SECONDREGULARSESSION
[TRULYAGREEDTOANDFINALLYPASSED]
CONFERENCECOMMITTEESUBSTITUTEFOR
SENATESUBSTITUTEFOR
SENATECOMMITTEESUBSTITUTEFOR
HOUSECOMMITTEESUBSTITUTEFOR
HOUSEBILLNO.2168
101STGENERALASSEMBLY
4926H.06T 2022
ANACT
Torepealsections288.132,303.025,303.041,319.129,375.159,376.380,376.1800,and
379.011,RSMo,andtoenactinlieuthereofninenewsectionsrelatingtoinsurance,
withpenaltyprovisionsandadelayedeffectivedateforcertainsections.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections288.132,303.025,303.041,319.129,375.159,376.380,
2376.1800,and379.011,RSMo,arerepealedandninenewsectionsenactedinlieuthereof,
3tobeknownassections288.132,288.133,303.025,303.041,319.129,375.159,376.380,
4376.1800,and379.011,toreadasfollows:
288.132.1.Thereisherebycreatedinthestatetreasurythe"Unemployment
2AutomationFund",whichshallconsistofmoneycollected[undersubsection1ofsection
3288.131] pursuanttosection288.133, andsuchotherstatefundsappropriatedbythegeneral
4assembly.Thestatetreasurershallbecustodianofthefundandmayapprovedisbursements
5fromthefundinaccordancewithsections30.170and30.180.Uponappropriation,moneyin
6thefundshallbeusedsolelyforthepurposeofprovidingautomatedsystems,andthe
7paymentofassociatedcosts,toimprovetheadministrationofthestate'sunemployment
8insuranceprogram.Notwithstandingtheprovisionsofsection33.080tothecontrary,all
9moneysremaininginthefundattheendofthebienniumshallnotreverttothecreditofthe
10generalrevenuefund.Thestatetreasurershallinvestmoneysinthefundinthesamemanner
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 11asotherfundsareinvested.Anyinterestandmoneyearnedonsuchinvestmentsshallbe
12creditedtothefund.
13 2.Theunemploymentautomationfundshallnotbeusedinwholeorinpartforany
14purposeorinanymannerthatwouldpermititssubstitutionfor,oracorrespondingreduction
15in,federalfundsthatwouldbeavailableinitsabsencetofinanceexpendituresforthe
16administrationofthischapter,orcausetheappropriateagencyoftheUnitedStates
17governmenttowithholdanypartofanadministrativegrantwhichwouldotherwisebemade.
288.133.1.Eachemployerliableforcontributionspursuanttothischapter,
2exceptemployerswithacontributionrateequaltozero,shallpayanannual
3unemploymentautomationadjustmentinanamountequaltotwoone-hundredthsof
4onepercentofsuchemployer'stotaltaxablewagesforthetwelve-monthperiodending
5theprecedingJunethirtieth.
6 2.Notwithstandingsubsection1ofthissectiontothecontrary,thedivisionmay
7reducetheautomationadjustmentpercentagetoensurethatthetotalamountof
8adjustmentduefromallemployersunderthissectionshallnotexceedfivemillion
9dollarsannually.
10 3.Eachemployerliabletopayanautomationadjustmentshallbenotifiedofthe
11amountdueunderthissectionbyMarchthirty-firstofeachyearandsuchamountshall
12beconsidereddelinquentthirtydaysthereafter.Delinquentunemploymentautomation
13adjustmentamountsmaybecollectedinthemannerprovidedundersections288.160
14and288.170.Allmoneyscollectedunderthissectionshallbedepositedinthe
15unemploymentautomationfundestablishedinsection288.132.
16 4.Forthefirstquarterofeachcalendaryear,thetotalamountofcontribution
17otherwiseduefromeachemployerliabletopaycontributionsunderthischaptershall
18bereducedbythedollaramountofunemploymentautomationadjustmentduefrom
19suchemployerpursuanttosubsection1ofthissection.However,theamountof
20contributionsduefromsuchemployerforthefirstquarterofthecalendaryearin
21questionshallnotbereducedbelowzero.
303.025.1.Noownerofamotorvehicleregisteredinthisstate,orrequiredtobe
2registeredinthisstate,shalloperate,registerormaintainregistrationofamotorvehicle,or
3permitanotherpersontooperatesuchvehicle,unlesstheownermaintainsthefinancial
4responsibilitywhichconformstotherequirementsofthelawsofthisstate.Nononresident
5shalloperateorpermitanotherpersontooperateinthisstateamotorvehicleregisteredto
6suchnonresidentunlessthenonresidentmaintainsthefinancialresponsibilitywhichconforms
7totherequirementsofthelawsofthenonresident'sstateofresidence.Furthermore,no
8personshalloperateamotorvehicleownedbyanotherwiththeknowledgethattheownerhas
9notmaintainedfinancialresponsibilityunlesssuchpersonhasfinancialresponsibilitywhich
CCSSSSCSHCSHB2168 2 10coverstheperson'soperationoftheother'svehicle;however,noownerornonresidentshallbe
11inviolationofthissubsectionifheorshefailstomaintainfinancialresponsibilityonamotor
12vehiclewhichisinoperableorbeingstoredandnotinoperation. Thedirectorofthe
13departmentofrevenueshallestablishbyruleaprocessforvoluntarysuspensionof
14motorvehicleregistrationforvehicleswhichareinoperableorbeingstoredandnotin
15operation.Theownerornonresidentshallnotfurtheroperatethevehicleuntilthe
16ownerornonresidentnotifiesthedepartmentofrevenuethatthevehiclewillbeinuse,
17andthedepartmentshallreinstatethemotorvehicleregistrationuponreceiptofproof
18offinancialresponsibility.Ownersornonresidentswhooperateamotorvehicleduring
19aperiodofinoperabilityorstorageclaimedunderthissubsectionshallbeguiltyofa
20classBmisdemeanorandmayadditionallybeguiltyofaviolationofthissubsection.
21Notwithstandinganyprovisionoflawtothecontrary,thedepartmentofrevenuemay
22verifymotorvehiclefinancialresponsibilityasprovidedbylaw,butshallnototherwise
23takelegaloradministrativeactiontoenforcetherequirementsofthissectionunless,in
24thediscretionofthedirector,themotorvehicleisdeterminedtohavebeenoperatedin
25violationofthissection,amotorvehicleregistrationisappliedforinviolationofthis
26section,orthemotorvehicleontwoseparateoccasionsthirtydaysapartisdetermined
27tohaveitsregistrationmaintainedinviolationofthissection. Thedirectormayprescribe
28rulesandregulationsfortheimplementationofthissection.
29 2.Amotorvehicleownershallmaintaintheowner'sfinancialresponsibilityina
30mannerprovidedforinsection303.160,orwithamotorvehicleliabilitypolicywhich
31conformstotherequirementsofthelawsofthisstate.Anonresidentmotorvehicleowner
32shallmaintaintheowner'sfinancialresponsibilitywhichconformstotherequirementsofthe
33lawsofthenonresident'sstateofresidence.
34 3.Anypersonwhoviolatesthissectionisguiltyofamisdemeanor.Exceptas
35otherwiseprovidedinthissection,afirstviolationofthissectionshallbepunishableasa
36classDmisdemeanor.Asecondorsubsequentviolationofthissection[shall] maybe
37[punishable] punishedbyimprisonmentinthecountyjailforatermnottoexceedfifteen
38days[and/or] andshallbepunishedbyafinenotlessthantwohundreddollarsbutnotto
39exceedfivehundreddollars.Priorpleasofguiltyandpriorfindingsofguiltyshallbepleaded
40andproveninthesamemannerasrequiredbysection558.021.However,nopersonshallbe
41foundguiltyofviolatingthissectioniftheoperatordemonstratestothecourtthatheorshe
42metthefinancialresponsibilityrequirementsofthissectionatthetimethepeaceofficer,
43commercialvehicleenforcementofficerorcommercialvehicleinspectorwrotethecitation.
44Inadditiontoanyotherauthorizedpunishment,thecourtshallnotifythedirectorofrevenue
45ofanypersonconvictedpursuanttothissectionandshalldooneofthefollowing:
CCSSSSCSHCSHB2168 3 46 (1)Enteranordersuspendingthedrivingprivilegeasofthedateofthecourtorder.If
47thecourtordersthesuspensionofthedrivingprivilege,thecourtshallrequirethedefendant
48tosurrendertoitanydriver'slicensethenheldbysuchperson.Thelengthofthesuspension
49shallbeasprescribedinsubsection2ofsection303.042.Thecourtshallforwardtothe
50directorofrevenuetheorderofsuspensionofdrivingprivilegeandanylicensesurrendered
51withintendays;
52 (2)Forwardtherecordoftheconvictionforanassessmentoffourpoints;
53 (3)Inlieuofanassessmentofpoints,renderanorderofsupervisionasprovidedin
54section302.303.Anorderofsupervisionshallnotbeusedinlieuofpointsmorethanone
55timeinanythirty-six-monthperiod.Everycourthavingjurisdictionpursuanttothe
56provisionsofthissectionshallforwardarecordofconvictiontotheMissouristatehighway
57patrol,oratthewrittendirectionoftheMissouristatehighwaypatrol,tothedepartmentof
58revenue,inamannerapprovedbythedirectorofthedepartmentofpublicsafety.The
59directorshallestablishproceduresfortherecordkeepingandadministrationofthissection;or
60 (4)Foranonresident,suspendthenonresident'sdrivingprivilegesinthisstatein
61accordancewithsection303.030andnotifytheofficialinchargeoftheissuanceoflicenses
62andregistrationcertificatesinthestateinwhichsuchnonresidentresidesinaccordancewith
63section303.080.
64 4.Nothinginsections303.010to303.050,303.060,303.140,303.220,303.290,
65303.330and303.370shallbeconstruedasprohibitingthedepartmentofcommerceand
66insurancefromapprovingorauthorizingthoseexclusionsandlimitationswhicharecontained
67inautomobileliabilityinsurancepoliciesandtheuninsuredmotoristprovisionsofautomobile
68liabilityinsurancepolicies.
