbetweentheboard
90 andthedepartmentofnaturalresourcesorotherstateagency.
91 10.Inordertocarryoutthefiduciarymanagementofthe
92 fund,theboardmayselectandemploy,ormaycontractwith,
93 personsexperiencedininsuranceunderwriting,accounting,the
94 servicingofclaimsandratemaking,andlegalcounseltodefend
95 third-partyclaims,whoshallserveattheboard'spleasure.
96 Invoicesforsuchservicesshallbepresentedtotheboardin
97 sufficientdetailtoallowathoroughreviewofthecostsofsuch
98 services.
99 11.[Atthefirstmeetingoftheboard,] Theboardshall
100 electoneofitsmembersaschairman. Thechairmanshallpreside
101 overmeetingsoftheboardandperformsuchotherdutiesasshall
102 berequiredbyactionoftheboard.
103 12.Theboardshallelectoneofitsmembersasvice
104 chairman,andthevicechairmanshallperformthedutiesofthe
105 chairmanintheabsenceofthelatteroruponthechairman's
106 inabilityorrefusaltoact.
107 13.Theboardshalldetermineandprescribeallrulesand
108 regulationsastheyrelatetofiduciarymanagementofthefund,
109 pursuanttothepurposesofsections319.100to319.137.Inno
110 caseshalltheboardhaveoversightregardingenvironmental
111 cleanupstandardsforpetroleumstoragetanks.
112 14.Notrusteeorstaffmemberofthefundshallreceiveany
113 gainorprofitfromanymoneysortransactionsofthefund.This
114 shallnotprecludeanyeligibletrusteefrommakingaclaimor
115 receivingbenefitsfromthepetroleumstoragetankinsurancefund
12 116 asprovidedbysections319.100to319.137.
117 15.Theboardmayreinsurealloraportionofthefund's
118 liability. Anyinsurerwhosellsenvironmentalliability
119 insuranceinthisstatemay,attheoptionoftheboard,reinsure
120 someportionofthefund'sliability.
121 16.Thepetroleumstoragetankinsurancefundshallexpireon
122 December31,[2025] 2030,unlessextendedbyactionofthegeneral
123 assembly. AfterDecember31,[2025] 2030,theboardoftrustees
124 maycontinuetofunctionforthesolepurposeofcompletingpayment
125 ofclaimsmadepriortoDecember31,[2025] 2030.
126 17.Theboardshallannuallycommissionanindependent
127 financialauditofthepetroleumstoragetankinsurancefund.The
128 boardshallbienniallycommissionanactuarialanalysisofthe
129 petroleumstoragetankinsurancefund.Theresultsofthe
130 financialauditandtheactuarialanalysisshallbemadeavailable
131 tothepublic.Theboardmaycontractwiththirdpartiestocarry
132 outtherequirementsofthissubsection.
133 18.Theboardoftrusteesshallpromulgateallnecessary
134 rulesandregulationsfortheadministrationofthissection.Any
135 ruleorportionofarule,asthattermisdefinedinsection
136 536.010,thatiscreatedundertheauthoritydelegatedinthis
137 sectionshallbecomeeffectiveonlyifitcomplieswithandis
138 subjecttoalloftheprovisionsofchapter536and,ifapplicable,
139 section536.028.Thissectionandchapter536arenonseverableand
140 ifanyofthepowersvestedwiththegeneralassemblypursuantto
141 chapter536toreview,todelaytheeffectivedate,orto
142 disapproveandannularulearesubsequentlyheld
13 143 unconstitutional, thenthegrantofrulemakingauthorityandany
144 ruleproposedoradoptedafterAugust28,2022,shallbeinvalid
145 andvoid.
375.159.1.Asusedinthissection,thefollowingterms
2 shallmean:
3 (1)"Aggregatorsite",awebsitethatprovidesinformation
4 regardinginsuranceproductsfrommorethanoneinsurer,including
5 productandinsurerinformation,foruseincomparisonshopping;
6 (2)"Blankettravelinsurance",apolicyoftravelinsurance
7 issuedtoanyeligiblegroupprovidingcoverageforspecific
8 classesofpersonsdefinedinthepolicy,withcoverageprovidedto
9 allmembersoftheeligiblegroupwithoutaseparatechargeto
10 individualmembersoftheeligiblegroup;
11 (3)"Cancellationfeewaiver",acontractualagreement
12 betweenasupplieroftravelservicesanditscustomertowaive
13 someorallofthenonrefundablecancellationfeeprovisionsofthe
14 supplier'sunderlyingtravelcontractwithorwithoutregardto
15 thereasonforthecancellationorformofreimbursement. A
16 cancellationfeewaiverisnotinsurance;
17 (4)"Director",thedirectorofthedepartmentofcommerce
18 andinsurance;
19 (5)"Eligiblegroup",solelyforthepurposeoftravel
20 insurance,twoormorepersonswhoareengagedinacommon
21 enterpriseorhaveaneconomic,educational,orsocialaffinityor
22 relationship,includingbutnotlimitedtoanyofthefollowing:
23 (a)Anyentityengagedinthebusinessofprovidingtravelor
24 travelservices,includingbutnotlimitedto:touroperators,
14 25 lodgingproviders,vacationpropertyowners,hotelsandresorts,
26 travelclubs,travelagencies,propertymanagers,cultural
27 exchangeprograms,andcommoncarriersortheoperator,owner,or
28 lessorofameansoftransportationofpassengersincluding,but
29 notlimitedto,airlines,cruiselines,railroads,steamship
30 companies,andpublicbuscarriers,inwhichthereisacommon
31 exposuretoriskattendanttotheparticulartypeoftravelor
32 travelerforallmembersorcustomersofthegroup;
33 (b)Anycollege,school,orotherinstitutionoflearning,
34 coveringstudents,teachers,employees,orvolunteers;
35 (c)Anyemployercoveringanygroupofemployees,
36 volunteers,contractors,membersofboardsofdirectors,
37 dependents,orguests;
38 (d)Anysportsteam,camp,orsponsorthereof,covering
39 participants,members,campers,employees,officials,supervisors,
40 orvolunteers;
41 (e)Anyreligious,charitable,recreational,educational,or
42 civicorganization,orbranchthereof,coveringanygroupof
43 members,participants,orvolunteers;
44 (f)Anyfinancialinstitution,financialinstitutionvendor,
45 orparentholdingcompany,trustee,oragentofordesignatedby
46 oneormorefinancialinstitutionsorfinancialinstitution
47 vendors,includingaccountholders, creditcardholders,debtors,
48 guarantors,orpurchasers;
49 (g)Anyincorporatedorunincorporatedassociation,
50 includinganylaborunion,havingacommoninterest,constitution,
51 andbylaws,andorganizedandmaintainedingoodfaithforpurposes
15 52 otherthanobtaininginsuranceformembersorparticipantsofsuch
53 associationcoveringitsmembers;
54 (h)Anytrustorthetrusteesofafundestablished,created,
55 ormaintainedforthebenefitofandcoveringmembers,employees,
56 orcustomersofoneormoreassociationsmeetingtherequirements
57 ofparagraph(g)ofthissubdivision,subjecttothedirector's
58 permissionoftheuseofatrustandthestate'spremiumtax
59 provisionsdescribedinsubsection4ofthissection;
60 (i)Anyentertainmentproductioncompanycoveringanygroup
61 ofparticipants,volunteers,audiencemembers,contestants,or
62 workers;
63 (j)Anyvolunteerfiredepartment,ambulance,rescue,
64 police,court,firstaid,civildefense,orothersuchvolunteer
65 group;
66 (k)Preschools,daycareinstitutionsforchildrenor
67 adults,andseniorcitizenclubs;
68 (l)Anyautomobileortruckrentalorleasingcompany
69 coveringagroupofpersonswhomaybecomerenters,lessees,or
70 passengersdefinedbytheirtravelstatusontherentedorleased
71 vehicles.Thecommoncarrier;theoperator,owner,orlessorofa
72 meansoftransportation; ortheautomobileortruckrentalor
73 leasingcompanyisthepolicyholderunderapolicytowhichthis
74 sectionapplies;or
75 (m)Anyothergroupforwhichthedirectorhasdetermined
76 thatthemembersareengagedinacommonenterpriseorhavean
77 economic,educational,orsocialaffinityorrelationshipandthat
78 issuanceofthepolicywouldnotbecontrarytothepublic
16 79 interest;
80 (6)"Fulfillmentmaterials",documentationsenttothe
81 purchaserofatravelprotectionplanconfirmingthepurchaseand
82 providingthetravelprotectionplan'scoverageandassistance
83 details;
84 (7)"Grouptravelinsurance",travelinsuranceissuedtoany
85 eligiblegroup;
86 (8)"Limitedlinestravelinsuranceproducer",a:
87 (a)Licensedmanaginggeneralagentasprovidedbysections
88 375.147to375.153orthird-partyadministrator;[or]
89 (b)Licensedinsuranceproducerasprovidedbychapter375
90 [;], includingalimitedlinesproducer,designatedbytheinsurer
91 asthetravelinsurancesupervisingentityassetforthin
92 subdivision(7)ofsubsection[5]3ofthissectionbelow;or
93 (c)Traveladministrator;
94 [(2)] (9)"Offeranddisseminate",providegeneral
95 information,includingadescriptionofthecoverageandprice,as
96 wellasprocesstheapplication,collectpremiums,andperform
97 othernonlicensableactivitiespermittedbythestate;
98 [(3)] (10)"Primarycertificateholder",apersonwhoelects
99 andpurchasestravelinsuranceunderagrouppolicy;
100 (11)"Primarypolicyholder",apersonwhoelectsand
101 purchasesindividualtravelinsurance;
102 (12)"Traveladministrator", apersonwhodirectlyor
103 indirectlyunderwrites;collectscharges,collateral,orpremiums
104 from;oradjustsandsettlesclaimsonresidentsofthisstatein
105 connectionwithtravelinsurance;exceptthatapersonshallnotbe
17 106 consideredatraveladministratorifthatperson'sonlyactions
107 thatwouldotherwisecausethepersontobeconsideredatravel
108 administratorareamongthefollowing:
109 (a)Apersonworkingforatraveladministratortotheextent
110 thattheperson'sactivitiesaresubjecttothesupervisionand
111 controlofthetraveladministrator;
112 (b)Aninsuranceproducersellinginsuranceorengagedin
113 administrativeandclaims-relatedactivitieswithinthescopeof
114 theproducer'slicense;
115 (c)Atravelretailerofferinganddisseminatingtravel
116 insuranceandregisteredunderthelicenseofalimitedlines
117 travelinsuranceproducerinaccordancewiththissection;
118 (d)Apersonadjustingorsettlingclaimsinthenormal
119 courseofthatperson'spracticeoremploymentasanattorney-at-
120 lawandwhodoesnotcollectchargesorpremiumsinconnectionwith
121 insurancecoverage;or
122 (e)Abusinessentitythatisaffiliatedwithalicensed
123 insurerwhileactingasatraveladministratorforthedirectand
124 assumedinsurancebusinessofanaffiliatedinsurer;
125 (13)"Travelassistanceservices",noninsuranceservicesfor
126 whichtheconsumerisnotindemnifiedbasedonafortuitousevent
127 andinwhichprovidingtheservicedoesnotresultintransferor
128 shiftingofriskthatwouldconstitutethebusinessofinsurance.
129 Theterm"travelassistanceservices"includes,butisnotlimited
130 to:securityadvisories,destinationinformation,vaccinationand
131 immunizationinformationservices,travelreservationservices,
132 entertainment,activityandeventplanning,translation
18 133 assistance,emergencymessaging,internationallegalandmedical
134 referrals,medicalcasemonitoring,coordinationoftransportation
135 arrangements,emergencycashtransferassistance,medical
136 prescriptionreplacementassistance,passportandtraveldocument
137 replacementassistance,lostluggageassistance,concierge
138 services,andanyotherservicethatisfurnishedinconnection
139 withplannedtravel.Travelassistanceservicesarenotinsurance
140 andnotrelatedtoinsurance;
141 (14)"Travelinsurance",insurancecoverageforpersonal
142 risksincidenttoplannedtravel,including,butnotlimitedto:
143 (a)Interruptionorcancellationoftriporevent;
144 (b)Lossofbaggageorpersonaleffects;
145 (c)Damagestoaccommodationsorrentalvehicles;[or]
146 (d)Sickness,accident,disability,ordeathoccurring
147 duringtravel;
148 (e)Emergencyevacuation;
149 (f)Repatriationofremains;or
150 (g)Anyothercontractualobligationstoindemnifyorpaya
151 specifiedamounttothetravelerupondeterminablecontingencies
152 relatedtotravelasapprovedbythedirector.
153
154 Travelinsurancedoesnotincludemajormedicalplans,which
155 providecomprehensivemedicalprotectionfortravelerswithtrips
156 lastingsixmonthsorlonger,including,forexample,those
157 personsworkingoverseasasexpatriatesormilitarypersonnel
158 beingdeployed,oranyotherproductthatrequiresaspecific
159 insuranceproducerlicense;
19 160 [(4)] (15)"Travelprotectionplans",plansthatprovideone
161 ormoreofthefollowing:
162 (a)Travelinsurance;
163 (b)Travelassistanceservices;or
164 (c)Cancellationfeewaivers;
165 (16)"Travelretailer",abusinessentitythatmakes,
166 arranges,orofferstravelservicesandmayofferanddisseminate
167 travelinsuranceasaservicetoitscustomersonbehalfofand
168 underthedirectionofalimitedlinestravelinsuranceproducer.
169 2.(1)Therequirementsofthissectionshallapplyto
170 travelinsurancethatcoversanyresidentofthisstateandis
171 sold,solicited,negotiated,orofferedinthisstateandpolicies
172 andcertificatesthataredeliveredorissuedfordeliveryinthis
173 state.Exceptasexpresslyprovidedinthissection,the
174 requirementsofthissectionshallnotapplytocancellationfee
175 waiversortravelassistanceservices.
176 (2)Allotherapplicableprovisionsofthisstate's
177 insurancelawsshallcontinuetoapplytotravelinsurance,except
178 thatthespecificprovisionsofthissectionshallsupersedeany
179 generalprovisionsoflawthatwouldotherwisebeapplicableto
180 travelinsurance.