69 5.Ifacourtentersanorderofsuspension,theoffendermayappealsuchorderdirectly
70pursuanttochapter512andtheprovisionsofsection302.311shallnotapply.
71 6.Anyfinesowedtothestatepursuanttothissectionmaybeeligiblefor
72paymentininstallments.Thedirectorshallpromulgaterulesfortheapplicationof
73paymentplans,whichshalltakeintoaccountindividuals'abilitytopay.
303.041.1.Ifthedirectordetermines[thatasaresultofaverificationsampleor
2accidentreportthattheownerofamotorvehiclehasnotmaintainedfinancialresponsibility,
3orifthedirectordeterminesasaresultofanorderofsupervision] thattheowneroroperator
4ofamotorvehiclehasnotmaintainedthefinancialresponsibilityasrequiredinthischapter,
5thedirectorshallthirty-threedaysaftermailingnotice,suspendthedrivingprivilegeofthe
6owneroroperatorand/ortheregistrationofthevehiclefailingtomeetsuchrequirement.The
7noticeofsuspensionshallbemailedtothepersonatthelastknownaddressshownonthe
8department'srecords.Thenoticeofsuspensionisdeemedreceivedthreedaysaftermailing.
9Thenoticeofsuspensionshallclearlyspecifythereasonandstatutorygroundsforthe
CCSSSSCSHCSHB2168 4 10suspensionandtheeffectivedateofthesuspension,therightofthepersontorequesta
11hearing,theprocedureforrequestingahearing,andthedatebywhichthatrequestfora
12hearingmustbemade.Iftherequestforahearingisreceivedbythedepartmentpriortothe
13effectivedateofthesuspension,theeffectivedateofthesuspensionwillbestayeduntila
14finalorderisissuedfollowingthehearing.
15 2.Exceptasotherwiseprovidedbylaw,neitherthefactthatsubsequenttothedate
16ofverificationorconviction,theowneracquiredtherequiredliabilityinsurancepolicynorthe
17factthattheownerterminatedownershipofthemotorvehicle,shallhaveanybearingupon
18thedirector'sdecisiontosuspend.Untilitisterminated,thesuspensionshallremaininforce
19aftertheregistrationisrenewedoranewregistrationisacquiredforthemotorvehicle.The
20suspensionalsoshallapplytoanymotorvehicletowhichtheownertransferstheregistration.
21EffectiveJanuary1,2000,thedepartmentshallnotextendanysuspensionforfailuretopaya
22delinquentlatesurrenderfeepursuanttothissubsection.
319.129.1.Thereisherebycreatedaspecialtrustfundtobeknownasthe
2"PetroleumStorageTankInsuranceFund"withinthestatetreasurywhichshallbethe
3successortotheundergroundstoragetankinsurancefund.Moneysinsuchspecialtrustfund
4shallnotbedeemedtobestatefunds.Notwithstandingtheprovisionsofsection33.080tothe
5contrary,moneysinthefundshallnotbetransferredtogeneralrevenueattheendofeach
6biennium.
7 2.Theowneroroperatorofanyundergroundstoragetank,includingthestateof
8Missourianditspoliticalsubdivisionsandpublictransportationsystems,inserviceonAugust
928,1989,shallsubmittothedepartmentafeeofonehundreddollarspertankonorbefore
10December31,1989.Theowneroroperatorofanyundergroundstoragetankwhoseeksto
11participateinthepetroleumstoragetankinsurancefund,includingthestateofMissouriand
12itspoliticalsubdivisionsandpublictransportationsystems,andwhoseundergroundstorage
13tankisbroughtintoserviceafterAugust28,1998,shalltransmitonehundreddollarspertank
14totheboardwithhisorherinitialapplication.Suchamountshallbeaone-timepayment,and
15shallbeinadditiontothepaymentrequiredbysection319.133.Theowneroroperatorofany
16abovegroundstoragetankregulatedbythischapter,includingthestateofMissouriandits
17politicalsubdivisionsandpublictransportationsystems,whoseekstoparticipateinthe
18petroleumstoragetankinsurancefund,shalltransmitonehundreddollarspertanktothe
19boardwithhisorherinitialapplication.Suchamountshallbeaone-timepaymentandshall
20beinadditiontothepaymentrequiredbysection319.133.Moneysreceivedpursuanttothis
21sectionshallbetransmittedtothedirectorofrevenuefordepositinthepetroleumstoragetank
22insurancefund.
23 3.Thestatetreasurermaydepositmoneysinthefundinanyofthequalified
24depositoriesofthestate.Allsuchdepositsshallbesecuredinamanneranduponthetermsas
CCSSSSCSHCSHB2168 5 25areprovidedbylawrelativetostatedeposits.Interestearnedshallbecreditedtothe
26petroleumstoragetankinsurancefund.
27 4.Thegeneraladministrationofthefundandtheresponsibilityfortheproper
28operationofthefund,includingalldecisionsrelatingtopaymentsfromthefund,arehereby
29vestedinaboardoftrustees.Theboardoftrusteesshallconsistofthecommissionerof
30administrationorthecommissioner'sdesignee,thedirectorofthedepartmentofnatural
31resourcesorthedirector'sdesignee,thedirectorofthedepartmentofagricultureorthe
32director'sdesignee,andeightcitizensappointedbythegovernorwiththeadviceandconsent
33ofthesenate.Threeoftheappointedmembersshallbeownersoroperatorsofretail
34petroleumstoragetanks,includingonetankowneroroperatorofgreaterthanonehundred
35tanks;onetankowneroroperatoroflessthanonehundredtanks;andoneaboveground
36storagetankowneroroperator.Oneappointedtrusteeshallrepresentafinanciallending
37institution,andoneappointedtrusteeshallrepresenttheinsuranceunderwritingindustry.
38Oneappointedtrusteeshallrepresentindustrialorcommercialusersofpetroleum.Thetwo
39remainingappointedcitizensshallhavenopetroleum-relatedbusinessinterest,andshall
40representthenonregulatedpublicatlarge.Themembersappointedbythegovernorshall
41servefour-yeartermsexceptthatthegovernorshalldesignatetwooftheoriginalappointees
42tobeappointedforoneyear,twotobeappointedfortwoyears,twotobeappointedforthree
43yearsandtwotobeappointedforfouryears.Anyvacanciesoccurringontheboardshallbe
44filledinthesamemannerasprovidedinthissection.
45 5.[TheboardshallmeetinJeffersonCity,Missouri,withinthirtydaysfollowing
46August28,1996.Thereafter,]Theboardshallmeetuponthewrittencallofthechairmanof
47theboardorbytheagreementofanysixmembersoftheboard.Noticeofeachmeetingshall
48bedeliveredtoallothertrusteesinpersonorbyregisteredmailnotlessthansixdayspriorto
49thedatefixedforthemeeting.Theboardmaymeetatanytimebyunanimousmutual
50consent.Thereshallbeatleastonemeetingineachquarter.
51 6.Sixtrusteesshallconstituteaquorumforthetransactionofbusiness,andany
52officialactionoftheboardshallbebasedonamajorityvoteofthetrusteespresent.
53 7.Thetrusteesshallservewithoutcompensationbutshallreceivefromthefundtheir
54actualandnecessaryexpensesincurredintheperformanceoftheirdutiesfortheboard.
55 8.TheboardoftrusteesshallbeatypeIIIagencyandshallappointanexecutive
56directorandotheremployeesasneeded,whoshallbestateemployeesandbeeligibleforall
57correspondingbenefits.Theexecutivedirectorshallhavechargeoftheoffices,operations,
58records,andotheremployeesoftheboard,subjecttothedirectionoftheboard.Employees
59oftheboardshallreceivesuchsalariesandnecessaryexpensesasshallbefixedbytheboard.
60 9.StaffresourcesfortheMissouripetroleumstoragetankinsurancefundmaybe
61providedbythedepartmentofnaturalresourcesoranotherstateagencyasotherwise
CCSSSSCSHCSHB2168 6 62specificallydeterminedbytheboard.Thefundshallcompensatethedepartmentofnatural
63resourcesorotherstateagencyforallcostsofprovidingstaffrequiredbythissubsection.
64Suchcompensationshallbemadepursuanttocontractsnegotiatedbetweentheboardandthe
65departmentofnaturalresourcesorotherstateagency.
66 10.Inordertocarryoutthefiduciarymanagementofthefund,theboardmayselect
67andemploy,ormaycontractwith,personsexperiencedininsuranceunderwriting,
68accounting,theservicingofclaimsandratemaking,andlegalcounseltodefendthird-
69partyclaims,whoshallserveattheboard'spleasure.Invoicesforsuchservicesshallbe
70presentedtotheboardinsufficientdetailtoallowathoroughreviewofthecostsofsuch
71services.
72 11.[Atthefirstmeetingoftheboard,] Theboardshallelectoneofitsmembersas
73chairman.Thechairmanshallpresideovermeetingsoftheboardandperformsuchother
74dutiesasshallberequiredbyactionoftheboard.
75 12.Theboardshallelectoneofitsmembersasvicechairman,andthevicechairman
76shallperformthedutiesofthechairmanintheabsenceofthelatteroruponthechairman's
77inabilityorrefusaltoact.
78 13.Theboardshalldetermineandprescribeallrulesandregulationsastheyrelateto
79fiduciarymanagementofthefund,pursuanttothepurposesofsections319.100to319.137.
80Innocaseshalltheboardhaveoversightregardingenvironmentalcleanupstandardsfor
81petroleumstoragetanks.
82 14.Notrusteeorstaffmemberofthefundshallreceiveanygainorprofitfromany
83moneysortransactionsofthefund.Thisshallnotprecludeanyeligibletrusteefrommakinga
84claimorreceivingbenefitsfromthepetroleumstoragetankinsurancefundasprovidedby
85sections319.100to319.137.
86 15.Theboardmayreinsurealloraportionofthefund'sliability.Anyinsurerwho
87sellsenvironmentalliabilityinsuranceinthisstatemay,attheoptionoftheboard,reinsure
88someportionofthefund'sliability.