181 3.Notwithstanding anyotherprovisionoflaw:
182 (1)Thedirectormayissuealimitedlinestravelinsurance
183 producerlicensetoapersonorbusinessentitythathasfiledwith
184 thedirectoranapplicationforalimitedlinestravelinsurance
185 producerlicenseinaformandmannerprescribedbythedirector.
186 Alimitedlinestravelinsuranceproducershallbelicensedto
20 187 sell,solicit,ornegotiatetravelinsurancethroughalicensed
188 insurer.Nopersonshallactasalimitedlinestravelinsurance
189 producerortravelretailerunlessproperlylicensedor
190 registered,respectively;
191 (2)Atravelretailermayofferanddisseminatetravel
192 insuranceonbehalfofandunderthecontrolofalimitedlines
193 travelinsuranceproduceronlyifthefollowingconditionsare
194 met:
195 (a)Thelimitedlinestravelinsuranceproducerortravel
196 retailerprovidestopurchasersoftravelinsurance:
197 a.Adescriptionofthematerialtermsortheactualmaterial
198 termsoftheinsurancecoverage;
199 b.Adescriptionoftheprocessforfilingaclaim;
200 c.Adescriptionoftherevieworcancellationprocessfor
201 thetravelinsurancepolicy;and
202 d.Theidentityandcontactinformationoftheinsurerand
203 limitedlinestravelinsuranceproducer;
204 (b)Atthetimeoflicensure,thelimitedlinestravel
205 insuranceproducershallestablishandmaintainaregisterona
206 formprescribedbythedirectorofeachtravelretailerthatoffers
207 travelinsuranceonthelimitedlinestravelinsuranceproducer's
208 behalf.Theregistershallbemaintainedandupdatedannuallyby
209 thelimitedlinestravelinsuranceproducerandshallincludethe
210 name,address,andcontactinformationofthetravelretailerand
211 anofficerorpersonwhodirectsorcontrolsthetravelretailer's
212 operations,andthetravelretailer'sfederaltaxidentification
213 number.Thelimitedlinestravelinsuranceproducershallsubmit
21 214 suchregisterwithinthirtydaysuponrequestbythedepartment.
215 Thelimitedlinestravelinsuranceproducershallalsocertify
216 thatthetravelretailer[register] registeredcomplieswith18
217 U.S.C.1033.Thegroundsforsuspensionandrevocationandthe
218 penaltiesapplicabletoresidentinsuranceproducersunder
219 sections375.141to375.153shallbeapplicabletothelimited
220 linestravelinsuranceproducersandtravelretailers;
221 (c)Thelimitedlinestravelinsuranceproducerhas
222 designatedoneofitsemployeeswhoisalicensedindividual
223 producerasapersonresponsibleforthebusinessentity's
224 compliancewiththetravelinsurancelaws,rules,andregulations
225 ofthisstate;
226 (d)Thedesignatedpersonunderparagraph(c)ofthis
227 subdivision,president,secretary,treasurer,andanyother
228 officerorpersonwhodirectsorcontrolsthelimitedlinestravel
229 insuranceproducer'sinsuranceoperationscomplieswiththe
230 fingerprintingrequirementsapplicabletoinsuranceproducersin
231 theresidentstateofthe[businessentity] limitedlinestravel
232 insuranceproducer;
233 (e)Thelimitedlinestravelinsuranceproducerhaspaidall
234 applicableinsuranceproducerlicensingfeesassetforthin
235 applicablestatelaw;
236 (f)Thelimitedlinestravelinsuranceproducerrequires
237 eachemployeeandauthorizedrepresentativeofthetravelretailer
238 whosedutiesincludeofferinganddisseminatingtravelinsurance
239 toreceiveaprogramofinstructionortraining,whichmaybe
240 subjecttoreviewbythedirector.Thetrainingmaterialshall,at
22 241 aminimum,containinstructionsonthetypesofinsuranceoffered,
242 ethicalsalespractices,andrequireddisclosurestoprospective
243 customers;
244 [(2)] (3)Anytravelretailerofferingordisseminating
245 travelinsuranceshallmakeavailabletoprospectivepurchasers
246 brochuresorotherwrittenmaterialsthathavebeenapprovedbythe
247 travelinsurer.Suchmaterialsshallincludeinformationthat,at
248 aminimum,shall:
249 (a)Providetheidentityandcontactinformationofthe
250 insurerandthelimitedlinestravelinsuranceproducer;
251 (b)Explainthatthepurchaseoftravelinsuranceisnot
252 requiredtopurchaseanyotherproductorservicefromthetravel
253 retailer;and
254 (c)Explainthatanunlicensedtravelretailerispermitted
255 toprovidegeneralinformationabouttheinsuranceofferedbythe
256 travelretailer,includingadescriptionofthecoverageand
257 price,butisnotqualifiedorauthorizedtoanswertechnical
258 questionsaboutthetermsandconditionsoftheinsuranceoffered
259 bythetravelretailerortoevaluatetheadequacyofthe
260 customer'sexistinginsurancecoverage;
261 [(3)] (4)Atravelretailer'semployeeorauthorized
262 representative, whoisnotlicensedasaninsuranceproducer,may
263 not:
264 (a)Evaluateorinterpretthetechnicalterms,benefits,and
265 conditionsoftheofferedtravelinsurancecoverage;
266 (b)Evaluateorprovideadviceconcerningaprospective
267 purchaser'sexistinginsurancecoverage;or
23 268 (c)Holdthemselvesoritselfoutasalicensedinsurer,
269 licensedproducer,orinsuranceexpert[.];
270 [3.Notwithstanding anyotherprovisionoflaw,] (5)A
271 travelretailerwhoseinsurance-related activities,andthoseof
272 itsemployeesandauthorizedrepresentatives, arelimitedto
273 offeringanddisseminatingtravelinsuranceonbehalfofandunder
274 thedirectionofalimitedlinestravelinsuranceproducermeeting
275 theconditionsstatedinthissectionisauthorizedtodosoand
276 receiverelatedcompensation,uponregistrationbythelimited
277 linestravelinsuranceproducerasdescribedinparagraph(b)of
278 subdivision[(1)] (2)ofthissubsection[2ofthissection.];
279 [4.] (6)Travelinsurancemaybeprovidedunderan
280 individualpolicyorunderagroupor[master] blanketpolicy[.];
281 [5.] (7)Astheinsurerdesignee,thelimitedlinestravel
282 insuranceproducerisresponsiblefortheactsofthetravel
283 retailerandshallusereasonablemeanstoensurecompliancebythe
284 travelretailerwiththissection;and
285 (8)Anypersonlicensedinamajorlineofauthorityasan
286 insuranceproducerisauthorizedtosell,solicit,andnegotiate
287 travelinsurance. Apropertyandcasualtyinsuranceproduceris
288 notrequiredtobecomeappointedbyaninsurerinordertosell,
289 solicit,ornegotiatetravelinsurance.
290 4.(1)Atravelinsurershallpaypremiumtax,asprovided
291 insection148.370,ontravelinsurancepremiumspaidbyanyofthe
292 following:
293 (a)Anindividualprimarypolicyholderwhoisaresidentof
294 thisstate;
24 295 (b)Aprimarycertificateholderwhoisaresidentofthis
296 statewhoelectscoverageunderagrouptravelinsurancepolicy;or
297 (c)Ablankettravelinsurancepolicyholderthatisa
298 residentinthisstateorhasitsprincipalplaceofbusinessor
299 theprincipalplaceofbusinessofanaffiliateorsubsidiarythat
300 haspurchasedblankettravelinsuranceinthisstateforeligible
301 blanketgroupmembers,subjecttoanyapportionmentrulesthat
302 applytotheinsureracrossmultipletaxingjurisdictionsorthat
303 permittheinsurertoallocatepremiumonanapportionedbasisina
304 reasonableandequitablemannerinthosejurisdictions.
305 (2)Atravelinsurershall:
306 (a)Documentthestateofresidenceorprincipalplaceof
307 businessofthepolicyholderorcertificateholder,asrequiredin
308 subdivision(1)ofthissubsection;and
309 (b)Reportaspremiumonlytheamountallocabletotravel
310 insuranceandnotanyamountsreceivedfortravelassistance
311 servicesorcancellationfeewaivers.
312 5.Travelprotectionplansmaybeofferedforonepricefor
313 thecombinedfeaturesthatthetravelprotectionplanoffersin
314 thisstateif:
315 (1)Thetravelprotectionplanclearlydisclosestothe
316 consumer,atorpriortothetimeofpurchase,thatitincludes
317 travelinsurance,travelassistanceservices,andcancellationfee
318 waiversasapplicable,andprovidesinformationandan
319 opportunity,atorpriortothetimeofpurchase,fortheconsumer
320 toobtainadditionalinformationregardingthefeaturesand
321 pricingofeach;
25 322 (2)Thefulfillmentmaterialsdescribeanddelineatethe
323 travelinsurance,travelassistanceservices,andcancellationfee
324 waiversinthetravelprotectionplan;and
325 (3)Thefulfillmentmaterialsincludethetravelinsurance
326 disclosuresandthecontactinformationforpersonsproviding
327 travelassistanceservicesandcancellationfeewaivers,as
328 applicable.
329 6.(1)Exceptasotherwiseprovidedinthissection,all
330 personsofferingtravelinsurancetoresidentsofthisstateare
331 subjecttosections375.930to375.948.Ifthereisaconflict
332 betweenthissectionandotherprovisionsofchapters361to385
333 regardingthesaleandmarketingoftravelinsuranceandtravel
334 protectionplans,theprovisionsofthissectionshallcontrol.
335 (2)Offeringorsellingatravelinsurancepolicythatcould
336 neverresultinpaymentofanyclaimsforanyinsuredunderthe
337 policyisanunfairtradepracticeundersections375.930to
338 375.948.
339 (3)(a)Alldocumentsprovidedtoconsumerspriortothe
340 purchaseoftravelinsurance,includingbutnotlimitedtosales
341 materials,advertisingmaterials,andmarketingmaterials,shall
342 beconsistentwiththetravelinsurancepolicyitself,including
343 butnotlimitedtoforms,endorsements,policies,ratefilings,
344 andcertificatesofinsurance.
345 (b)Fortravelinsurancepoliciesorcertificatesthat
346 containpreexistingconditionexclusions,informationandan
347 opportunitytolearnmoreaboutthepreexistingcondition
348 exclusionsshallbeprovidedanytimepriortothetimeof
26 349 purchase,andinthecoverage'sfulfillmentmaterials.
350 (c)Thefulfillmentmaterialsandtheinformationdescribed
351 inparagraph(a)ofsubdivision(2)ofsubsection3ofthissection
352 shallbeprovidedtoapolicyholderorcertificateholderassoon
353 aspracticablefollowingthepurchaseofatravelprotectionplan.
354 Unlesstheinsuredhaseitherstartedacoveredtriporfileda
355 claimunderthetravelinsurancecoverage,apolicyholderor
356 certificateholdermaycancelapolicyorcertificateforafull
357 refundofthetravelprotectionplanpricefromthedateof
358 purchaseofatravelprotectionplanuntilatleast:
359 a.Fifteendaysfollowingthedateofdeliveryofthetravel
360 protectionplan'sfulfillmentmaterialsbypostalmail;or
361 b.Tendaysfollowingthedateofdeliveryofthetravel
362 protectionplan'sfulfillmentmaterialsbymeansotherthanpostal
363 mail.
364
365 Forpurposesofthisparagraph,deliverymeanshandingfulfillment
366 materialstothepolicyholderorcertificateholderorsending
367 fulfillmentmaterialsbypostalmailorelectronicmeanstothe
368 policyholderorcertificateholder.
369 (d)Thecompanyshalldiscloseinthepolicydocumentation
370 andfulfillmentmaterialswhetherthetravelinsuranceisprimary
371 orsecondarytootherapplicablecoverage.
372 (e)Marketingtravelinsurancedirectlytoaconsumer
373 throughaninsurer'swebsiteorbyothersthroughanaggregator
374 siteshallnotbeanunfairtradepracticeorotherviolationof
375 lawifanaccuratesummaryorshortdescriptionofcoverageis
27 376 providedonthewebpageandtheconsumerhasaccesstothefull
377 provisionsofthepolicythroughelectronicmeans.
378 (4)Nopersonoffering,soliciting,ornegotiatingtravel
379 insuranceortravelprotectionplansonanindividualorgroup
380 basisshalldosobyusingnegativeoptionoropt-outthatwould
381 requireaconsumertotakeanaffirmativeactiontodeselect
382 coverage,suchasuncheckingaboxonanelectronicform,whenthe
383 consumerpurchasesatrip.
384 (5)Itshallbeanunfairtradepracticetomarketblanket
385 travelinsurancecoverageasfree.
386 (6)Whereaconsumer'sdestinationjurisdictionrequires
387 insurancecoverage,itshallnotbeanunfairtradepracticeto
388 requirethataconsumerchoosebetweenthefollowingoptionsasa
389 conditionofpurchasingatriportravelpackage:
390 (a)Purchasingthecoveragerequiredbythedestination
391 jurisdictionthroughthetravelretailerorlimitedlinestravel
392 insuranceproducersupplyingthetriportravelpackage;or
393 (b)Agreeingtoobtainandprovideproofofcoveragethat
394 meetsthedestinationjurisdiction'srequirementspriorto
395 departure.
396 7.(1)Notwithstanding anyotherprovisionsofchapters361
397 to385,nopersonshallactorrepresenthimselforherselfasa
398 traveladministratorfortravelinsuranceinthisstateunlessthe
399 person:
400 (a)Isalicensedpropertyandcasualtyinsuranceproducerin
401 thisstateforactivitiespermittedunderthatproducerlicense;
402 (b)Holdsavalidmanaginggeneralagentlicenseinthis
28 403 state;or
404 (c)Holdsavalidthird-partyadministratorlicenseinthis
405 state.
406 (2)Aninsurerisresponsiblefortheactsofatravel
407 administratoradministeringtravelinsuranceunderwrittenbythe
408 insurer,andisresponsibleforensuringthatthetravel
409 administratormaintainsallbooksandrecordsrelevanttothe
410 insurertobemadeavailablebythetraveladministratortothe
411 directoruponrequest.
412 8.(1)Notwithstanding anyotherprovisionofchapters361
413 to385,travelinsuranceshallbeclassifiedandfiledforpurposes
414 ofratesandformsunderaninlandmarinelineofinsurance,except
415 thattravelinsurancethatprovidescoverageforsickness,
416 accident,disability,ordeathoccurringduringtravel,either
417 exclusivelyorinconjunctionwithrelatedcoveragesofemergency
418 evacuationorrepatriationofremainsorincidentallimited
419 propertyandcasualtybenefitssuchasbaggageortrip
420 cancellation,maybefiledundereitheranaccidentandhealthline
421 ofinsuranceoraninlandmarinelineofinsurance.
422 (2)Eligibilityandunderwritingstandardsfortravel
423 insurancemaybedevelopedandprovidedbasedontravelprotection
424 plansdesignedforindividualoridentifiedmarketingor
425 distributionchannels,providedthosestandardsalsomeetthe
426 state'sunderwritingstandardsforaninlandmarinelineof
427 insurance.
428 [6.] 9.Thelimitedlinestravelinsuranceproducerandany
429 travelretailerofferinganddisseminatingtravelinsuranceunder
29 430 thelimitedlinestravelinsuranceproducerlicenseshallbe
431 subjecttotheprovisionsofchapters374and375,exceptas
432 providedforinthissection.
433 [7.] 10.Thedirectormaypromulgaterulestoeffectuatethis
434 section.Anyruleorportionofarule,asthattermisdefinedin
435 section536.010,thatiscreatedundertheauthoritydelegatedin
436 thissectionshallbecomeeffectiveonlyifitcomplieswithandis
437 subjecttoalloftheprovisionsofchapter536and,ifapplicable,
438 section536.028.Thissectionandchapter536arenonseverableand
439 ifanyofthepowersvestedwiththegeneralassemblypursuantto
440 chapter536toreview,todelaytheeffectivedate,orto
441 disapproveandannularulearesubsequentlyheld
442 unconstitutional, thenthegrantofrulemakingauthorityandany
443 ruleproposedoradoptedafterAugust28,2013,shallbeinvalid
444 andvoid.
376.380.1.Thelegalminimumstandardforvaluationof
2 policiesandcontractsandthereservestobemaintainedthereon
3 shallbeasfollows:
4 (1)Forthosepoliciesandcontractsissuedpriortothe
5 operativedateprovidedinsubsection20ofsection376.670:
6 (a)Exceptasotherwiseprovidedinsubdivision(3)ofthis
7 subsection,thelegalminimumstandardforvaluationofpolicies
8 oflifeinsuranceorannuitycontractsissuedpriortoApril13,
9 1934,shallbetheActuaries'orCombinedExperienceTableof
10 Mortality,withinterestattherateoffivepercentperannumfor
11 groupannuitycontractsandfourpercentperannumforallother
12 policiesandcontracts;andforpoliciesoflifeinsuranceand
30 13 annuitycontractsissuedonandafterApril13,1934,suchminimum
14 standardshallbetheAmericanExperienceTableofMortalitywith
15 interestattherateoffivepercentperannumforgroupannuity
16 contractsandthreeandone-halfpercentperannumforallother
17 policiesandcontracts;
18 (b)Thedirectormayvarythelegalminimumstandardsof
19 interestandmortalityforannuitycontractsandinparticular
20 casesofinvalidorsubstandardlivesandotherextrahazards,and
21 shallhavetherightandauthoritytodesignatethelegalminimum
22 standardforvaluationoftotalandpermanentdisabilitybenefits
23 andadditionalaccidentaldeathbenefits;
24 (c)Policiesissuedbycompaniesdoingbusinessinthisstate
25 mayprovidefornotmorethanoneyearpreliminaryterminsurance
26 byincorporatingintheprovisionsthereof,specifyingthepremium
27 considerationtobereceived,aclauseplainlyshowingthatthe
28 firstyear'sinsuranceundersuchpoliciesisterminsurance,
29 purchasedbythewholeorapartofthepremiumtobereceived
30 duringthefirstpolicyyearandshallbevaluedaccordingly;
31 provided,thatifthepremiumchargedforterminsuranceundera
32 limitedpaymentlifepreliminarytermpolicyprovidingforthe
33 paymentofallpremiumsthereoninlessthantwentyyearsfromthe
34 dateofthepolicy,orunderanendowmentpreliminarytermpolicy,
35 exceedsthatchargedforlifeinsurancetwentypaymentlife
36 preliminarytermpoliciesofthesamecompany,thereservethereon
37 attheendofanyyear,includingthefirst,shallnotbelessthan
38 thereserveonatwentypaymentlifepreliminarytermpolicyissued
39 inthesameyearandatthesameage,togetherwithanamountwhich
31 40 shallbeequivalenttotheaccumulationofanetlevelpremium
41 sufficienttoprovideforapureendowmentattheendofthe
42 premiumpaymentperiodequaltothedifferencebetweenthevalueat
43 theendofsuchperiodofsuchtwentypaymentlifepreliminaryterm
44 policyandthefullreserveatsuchtimeofsuchalimitedpayment
45 lifeorendowmentpolicy.Thepremiumpaymentperiodistheperiod
46 duringwhichpremiumsareconcurrentlypayableundersuchtwenty
47 paymentlifepreliminarytermpolicyandsuchlimitedpaymentlife
48 orendowmentpolicy;
49 (d)Reservesforallsuchpoliciesandcontractsmaybe
50 calculated,attheoptionofthecompany,accordingtoany
51 standardswhichproducegreateraggregatereservesforallsuch
52 policiesandcontractsthantheminimumreservesrequiredbythis
53 subdivision. Inthecaseofpolicyobligationsofaninsolvent
54 lifeinsurancecompanyassumedorreinsuredinbulkbyaninsurance
55 companyuponabasisrequiringaseparateaccountingofthe
56 businessandassetsofsuchinsolventcompanyandanapplicationof
57 anypartoftheearningstherefromuponobligationswhicharenot
58 implicitintheoriginaltermsofthepoliciesorcontractsassumed
59 orreinsured,thedirector,inordertoprotectallpolicyholders
60 ofthereinsuringcompany,includingtheholdersofallpoliciesso
61 assumedorreinsured,andtosafeguardthefuturesolvencyofsuch
62 reinsuringcompany,shallhavetherightandauthorityto
63 designatestandardsofvaluationforsuchreinsuredpoliciesand
64 contractswhichwillproducegreateraggregatereservesforall
65 suchpoliciesandcontractsthantheminimumreservesrequiredby
66 thissubdivisionorthetermsandprovisionsofthepoliciesand
32 67 contractssoassumedorreinsured,and,insuchevent,such
68 reinsuringcompanyshallnot,thereafter,adoptanylower
69 standardsofvaluationwithouttheapprovalofthedirector.
70 (2)Forthosepoliciesandcontractsissuedonorafterthe
71 operativedateprovidedinsubsection20ofsection376.670:
72 (a)Exceptasotherwiseprovidedinsubdivision(3)ofthis
73 subsectionandsubsection2ofthissection,theminimumstandard
74 forthevaluationofallsuchpoliciesandcontractsshallbethe
75 commissionersreservevaluationmethodsdefinedinparagraphs(b),
76 (c),(d),(e),and(h)ofthissubdivision,threeandone-half
77 percentinterestonallsuchpoliciesandcontractsexceptthose
78 contractsspecifiedinsubparagraphc.ofthisparagraphwhich
79 consistofsinglepremiumannuitycontractsandinsubparagraphd.
80 ofthisparagraphwhichconsistsofgroupannuitycontractswhere
81 theinterestrateshallbefivepercent,andexceptpoliciesand
82 contracts,otherthanannuityandpureendowmentcontracts,issued
83 onorafterSeptember28,1975,wheretheinterestrateshallbe
84 fourpercentinterestforsuchpoliciesissuedpriortoSeptember
85 28,1979,andfourandone-halfpercentinterestforsuchpolicies
86 issuedonorafterSeptember28,1979,andthefollowingtables:
87 a.Forallordinarypoliciesoflifeinsuranceissuedprior
88 totheoperativedateprovidedinsubsection12ofsection376.670
89 onthestandardbasis,excludinganydisabilityandaccidental
90 deathbenefitsinsuchpolicies,theCommissioners1941Standard
91 OrdinaryMortalityTable,andforsuchpoliciesissuedonorafter
92 theoperativedateprovidedinsubsection12ofsection376.670,
93 andpriortotheoperativedateofsubsection14ofsection
33 94 376.670,theCommissioners1958StandardOrdinaryMortalityTable;
95 providedthatforanycategoryofsuchpoliciesissuedonorafter
96 September28,1979,onfemalerisksallmodifiednetpremiumsand
97 presentvaluesreferredtointhissectionmaybecalculated
98 accordingtoanagenotmorethansixyearsyoungerthantheactual
99 ageoftheinsured;andforsuchpoliciesissuedonorafterthe
100 operativedateofsubsection14ofsection376.670:
101 (i)TheCommissioners1980StandardOrdinaryMortality
102 Table;or
103 (ii)Attheelectionofthecompanyforanyoneormore
104 specifiedplansoflifeinsurance,theCommissioners1980Standard
105 OrdinaryMortalityTablewithTen-YearSelectMortalityFactors;
106 or
107 (iii)Anyordinarymortalitytable,adoptedafter1980bythe
108 NAIC,thatisapprovedbyregulationpromulgatedbythedirector
109 foruseindeterminingtheminimumstandardofvaluationforsuch
110 policies;
111 b.Forallindustriallifeinsurancepoliciesissuedonthe
112 standardbasis,excludinganydisabilityandaccidentaldeath
113 benefitsinsuchpolicies,the1941StandardIndustrialMortality
114 Tableforsuchpoliciesissuedpriortotheoperativedateof
115 subsection13ofsection376.670andforsuchpoliciesissuedonor
116 aftersuchoperativedate,theCommissioners1961Standard
117 IndustrialMortalityTableoranyindustrialmortalitytable,
118 adoptedafter1980bytheNAIC,thatisapprovedbyregulation
119 promulgatedbythedirectorforuseindeterminingtheminimum
120 standardofvaluationforsuchpolicies;
34 121 c.Forindividualannuityandpureendowmentcontracts,
122 excludinganydisabilityandaccidentaldeathbenefitsinsuch
123 policies,the1937StandardAnnuityMortalityTableor,atthe
124 optionofthecompany,theAnnuityMortalityTablefor1949,
125 Ultimate,oranymodificationofeitherofthesetablesapprovedby
126 thedirector;
127 d.Forgroupannuityandpureendowmentcontracts,excluding
128 anydisabilityandaccidentaldeathbenefitsinsuchpolicies,the
129 GroupAnnuityMortalityTablefor1951,anymodificationofsuch
130 tableapprovedbythedirector,or,attheoptionofthecompany,
131 anyofthetablesormodificationsoftablesspecifiedfor
132 individualannuityandpureendowmentcontracts;
133 e.Fortotalandpermanentdisabilitybenefitsinor
134 supplementarytoordinarypoliciesorcontracts,forpoliciesor
135 contractsissuedonorafterJanuary1,1966,thetablesofperiod
136 twodisablementratesandthe1930to1950terminationratesofthe
137 1952disabilitystudyoftheSocietyofActuaries,withdueregard
138 tothetypeofbenefitoranytablesofdisablementratesand
139 terminationrates,adoptedafter1980bytheNAIC,thatare
140 approvedbyregulationpromulgatedbythedirectorforusein
141 determiningtheminimumstandardofvaluationforsuchpolicies;
142 forpoliciesorcontractsissuedonorafterJanuary1,1961,and
143 priortoJanuary1,1966,eithersuchtablesorattheoptionof
144 thecompany,theClass(3)DisabilityTable(1926);andfor
145 policiesissuedpriortoJanuary1,1961,theClass(3)Disability
146 Table(1926).Anysuchtableshall,foractivelives,becombined
147 withamortalitytablepermittedforcalculatingthereservesfor
35 148 lifeinsurancepolicies;
149 f.Foraccidentaldeathbenefitsinorsupplementaryto
150 policiesissuedonorafterJanuary1,1966,the1959Accidental
151 DeathBenefitsTableoranyaccidentaldeathbenefitstable,
152 adoptedafter1980bytheNAIC,thatisapprovedbyregulation
153 promulgatedbythedirectorforuseindeterminingtheminimum
154 standardofvaluationforsuchpolicies;forpoliciesissuedonor
155 afterJanuary1,1961,andpriortoJanuary1,1966,eithersuch
156 tableor,attheoptionofthecompany,theInter-CompanyDouble
157 IndemnityMortalityTable;andforpoliciesissuedpriorto
158 January1,1961,theInter-CompanyDoubleIndemnityMortality
159 Table.Eithertableshallbecombinedwithamortalitytable
160 permittedforcalculatingthereservesforlifeinsurance
161 policies;
162 g.Forgrouplifeinsurance,lifeinsuranceissuedonthe
163 substandardbasisandotherspecialbenefits,suchtablesasmaybe
164 approvedbythedirector;
165 (b)Exceptasotherwiseprovidedinparagraphs(d),(e),and
166 (h)ofthissubdivision,reservesaccordingtothecommissioners
167 reservevaluationmethod,forthelifeinsuranceandendowment
168 benefitsofpoliciesprovidingforauniformamountofinsurance
169 andrequiringthepaymentofuniformpremiumsshallbetheexcess,
170 ifany,ofthepresentvalue,atthedateofvaluation,ofsuch
171 futureguaranteedbenefitsprovidedforbysuchpolicies,overthe
172 thenpresentvalueofanyfuturemodifiednetpremiumstherefor.