89 16.ThepetroleumstoragetankinsurancefundshallexpireonDecember31,[2025]
902030, unlessextendedbyactionofthegeneralassembly.AfterDecember31,[2025] 2030,
91theboardoftrusteesmaycontinuetofunctionforthesolepurposeofcompletingpaymentof
92claimsmadepriortoDecember31,[2025] 2030.
93 17.Theboardshallannuallycommissionanindependentfinancialauditofthe
94petroleumstoragetankinsurancefund.Theboardshallbienniallycommissionanactuarial
95analysisofthepetroleumstoragetankinsurancefund.Theresultsofthefinancialauditand
96theactuarialanalysisshallbemadeavailabletothepublic.Theboardmaycontractwiththird
97partiestocarryouttherequirementsofthissubsection.
CCSSSSCSHCSHB2168 7 98 18.Theboardoftrusteesshallpromulgateallnecessaryrulesandregulations
99fortheadministrationofthissection.Anyruleorportionofarule,asthattermis
100definedinsection536.010,thatiscreatedundertheauthoritydelegatedinthissection
101shallbecomeeffectiveonlyifitcomplieswithandissubjecttoalloftheprovisionsof
102chapter536and,ifapplicable,section536.028.Thissectionandchapter536are
103nonseverableandifanyofthepowersvestedwiththegeneralassemblypursuantto
104chapter536toreview,todelaytheeffectivedate,ortodisapproveandannularuleare
105subsequentlyheldunconstitutional,thenthegrantofrulemakingauthorityandanyrule
106proposedoradoptedafterAugust28,2022,shallbeinvalidandvoid.
375.159.1.Asusedinthissection,thefollowingtermsshallmean:
2 (1)"Aggregatorsite",awebsitethatprovidesinformationregardinginsurance
3productsfrommorethanoneinsurer,includingproductandinsurerinformation,for
4useincomparisonshopping;
5 (2)"Blankettravelinsurance",apolicyoftravelinsuranceissuedtoanyeligible
6groupprovidingcoverageforspecificclassesofpersonsdefinedinthepolicy,with
7coverageprovidedtoallmembersoftheeligiblegroupwithoutaseparatechargeto
8individualmembersoftheeligiblegroup;
9 (3)"Cancellationfeewaiver",acontractualagreementbetweenasupplierof
10travelservicesanditscustomertowaivesomeorallofthenonrefundablecancellation
11feeprovisionsofthesupplier'sunderlyingtravelcontractwithorwithoutregardtothe
12reasonforthecancellationorformofreimbursement.Acancellationfeewaiverisnot
13insurance;
14 (4)"Director",thedirectorofthedepartmentofcommerceandinsurance;
15 (5)"Eligiblegroup",solelyforthepurposeoftravelinsurance,twoormore
16personswhoareengagedinacommonenterpriseorhaveaneconomic,educational,or
17socialaffinityorrelationship,includingbutnotlimitedtoanyofthefollowing:
18 (a)Anyentityengagedinthebusinessofprovidingtravelortravelservices,
19includingbutnotlimitedto:touroperators,lodgingproviders,vacationproperty
20owners,hotelsandresorts,travelclubs,travelagencies,propertymanagers,cultural
21exchangeprograms,andcommoncarriersortheoperator,owner,orlessorofameans
22oftransportationofpassengersincluding,butnotlimitedto,airlines,cruiselines,
23railroads,steamshipcompanies,andpublicbuscarriers,inwhichthereisacommon
24exposuretoriskattendanttotheparticulartypeoftravelortravelerforallmembersor
25customersofthegroup;
26 (b)Anycollege,school,orotherinstitutionoflearning,coveringstudents,
27teachers,employees,orvolunteers;
CCSSSSCSHCSHB2168 8 28 (c)Anyemployercoveringanygroupofemployees,volunteers,contractors,
29membersofboardsofdirectors,dependents,orguests;
30 (d)Anysportsteam,camp,orsponsorthereof,coveringparticipants,members,
31campers,employees,officials,supervisors,orvolunteers;
32 (e)Anyreligious,charitable,recreational,educational,orcivicorganization,or
33branchthereof,coveringanygroupofmembers,participants,orvolunteers;
34 (f)Anyfinancialinstitution,financialinstitutionvendor,orparentholding
35company,trustee,oragentofordesignatedbyoneormorefinancialinstitutionsor
36financialinstitutionvendors,includingaccountholders,creditcardholders,debtors,
37guarantors,orpurchasers;
38 (g)Anyincorporatedorunincorporatedassociation,includinganylaborunion,
39havingacommoninterest,constitution,andbylaws,andorganizedandmaintainedin
40goodfaithforpurposesotherthanobtaininginsuranceformembersorparticipantsof
41suchassociationcoveringitsmembers;
42 (h)Anytrustorthetrusteesofafundestablished,created,ormaintainedforthe
43benefitofandcoveringmembers,employees,orcustomersofoneormoreassociations
44meetingtherequirementsofparagraph(g)ofthissubdivision,subjecttothedirector's
45permissionoftheuseofatrustandthestate'spremiumtaxprovisionsdescribedin
46subsection4ofthissection;
47 (i)Anyentertainmentproductioncompanycoveringanygroupofparticipants,
48volunteers,audiencemembers,contestants,orworkers;
49 (j)Anyvolunteerfiredepartment,ambulance,rescue,police,court,firstaid,
50civildefense,orothersuchvolunteergroup;
51 (k)Preschools,daycareinstitutionsforchildrenoradults,andseniorcitizen
52clubs;
53 (l)Anyautomobileortruckrentalorleasingcompanycoveringagroupof
54personswhomaybecomerenters,lessees,orpassengersdefinedbytheirtravelstatuson
55therentedorleasedvehicles.Thecommoncarrier;theoperator,owner,orlessorofa
56meansoftransportation;ortheautomobileortruckrentalorleasingcompanyisthe
57policyholderunderapolicytowhichthissectionapplies;or
58 (m)Anyothergroupforwhichthedirectorhasdeterminedthatthemembers
59areengagedinacommonenterpriseorhaveaneconomic,educational,orsocialaffinity
60orrelationshipandthatissuanceofthepolicywouldnotbecontrarytothepublic
61interest;
62 (6)"Fulfillmentmaterials",documentationsenttothepurchaserofatravel
63protectionplanconfirmingthepurchaseandprovidingthetravelprotectionplan's
64coverageandassistancedetails;
CCSSSSCSHCSHB2168 9 65 (7)"Grouptravelinsurance",travelinsuranceissuedtoanyeligiblegroup;
66 (8)"Limitedlinestravelinsuranceproducer",a:
67 (a)Licensedmanaginggeneralagentasprovidedbysections375.147to375.153or
68third-partyadministrator; [or]
69 (b)Licensedinsuranceproducerasprovidedbychapter375[;], includingalimited
70linesproducer,designatedbytheinsurerasthetravelinsurancesupervisingentityasset
71forthinsubdivision(7)ofsubsection[5]3ofthissectionbelow;or
72 (c)Traveladministrator;
73 [(2)] (9)"Offeranddisseminate",providegeneralinformation,includinga
74descriptionofthecoverageandprice,aswellasprocesstheapplication,collectpremiums,
75andperformothernonlicensableactivitiespermittedbythestate;
76 [(3)](10)"Primarycertificateholder",apersonwhoelectsandpurchasestravel
77insuranceunderagrouppolicy;
78 (11)"Primarypolicyholder",apersonwhoelectsandpurchasesindividual
79travelinsurance;
80 (12)"Traveladministrator",apersonwhodirectlyorindirectlyunderwrites;
81collectscharges,collateral,orpremiumsfrom;oradjustsandsettlesclaimsonresidents
82ofthisstateinconnectionwithtravelinsurance;exceptthatapersonshallnotbe
83consideredatraveladministratorifthatperson'sonlyactionsthatwouldotherwise
84causethepersontobeconsideredatraveladministratorareamongthefollowing:
85 (a)Apersonworkingforatraveladministratortotheextentthattheperson's
86activitiesaresubjecttothesupervisionandcontrolofthetraveladministrator;
87 (b)Aninsuranceproducersellinginsuranceorengagedinadministrativeand
88claims-relatedactivitieswithinthescopeoftheproducer'slicense;
89 (c)Atravelretailerofferinganddisseminatingtravelinsuranceandregistered
90underthelicenseofalimitedlinestravelinsuranceproducerinaccordancewiththis
91section;
92 (d)Apersonadjustingorsettlingclaimsinthenormalcourseofthatperson's
93practiceoremploymentasanattorney-at-lawandwhodoesnotcollectchargesor
94premiumsinconnectionwithinsurancecoverage;or
95 (e)Abusinessentitythatisaffiliatedwithalicensedinsurerwhileactingasa
96traveladministratorforthedirectandassumedinsurancebusinessofanaffiliated
97insurer;
98 (13)"Travelassistanceservices",noninsuranceservicesforwhichtheconsumer
99isnotindemnifiedbasedonafortuitouseventandinwhichprovidingtheservicedoes
100notresultintransferorshiftingofriskthatwouldconstitutethebusinessofinsurance.
101Theterm"travelassistanceservices"includes,butisnotlimitedto:securityadvisories,
CCSSSSCSHCSHB2168 10 102destinationinformation,vaccinationandimmunizationinformationservices,travel
103reservationservices,entertainment,activityandeventplanning,translationassistance,
104emergencymessaging,internationallegalandmedicalreferrals,medicalcase
105monitoring,coordinationoftransportationarrangements,emergencycashtransfer
106assistance,medicalprescriptionreplacementassistance,passportandtraveldocument
107replacementassistance,lostluggageassistance,conciergeservices,andanyotherservice
108thatisfurnishedinconnectionwithplannedtravel.Travelassistanceservicesarenot
109insuranceandnotrelatedtoinsurance;
110 (14)"Travelinsurance",insurancecoverageforpersonalrisksincidenttoplanned
111travel,including,butnotlimitedto:
112 (a)Interruptionorcancellationoftriporevent;
113 (b)Lossofbaggageorpersonaleffects;
114 (c)Damagestoaccommodationsorrentalvehicles;[or]
115 (d)Sickness,accident,disability,ordeathoccurringduringtravel;
116 (e)Emergencyevacuation;
117 (f)Repatriationofremains;or
118 (g)Anyothercontractualobligationstoindemnifyorpayaspecifiedamountto
119thetravelerupondeterminablecontingenciesrelatedtotravelasapprovedbythe
120director.