173 Themodifiednetpremiumsforanysuchpolicyshallbesuchuniform
174 percentageoftherespectivecontractpremiumsforsuchbenefits
36 175 thatthepresentvalue,atthedateofissueofthepolicy,ofall
176 suchmodifiednetpremiumsshallbeequaltothesumofthethen
177 presentvalueofsuchbenefitsprovidedforbythepolicyandthe
178 excessofa.overb.,asfollows:
179 a.Anetlevelannualpremiumequaltothepresentvalue,at
180 thedateofissue,ofsuchbenefitsprovidedforafterthefirst
181 policyyear,dividedbythepresentvalue,atthedateofissue,of
182 anannuityofoneperannumpayableonthefirstandeach
183 subsequentanniversaryofsuchpolicyonwhichapremiumfallsdue;
184 provided,however,thatsuchnetlevelannualpremiumshallnot
185 exceedthenetlevelannualpremiumonthenineteenyearpremium
186 wholelifeplanforinsuranceofthesameamountatanageoneyear
187 higherthantheageatissueofsuchpolicy;
188 b.Anetoneyeartermpremiumforsuchbenefitprovidedfor
189 inthefirstpolicyyear;provided,thatforanylifeinsurance
190 policyissuedonorafterJanuary1,1986,forwhichthecontract
191 premiuminthefirstpolicyyearexceedsthatofthesecondyear
192 andforwhichnocomparableadditionalbenefitisprovidedinthe
193 firstyearforsuchexcessandwhichprovidesanendowmentbenefit
194 oracashsurrendervalueoracombinationthereofinanamount
195 greaterthansuchexcesspremium,thereserveaccordingtothe
196 commissionersreservevaluationmethodasofanypolicy
197 anniversaryoccurringonorbeforetheassumedendingdatedefined
198 hereinasthefirstpolicyanniversaryonwhichthesumofany
199 endowmentbenefitandanycashsurrendervaluethenavailableis
200 greaterthansuchexcesspremiumshall,exceptasotherwise
201 providedinparagraph(h)ofthissubdivision,bethegreaterof
37 202 thereserveasofsuchpolicyanniversarycalculatedasdescribed
203 inparagraph(b)ofthissubdivisionandthereserveasofsuch
204 policyanniversarycalculatedasdescribedinparagraph(b)of
205 thissubdivision,butwith:
206 (i)Thevaluedefinedinsubparagrapha.ofparagraph(b)of
207 thissubdivisionbeingreducedbyfifteenpercentoftheamountof
208 suchexcessfirstyearpremium;
209 (ii)Allpresentvaluesofbenefitsandpremiumsbeing
210 determinedwithoutreferencetopremiumsorbenefitsprovidedfor
211 bythepolicyaftertheassumedendingdate;
212 (iii)Thepolicybeingassumedtomatureonsuchdateasan
213 endowment;and
214 (iv)Thecashsurrendervalueprovidedonsuchdatebeing
215 consideredasanendowmentbenefit.
216
217 Inmakingtheabovecomparisonthemortalityandinterestbases
218 statedinparagraph(a)ofthissubdivisionandsubsection2of
219 thissectionshallbeused;
220 (c)Reservesaccordingtothecommissionersreserve
221 valuationmethodfor:
222 a.Lifeinsurancepoliciesprovidingforavaryingamountof
223 insuranceorrequiringthepaymentofvaryingpremiums;
224 b.Groupannuityandpureendowmentcontractspurchased
225 underaretirementplanorplanofdeferredcompensation,
226 establishedormaintainedbyanemployer(includingapartnership
227 orsoleproprietorship)orbyanemployeeorganization,orbyboth,
228 otherthanaplanprovidingindividualretirementaccountsor
38 229 individualretirementannuitiesunderSection408oftheInternal
230 RevenueCode,asnoworhereafteramended;
231 c.Disabilityandaccidentaldeathbenefitsinallpolicies
232 andcontracts;and
233 d.Allotherbenefits,exceptlifeinsuranceandendowment
234 benefitsinlifeinsurancepoliciesandbenefitsprovidedbyall
235 otherannuityandpureendowmentcontracts,shallbecalculatedby
236 amethodconsistentwiththeprinciplesofparagraph(b)ofthis
237 subdivision;
238 (d)Paragraph(e)ofthissubdivisionshallapplytoall
239 annuityandpureendowmentcontractsotherthangroupannuityand
240 pureendowmentcontractspurchasedunderaretirementplanorplan
241 ofdeferredcompensation,establishedormaintainedbyanemployer
242 (includingapartnershiporsoleproprietorship), orbyan
243 employeeorganization,orbyboth,otherthanaplanproviding
244 individualretirementaccountsorindividualretirementannuities
245 underSection408oftheInternalRevenueCode,asnoworhereafter
246 amended;
247 (e)Reservesaccordingtothecommissionersannuityreserve
248 methodforbenefitsunderannuityorpureendowmentcontracts,
249 excludinganydisabilityandaccidentaldeathbenefitsinsuch
250 contracts,shallbethegreatestoftherespectiveexcessesofthe
251 presentvalues,atthedateofvaluation,ofthefutureguaranteed
252 benefits,includingguaranteednonforfeiturebenefits,provided
253 forbysuchcontractsattheendofeachrespectivecontractyear,
254 overthepresentvalue,atthedateofvaluation,ofanyfuture
255 valuationconsiderationsderivedfromfuturegrossconsiderations,
39 256 requiredbythetermsofsuchcontract,thatbecomepayableprior
257 totheendofsuchrespectivecontractyear.Thefutureguaranteed
258 benefitsshallbedeterminedbyusingthemortalitytable,ifany,
259 andtheinterestrate,orrates,specifiedinsuchcontractsfor
260 determiningguaranteedbenefits.Thevaluationconsiderationsare
261 theportionsoftherespectivegrossconsiderationsappliedunder
262 thetermsofsuchcontractstodeterminenonforfeiturevalues;
263 (f)Innoeventshallacompany'saggregatereservesforall
264 lifeinsurancepolicies,excludingdisabilityandaccidentaldeath
265 benefits,belessthantheaggregatereservescalculatedin
266 accordancewiththemethodsetforthinparagraphs(b),(c),(d),
267 (e),(h)and(i)ofthissubdivisionandthemortalitytableor
268 tablesandrateorratesofinterestusedincalculating
269 nonforfeiturebenefitsforsuchpolicies;
270 (g)Innoeventshalltheaggregatereservesforall
271 policies,contractsandbenefitsbelessthantheaggregate
272 reservesdeterminedbythequalifiedactuarytobenecessaryto
273 rendertheopinionrequiredbysubsections4and5ofthissection;
274 (h)Ifinanycontractyearthegrosspremiumchargedbyany
275 lifeinsurancecompanyonanypolicyorcontractislessthanthe
276 valuationnetpremiumforthepolicyorcontractcalculatedbythe
277 methodusedincalculatingthereservethereonbutusingthe
278 minimumvaluationstandardsofmortalityandrateofinterest,the
279 minimumreserverequiredforsuchpolicyorcontractshallbethe
280 greaterofeitherthereservecalculatedaccordingtothe
281 mortalitytable,rateofinterest,andmethodactuallyusedfor
282 suchpolicyorcontract,orthereservecalculatedbythemethod
40 283 actuallyusedforsuchpolicyorcontractbutusingtheminimum
284 valuationstandardsofmortalityandrateofinterestand
285 replacingthevaluationnetpremiumbytheactualgrosspremiumin
286 eachcontractyearforwhichthevaluationnetpremiumexceedsthe
287 actualgrosspremium.Theminimumvaluationstandardsof
288 mortalityandrateofinterestreferredtointhissectionare
289 thosestandardsstatedinparagraph(a)ofthissubdivisionand
290 subsection2ofthissection;provided,thatforanylifeinsurance
291 policyissuedonorafterJanuary1,1986,forwhichthegross
292 premiuminthefirstpolicyyearexceedsthatofthesecondyear
293 andforwhichnocomparableadditionalbenefitisprovidedinthe
294 firstyearforsuchexcessandwhichprovidesanendowmentbenefit
295 oracashsurrendervalueoracombinationthereofinanamount
296 greaterthansuchexcesspremium,theforegoingprovisionsofthis
297 paragraphshallbeappliedasifthemethodactuallyusedin
298 calculatingthereserveforsuchpolicywerethemethoddescribed
299 inparagraph(b)ofthissubdivision. Theminimumreserveateach
300 policyanniversaryofsuchapolicyshallbethegreaterofthe
301 minimumreservecalculatedinaccordancewithparagraphs(b)and
302 (c)ofthissubdivisionandtheminimumreservecalculatedin
303 accordancewiththisparagraph;
304 (i)Inthecaseofanyplanoflifeinsurancewhichprovides
305 forfuturepremiumdetermination,theamountsofwhicharetobe
306 determinedbytheinsurancecompanybasedonthenestimatesof
307 futureexperience,orinthecaseofanyplanoflifeinsuranceor
308 annuitywhichisofsuchanaturethattheminimumreservescannot
309 bedeterminedbythemethodsdescribedinparagraphs(b)to(e)of
41 310 thissubdivision,andparagraph(h)ofthissubdivision,the
311 reserveswhichareheldunderanysuchplanmust:
312 a.Beappropriateinrelationtothebenefitsandthepattern
313 ofpremiumsforthatplan;and
314 b.Becomputedbyamethodwhichisconsistentwiththe
315 principlesofthissectionasdeterminedbyregulations
316 promulgatedbythedirector.
317 (3)Exceptasprovidedinsubsection2ofthissection,the
318 minimumstandardforthevaluationofallindividualannuityand
319 pureendowmentcontractsissuedonoraftertheoperativedateof
320 thissubdivision,asdefinedherein,andforallannuitiesandpure
321 endowmentspurchasedonoraftersuchoperativedateundergroup
322 annuityandpureendowmentcontracts,shallbethecommissioners
323 reservevaluationmethodsdefinedinparagraphs(b),(c),(d),and
324 (e)ofsubdivision(2)ofthissubsection,andthefollowingtables
325 andinterestrates:
326 (a)Forindividualannuityandpureendowmentcontracts
327 issuedpriortoSeptember28,1979,excludinganydisabilityand
328 accidentaldeathbenefitsinsuchcontracts,the1971Individual
329 AnnuityMortalityTable,oranymodificationofthistable
330 approvedbythedirector,andsixpercentinterestforsingle
331 premiumimmediateannuitycontracts,andfourpercentinterestfor
332 allotherindividualannuityandpureendowmentcontracts;
333 (b)Forindividualsinglepremiumimmediateannuity
334 contractsissuedonorafterSeptember28,1979,excludingany
335 disabilityandaccidentaldeathbenefitsinsuchcontracts,the
336 1971IndividualAnnuityMortalityTable,oranyindividualannuity
42 337 mortalitytableadoptedafter1980bytheNAIC,thatisapprovedby
338 regulationpromulgatedbythedirectorforuseindeterminingthe
339 minimumstandardofvaluationforsuchcontracts,orany
340 modificationofthesetablesapprovedbythedirector,andseven
341 andone-halfpercentinterest;
342 (c)Forindividualannuityandpureendowmentcontracts
343 issuedonorafterSeptember28,1979,otherthansinglepremium
344 immediateannuitycontracts,excludinganydisabilityand
345 accidentaldeathbenefitsinsuchcontracts,the1971Individual
346 AnnuityMortalityTable,oranyindividualannuitymortalitytable
347 adoptedafter1980bytheNAIC,thatisapprovedbyregulation
348 promulgatedbythedirectorforuseindeterminingtheminimum
349 standardofvaluationforsuchcontracts,oranymodificationof
350 thesetablesapprovedbythedirector,andfiveandone-half
351 percentinterestforsinglepremiumdeferredannuityandpure
352 endowmentcontractsandfourandone-halfpercentinterestforall
353 othersuchindividualannuityandpureendowmentcontracts;
354 (d)Forallannuitiesandpureendowmentspurchasedpriorto
355 September28,1979,undergroupannuityandpureendowment
356 contracts,excludinganydisabilityandaccidentaldeathbenefits
357 purchasedundersuchcontracts,the1971GroupAnnuityMortality
358 Table,oranymodificationofthistableapprovedbythedirector,
359 andsixpercentinterest;
360 (e)Forallannuitiesandpureendowmentspurchasedonor
361 afterSeptember28,1979,undergroupannuityandpureendowment
362 contracts,excludinganydisabilityandaccidentaldeathbenefits
363 purchasedundersuchcontracts,the1971GroupAnnuityMortality
43 364 Table,oranygroupannuitymortalitytableadoptedafter1980by
365 theNAIC,thatisapprovedbyregulationpromulgatedbythe
366 directorforuseindeterminingtheminimumstandardofvaluation
367 forsuchannuitiesandpureendowments,oranymodificationof
368 thesetablesapprovedbythedirector,andsevenandone-half
369 percentinterest;
370 (f)OnandafterSeptember28,1975,anycompanymayfile
371 withthedirectorawrittennoticeofitselectiontocomplywith
372 theprovisionsofthissubdivisionafteraspecifieddatebefore
373 January1,1980,whichshallbetheoperativedateofthis
374 subdivisionforsuchcompany,providedacompanymayelecta
375 differentoperativedateforindividualannuityandpureendowment
376 contractsfromthatelectedforgroupannuityandpureendowment
377 contracts.Ifacompanymakesnosuchelection,theoperativedate
378 ofthissubdivisionforsuchcompanyshallbeJanuary1,1980.
379 2.(1)Thecalendaryearstatutoryvaluationinterestrates
380 asdefinedinthissubsectionshallbetheinterestratesusedin
381 determiningtheminimumstandardforthevaluationof:
382 (a)Alllifeinsurancepoliciesissuedinaparticular
383 calendaryear,onoraftertheoperativedateofsubsection14of
384 section376.670;
385 (b)Allindividualannuityandpureendowmentcontracts
386 issuedinaparticularcalendaryearonorafterJanuary1,1983;
387 (c)Allannuitiesandpureendowmentcontractspurchasedina
388 particularcalendaryearonorafterJanuary1,1983,undergroup
389 annuityandpureendowmentcontracts;and
390 (d)Thenetincrease,ifany,inaparticularcalendaryear
44 391 afterJanuary1,1983,inamountsheldunderguaranteedinterest
392 contracts.