121
122Travelinsurancedoesnotincludemajormedicalplans,whichprovidecomprehensive
123medicalprotectionfortravelerswithtripslastingsixmonthsorlonger,including,for
124example,thosepersonsworkingoverseasasexpatriatesormilitarypersonnelbeingdeployed,
125oranyotherproductthatrequiresaspecificinsuranceproducerlicense;
126 [(4)](15)"Travelprotectionplans",plansthatprovideoneormoreofthe
127following:
128 (a)Travelinsurance;
129 (b)Travelassistanceservices;or
130 (c)Cancellationfeewaivers;
131 (16)"Travelretailer",abusinessentitythatmakes,arranges,orofferstravelservices
132andmayofferanddisseminatetravelinsuranceasaservicetoitscustomersonbehalfofand
133underthedirectionofalimitedlinestravelinsuranceproducer.
134 2.(1)Therequirementsofthissectionshallapplytotravelinsurancethatcovers
135anyresidentofthisstateandissold,solicited,negotiated,orofferedinthisstateand
136policiesandcertificatesthataredeliveredorissuedfordeliveryinthisstate.Exceptas
137expresslyprovidedinthissection,therequirementsofthissectionshallnotapplyto
138cancellationfeewaiversortravelassistanceservices.
CCSSSSCSHCSHB2168 11 139 (2)Allotherapplicableprovisionsofthisstate'sinsurancelawsshallcontinueto
140applytotravelinsurance,exceptthatthespecificprovisionsofthissectionshall
141supersedeanygeneralprovisionsoflawthatwouldotherwisebeapplicabletotravel
142insurance.
143 3.Notwithstandinganyotherprovisionoflaw:
144 (1)Thedirectormayissuealimitedlinestravelinsuranceproducerlicensetoa
145personorbusinessentitythathasfiledwiththedirectoranapplicationforalimited
146linestravelinsuranceproducerlicenseinaformandmannerprescribedbythedirector.
147Alimitedlinestravelinsuranceproducershallbelicensedtosell,solicit,ornegotiate
148travelinsurancethroughalicensedinsurer.Nopersonshallactasalimitedlinestravel
149insuranceproducerortravelretailerunlessproperlylicensedorregistered,
150respectively;
151 (2)Atravelretailermayofferanddisseminatetravelinsuranceonbehalfofandunder
152thecontrolofalimitedlinestravelinsuranceproduceronlyifthefollowingconditionsare
153met:
154 (a)Thelimitedlinestravelinsuranceproducerortravelretailerprovidesto
155purchasersoftravelinsurance:
156 a.Adescriptionofthematerialtermsortheactualmaterialtermsoftheinsurance
157coverage;
158 b.Adescriptionoftheprocessforfilingaclaim;
159 c.Adescriptionoftherevieworcancellationprocessforthetravelinsurancepolicy;
160and
161 d.Theidentityandcontactinformationoftheinsurerandlimitedlinestravel
162insuranceproducer;
163 (b)Atthetimeoflicensure,thelimitedlinestravelinsuranceproducershallestablish
164andmaintainaregisteronaformprescribedbythedirectorofeachtravelretailerthatoffers
165travelinsuranceonthelimitedlinestravelinsuranceproducer'sbehalf.Theregistershallbe
166maintainedandupdatedannuallybythelimitedlinestravelinsuranceproducerandshall
167includethename,address,andcontactinformationofthetravelretailerandanofficeror
168personwhodirectsorcontrolsthetravelretailer'soperations,andthetravelretailer'sfederal
169taxidentificationnumber.Thelimitedlinestravelinsuranceproducershallsubmitsuch
170registerwithinthirtydaysuponrequestbythedepartment.Thelimitedlinestravelinsurance
171producershallalsocertifythatthetravelretailer[register] registeredcomplieswith18
172U.S.C.1033. Thegroundsforsuspensionandrevocationandthepenaltiesapplicableto
173residentinsuranceproducersundersections375.141to375.153shallbeapplicableto
174thelimitedlinestravelinsuranceproducersandtravelretailers;
CCSSSSCSHCSHB2168 12 175 (c)Thelimitedlinestravelinsuranceproducerhasdesignatedoneofitsemployees
176whoisalicensedindividualproducerasapersonresponsibleforthebusinessentity's
177compliancewiththetravelinsurancelaws,rules,andregulationsofthisstate;
178 (d)Thedesignatedpersonunderparagraph(c)ofthissubdivision,president,
179secretary,treasurer,andanyotherofficerorpersonwhodirectsorcontrolsthelimitedlines
180travelinsuranceproducer'sinsuranceoperationscomplieswiththefingerprinting
181requirementsapplicabletoinsuranceproducersintheresidentstateofthe[businessentity]
182limitedlinestravelinsuranceproducer;
183 (e)Thelimitedlinestravelinsuranceproducerhaspaidallapplicableinsurance
184producerlicensingfeesassetforthinapplicablestatelaw;
185 (f)Thelimitedlinestravelinsuranceproducerrequireseachemployeeandauthorized
186representativeofthetravelretailerwhosedutiesincludeofferinganddisseminatingtravel
187insurancetoreceiveaprogramofinstructionortraining,whichmaybesubjecttoreviewby
188thedirector.Thetrainingmaterialshall,ataminimum,containinstructionsonthetypesof
189insuranceoffered,ethicalsalespractices,andrequireddisclosurestoprospectivecustomers;
190 [(2)](3)Anytravelretailerofferingordisseminatingtravelinsuranceshallmake
191availabletoprospectivepurchasersbrochuresorotherwrittenmaterialsthathavebeen
192approvedbythetravelinsurer.Suchmaterialsshallincludeinformationthat,ata
193minimum,shall:
194 (a)Providetheidentityandcontactinformationoftheinsurerandthelimitedlines
195travelinsuranceproducer;
196 (b)Explainthatthepurchaseoftravelinsuranceisnotrequiredtopurchaseanyother
197productorservicefromthetravelretailer;and
198 (c)Explainthatanunlicensedtravelretailerispermittedtoprovidegeneral
199informationabouttheinsuranceofferedbythetravelretailer,includingadescriptionofthe
200coverageandprice,butisnotqualifiedorauthorizedtoanswertechnicalquestionsaboutthe
201termsandconditionsoftheinsuranceofferedbythetravelretailerortoevaluatetheadequacy
202ofthecustomer'sexistinginsurancecoverage;
203 [(3)](4)Atravelretailer'semployeeorauthorizedrepresentative,whoisnotlicensed
204asaninsuranceproducer,maynot:
205 (a)Evaluateorinterpretthetechnicalterms,benefits,andconditionsoftheoffered
206travelinsurancecoverage;
207 (b)Evaluateorprovideadviceconcerningaprospectivepurchaser'sexisting
208insurancecoverage;or
209 (c)Holdthemselvesoritselfoutasalicensedinsurer,licensedproducer,orinsurance
210expert[.];
CCSSSSCSHCSHB2168 13 211 [3.Notwithstandinganyotherprovisionoflaw,](5)Atravelretailerwhose
212insurance-relatedactivities,andthoseofitsemployeesandauthorizedrepresentatives,are
213limitedtoofferinganddisseminatingtravelinsuranceonbehalfofandunderthedirectionof
214alimitedlinestravelinsuranceproducermeetingtheconditionsstatedinthissectionis
215authorizedtodosoandreceiverelatedcompensation,uponregistrationbythelimitedlines
216travelinsuranceproducerasdescribedinparagraph(b)ofsubdivision[(1)](2)ofthis
217subsection[2ofthissection.];
218 [4.](6)Travelinsurancemaybeprovidedunderanindividualpolicyorundera
219groupor[master] blanketpolicy[.];
220 [5.](7)Astheinsurerdesignee,thelimitedlinestravelinsuranceproduceris
221responsiblefortheactsofthetravelretailerandshallusereasonablemeanstoensure
222compliancebythetravelretailerwiththissection; and
223 (8)Anypersonlicensedinamajorlineofauthorityasaninsuranceproduceris
224authorizedtosell,solicit,andnegotiatetravelinsurance.Apropertyandcasualty
225insuranceproducerisnotrequiredtobecomeappointedbyaninsurerinordertosell,
226solicit,ornegotiatetravelinsurance.
227 4.(1)Atravelinsurershallpaypremiumtax,asprovidedinsection148.370,on
228travelinsurancepremiumspaidbyanyofthefollowing:
229 (a)Anindividualprimarypolicyholderwhoisaresidentofthisstate;
230 (b)Aprimarycertificateholderwhoisaresidentofthisstatewhoelects
231coverageunderagrouptravelinsurancepolicy;or
232 (c)Ablankettravelinsurancepolicyholderthatisaresidentinthisstateorhas
233itsprincipalplaceofbusinessortheprincipalplaceofbusinessofanaffiliateor
234subsidiarythathaspurchasedblankettravelinsuranceinthisstateforeligibleblanket
235groupmembers,subjecttoanyapportionmentrulesthatapplytotheinsureracross
236multipletaxingjurisdictionsorthatpermittheinsurertoallocatepremiumonan
237apportionedbasisinareasonableandequitablemannerinthosejurisdictions.
238 (2)Atravelinsurershall:
239 (a)Documentthestateofresidenceorprincipalplaceofbusinessofthe
240policyholderorcertificateholder,asrequiredinsubdivision(1)ofthissubsection;and
241 (b)Reportaspremiumonlytheamountallocabletotravelinsuranceandnot
242anyamountsreceivedfortravelassistanceservicesorcancellationfeewaivers.