393 (2)Thecalendaryearstatutoryvaluationinterestrates,I,
394 shallbedeterminedasfollowsandtheresultsroundedtothe
395 nearerone-quarterofonepercent:
396 (a)Forlifeinsurance:
397 I=.03+W(R1-.03)+W/2(R2-.09);
398 (b)Forsinglepremiumimmediateannuitiesandforannuity
399 benefitsinvolvinglifecontingenciesarisingfromotherannuities
400 withcashsettlementoptionsandfromguaranteedinterest
401 contractswithcashsettlementoptions:
402 I=.03+W(R-.03),whereR1isthelesserofRand.09;R2is
403 thegreaterofRand.09;Risthereferenceinterestrate
404 definedinthissubsection;andWistheweightingfactor
405 definedinthissubsection;
406 (c)Forotherannuitieswithcashsettlementoptionsand
407 guaranteedinterestcontractswithcashsettlementoptions,valued
408 onanissueyearbasis,exceptasstatedinparagraph(b)ofthis
409 subdivision,theformulaforlifeinsurancestatedinparagraph
410 (a)ofthissubdivisionshallapplytoannuitiesandguaranteed
411 interestcontractswithguaranteedurationsinexcessoftenyears
412 andtheformulaforsinglepremiumimmediateannuitiesstatedin
413 paragraph(b)ofthissubdivisionshallapplytoannuitiesand
414 guaranteedinterestcontractswithguaranteedurationsoften
415 yearsorless;
416 (d)Forotherannuitieswithnocashsettlementoptionsand
417 forguaranteedinterestcontractswithnocashsettlementoptions,
45 418 theformulaforsinglepremiumimmediateannuitiesstatedin
419 paragraph(b)ofthissubdivisionshallapply;
420 (e)Forotherannuitieswithcashsettlementoptionsand
421 guaranteedinterestcontractswithcashsettlementoptions,valued
422 onachangeinfundbasis,theformulaforsinglepremiumimmediate
423 annuitiesstatedinparagraph(b)ofthissubdivisionshallapply.
424 Ifthecalendaryearstatutoryvaluationinterestrateforanylife
425 insurancepoliciesissuedinanycalendaryeardeterminedwithout
426 referencetothissentencediffersfromthecorrespondingactual
427 rateforsimilarpoliciesissuedintheimmediatelypreceding
428 calendaryearbylessthanone-halfofonepercent,thecalendar
429 yearstatutoryvaluationinterestrateforsuchlifeinsurance
430 policiesshallbeequaltothecorrespondingactualrateforthe
431 immediatelyprecedingcalendaryear.Forpurposesofapplyingthe
432 immediatelyprecedingsentence,thecalendaryearstatutory
433 valuationinterestrateforlifeinsurancepoliciesissuedina
434 calendaryearshallbedeterminedfor1980(usingthereference
435 interestratedefinedfor1979)andshallbedeterminedforeach
436 subsequentcalendaryearregardlessofwhensubsection14of
437 section376.670becomesoperative.
438 (3)Theweightingfactorsreferredtointheformulasstated
439 insubdivision(2)ofthissubsectionaregiveninthefollowing
440 tables:
441 (a)Weightingfactorsforlifeinsurance:
442 Guarantee Weighting
443 Duration Factors
444 (Years)
46 445 10orless .50
446 Morethan10,butnotmorethan20.45
447 Morethan20 .35
448
449 Forlifeinsurance,theguaranteedurationisthemaximumnumberof
450 yearsthelifeinsurancecanremaininforceonabasisguaranteed
451 inthepolicyorunderoptionstoconverttoplansoflife
452 insurancewithpremiumratesornonforfeiturevaluesorbothwhich
453 areguaranteedintheoriginalpolicy;
454 (b)Weightingfactorforsinglepremiumimmediateannuities
455 andforannuitybenefitsinvolvinglifecontingenciesarisingfrom
456 otherannuitieswithcashsettlementoptionsandguaranteed
457 interestcontractswithcashsettlementoptions:.80;
458 (c)Weightingfactorsforotherannuitiesandforguaranteed
459 interestcontracts,exceptasstatedinparagraph(b)ofthis
460 subdivision,shallbeasspecifiedinsubparagraphsa.,b.,andc.
461 ofthisparagraph,accordingtotherulesanddefinitionsin
462 subparagraphsd.,e.,andf.ofthisparagraph:
463 a.Forannuitiesandguaranteedinterestcontractsvaluedon
464 anissueyearbasis:
465 Guarantee WeightingFactor
466 Duration forPlanType
467 (Years) A B C
468 5orless: .80.60.50
469 Morethan5,butnotmorethan10: .75.60.50
470 Morethan10,butnotmorethan20: .65.50.45
47 471 Morethan20: .45.35.35
472 b.Forannuitiesandguaranteedinterestcontractsvaluedon
473 achangeinfundbasis,thefactorsshowninsubparagrapha.of
474 thisparagraphincreasedby:
475 PlanType
476 A B C
477 .15.25.05
478 c.Forannuitiesandguaranteedinterestcontractsvaluedon
479 anissueyearbasis(otherthanthosewithnocashsettlement
480 options)whichdonotguaranteeinterestonconsiderations
481 receivedmorethanoneyearafterissueorpurchaseandfor
482 annuitiesandguaranteedinterestcontractsvaluedonachangein
483 fundbasiswhichdonotguaranteeinterestratesonconsiderations
484 receivedmorethantwelvemonthsbeyondthevaluationdate,the
485 factorsshowninsubparagrapha.ofthisparagraphorderivedin
486 subparagraphb.ofthisparagraphincreasedby:
487 PlanType
488 A B C
489 .05.05.05
490 d.Forotherannuitieswithcashsettlementoptionsand
491 guaranteedinterestcontractswithcashsettlementoptions,the
492 guaranteedurationisthenumberofyearsforwhichthecontract
493 guaranteesinterestratesinexcessofthecalendaryearstatutory
494 valuationinterestrateforlifeinsurancepolicieswithguarantee
495 durationinexcessoftwentyyears.Forotherannuitieswithno
48 496 cashsettlementoptionsandforguaranteedinterestcontractswith
497 nocashsettlementoptions,theguaranteedurationisthenumberof
498 yearsfromthedateofissueordateofpurchasetothedate
499 annuitybenefitsarescheduledtocommence;
500 e.Plantypeasusedinsubparagraphsa.,b.,andc.ofthis
501 paragraphisdefinedasfollows:
502 PlanTypeA:Atanytimepolicyholdermaywithdrawfundsonly
503 withanadjustmenttoreflectchangesininterestratesorasset
504 valuessincereceiptofthefundsbytheinsurancecompany,or
505 withoutsuchadjustmentbutininstallmentsoverfiveyearsor
506 more,orasanimmediatelifeannuity,ornowithdrawalpermitted;
507 PlanTypeB:Beforeexpirationoftheinterestrate
508 guarantee,policyholdermaywithdrawfundsonlywithanadjustment
509 toreflectchangesininterestratesorassetvaluessincereceipt
510 ofthefundsbytheinsurancecompany,orwithoutsuchadjustment
511 butininstallmentsoverfiveyearsormore,ornowithdrawal
512 permitted. Attheendofinterestrateguarantee,fundsmaybe
513 withdrawnwithoutsuchadjustmentinasinglesumorinstallments
514 overfewerthanfiveyears;
515 PlanTypeC:Policyholdermaywithdrawfundsbefore
516 expirationofinterestrateguaranteeinasinglesumor
517 installmentsoverfewerthanfiveyearseitherwithoutadjustment
518 toreflectchangesininterestratesorassetvaluessincereceipt
519 ofthefundsbytheinsurancecompany,orsubjectonlytoafixed
520 surrenderchargestipulatedinthecontractasapercentageofthe
521 fund;
522 f.Acompanymayelecttovalueguaranteedinterestcontracts
49 523 withcashsettlementoptionsandannuitieswithcashsettlement
524 optionsoneitheranissueyearbasisoronachangeinfundbasis.
525 Guaranteedinterestcontractswithnocashsettlementoptionsand
526 otherannuitieswithnocashsettlementoptionsmustbevaluedon
527 anissueyearbasis.Asusedinthissubsectionanissueyear
528 basisofvaluationreferstoavaluationbasisunderwhichthe
529 interestrateusedtodeterminetheminimumvaluationstandardfor
530 theentiredurationoftheannuityorguaranteedinterestcontract
531 isthecalendaryearvaluationinterestratefortheyearofissue
532 oryearofpurchaseoftheannuityorguaranteedinterestcontract,
533 andthechangeinfundbasisofvaluationreferstoavaluation
534 basisunderwhichtheinterestrateusedtodeterminetheminimum
535 valuationstandardapplicabletoeachchangeinthefundheldunder
536 theannuityorguaranteedinterestcontractisthecalendaryear
537 valuationinterestratefortheyearofthechangeinthefund.
538 (4)The"referenceinterestrate"referredtoinsubdivision
539 (2)ofthissubsectionshallbedefinedasfollows:
540 (a)Foralllifeinsurance,thelesseroftheaverageovera
541 periodofthirty-sixmonthsandtheaverageoveraperiodoftwelve
542 months,endingonJunethirtiethofthecalendaryearnext
543 precedingtheyearofissue,oftheMonthlyAverageofthe
544 CompositeYieldonSeasonedCorporateBonds,aspublishedby
545 Moody'sInvestorsService,Inc.;
546 (b)Forsinglepremiumimmediateannuitiesandforannuity
547 benefitsinvolvinglifecontingenciesarisingfromotherannuities
548 withcashsettlementoptionsandguaranteedinterestcontracts
549 withcashsettlementoptions,theaverageoveraperiodoftwelve
50 550 months,endingonJunethirtiethofthecalendaryearofissueor
551 purchase,oftheMonthlyAverageoftheCompositeYieldonSeasoned
552 CorporateBonds,aspublishedbyMoody'sInvestorsService,Inc.;
553 (c)Forotherannuitieswithcashsettlementoptionsand
554 guaranteedinterestcontractswithcashsettlementoptions,valued
555 onayearofissuebasis,exceptasstatedinparagraph(b)ofthis
556 subdivision,withguaranteedurationinexcessoftenyears,the
557 lesseroftheaverageoveraperiodofthirty-sixmonthsandthe
558 averageoveraperiodoftwelvemonths,endingonJunethirtiethof
559 thecalendaryearofissueorpurchase,oftheMonthlyAverageof
560 theCompositeYieldonSeasonedCorporateBonds,aspublishedby
561 Moody'sInvestorsService,Inc.;
562 (d)Forotherannuitieswithcashsettlementoptionsand
563 guaranteedinterestcontractswithcashsettlementoptions,valued
564 onayearofissuebasis,exceptasstatedinparagraph(b)ofthis
565 subdivision,withguaranteedurationoftenyearsorless,the
566 averageoveraperiodoftwelvemonths,endingonJunethirtiethof
567 thecalendaryearofissueorpurchase,oftheMonthlyAverageof
568 theCompositeYieldonSeasonedCorporateBonds,aspublishedby
569 Moody'sInvestorsService,Inc.;
570 (e)Forotherannuitieswithnocashsettlementoptionsand
571 forguaranteedinterestcontractswithnocashsettlementoptions,
572 theaverageoveraperiodoftwelvemonths,endingonJune
573 thirtiethofthecalendaryearofissueorpurchase,oftheMonthly
574 AverageoftheCompositeYieldonSeasonedCorporateBonds,as
575 publishedbyMoody'sInvestorsService,Inc.;
576 (f)Forotherannuitieswithcashsettlementoptionsand
51 577 guaranteedinterestcontractswithcashsettlementoptions,valued
578 onachangeinfundbasis,exceptasstatedinparagraph(b)of
579 thissubdivision,theaverageoveraperiodoftwelvemonths,
580 endingonJunethirtiethofthecalendaryearofthechangeinthe
581 fund,oftheMonthlyAverageoftheCompositeYieldonSeasoned
582 CorporateBonds,aspublishedbyMoody'sInvestorsService,Inc.
583 (5)IntheeventthattheMonthlyAverageoftheComposite
584 YieldonSeasonedCorporateBondsisnolongerpublishedbyMoody's
585 InvestorsService,Inc.,orintheeventthattheNAICdetermines
586 thattheMonthlyAverageoftheCompositeYieldonSeasoned
587 CorporateBondsaspublishedbyMoody'sInvestorsService,Inc.,
588 isnolongerappropriateforthedeterminationofthereference
589 interestrate,thenanalternativemethodfordeterminationofthe
590 referenceinterestrate,whichisadoptedbytheNAICandapproved
591 byregulationpromulgatedbythedirector,maybesubstituted.
592 3.Foraccidentandhealthinsurancecontractsissuedonor
593 aftertheoperativedateofthevaluationmanual,thestandard
594 prescribedinthevaluationmanualistheminimumstandardof
595 valuationrequiredundersubsection2ofsection376.370.For
596 disability,accidentandsickness,andaccidentandhealth
597 insurancecontractsissuedonoraftertheoperativedateprovided
598 insubsection20ofsection376.670andpriortotheoperativedate
599 ofthevaluationmanual,theminimumstandardofvaluationisthe
600 standardadoptedbythedirectorbyregulation.
601 4.(1)Thissubsectionshallapplytoactuarialopinionsof
602 reservespriortothedateofthevaluationmanual.
603 (2)Everylifeinsurancecompanydoingbusinessinthisstate
52 604 shallannuallysubmittheopinionofaqualifiedactuaryasto
605 whetherthereservesandrelatedactuarialitemsheldinsupportof
606 thepoliciesandcontractsspecifiedbythedirectorbyregulation
607 arecomputedappropriately,arebasedonassumptionswhichsatisfy
608 contractualprovisions,areconsistentwithpriorreportedamounts
609 andcomplywithapplicablelawsofthisstate.Thedirectorby
610 regulationshalldefinethespecificsofthisopinionandaddany
611 otheritemsdeemedtobenecessarytoitsscope.
612 (3)(a)Everylifeinsurancecompany,exceptasexemptedby
613 orpursuanttoregulation,shallalsoannuallyincludeinthe
614 opinionrequiredbysubdivision(2)ofthissubsection,anopinion
615 ofthesamequalifiedactuaryastowhetherthereservesand
616 relatedactuarialitemsheldinsupportofthepoliciesand
617 contractsspecifiedbythedirectorbyregulation,whenconsidered
618 inlightoftheassetsheldbythecompanywithrespecttothe
619 reservesandrelatedactuarialitems,includingbutnotlimitedto
620 theinvestmentearningsontheassetsandtheconsiderations
621 anticipatedtobereceivedandretainedunderthepoliciesand
622 contracts,makeadequateprovisionforthecompany'sobligations
623 underthepoliciesandcontracts,includingbutnotlimitedtothe
624 benefitsunderandexpensesassociatedwiththepoliciesand
625 contracts.