243 5.Travelprotectionplansmaybeofferedforonepriceforthecombinedfeatures
244thatthetravelprotectionplanoffersinthisstateif:
245 (1)Thetravelprotectionplanclearlydisclosestotheconsumer,atorpriortothe
246timeofpurchase,thatitincludestravelinsurance,travelassistanceservices,and
247cancellationfeewaiversasapplicable,andprovidesinformationandanopportunity,at
CCSSSSCSHCSHB2168 14 248orpriortothetimeofpurchase,fortheconsumertoobtainadditionalinformation
249regardingthefeaturesandpricingofeach;
250 (2)Thefulfillmentmaterialsdescribeanddelineatethetravelinsurance,travel
251assistanceservices,andcancellationfeewaiversinthetravelprotectionplan;and
252 (3)Thefulfillmentmaterialsincludethetravelinsurancedisclosuresandthe
253contactinformationforpersonsprovidingtravelassistanceservicesandcancellationfee
254waivers,asapplicable.
255 6.(1)Exceptasotherwiseprovidedinthissection,allpersonsofferingtravel
256insurancetoresidentsofthisstatearesubjecttosections375.930to375.948.Ifthereisa
257conflictbetweenthissectionandotherprovisionsofchapters361to385regardingthe
258saleandmarketingoftravelinsuranceandtravelprotectionplans,theprovisionsofthis
259sectionshallcontrol.
260 (2)Offeringorsellingatravelinsurancepolicythatcouldneverresultin
261paymentofanyclaimsforanyinsuredunderthepolicyisanunfairtradepracticeunder
262sections375.930to375.948.
263 (3)(a)Alldocumentsprovidedtoconsumerspriortothepurchaseoftravel
264insurance,includingbutnotlimitedtosalesmaterials,advertisingmaterials,and
265marketingmaterials,shallbeconsistentwiththetravelinsurancepolicyitself,including
266butnotlimitedtoforms,endorsements,policies,ratefilings,andcertificatesof
267insurance.
268 (b)Fortravelinsurancepoliciesorcertificatesthatcontainpreexistingcondition
269exclusions,informationandanopportunitytolearnmoreaboutthepreexisting
270conditionexclusionsshallbeprovidedanytimepriortothetimeofpurchase,andinthe
271coverage'sfulfillmentmaterials.
272 (c)Thefulfillmentmaterialsandtheinformationdescribedinparagraph(a)of
273subdivision(2)ofsubsection3ofthissectionshallbeprovidedtoapolicyholderor
274certificateholderassoonaspracticablefollowingthepurchaseofatravelprotection
275plan.Unlesstheinsuredhaseitherstartedacoveredtriporfiledaclaimunderthe
276travelinsurancecoverage,apolicyholderorcertificateholdermaycancelapolicyor
277certificateforafullrefundofthetravelprotectionplanpricefromthedateofpurchase
278ofatravelprotectionplanuntilatleast:
279 a.Fifteendaysfollowingthedateofdeliveryofthetravelprotectionplan's
280fulfillmentmaterialsbypostalmail;or
281 b.Tendaysfollowingthedateofdeliveryofthetravelprotectionplan's
282fulfillmentmaterialsbymeansotherthanpostalmail.
283
CCSSSSCSHCSHB2168 15 284Forpurposesofthisparagraph,deliverymeanshandingfulfillmentmaterialstothe
285policyholderorcertificateholderorsendingfulfillmentmaterialsbypostalmailor
286electronicmeanstothepolicyholderorcertificateholder.
287 (d)Thecompanyshalldiscloseinthepolicydocumentationandfulfillment
288materialswhetherthetravelinsuranceisprimaryorsecondarytootherapplicable
289coverage.
290 (e)Marketingtravelinsurancedirectlytoaconsumerthroughaninsurer's
291websiteorbyothersthroughanaggregatorsiteshallnotbeanunfairtradepracticeor
292otherviolationoflawifanaccuratesummaryorshortdescriptionofcoverageis
293providedonthewebpageandtheconsumerhasaccesstothefullprovisionsofthe
294policythroughelectronicmeans.
295 (4)Nopersonoffering,soliciting,ornegotiatingtravelinsuranceortravel
296protectionplansonanindividualorgroupbasisshalldosobyusingnegativeoptionor
297opt-outthatwouldrequireaconsumertotakeanaffirmativeactiontodeselect
298coverage,suchasuncheckingaboxonanelectronicform,whentheconsumer
299purchasesatrip.
300 (5)Itshallbeanunfairtradepracticetomarketblankettravelinsurance
301coverageasfree.
302 (6)Whereaconsumer'sdestinationjurisdictionrequiresinsurancecoverage,it
303shallnotbeanunfairtradepracticetorequirethataconsumerchoosebetweenthe
304followingoptionsasaconditionofpurchasingatriportravelpackage:
305 (a)Purchasingthecoveragerequiredbythedestinationjurisdictionthroughthe
306travelretailerorlimitedlinestravelinsuranceproducersupplyingthetriportravel
307package;or
308 (b)Agreeingtoobtainandprovideproofofcoveragethatmeetsthedestination
309jurisdiction'srequirementspriortodeparture.
310 7.(1)Notwithstandinganyotherprovisionsofchapters361to385,noperson
311shallactorrepresenthimselforherselfasatraveladministratorfortravelinsurancein
312thisstateunlesstheperson:
313 (a)Isalicensedpropertyandcasualtyinsuranceproducerinthisstatefor
314activitiespermittedunderthatproducerlicense;
315 (b)Holdsavalidmanaginggeneralagentlicenseinthisstate;or
316 (c)Holdsavalidthird-partyadministratorlicenseinthisstate.
317 (2)Aninsurerisresponsiblefortheactsofatraveladministratoradministering
318travelinsuranceunderwrittenbytheinsurer,andisresponsibleforensuringthatthe
319traveladministratormaintainsallbooksandrecordsrelevanttotheinsurertobemade
320availablebythetraveladministratortothedirectoruponrequest.
CCSSSSCSHCSHB2168 16 321 8.(1)Notwithstandinganyotherprovisionofchapters361to385,travel
322insuranceshallbeclassifiedandfiledforpurposesofratesandformsunderaninland
323marinelineofinsurance,exceptthattravelinsurancethatprovidescoveragefor
324sickness,accident,disability,ordeathoccurringduringtravel,eitherexclusivelyorin
325conjunctionwithrelatedcoveragesofemergencyevacuationorrepatriationofremains
326orincidentallimitedpropertyandcasualtybenefitssuchasbaggageortripcancellation,
327maybefiledundereitheranaccidentandhealthlineofinsuranceoraninlandmarine
328lineofinsurance.
329 (2)Eligibilityandunderwritingstandardsfortravelinsurancemaybe
330developedandprovidedbasedontravelprotectionplansdesignedforindividualor
331identifiedmarketingordistributionchannels,providedthosestandardsalsomeetthe
332state'sunderwritingstandardsforaninlandmarinelineofinsurance.
333 [6.]9.Thelimitedlinestravelinsuranceproducerandanytravelretailerofferingand
334disseminatingtravelinsuranceunderthelimitedlinestravelinsuranceproducerlicenseshall
335besubjecttotheprovisionsofchapters374and375,exceptasprovidedforinthissection.
336 [7.]10.Thedirectormaypromulgaterulestoeffectuatethissection.Anyruleor
337portionofarule,asthattermisdefinedinsection536.010,thatiscreatedundertheauthority
338delegatedinthissectionshallbecomeeffectiveonlyifitcomplieswithandissubjecttoallof
339theprovisionsofchapter536and,ifapplicable,section536.028.Thissectionandchapter
340536arenonseverableandifanyofthepowersvestedwiththegeneralassemblypursuantto
341chapter536toreview,todelaytheeffectivedate,ortodisapproveandannularuleare
342subsequentlyheldunconstitutional,thenthegrantofrulemakingauthorityandanyrule
343proposedoradoptedafterAugust28,2013,shallbeinvalidandvoid.
376.380.1.Thelegalminimumstandardforvaluationofpoliciesandcontractsand
2thereservestobemaintainedthereonshallbeasfollows:
3 (1)Forthosepoliciesandcontractsissuedpriortotheoperativedateprovidedin
4subsection20ofsection376.670:
5 (a)Exceptasotherwiseprovidedinsubdivision(3)ofthissubsection,thelegal
6minimumstandardforvaluationofpoliciesoflifeinsuranceorannuitycontractsissuedprior
7toApril13,1934,shallbetheActuaries'orCombinedExperienceTableofMortality,with
8interestattherateoffivepercentperannumforgroupannuitycontractsandfourpercentper
9annumforallotherpoliciesandcontracts;andforpoliciesoflifeinsuranceandannuity
10contractsissuedonandafterApril13,1934,suchminimumstandardshallbetheAmerican
11ExperienceTableofMortalitywithinterestattherateoffivepercentperannumforgroup
12annuitycontractsandthreeandone-halfpercentperannumforallotherpoliciesand
13contracts;
CCSSSSCSHCSHB2168 17 14 (b)Thedirectormayvarythelegalminimumstandardsofinterestandmortalityfor
15annuitycontractsandinparticularcasesofinvalidorsubstandardlivesandotherextra
16hazards,andshallhavetherightandauthoritytodesignatethelegalminimumstandardfor
17valuationoftotalandpermanentdisabilitybenefitsandadditionalaccidentaldeathbenefits;
18 (c)Policiesissuedbycompaniesdoingbusinessinthisstatemayprovidefornot
19morethanoneyearpreliminaryterminsurancebyincorporatingintheprovisionsthereof,
20specifyingthepremiumconsiderationtobereceived,aclauseplainlyshowingthatthefirst
21year'sinsuranceundersuchpoliciesisterminsurance,purchasedbythewholeorapartofthe
22premiumtobereceivedduringthefirstpolicyyearandshallbevaluedaccordingly;provided,
23thatifthepremiumchargedforterminsuranceunderalimitedpaymentlifepreliminaryterm
24policyprovidingforthepaymentofallpremiumsthereoninlessthantwentyyearsfromthe
25dateofthepolicy,orunderanendowmentpreliminarytermpolicy,exceedsthatchargedfor
26lifeinsurancetwentypaymentlifepreliminarytermpoliciesofthesamecompany,thereserve
27thereonattheendofanyyear,includingthefirst,shallnotbelessthanthereserveona
28twentypaymentlifepreliminarytermpolicyissuedinthesameyearandatthesameage,
29togetherwithanamountwhichshallbeequivalenttotheaccumulationofanetlevelpremium
30sufficienttoprovideforapureendowmentattheendofthepremiumpaymentperiodequalto
31thedifferencebetweenthevalueattheendofsuchperiodofsuchtwentypaymentlife
32preliminarytermpolicyandthefullreserveatsuchtimeofsuchalimitedpaymentlifeor
33endowmentpolicy.Thepremiumpaymentperiodistheperiodduringwhichpremiumsare
34concurrentlypayableundersuchtwentypaymentlifepreliminarytermpolicyandsuch
35limitedpaymentlifeorendowmentpolicy;
36 (d)Reservesforallsuchpoliciesandcontractsmaybecalculated,attheoptionofthe
37company,accordingtoanystandardswhichproducegreateraggregatereservesforallsuch
38policiesandcontractsthantheminimumreservesrequiredbythissubdivision.Inthecaseof
39policyobligationsofaninsolventlifeinsurancecompanyassumedorreinsuredinbulkbyan
40insurancecompanyuponabasisrequiringaseparateaccountingofthebusinessandassetsof
41suchinsolventcompanyandanapplicationofanypartoftheearningstherefromupon
42obligationswhicharenotimplicitintheoriginaltermsofthepoliciesorcontractsassumedor
43reinsured,thedirector,inordertoprotectallpolicyholdersofthereinsuringcompany,
44includingtheholdersofallpoliciessoassumedorreinsured,andtosafeguardthefuture
45solvencyofsuchreinsuringcompany,shallhavetherightandauthoritytodesignatestandards
46ofvaluationforsuchreinsuredpoliciesandcontractswhichwillproducegreateraggregate
47reservesforallsuchpoliciesandcontractsthantheminimumreservesrequiredbythis
48subdivisionorthetermsandprovisionsofthepoliciesandcontractssoassumedorreinsured,
49and,insuchevent,suchreinsuringcompanyshallnot,thereafter,adoptanylowerstandards
50ofvaluationwithouttheapprovalofthedirector.