626 (b)Thedirectormayprovidebyregulationforatransition
627 periodforestablishinganyhigherreserveswhichthequalified
628 actuarymaydeemnecessaryinordertorendertheopinionrequired
629 bythissubsection.
630 (4)Eachopinionrequiredbysubdivision(3)ofthis
53 631 subsectionshallbegovernedbythefollowingprovisions:
632 (a)Amemorandum,informandsubstanceacceptabletothe
633 directorasspecifiedbyregulation,shallbepreparedtosupport
634 eachactuarialopinion;and
635 (b)Iftheinsurancecompanyfailstoprovideasupporting
636 memorandumattherequestofthedirectorwithinaperiodspecified
637 byregulationorthedirectordeterminesthatthesupporting
638 memorandumprovidedbytheinsurancecompanyfailstomeetthe
639 standardsprescribedbytheregulationsorisotherwise
640 unacceptabletothedirector,thedirectormayengageaqualified
641 actuaryattheexpenseofthecompanytoreviewtheopinionandthe
642 basisfortheopinionandpreparesuchsupportingmemorandumasis
643 requiredbythedirector.
644 (5)Everyopinionrequiredbythissubsectionshallbe
645 governedbythefollowingprovisions:
646 (a)Theopinionshallbesubmittedwiththeannualstatement
647 reflectingthevaluationofsuchreserveliabilitiesforeachyear
648 endingonorafterDecember31,1993;
649 (b)Theopinionshallapplytoallbusinessinforce
650 includingindividualandgrouphealthinsuranceplans,informand
651 substanceacceptabletothedirectorasspecifiedbyregulation;
652 (c)Theopinionshallbebasedonstandardsadoptedfromtime
653 totimebytheActuarialStandardsBoardandonsuchadditional
654 standardsasthedirectormaybyregulationprescribe;
655 (d)Inthecaseofanopinionrequiredtobesubmittedbya
656 foreignoraliencompany,thedirectormayaccepttheopinionfiled
657 bythatcompanywiththeinsurancesupervisoryofficialofanother
54 658 stateifthedirectordeterminesthattheopinionreasonablymeets
659 therequirementsapplicabletoacompanydomiciledinthisstate;
660 (e)Forthepurposesofthissection,"qualifiedactuary"
661 meansamemberingoodstandingoftheAmericanAcademyof
662 Actuarieswhomeetstherequirementssetforthinsuch
663 regulations;
664 (f)Exceptincasesoffraudorwillfulmisconduct,the
665 qualifiedactuaryshallnotbeliablefordamagestoanyperson,
666 otherthantheinsurancecompanyandthedirector,foranyact,
667 error,omission,decisionorconductwithrespecttotheactuary's
668 opinion;
669 (g)Disciplinaryactionbythedirectoragainstthecompany
670 orthequalifiedactuaryshallbedefinedinregulationsbythe
671 director;and
672 (h)Anymemoranduminsupportoftheopinion,andanyother
673 materialprovidedbythecompanytothedirectorinconnection
674 therewith,shallbekeptconfidentialbythedirectorandshallnot
675 bemadepublicandshallnotbesubjecttosubpoena,otherthanfor
676 thepurposeofdefendinganactionseekingdamagesfromanyperson
677 byreasonofanyactionrequiredbythissectionorbyregulations
678 promulgatedhereunder;exceptthatthememorandumorother
679 materialmayotherwisebereleasedbythedirector:
680 a.Withthewrittenconsentofthecompany;or
681 b.TotheAmericanAcademyofActuariesuponrequeststating
682 thatthememorandumorothermaterialisrequiredforthepurpose
683 ofprofessionaldisciplinaryproceedingsandsettingforth
684 proceduressatisfactorytothedirectorforpreservingthe
55 685 confidentiality ofthememorandumorothermaterial.
686
687 Onceanyportionoftheconfidentialmemorandumiscitedbythe
688 companyinitsmarketingoriscitedbeforeanygovernmentalagency
689 otherthanastateinsurancedepartmentorisreleasedbythe
690 companytothenewsmedia,allportionsoftheconfidential
691 memorandumshallbenolongerconfidential.
692 5.(1)Thissubsectionshallapplytoactuarialopinionsof
693 reservesaftertheoperativedateofthevaluationmanual.
694 (2)Everycompanywithoutstandinglifeinsurancecontracts,
695 accidentandhealthinsurancecontracts,ordeposit-typecontracts
696 inMissouriandsubjecttoregulationbythedirectorshall
697 annuallysubmittheopinionoftheappointedactuaryastowhether
698 thereservesandrelatedactuarialitemsheldinsupportofthe
699 policiesandcontractsarecomputedappropriately,arebasedon
700 assumptionsthatsatisfycontractualprovisions,areconsistent
701 withpriorreportedamounts,andcomplywithapplicableMissouri
702 law.Thevaluationmanualshallprescribethespecificsofsuch
703 opinion,includinganyitemsdeemedtobenecessarytoitsscope.
704 (3)Everycompanywithoutstandinglifeinsurancecontracts,
705 accidentandhealthinsurancecontracts,ordeposit-typecontracts
706 inMissouriandsubjecttoregulationbythedirector,exceptas
707 exemptedinthevaluationmanual,shallalsoannuallyincludein
708 theopinionrequiredundersubdivision(2)ofthissubsectionan
709 opinionofthesameappointedactuaryastowhetherthereserves
710 andrelatedactuarialitemsheldinsupportofthepoliciesand
711 contractsspecifiedinthevaluationmanual,whenconsideredin
56 712 lightoftheassetsheldbythecompanywithrespecttothe
713 reservesandrelatedactuarialitemsincluding,butnotlimited
714 to,theinvestmentearningsontheassetsandtheconsiderations
715 anticipatedtobereceivedandretainedunderthepoliciesand
716 contracts,makeadequateprovisionforthecompany'sobligations
717 underthepoliciesandcontractsincluding,butnotlimitedto,
718 benefitsunderandexpensesassociatedwiththepoliciesand
719 contracts.
720 (4)Eachopinionrequiredbysubdivision(3)ofthis
721 subsectionshallbegovernedbythefollowingprovisions:
722 (a)Amemorandum,informandsubstanceasspecifiedinthe
723 valuationmanualandacceptabletothedirector,shallbeprepared
724 tosupporteachactuarialopinion;and
725 (b)Iftheinsurancecompanyfailstoprovideasupporting
726 memorandumattherequestofthedirectorwithinaperiodspecified
727 inthevaluationmanualorthedirectordeterminesthatthe
728 supportingmemorandumprovidedbytheinsurancecompanyfailsto
729 meetthestandardsprescribedbythevaluationmanualoris
730 otherwiseunacceptabletothedirector,thedirectormayengagea
731 qualifiedactuaryattheexpenseofthecompanytoreviewthe
732 opinionandthebasisfortheopinionandpreparethesupporting
733 memorandumrequiredbythedirector.
734 (5)Everyopinionrequiredbythissubsectionshallbe
735 governedbythefollowing:
736 (a)Theopinionshallbeinformandsubstanceasspecified
737 inthevaluationmanualandacceptabletothedirector;
738 (b)Theopinionshallbesubmittedwiththeannualstatement
57 739 reflectingthevaluationofsuchreserveliabilitiesforeachyear
740 endingonoraftertheoperativedateofthevaluationmanual;
741 (c)Theopinionshallapplytoallpoliciesandcontracts
742 subjecttosubdivision(3)ofthissubsection,plusother
743 actuarialliabilitiesasmaybespecifiedinthevaluationmanual;
744 (d)Theopinionshallbebasedonstandardsadoptedfromtime
745 totimebytheActuarialStandardsBoardoritssuccessor,andon
746 suchadditionalstandardsasmaybeprescribedinthevaluation
747 manual;
748 (e)Inthecaseofanopinionrequiredtobesubmittedbya
749 foreignoraliencompany,thedirectormayaccepttheopinionfiled
750 bysuchcompanywiththeinsurancesupervisoryofficialofanother
751 stateifthedirectordeterminesthattheopinionreasonablymeets
752 therequirementsapplicabletoacompanydomiciledinMissouri;
753 (f)Exceptincasesoffraudorwillfulmisconduct,the
754 appointedactuaryshallnotbeliablefordamagestoanyperson,
755 otherthantheinsurancecompanyandthedirector,foranyact,
756 error,omission,decision,orconductwithrespecttothe
757 appointedactuary'sopinion;and
758 (g)Disciplinaryactionbythedirectoragainstthecompany
759 ortheappointedactuaryshallbedefinedinregulationsbythe
760 director.
761 6.(1)Forpoliciesissuedonoraftertheoperativedateof
762 thevaluationmanual,thestandardprescribedinthevaluation
763 manualistheminimumstandardofvaluationrequiredunder
764 subsection2ofsection376.370,exceptasprovidedunder
765 subdivision(5)or(7)ofthissubsection.
58 766 (2)TheoperativedateofthevaluationmanualisJanuary
767 firstofthefirstcalendaryearfollowingthefirstJulyfirstas
768 ofwhichallofthefollowinghaveoccurred:
769 (a)ThevaluationmanualhasbeenadoptedbytheNAICbyan
770 affirmativevoteofatleastforty-twomembersorthree-fourthsof
771 themembersvoting,whicheverisgreater;
772 (b)ThestandardvaluationlawasamendedbytheNAICin2009
773 orlegislationincludingsubstantiallysimilartermsand
774 provisionshasbeenenactedbystatesrepresentinggreaterthan
775 seventy-fivepercentofthedirectpremiumswrittenasreportedin
776 thefollowingannualstatementssubmittedfor2008:life,
777 accident,andhealthannualstatements;healthannualstatements;
778 orfraternalannualstatements;
779 (c)ThestandardvaluationlawasamendedbytheNAICin2009
780 orlegislationincludingsubstantiallysimilartermsand
781 provisionshasbeenenactedbyatleastforty-twoofthefollowing
782 fifty-fivejurisdictions:thefiftystatesoftheUnitedStates,
783 AmericanSamoa,theAmericanVirginIslands,theDistrictof
784 Columbia,Guam,andPuertoRico;and
785 (d)Thevaluationmanualbecomeseffectiveunderanorderof
786 thedirector.
787 (3)Unlessachangeinthevaluationmanualspecifiesalater
788 effectivedate,changestothevaluationmanualshallbeeffective
789 onJanuaryfirstfollowingthedatewhenallofthefollowinghave
790 occurred:
791 (a)Thechangetothevaluationmanualhasbeenadoptedby
792 theNAICbyanaffirmativevoterepresenting:
59 793 a.Atleastthree-fourthsofthemembersoftheNAICvoting,
794 butnotlessthanamajorityofthetotalmembership;and
795 b.MembersoftheNAICrepresentingjurisdictionstotaling
796 greaterthanseventy-fivepercentofthedirectpremiumswritten
797 asreportedinthefollowingannualstatementsmostrecently
798 availablepriortothevoteinsubparagrapha.ofthisparagraph:
799 life,accident,andhealthannualstatements;healthannual
800 statements;orfraternalannualstatements;
801 (b)Thevaluationmanualbecomeseffectiveunderanorderof
802 thedirector.
803 (4)Thevaluationmanualshallspecifyallofthefollowing:
804 (a)Minimumvaluationstandardsforanddefinitionsofthe
805 policiesorcontractssubjecttosubsection2ofsection376.370.
806 Suchminimumstandardsshallbe:
807 a.Thecommissionersreservevaluationmethodforlife
808 insurancecontracts,otherthanannuitycontracts,subjectto
809 subsection2ofsection376.370;
810 b.Thecommissionersannuityreservevaluationmethodfor
811 annuitycontractssubjecttosubsection2ofsection376.370;and
812 c.Minimumreservesforallotherpoliciesandcontracts
813 subjecttosubsection2ofsection376.370;
814 (b)Whichpoliciesorcontractsortypesofpoliciesor
815 contractsaresubjecttotherequirementsofaprinciple-based
816 valuationundersubdivision(1)ofsubsection7ofthissectionand
817 theminimumvaluationstandardsconsistentwithsuchrequirements;
818 (c)Forpoliciesandcontractssubjecttoprinciple-based
819 valuationundersubsection7ofthissection:
60 820 a.Requirementsfortheformatofreportstothedirector
821 underparagraph(c)ofsubdivision(2)ofsubsection7ofthis
822 sectionandwhichshallincludeinformationnecessarytodetermine
823 ifthevaluationisappropriateandincompliancewithsections
824 376.365to376.380;
825 b.Assumptionswhichshallbeprescribedforrisksoverwhich
826 thecompanydoesnothavesignificantcontrolorinfluence;
827 c.Proceduresforcorporategovernanceandoversightofthe
828 actuarialfunction,andaprocessforappropriatewaiveror
829 modificationofsuchprocedures;
830 (d)Forpoliciesnotsubjecttoaprinciple-based valuation
831 undersubsection7ofthissection,theminimumvaluationstandard
832 shalleither:
833 a.Beconsistentwiththeminimumstandardofvaluationprior
834 totheoperativedateofthevaluationmanual;or
835 b.Developreservesthatquantifythebenefitsand
836 guarantees,andthefunding,associatedwiththecontractsand
837 theirrisksatalevelofconservatismthatreflectsconditions
838 thatincludeunfavorableeventsthathaveareasonableprobability
839 ofoccurring;
840 (e)Otherrequirementsincluding,butnotlimitedto,those
841 relatingtoreservemethods,modelsformeasuringrisk,generation
842 ofeconomicscenarios,assumptions,margins,useofcompany
843 experience,riskmeasurement,disclosure,certifications,reports,
844 actuarialopinionsandmemorandums,transitionrules,andinternal
845 controls;and
846 (f)Thedataandformofthedatarequiredundersubsection8
61 847 ofthissection,towhomthedatashallbesubmitted,andmay
848 specifyotherrequirements,includingdataanalysesandreporting
849 ofanalyses.
850 (5)Intheabsenceofaspecificvaluationrequirementorif
851 aspecificvaluationrequirementinthevaluationmanualisnot,in
852 theopinionofthedirector,incompliancewithsections376.365to
853 376.380,thecompanyshall,withrespecttosuchrequirements,
854 complywithminimumvaluationstandardsprescribedbythedirector
855 byregulation.
856 (6)Thedirectormayengageaqualifiedactuary,atthe
857 expenseofthecompany,toperformanactuarialexaminationofthe
858 companyandopineontheappropriateness ofanyreserveassumption
859 ormethodusedbythecompany,ortoreviewandopineona
860 company'scompliancewithanyrequirementsetforthinsections
861 376.365to376.380.Thedirectormayrelyupontheopinion
862 regardingprovisionscontainedinsections376.365to376.380ofa
863 qualifiedactuaryengagedbythedirectorofanotherstate,
864 district,orterritoryoftheUnitedStates.Asusedinthis
865 subdivision,engageincludesemploymentandcontracting.
866 (7)Thedirectormayrequireacompanytochangeany
867 assumptionormethodthatintheopinionofthedirectoris
868 necessaryinordertocomplywiththerequirementsofthevaluation
869 manualorsections376.365to376.380,andthecompanyshalladjust
870 thereservesasrequiredbythedirector. Thedirectormaytake
871 otherdisciplinaryactionaspermittedunderchapter354and
872 chapters374to385.
873 7.(1)Acompanyshallestablishreservesusingaprinciple-
62 874 basedvaluationthatmeetsthefollowingconditionsforpolicies
875 orcontractsasspecifiedinthevaluationmanual:
876 (a)Quantifythebenefitsandguarantees,andthefunding,
877 associatedwiththecontractsandtheirrisksatalevelof
878 conservatismthatreflectsconditionsthatincludeunfavorable
879 eventsthathaveareasonableprobabilityofoccurringduringthe
880 lifetimeofthecontracts. Forpoliciesorcontractswith
881 significanttailrisk,thecompany'svaluationshallreflect
882 conditionsappropriatelyadversetoquantifythetailrisk;
883 (b)Incorporateassumptions,riskanalysismethods,and
884 financialmodelsandmanagementtechniquesthatareconsistent
885 with,butnotnecessarilyidenticalto,thoseutilizedwithinthe
886 company'soverallriskassessmentprocess,whilerecognizing
887 potentialdifferencesinfinancialreportingstructuresandany
888 prescribedassumptionsormethods;
889 (c)Incorporateassumptionsthatarederivedinoneofthe
890 followingmanners:
891 a.Theassumptionisprescribedinthevaluationmanual;or
892 b.Forassumptionsthatarenotprescribed,theassumption
893 shall:
894 (i)Beestablishedutilizingthecompany'savailable
895 experiencetotheextentitisrelevantandstatistically
896 credible;or
897 (ii)Totheextentthatcompanydataisnotavailable,
898 relevant,orstatisticallycredible,beestablishedutilizing
899 otherrelevantstatisticallycredibleexperience;
900 (d)Providemarginsforuncertainty,includingadverse
63 901 deviationandestimationerror,suchthatthegreaterthe
902 uncertaintythelargerthemarginandresultingreserve.
903 (2)Acompanyusingaprinciple-based valuationforoneor
904 morepoliciesorcontractssubjecttothissectionasspecifiedin
905 thevaluationmanualshall:
906 (a)Establishproceduresforcorporategovernanceand
907 oversightoftheactuarialvaluationfunctionconsistentwith
908 thosedescribedinthevaluationmanual;
909 (b)Providetothedirectoranannualcertificationofthe
910 effectivenessoftheinternalcontrolswithrespecttothe
911 principle-based valuation. Suchcontrolsshallbedesignedto
912 ensurethatallmaterialrisksinherentintheliabilitiesand
913 associatedassetssubjecttosuchvaluationareincludedinthe
914 valuationandthatvaluationsaremadeinaccordancewiththe
915 valuationmanual.Thecertificationshallbebasedonthecontrols
916 inplaceasoftheendoftheprecedingcalendaryear;
917 (c)Develop,andfilewiththedirectoruponrequest,a
918 principle-based valuationreportthatcomplieswithstandards
919 prescribedinthevaluationmanual.
920 (3)Aprinciple-based valuationmayincludeaprescribed
921 formulaicreservecomponent.
922 8.Forpoliciesinforceonoraftertheoperativedateof
923 thevaluationmanual,acompanyshallsubmitmortality,morbidity,
924 policyholderbehavior,orexpenseexperienceandotherdataas
925 prescribedinthevaluationmanual.
926 9.(1)Forpurposesofthissubsection,"confidential
927 information"means:
64 928 (a)Amemoranduminsupportofanopinionsubmittedunder
929 subsection4or5ofthissectionandanyotherdocuments,
930 materials,andotherinformationincluding,butnotlimitedto,
931 allworkingpapersandcopiesthereofcreated,produced,or
932 obtainedbyordisclosedtothedirectororanyotherpersonin
933 connectionwithsuchmemorandum;
934 (b)Alldocuments,materials,andotherinformation
935 including,butnotlimitedto,allworkingpapersandcopies
936 thereofcreated,produced,orobtainedbyordisclosedtothe
937 directororanyotherpersoninthecourseofanexaminationmade
938 undersubdivision(6)ofsubsection6ofthissection;provided,
939 however,thatifanexaminationreportorothermaterialprepared
940 inconnectionwithanexaminationmadeundersection374.205isnot
941 heldasprivateandconfidentialinformationundersection
942 374.205,anexaminationreportorothermaterialpreparedin
943 connectionwithanexaminationmadeundersubdivision(6)of
944 subsection6ofthissectionshallnotbeconfidentialinformation
945 tothesameextentasifsuchexaminationreportorothermaterial
946 hadbeenpreparedundersection374.205;
947 (c)Anyreports,documents,materials,andotherinformation
948 developedbyacompanyinsupportoforinconnectionwithan
949 annualcertificationbythecompanyunderparagraph(b)of
950 subdivision(2)ofsubsection7ofthissectionevaluatingthe
951 effectivenessofthecompany'sinternalcontrolswithrespecttoa
952 principle-based valuationandanyotherdocuments,materials,and
953 otherinformationincluding,butnotlimitedto,allworking
954 papersandcopiesthereofcreated,produced,orobtainedbyor
65 955 disclosedtothedirectororanyotherpersoninconnectionwith
956 suchreports,documents,material,andotherinformation;
957 (d)Anyprinciple-based valuationreportdevelopedunder
958 paragraph(c)ofsubdivision(2)ofsubsection7ofthissection
959 andanyotherdocuments,materials,andotherinformation
960 including,butnotlimitedto,allworkingpapersandcopies
961 thereofcreated,produced,orobtainedbyordisclosedtothe
962 directororanyotherpersoninconnectionwithsuchreport;and
963 (e)Anydocuments,materials,data,andotherinformation
964 submittedbyacompanyundersubsection8ofthissection
965 (collectively,"experiencedata")andanyotherdocuments,
966 materials,data,andotherinformationincluding,butnotlimited
967 to,allworkingpapersandcopiesthereofcreatedorproducedin
968 connectionwithsuchexperiencedata,ineachcasethatincludeany
969 potentiallycompany-identifying orpersonallyidentifiable
970 information,thatisprovidedtoorobtainedbythedirector
971 (togetherwithany"experiencedata",the"experiencematerials")
972 andanyotherdocuments,materials,data,andotherinformation
973 including,butnotlimitedto,allworkingpapersandcopies
974 thereofcreated,produced,orobtainedbyordisclosedtothe
975 directororanyotherpersoninconnectionwithsuchexperience
976 materials.
977 (2)(a)Exceptasprovidedinthissubsection,acompany's
978 confidentialinformationisconfidentialbylawandprivileged,
979 andshallnotbesubjecttochapter610,shallnotbesubjectto
980 subpoena,andshallnotbesubjecttodiscoveryoradmissiblein
981 evidenceinanyprivatecivilaction;provided,however,thatthe
66 982 directorisauthorizedtousetheconfidentialinformationinthe
983 furtheranceofanyregulatoryorlegalactionbroughtagainstthe
984 companyasapartofthedirector'sofficialduties.
985 (b)Neitherthedirectornoranypersonwhoreceived
986 confidentialinformationwhileactingundertheauthorityofthe
987 directorshallbepermittedorrequiredtotestifyinanyprivate
988 civilactionconcerninganyconfidentialinformation.
989 (c)Inordertoassistintheperformanceofthedirector's
990 duties,thedirectormayshareconfidentialinformationwith:
991 a.Otherstate,federal,andinternationalregulatory
992 agenciesandwiththeNAICanditsaffiliatesandsubsidiaries;and
993 b.Inthecaseofconfidentialinformationspecifiedin
994 paragraphs(a)and(d)ofsubdivision(1)ofthissubsectiononly,
995 theActuarialBoardforCounselingandDisciplineoritssuccessor
996 uponrequeststatingthattheconfidentialinformationisrequired
997 forthepurposeofprofessionaldisciplinaryproceedingsandwith
998 state,federal,andinternationallawenforcementofficials.
999 (d)Thesharingofconfidentialinformationdetailedin
1000 paragraph(c)ofthissubdivisionshallbecontingentonsuch
1001 recipientagreeingandhavingthelegalauthoritytoagreeto
1002 maintaintheconfidentiality andprivilegedstatusofsuch
1003 documents,materials,data,andotherinformationinthesame
1004 mannerandtothesameextentasrequiredforthedirector.
1005 (e)Thedirectormayreceivedocuments,materials,data,and
1006 otherinformation,includingotherwiseconfidentialandprivileged
1007 documents,materials,data,orinformation,fromtheNAICandits
1008 affiliatesandsubsidiaries,fromregulatoryorlawenforcement
67 1009 officialsofotherforeignordomesticjurisdictions,andfromthe
1010 ActuarialBoardforCounselingandDisciplineoritssuccessorand
1011 shallmaintainasconfidentialorprivilegedanydocument,
1012 material,data,orotherinformationreceivedwithnoticeorthe
1013 understandingthatitisconfidentialorprivilegedunderthelaws
1014 ofthejurisdictionthatisthesourceofthedocument,material,
1015 orotherinformation.
1016 (f)Thedirectormayenterintoagreementsgoverningsharing
1017 anduseofinformationconsistentwiththissubdivision.
1018 (g)Nowaiverofanyapplicableprivilegeorclaimof
1019 confidentiality intheconfidentialinformationshalloccurasa
1020 resultofdisclosuretothedirectorunderthissectionorasa
1021 resultofsharingasauthorizedinparagraph(c)ofthis
1022 subdivision.
1023 (h)Aprivilegeestablishedunderthelawofanystateor
1024 jurisdictionthatissubstantiallysimilartotheprivilege
1025 establishedunderthissubdivisionshallbeavailableandenforced
1026 inanyproceedingin,andinanycourtof,Missouri.
1027 (i)Inthissubsection,regulatoryagency,lawenforcement
1028 agency,andtheNAICinclude,butarenotlimitedto,their
1029 employees,agents,consultantsandcontractors.
1030 (3)Notwithstanding subdivision(2)ofthissubsection,any
1031 confidentialinformationspecifiedinparagraphs(a)and(d)of
1032 subdivision(1)ofthissubsection:
1033 (a)Maybesubjecttosubpoenaforthepurposeofdefending
1034 anactionseekingdamagesfromtheappointedactuarysubmitting
1035 therelatedmemoranduminsupportofanopinionsubmittedunder
68 1036 subsection4or5ofthissectionorprinciple-based valuation
1037 reportdevelopedunderparagraph(c)ofsubdivision(2)of
1038 subsection7ofthissectionbyreasonofanactionrequiredby
1039 sections376.365to376.380orbyregulationspromulgated
1040 hereunder;
1041 (b)Mayotherwisebereleasedbythedirectorwiththe
1042 writtenconsentofthecompany;and
1043 (c)Onceanyportionofamemoranduminsupportofanopinion
1044 submittedundersubsection4or5ofthissectionoraprinciple-
1045 basedvaluationreportdevelopedunderparagraph(c)of
1046 subdivision(2)ofsubsection7ofthissectioniscitedbythe
1047 companyinitsmarketing,orispubliclyvolunteeredtoorbeforea
1048 governmentalagencyotherthanastateinsurancedepartment,oris
1049 releasedbythecompanytothenewsmedia,allportionsofsuch
1050 memorandumorreportshallnolongerbeconfidential.
1051 10.Thedirectormayexemptspecificproductformsorproduct
1052 linesofadomesticcompanythatislicensedanddoingbusiness
1053 onlyinMissourifromtherequirementsofsubsection6ofthis
1054 sectionprovided:
1055 (1)Thedirectorhasissuedanexemptioninwritingtothe
1056 companyandhasnotsubsequentlyrevokedtheexemptioninwriting;
1057 and
1058 (2)Thecompanycomputesreservesusingassumptionsand
1059 methodsusedpriortotheoperativedateofthevaluationmanualin
1060 additiontoanyrequirementsestablishedbythedirectorand
1061 promulgatedbyregulation.
1062
69 1063 Foranycompanygrantedanexemptionunderthissection,
1064 subsection3ofsection376.370andsubsections1to5ofthis
1065 sectionshallbeapplicable. Withrespecttoanycompanyapplying
1066 thisexemption,anyreferencetosubsection6ofthissectionfound
1067 insubsection3ofsection376.370andsubsections1to5ofthis
1068 sectionshallnotbeapplicable.