CCSSSSCSHCSHB2168 18 51 (2)Forthosepoliciesandcontractsissuedonoraftertheoperativedateprovidedin
52subsection20ofsection376.670:
53 (a)Exceptasotherwiseprovidedinsubdivision(3)ofthissubsectionandsubsection
542ofthissection,theminimumstandardforthevaluationofallsuchpoliciesandcontracts
55shallbethecommissionersreservevaluationmethodsdefinedinparagraphs(b),(c),(d),(e),
56and(h)ofthissubdivision,threeandone-halfpercentinterestonallsuchpoliciesand
57contractsexceptthosecontractsspecifiedinsubparagraphc.ofthisparagraphwhichconsist
58ofsinglepremiumannuitycontractsandinsubparagraphd.ofthisparagraphwhichconsists
59ofgroupannuitycontractswheretheinterestrateshallbefivepercent,andexceptpolicies
60andcontracts,otherthanannuityandpureendowmentcontracts,issuedonorafterSeptember
6128,1975,wheretheinterestrateshallbefourpercentinterestforsuchpoliciesissuedpriorto
62September28,1979,andfourandone-halfpercentinterestforsuchpoliciesissuedonorafter
63September28,1979,andthefollowingtables:
64 a.Forallordinarypoliciesoflifeinsuranceissuedpriortotheoperativedateprovided
65insubsection12ofsection376.670onthestandardbasis,excludinganydisabilityand
66accidentaldeathbenefitsinsuchpolicies,theCommissioners1941StandardOrdinary
67MortalityTable,andforsuchpoliciesissuedonoraftertheoperativedateprovidedin
68subsection12ofsection376.670,andpriortotheoperativedateofsubsection14ofsection
69376.670,theCommissioners1958StandardOrdinaryMortalityTable;providedthatforany
70categoryofsuchpoliciesissuedonorafterSeptember28,1979,onfemalerisksallmodified
71netpremiumsandpresentvaluesreferredtointhissectionmaybecalculatedaccordingtoan
72agenotmorethansixyearsyoungerthantheactualageoftheinsured;andforsuchpolicies
73issuedonoraftertheoperativedateofsubsection14ofsection376.670:
74 (i)TheCommissioners1980StandardOrdinaryMortalityTable;or
75 (ii)Attheelectionofthecompanyforanyoneormorespecifiedplansoflife
76insurance,theCommissioners1980StandardOrdinaryMortalityTablewithTen-YearSelect
77MortalityFactors;or
78 (iii)Anyordinarymortalitytable,adoptedafter1980bytheNAIC,thatisapproved
79byregulationpromulgatedbythedirectorforuseindeterminingtheminimumstandardof
80valuationforsuchpolicies;
81 b.Forallindustriallifeinsurancepoliciesissuedonthestandardbasis,excludingany
82disabilityandaccidentaldeathbenefitsinsuchpolicies,the1941StandardIndustrial
83MortalityTableforsuchpoliciesissuedpriortotheoperativedateofsubsection13ofsection
84376.670andforsuchpoliciesissuedonoraftersuchoperativedate,theCommissioners1961
85StandardIndustrialMortalityTableoranyindustrialmortalitytable,adoptedafter1980by
86theNAIC,thatisapprovedbyregulationpromulgatedbythedirectorforuseindetermining
87theminimumstandardofvaluationforsuchpolicies;
CCSSSSCSHCSHB2168 19 88 c.Forindividualannuityandpureendowmentcontracts,excludinganydisabilityand
89accidentaldeathbenefitsinsuchpolicies,the1937StandardAnnuityMortalityTableor,at
90theoptionofthecompany,theAnnuityMortalityTablefor1949,Ultimate,orany
91modificationofeitherofthesetablesapprovedbythedirector;
92 d.Forgroupannuityandpureendowmentcontracts,excludinganydisabilityand
93accidentaldeathbenefitsinsuchpolicies,theGroupAnnuityMortalityTablefor1951,any
94modificationofsuchtableapprovedbythedirector,or,attheoptionofthecompany,anyof
95thetablesormodificationsoftablesspecifiedforindividualannuityandpureendowment
96contracts;
97 e.Fortotalandpermanentdisabilitybenefitsinorsupplementarytoordinarypolicies
98orcontracts,forpoliciesorcontractsissuedonorafterJanuary1,1966,thetablesofperiod
99twodisablementratesandthe1930to1950terminationratesofthe1952disabilitystudyof
100theSocietyofActuaries,withdueregardtothetypeofbenefitoranytablesofdisablement
101ratesandterminationrates,adoptedafter1980bytheNAIC,thatareapprovedbyregulation
102promulgatedbythedirectorforuseindeterminingtheminimumstandardofvaluationfor
103suchpolicies;forpoliciesorcontractsissuedonorafterJanuary1,1961,andpriortoJanuary
1041,1966,eithersuchtablesorattheoptionofthecompany,theClass(3)DisabilityTable
105(1926);andforpoliciesissuedpriortoJanuary1,1961,theClass(3)DisabilityTable(1926).
106Anysuchtableshall,foractivelives,becombinedwithamortalitytablepermittedfor
107calculatingthereservesforlifeinsurancepolicies;
108 f.Foraccidentaldeathbenefitsinorsupplementarytopoliciesissuedonorafter
109January1,1966,the1959AccidentalDeathBenefitsTableoranyaccidentaldeathbenefits
110table,adoptedafter1980bytheNAIC,thatisapprovedbyregulationpromulgatedbythe
111directorforuseindeterminingtheminimumstandardofvaluationforsuchpolicies;for
112policiesissuedonorafterJanuary1,1961,andpriortoJanuary1,1966,eithersuchtableor,
113attheoptionofthecompany,theInter-CompanyDoubleIndemnityMortalityTable;andfor
114policiesissuedpriortoJanuary1,1961,theInter-CompanyDoubleIndemnityMortality
115Table.Eithertableshallbecombinedwithamortalitytablepermittedforcalculatingthe
116reservesforlifeinsurancepolicies;
117 g.Forgrouplifeinsurance,lifeinsuranceissuedonthesubstandardbasisandother
118specialbenefits,suchtablesasmaybeapprovedbythedirector;
119 (b)Exceptasotherwiseprovidedinparagraphs(d),(e),and(h)ofthissubdivision,
120reservesaccordingtothecommissionersreservevaluationmethod,forthelifeinsuranceand
121endowmentbenefitsofpoliciesprovidingforauniformamountofinsuranceandrequiring
122thepaymentofuniformpremiumsshallbetheexcess,ifany,ofthepresentvalue,atthedate
123ofvaluation,ofsuchfutureguaranteedbenefitsprovidedforbysuchpolicies,overthethen
124presentvalueofanyfuturemodifiednetpremiumstherefor.Themodifiednetpremiumsfor
CCSSSSCSHCSHB2168 20 125anysuchpolicyshallbesuchuniformpercentageoftherespectivecontractpremiumsfor
126suchbenefitsthatthepresentvalue,atthedateofissueofthepolicy,ofallsuchmodifiednet
127premiumsshallbeequaltothesumofthethenpresentvalueofsuchbenefitsprovidedforby
128thepolicyandtheexcessofa.overb.,asfollows:
129 a.Anetlevelannualpremiumequaltothepresentvalue,atthedateofissue,ofsuch
130benefitsprovidedforafterthefirstpolicyyear,dividedbythepresentvalue,atthedateof
131issue,ofanannuityofoneperannumpayableonthefirstandeachsubsequentanniversaryof
132suchpolicyonwhichapremiumfallsdue;provided,however,thatsuchnetlevelannual
133premiumshallnotexceedthenetlevelannualpremiumonthenineteenyearpremiumwhole
134lifeplanforinsuranceofthesameamountatanageoneyearhigherthantheageatissueof
135suchpolicy;
136 b.Anetoneyeartermpremiumforsuchbenefitprovidedforinthefirstpolicyyear;
137provided,thatforanylifeinsurancepolicyissuedonorafterJanuary1,1986,forwhichthe
138contractpremiuminthefirstpolicyyearexceedsthatofthesecondyearandforwhichno
139comparableadditionalbenefitisprovidedinthefirstyearforsuchexcessandwhichprovides
140anendowmentbenefitoracashsurrendervalueoracombinationthereofinanamountgreater
141thansuchexcesspremium,thereserveaccordingtothecommissionersreservevaluation
142methodasofanypolicyanniversaryoccurringonorbeforetheassumedendingdatedefined
143hereinasthefirstpolicyanniversaryonwhichthesumofanyendowmentbenefitandany
144cashsurrendervaluethenavailableisgreaterthansuchexcesspremiumshall,exceptas
145otherwiseprovidedinparagraph(h)ofthissubdivision,bethegreaterofthereserveasof
146suchpolicyanniversarycalculatedasdescribedinparagraph(b)ofthissubdivisionandthe
147reserveasofsuchpolicyanniversarycalculatedasdescribedinparagraph(b)ofthis
148subdivision,butwith:
149 (i)Thevaluedefinedinsubparagrapha.ofparagraph(b)ofthissubdivisionbeing
150reducedbyfifteenpercentoftheamountofsuchexcessfirstyearpremium;
151 (ii)Allpresentvaluesofbenefitsandpremiumsbeingdeterminedwithoutreference
152topremiumsorbenefitsprovidedforbythepolicyaftertheassumedendingdate;
153 (iii)Thepolicybeingassumedtomatureonsuchdateasanendowment;and
154 (iv)Thecashsurrendervalueprovidedonsuchdatebeingconsideredasan
155endowmentbenefit.
156
157Inmakingtheabovecomparisonthemortalityandinterestbasesstatedinparagraph(a)of
158thissubdivisionandsubsection2ofthissectionshallbeused;
159 (c)Reservesaccordingtothecommissionersreservevaluationmethodfor:
160 a.Lifeinsurancepoliciesprovidingforavaryingamountofinsuranceorrequiring
161thepaymentofvaryingpremiums;
CCSSSSCSHCSHB2168 21 162 b.Groupannuityandpureendowmentcontractspurchasedunderaretirementplanor
163planofdeferredcompensation,establishedormaintainedbyanemployer(includinga
164partnershiporsoleproprietorship)orbyanemployeeorganization,orbyboth,otherthana
165planprovidingindividualretirementaccountsorindividualretirementannuitiesunderSection
166408oftheInternalRevenueCode,asnoworhereafteramended;
167 c.Disabilityandaccidentaldeathbenefitsinallpoliciesandcontracts;and
168 d.Allotherbenefits,exceptlifeinsuranceandendowmentbenefitsinlifeinsurance
169policiesandbenefitsprovidedbyallotherannuityandpureendowmentcontracts,shallbe
170calculatedbyamethodconsistentwiththeprinciplesofparagraph(b)ofthissubdivision;
171 (d)Paragraph(e)ofthissubdivisionshallapplytoallannuityandpureendowment
172contractsotherthangroupannuityandpureendowmentcontractspurchasedundera
173retirementplanorplanofdeferredcompensation,establishedormaintainedbyanemployer
174(includingapartnershiporsoleproprietorship),orbyanemployeeorganization,orbyboth,
175otherthanaplanprovidingindividualretirementaccountsorindividualretirementannuities
176underSection408oftheInternalRevenueCode,asnoworhereafteramended;
177 (e)Reservesaccordingtothecommissionersannuityreservemethodforbenefits
178underannuityorpureendowmentcontracts,excludinganydisabilityandaccidentaldeath
179benefitsinsuchcontracts,shallbethegreatestoftherespectiveexcessesofthepresent
180values,atthedateofvaluation,ofthefutureguaranteedbenefits,includingguaranteed
181nonforfeiturebenefits,providedforbysuchcontractsattheendofeachrespectivecontract
182year,overthepresentvalue,atthedateofvaluation,ofanyfuturevaluationconsiderations
183derivedfromfuturegrossconsiderations,requiredbythetermsofsuchcontract,thatbecome
184payablepriortotheendofsuchrespectivecontractyear.Thefutureguaranteedbenefitsshall
185bedeterminedbyusingthemortalitytable,ifany,andtheinterestrate,orrates,specifiedin
186suchcontractsfordeterminingguaranteedbenefits.Thevaluationconsiderationsarethe
187portionsoftherespectivegrossconsiderationsappliedunderthetermsofsuchcontractsto
188determinenonforfeiturevalues;
189 (f)Innoeventshallacompany'saggregatereservesforalllifeinsurancepolicies,
190excludingdisabilityandaccidentaldeathbenefits,belessthantheaggregatereserves
191calculatedinaccordancewiththemethodsetforthinparagraphs(b),(c),(d),(e),(h)and(i)of
192thissubdivisionandthemortalitytableortablesandrateorratesofinterestusedin
193calculatingnonforfeiturebenefitsforsuchpolicies;
194 (g)Innoeventshalltheaggregatereservesforallpolicies,contractsandbenefitsbe
195lessthantheaggregatereservesdeterminedbythequalifiedactuarytobenecessarytorender
196theopinionrequiredbysubsections4and5ofthissection;
197 (h)Ifinanycontractyearthegrosspremiumchargedbyanylifeinsurancecompany
198onanypolicyorcontractislessthanthevaluationnetpremiumforthepolicyorcontract
CCSSSSCSHCSHB2168 22 199calculatedbythemethodusedincalculatingthereservethereonbutusingtheminimum
200valuationstandardsofmortalityandrateofinterest,theminimumreserverequiredforsuch
201policyorcontractshallbethegreaterofeitherthereservecalculatedaccordingtothe
202mortalitytable,rateofinterest,andmethodactuallyusedforsuchpolicyorcontract,orthe
203reservecalculatedbythemethodactuallyusedforsuchpolicyorcontractbutusingthe
204minimumvaluationstandardsofmortalityandrateofinterestandreplacingthevaluationnet
205premiumbytheactualgrosspremiumineachcontractyearforwhichthevaluationnet
206premiumexceedstheactualgrosspremium.Theminimumvaluationstandardsofmortality
207andrateofinterestreferredtointhissectionarethosestandardsstatedinparagraph(a)ofthis
208subdivisionandsubsection2ofthissection;provided,thatforanylifeinsurancepolicy
209issuedonorafterJanuary1,1986,forwhichthegrosspremiuminthefirstpolicyyear
210exceedsthatofthesecondyearandforwhichnocomparableadditionalbenefitisprovidedin
211thefirstyearforsuchexcessandwhichprovidesanendowmentbenefitoracashsurrender
212valueoracombinationthereofinanamountgreaterthansuchexcesspremium,theforegoing
213provisionsofthisparagraphshallbeappliedasifthemethodactuallyusedincalculatingthe
214reserveforsuchpolicywerethemethoddescribedinparagraph(b)ofthissubdivision.The
215minimumreserveateachpolicyanniversaryofsuchapolicyshallbethegreaterofthe
216minimumreservecalculatedinaccordancewithparagraphs(b)and(c)ofthissubdivisionand
217theminimumreservecalculatedinaccordancewiththisparagraph;
218 (i)Inthecaseofanyplanoflifeinsurancewhichprovidesforfuturepremium
219determination,theamountsofwhicharetobedeterminedbytheinsurancecompanybasedon
220thenestimatesoffutureexperience,orinthecaseofanyplanoflifeinsuranceorannuity
221whichisofsuchanaturethattheminimumreservescannotbedeterminedbythemethods
222describedinparagraphs(b)to(e)ofthissubdivision,andparagraph(h)ofthissubdivision,
223thereserveswhichareheldunderanysuchplanmust:
224 a.Beappropriateinrelationtothebenefitsandthepatternofpremiumsforthatplan;
225and
226 b.Becomputedbyamethodwhichisconsistentwiththeprinciplesofthissectionas
227determinedbyregulationspromulgatedbythedirector.
228 (3)Exceptasprovidedinsubsection2ofthissection,theminimumstandardforthe
229valuationofallindividualannuityandpureendowmentcontractsissuedonorafterthe
230operativedateofthissubdivision,asdefinedherein,andforallannuitiesandpure
231endowmentspurchasedonoraftersuchoperativedateundergroupannuityandpure
232endowmentcontracts,shallbethecommissionersreservevaluationmethodsdefinedin
233paragraphs(b),(c),(d),and(e)ofsubdivision(2)ofthissubsection,andthefollowingtables
234andinterestrates:
CCSSSSCSHCSHB2168 23 235 (a)ForindividualannuityandpureendowmentcontractsissuedpriortoSeptember
23628,1979,excludinganydisabilityandaccidentaldeathbenefitsinsuchcontracts,the1971
237IndividualAnnuityMortalityTable,oranymodificationofthistableapprovedbythe
238director,andsixpercentinterestforsinglepremiumimmediateannuitycontracts,andfour
239percentinterestforallotherindividualannuityandpureendowmentcontracts;
240 (b)Forindividualsinglepremiumimmediateannuitycontractsissuedonorafter
241September28,1979,excludinganydisabilityandaccidentaldeathbenefitsinsuchcontracts,
242the1971IndividualAnnuityMortalityTable,oranyindividualannuitymortalitytable
243adoptedafter1980bytheNAIC,thatisapprovedbyregulationpromulgatedbythedirector
244foruseindeterminingtheminimumstandardofvaluationforsuchcontracts,orany
245modificationofthesetablesapprovedbythedirector,andsevenandone-halfpercentinterest;
246 (c)Forindividualannuityandpureendowmentcontractsissuedonorafter
247September28,1979,otherthansinglepremiumimmediateannuitycontracts,excludingany
248disabilityandaccidentaldeathbenefitsinsuchcontracts,the1971IndividualAnnuity
249MortalityTable,oranyindividualannuitymortalitytableadoptedafter1980bytheNAIC,
250thatisapprovedbyregulationpromulgatedbythedirectorforuseindeterminingthe
251minimumstandardofvaluationforsuchcontracts,oranymodificationofthesetables
252approvedbythedirector,andfiveandone-halfpercentinterestforsinglepremiumdeferred
253annuityandpureendowmentcontractsandfourandone-halfpercentinterestforallother
254suchindividualannuityandpureendowmentcontracts;
255 (d)ForallannuitiesandpureendowmentspurchasedpriortoSeptember28,1979,
256undergroupannuityandpureendowmentcontracts,excludinganydisabilityandaccidental
257deathbenefitspurchasedundersuchcontracts,the1971GroupAnnuityMortalityTable,or
258anymodificationofthistableapprovedbythedirector,andsixpercentinterest;
259 (e)ForallannuitiesandpureendowmentspurchasedonorafterSeptember28,1979,
260undergroupannuityandpureendowmentcontracts,excludinganydisabilityandaccidental
261deathbenefitspurchasedundersuchcontracts,the1971GroupAnnuityMortalityTable,or
262anygroupannuitymortalitytableadoptedafter1980bytheNAIC,thatisapprovedby
263regulationpromulgatedbythedirectorforuseindeterminingtheminimumstandardof
264valuationforsuchannuitiesandpureendowments,oranymodificationofthesetables
265approvedbythedirector,andsevenandone-halfpercentinterest;
266 (f)OnandafterSeptember28,1975,anycompanymayfilewiththedirectora
267writtennoticeofitselectiontocomplywiththeprovisionsofthissubdivisionafteraspecified
268datebeforeJanuary1,1980,whichshallbetheoperativedateofthissubdivisionforsuch
269company,providedacompanymayelectadifferentoperativedateforindividualannuityand
270pureendowmentcontractsfromthatelectedforgroupannuityandpureendowmentcontracts.