1069 [11. (1)Acompanythathaslessthanthreehundredmillion
1070 dollarsofordinarylifepremiumandthatislicensedanddoing
1071 businessinMissouriandthatissubjecttotherequirementsof
1072 subsections6and7ofthissectionmayholdreservesbasedonthe
1073 mortalitytablesandinterestratesdefinedbythevaluation
1074 manualfornetpremiumreservesandusingthemethodologydefined
1075 intheprovisionsofparagraphs(b)through(i)ofsubdivision(2)
1076 ofsubsection1ofthissectionandsubsection3ofsection
1077 376.370astheyapplytoordinarylifeinsuranceinlieuofthe
1078 reservesrequiredbysubsections6and7ofthissection,provided
1079 that:
1080 (a)Ifthecompanyisamemberofagroupoflifeinsurers,
1081 thegrouphascombinedordinarylifepremiumsoflessthansix
1082 hundredmilliondollars;
1083 (b)Thecompanyreportedtotaladjustedcapitalofatleast
1084 fourhundredfiftypercentofauthorizedcontrollevelrisk-based
1085 capitalintherisk-basedcapitalreportforthepriorcalendar
1086 year;
1087 (c)Theappointedactuaryhasprovidedanunqualified
1088 opiniononthereservesinaccordancewithsubsections4and5of
1089 thissectionforthepriorcalendaryear;
70 1090 (d)Thecompanyhasprovidedacertificationbyaqualified
1091 actuarythatanyuniversallifepolicywithasecondaryguarantee
1092 issuedaftertheoperativedateofthevaluationmanualmeetsthe
1093 definitionofanonmaterialsecondaryguaranteeuniversallife
1094 productasdefinedinthevaluationmanual.
1095 (2)Forpurposesofsubdivision(1)ofthissubsection,
1096 ordinarylifepremiumsaremeasuredasdirectpremiumplus
1097 reinsuranceassumedfromanunaffiliatedcompany,asreportedin
1098 thepriorcalendaryearannualstatement.
1099 (3)Adomesticcompanymeetingalloftheaboveconditions
1100 mayfileastatementpriortoJulyfirstwiththedirector
1101 certifyingthattheseconditionsaremetforthecurrentcalendar
1102 yearbasedonpremiumsandothervaluesfromthepriorcalendar
1103 yearfinancialstatements. Thedirectormayrejectsuchstatement
1104 priortoSeptemberfirstandrequireacompanytocomplywiththe
1105 valuationmanualrequirementsforlifeinsurancereserves.]
376.1800. 1.Asusedinthissection,thefollowingterms
2 shallmean:
3 (1)"Medicalretaineragreement",acontractbetweena
4 [physician] providerandanindividualpatientorsuchindividual
5 patient'slegalrepresentativeinwhichthe[physician] provider
6 agreestoprovidecertainhealthcareservicesdescribedinthe
7 agreementtotheindividualpatientforanagreed-uponfeeand
8 periodoftime;
9 (2)["Physician"] "Provider",achiropractorlicensedunder
10 chapter331,adentistlicensedunderchapter332,oraphysician
11 licensedunderchapter334.[Physician] Providerincludesan
71 12 individual[physician] provideroragroupof[physicians]
13 providers.
14 2.Amedicalretaineragreementisnotinsuranceandisnot
15 subjecttothischapter.Enteringintoamedicalretainer
16 agreementisnotthebusinessofinsuranceandisnotsubjectto
17 thischapter.
18 3.A[physician] provideroragentofa[physician] provider
19 isnotrequiredtoobtainacertificateofauthorityorlicense
20 underthissectiontomarket,sell,oroffertosellamedical
21 retaineragreement.
22 4.Tobeconsideredamedicalretaineragreementforthe
23 purposesofthissection,theagreementshallmeetallofthe
24 followingrequirements:
25 (1)Beinwriting;
26 (2)Besignedbythe[physician] provideroragentofthe
27 [physician] providerandtheindividualpatientorsuchindividual
28 patient'slegalrepresentative;
29 (3)Alloweitherpartytoterminatetheagreementonwritten
30 noticetotheotherparty;
31 (4)Describethespecifichealthcareservicesthatare
32 includedintheagreement;
33 (5)Specifythefeefortheagreement;
34 (6)Specifytheperiodoftimeundertheagreement;and
35 (7)Prominentlystateinwritingthattheagreementisnot
36 healthinsurance.
37 5.(1)Foranypatientwhoentersintoamedicalretainer
38 agreementunderthissectionandwhohasestablishedahealth
72 39 savingsaccount(HSA)incompliancewith26U.S.C.Section223,or
40 whohasaflexiblespendingarrangement(FSA)orhealth
41 reimbursementarrangement(HRA),feesunderthepatient'smedical
42 retaineragreementmaybepaidfromsuchhealthsavingsaccountor
43 reimbursedthroughsuchflexiblespendingarrangementorhealth
44 reimbursementarrangement,subjecttoanyfederalorstatelaws
45 regardingqualifiedexpendituresfromahealthsavingsaccount,or
46 reimbursementthroughaflexiblespendingarrangementorahealth
47 reimbursementarrangement.
48 (2)Theemployerofanypatientdescribedinsubdivision(1)
49 ofthissubsectionmay:
50 (a)Makecontributionstosuchpatient'shealthsavings
51 account,flexiblespendingarrangement,orhealthreimbursement
52 arrangementtocoveralloranyportionoftheagreed-uponfees
53 underthepatient'smedicalretaineragreement,subjecttoany
54 federalorstaterestrictionsoncontributionsmadebyanemployer
55 toahealthsavingsaccount,orreimbursementthroughaflexible
56 spendingarrangement,orhealthreimbursementarrangement;or
57 (b)Paytheagreed-uponfeesdirectlytothe[physician]
58 providerunderthemedicalretaineragreement.
59 6.Nothinginthissectionshallbeconstruedasprohibiting,
60 limiting,orotherwiserestrictinga[physician] providerina
61 collaborativepracticearrangementfromenteringintoamedical
62 retaineragreementunderthissection.
379.011.1.Asusedinthissection,thefollowingterms
2 mean:
3 (1)"Deliveredbyelectronicmeans",includesdeliverytoan
73 4 electronicmailaddressatwhichapartyhasconsentedtoreceive
5 noticesordocuments,orpostingonanelectronicnetworkorsite
6 accessibleviatheinternet,mobileapplication,computer,mobile
7 device,tablet,oranyotherelectronicdevice,togetherwitha
8 separatenoticetoapartydirectedtotheelectronicmailaddress
9 atwhichthepartyhasconsentedtoreceivenoticeoftheposting;
10 (2)"Party",anyrecipientofanynoticeordocumentrequired
11 aspartofaninsurancetransaction,includingbutnotlimitedto
12 anapplicant,aninsuredorapolicyholder.
13 2.Subjecttosubsection3ofthissection,anynoticetoa
14 partyoranyotherdocumentrequiredunderapplicablelawinan
15 insurancetransactionorthatistoserveasevidenceofinsurance
16 coveragemaybedelivered,stored,andpresentedbyelectronic
17 meanssolongasitmeetstherequirementsofsections432.200to
18 432.295.Deliveryofanoticeordocumentinaccordancewiththis
19 subsectionshallbeconsideredequivalenttoanydeliverymethod
20 requiredunderapplicablelaw,includingdeliverybyfirstclass
21 mail,firstclassmailpostageprepaid,certifiedmail,or
22 certificateofmailing.
23 3.Anoticeordocumentmaybedeliveredbyelectronicmeans
24 byaninsurertoapartyunderthis[subsection] sectionif:
25 (1)Thepartyhasaffirmativelyconsentedtothatmethodof
26 deliveryandhasnotwithdrawntheconsent;
27 (2)Theparty,beforegivingconsent,isprovidedwitha
28 clearandconspicuousstatementinformingthepartyof:
29 (a)Anyrightoroptiontohavethenoticeordocument
30 providedinpaperoranothernonelectronicformatnoadditional
74 31 cost;
32 (b)Therightofthepartytowithdrawconsenttohavea
33 noticeordocumentdeliveredbyelectronicmeans;
34 (c)Whethertheparty'sconsentappliesonlytothe
35 particulartransactionastowhichthenoticeordocumentmustbe
36 givenortoidentifiedcategoriesofnoticesordocumentsthatmay
37 bedeliveredbyelectronicmeansduringthecourseoftheparties'
38 relationship;
39 (d)Themeans,afterconsentisgiven,bywhichapartymay
40 obtainapapercopyofanoticeordocumentdeliveredbyelectronic
41 meansatnoadditionalcost;and
42 (e)Theprocedureapartymustfollowtowithdrawconsentto
43 haveanoticeordocumentdeliveredbyelectronicmeansandto
44 updateinformationneededtocontactthepartyelectronically;
45 (3)Theparty,beforegivingconsent,isprovidedwitha
46 statementofthehardwareandsoftwarerequirementsforaccessto
47 andretentionofanoticeordocumentdeliveredbyelectronicmeans
48 andconsentselectronically, andconfirmsconsentelectronically,
49 inamannerthatreasonablydemonstratesthatthepartycanaccess
50 informationintheelectronicformthatwillbeusedfornoticesor
51 documentsdeliveredbyelectronicmeansastowhichthepartyhas
52 givenconsent;and
53 (4)Afterconsentofthepartyisgiven,theinsurer,inthe
54 eventachangeinthehardwareorsoftwarerequirementsneededto
55 accessorretainanoticeordocumentdeliveredinelectronicmeans
56 createsamaterialriskthatthepartywillnotbeabletoaccess
57 orretainasubsequentnoticeordocumenttowhichtheconsent
75 58 applies:
59 (a)Providesthepartywithastatementoftherevised
60 hardwareandsoftwarerequirementsforaccesstoandretentionofa
61 noticeordocumentdeliveredbyelectronicmeansandoftheright
62 ofthepartytowithdrawconsentpursuanttoparagraph(b)of
63 subdivision(2)ofthissubsection;and
64 (b)Complieswithsubdivision(2)ofthissubsection.
65 4.Notwithstandinganyotherprovisionsofthissection,ifa
66 policyofinsuranceispurchaseddirectlythroughaninsurer's
67 website,portal,orapplication,andisinitiallydeliveredby
68 electronicmeans,aparty'sconsenttohaveallfuturenoticesand
69 documentsrelatedtothepolicy,orclaimsthereunder,delivered
70 byelectronicmeansshallbepresumed.Nothinginthissubsection
71 shallaffecttherightofapartyunderthissectiontowithdraw
72 itsconsenttohaveanoticeordocumentdeliveredbyelectronic
73 means.
74 5.Thissectiondoesnotaffectrequirementsrelatingto
75 contentortimingofanynoticeordocumentrequiredunder
76 applicablelaw.Ifanyprovisionofapplicablelawrequiringa
77 noticeordocumenttobeprovidedtoapartyexpresslyrequires
78 verificationoracknowledgmentofreceiptofthenoticeor
79 document,thenoticeordocumentmaybedeliveredbyelectronic
80 meansonlyifthemethodusedprovidesforverificationor
81 acknowledgmentofreceipt.Absentverificationoracknowledgment
82 ofreceiptoftheinitialnoticeordocumentonthepartofthe
83 party,theinsurershallsendtwosubsequentnoticesordocuments
84 atintervalsoffivebusinessdays.Thelegaleffectiveness,
76 85 validity,orenforceabilityofanycontractorpolicyofinsurance
86 executedbyapartymaynotbemadecontingentuponobtaining
87 electronicconsentorconfirmationofconsentofthepartyin
88 accordancewithsubdivision(3)ofsubsection3ofthissection.
89 [5.] 6.Awithdrawalofconsentbyapartydoesnotaffect
90 thelegaleffectiveness,validity,orenforceabilityofanotice
91 ordocumentdeliveredbyelectronicmeanstothepartybeforethe
92 withdrawalofconsentiseffective. Awithdrawalofconsentbya
93 partyiseffectivewithinthirtydaysafterreceiptofthe
94 withdrawalbytheinsurer.Failurebyaninsurertocomplywith
95 subdivision(4)ofsubsection3ofthissectionmaybetreated,at
96 theelectionoftheparty,asawithdrawalofconsentforpurposes
97 ofthissection.
98 [6.] 7.Thissectiondoesnotapplytoanoticeordocument
99 deliveredbyaninsurerinanelectronicformbeforeAugust28,
100 2013,toapartywho,beforethatdate,hasconsentedtoreceive
101 noticesordocumentsinanelectronicformotherwiseallowedby
102 law.Iftheconsentofapartytoreceivecertainnoticesor
103 documentsinanelectronicformisonfilewithaninsurerbefore
104 August28,2013,andpursuanttothissection,aninsurerintends
105 todeliveradditionalnoticesordocumentstosuchpartyinan
106 electronicform,thenpriortodeliveringsuchadditionalnotices
107 ordocumentselectronically, theinsurershallnotifytheparty
108 of:
109 (1)Thenoticesordocumentsthatmaybedeliveredby
110 electronicmeansunderthissectionthatwerenotpreviously
111 deliveredelectronically; and
77 112 (2)Theparty'srighttowithdrawconsenttohavenoticesor
113 documentsdeliveredbyelectronicmeans.
114 [7.] 8.Apartywhodoesnotconsenttodeliveryofnotices
115 ordocumentsundersubsection3ofthissection,orwhowithdraws
116 theirconsent,shallnotbesubjecttoanyadditionalfeesorcosts
117 forhavingnoticesordocumentsprovidedormadeavailabletothem
118 inpaperoranothernonelectronicform.
119 [8.] 9.Ifanyprovisionofapplicablelawrequiresa
120 signatureornoticeordocumenttobenotarized,acknowledged,
121 verified,ormadeunderoath,therequirementissatisfiedifthe
122 electronicsignatureofthepersonauthorizedtoperformthose
123 acts,togetherwithallotherinformationrequiredtobeincluded
124 bytheprovision,isattachedtoorlogicallyassociatedwiththe
125 signature,notice,ordocument.
126 [9.] 10.Thissectionmaynotbeconstruedtomodify,limit,
127 orsupercedetheprovisionsofsections354.442,376.1450,or
128 432.200to432.295.Theprovisionsofthissectionshallapplyto
129 noticesanddocumentsissuedbyinsurersorganizedunderthis
130 chapterorchapter380andtonoticesanddocumentsrelatingto
131 lifeinsuranceproductsissuedbyinsurersorganizedunderchapter
132 376.
133 [10.] 11.Nothinginthissectionshallpreventaninsurer
134 fromofferingadiscounttoaninsuredwhoelectstoreceive
135 noticesanddocumentselectronicallyinaccordancewiththis
136 section.
SectionB.Therepealandreenactmentofsection288.132and
2 theenactmentofsection288.133shallbecomeeffectiveJanuary1,
78 3 2023.
SectionC.Therepealandreenactmentofsections303.025and
2 303.041shalltakeeffectonJanuary1,2024.
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