CCSSSSCSHCSHB2168 24 271Ifacompanymakesnosuchelection,theoperativedateofthissubdivisionforsuchcompany
272shallbeJanuary1,1980.
273 2.(1)Thecalendaryearstatutoryvaluationinterestratesasdefinedinthissubsection
274shallbetheinterestratesusedindeterminingtheminimumstandardforthevaluationof:
275 (a)Alllifeinsurancepoliciesissuedinaparticularcalendaryear,onorafterthe
276operativedateofsubsection14ofsection376.670;
277 (b)Allindividualannuityandpureendowmentcontractsissuedinaparticular
278calendaryearonorafterJanuary1,1983;
279 (c)Allannuitiesandpureendowmentcontractspurchasedinaparticularcalendar
280yearonorafterJanuary1,1983,undergroupannuityandpureendowmentcontracts;and
281 (d)Thenetincrease,ifany,inaparticularcalendaryearafterJanuary1,1983,in
282amountsheldunderguaranteedinterestcontracts.
283 (2)Thecalendaryearstatutoryvaluationinterestrates,I,shallbedeterminedas
284followsandtheresultsroundedtothenearerone-quarterofonepercent:
285 (a)Forlifeinsurance:
286 I=.03+W(R1-.03)+W/2(R2-.09);
287 (b)Forsinglepremiumimmediateannuitiesandforannuitybenefitsinvolvinglife
288contingenciesarisingfromotherannuitieswithcashsettlementoptionsandfromguaranteed
289interestcontractswithcashsettlementoptions:
290 I=.03+W(R-.03),whereR1isthelesserofRand.09;R2isthegreaterofRand
291 .09;Risthereferenceinterestratedefinedinthissubsection;andWistheweighting
292 factordefinedinthissubsection;
293 (c)Forotherannuitieswithcashsettlementoptionsandguaranteedinterestcontracts
294withcashsettlementoptions,valuedonanissueyearbasis,exceptasstatedinparagraph(b)
295ofthissubdivision,theformulaforlifeinsurancestatedinparagraph(a)ofthissubdivision
296shallapplytoannuitiesandguaranteedinterestcontractswithguaranteedurationsinexcess
297oftenyearsandtheformulaforsinglepremiumimmediateannuitiesstatedinparagraph(b)
298ofthissubdivisionshallapplytoannuitiesandguaranteedinterestcontractswithguarantee
299durationsoftenyearsorless;
300 (d)Forotherannuitieswithnocashsettlementoptionsandforguaranteedinterest
301contractswithnocashsettlementoptions,theformulaforsinglepremiumimmediate
302annuitiesstatedinparagraph(b)ofthissubdivisionshallapply;
303 (e)Forotherannuitieswithcashsettlementoptionsandguaranteedinterestcontracts
304withcashsettlementoptions,valuedonachangeinfundbasis,theformulaforsingle
305premiumimmediateannuitiesstatedinparagraph(b)ofthissubdivisionshallapply.Ifthe
306calendaryearstatutoryvaluationinterestrateforanylifeinsurancepoliciesissuedinany
307calendaryeardeterminedwithoutreferencetothissentencediffersfromthecorresponding
CCSSSSCSHCSHB2168 25 308actualrateforsimilarpoliciesissuedintheimmediatelyprecedingcalendaryearbylessthan
309one-halfofonepercent,thecalendaryearstatutoryvaluationinterestrateforsuchlife
310insurancepoliciesshallbeequaltothecorrespondingactualratefortheimmediately
311precedingcalendaryear.Forpurposesofapplyingtheimmediatelyprecedingsentence,the
312calendaryearstatutoryvaluationinterestrateforlifeinsurancepoliciesissuedinacalendar
313yearshallbedeterminedfor1980(usingthereferenceinterestratedefinedfor1979)andshall
314bedeterminedforeachsubsequentcalendaryearregardlessofwhensubsection14ofsection
315376.670becomesoperative.
316 (3)Theweightingfactorsreferredtointheformulasstatedinsubdivision(2)ofthis
317subsectionaregiveninthefollowingtables:
318 (a)Weightingfactorsforlifeinsurance:
319 Guarantee Weighting
320 Duration Factors
321 (Years)
322 10orless .50
323 Morethan10,butnotmorethan20 .45
324 Morethan20 .35
325
326Forlifeinsurance,theguaranteedurationisthemaximumnumberofyearsthelifeinsurance
327canremaininforceonabasisguaranteedinthepolicyorunderoptionstoconverttoplansof
328lifeinsurancewithpremiumratesornonforfeiturevaluesorbothwhichareguaranteedinthe
329originalpolicy;
330 (b)Weightingfactorforsinglepremiumimmediateannuitiesandforannuitybenefits
331involvinglifecontingenciesarisingfromotherannuitieswithcashsettlementoptionsand
332guaranteedinterestcontractswithcashsettlementoptions:.80;
333 (c)Weightingfactorsforotherannuitiesandforguaranteedinterestcontracts,except
334asstatedinparagraph(b)ofthissubdivision,shallbeasspecifiedinsubparagraphsa.,b.,and
335c.ofthisparagraph,accordingtotherulesanddefinitionsinsubparagraphsd.,e.,andf.of
336thisparagraph:
337 a.Forannuitiesandguaranteedinterestcontractsvaluedonanissueyearbasis:
338 Guarantee WeightingFactor
339 Duration forPlanType
340 (Years) A B C
341 5orless: .80.60.50
342 Morethan5,butnotmorethan10: .75.60.50
343 Morethan10,butnotmorethan20: .65.50.45
344 Morethan20: .45.35.35
CCSSSSCSHCSHB2168 26 345 b.Forannuitiesandguaranteedinterestcontractsvaluedonachangeinfundbasis,
346thefactorsshowninsubparagrapha.ofthisparagraphincreasedby:
347 PlanType
348 A B C
349 .15.25.05
350 c.Forannuitiesandguaranteedinterestcontractsvaluedonanissueyearbasis(other
351thanthosewithnocashsettlementoptions)whichdonotguaranteeinterestonconsiderations
352receivedmorethanoneyearafterissueorpurchaseandforannuitiesandguaranteedinterest
353contractsvaluedonachangeinfundbasiswhichdonotguaranteeinterestrateson
354considerationsreceivedmorethantwelvemonthsbeyondthevaluationdate,thefactors
355showninsubparagrapha.ofthisparagraphorderivedinsubparagraphb.ofthisparagraph
356increasedby:
357 PlanType
358 A B C
359 .05.05.05
360 d.Forotherannuitieswithcashsettlementoptionsandguaranteedinterestcontracts
361withcashsettlementoptions,theguaranteedurationisthenumberofyearsforwhichthe
362contractguaranteesinterestratesinexcessofthecalendaryearstatutoryvaluationinterest
363rateforlifeinsurancepolicieswithguaranteedurationinexcessoftwentyyears.Forother
364annuitieswithnocashsettlementoptionsandforguaranteedinterestcontractswithnocash
365settlementoptions,theguaranteedurationisthenumberofyearsfromthedateofissueor
366dateofpurchasetothedateannuitybenefitsarescheduledtocommence;
367 e.Plantypeasusedinsubparagraphsa.,b.,andc.ofthisparagraphisdefinedas
368follows:
369 PlanTypeA:Atanytimepolicyholdermaywithdrawfundsonlywithanadjustment
370toreflectchangesininterestratesorassetvaluessincereceiptofthefundsbytheinsurance
371company,orwithoutsuchadjustmentbutininstallmentsoverfiveyearsormore,orasan
372immediatelifeannuity,ornowithdrawalpermitted;
373 PlanTypeB:Beforeexpirationoftheinterestrateguarantee,policyholdermay
374withdrawfundsonlywithanadjustmenttoreflectchangesininterestratesorassetvalues
375sincereceiptofthefundsbytheinsurancecompany,orwithoutsuchadjustmentbutin
376installmentsoverfiveyearsormore,ornowithdrawalpermitted.Attheendofinterestrate
377guarantee,fundsmaybewithdrawnwithoutsuchadjustmentinasinglesumorinstallments
378overfewerthanfiveyears;
CCSSSSCSHCSHB2168 27 379 PlanTypeC:Policyholdermaywithdrawfundsbeforeexpirationofinterestrate
380guaranteeinasinglesumorinstallmentsoverfewerthanfiveyearseitherwithoutadjustment
381toreflectchangesininterestratesorassetvaluessincereceiptofthefundsbytheinsurance
382company,orsubjectonlytoafixedsurrenderchargestipulatedinthecontractasapercentage
383ofthefund;
384 f.Acompanymayelecttovalueguaranteedinterestcontractswithcashsettlement
385optionsandannuitieswithcashsettlementoptionsoneitheranissueyearbasisoronachange
386infundbasis.Guaranteedinterestcontractswithnocashsettlementoptionsandother
387annuitieswithnocashsettlementoptionsmustbevaluedonanissueyearbasis.Asusedin
388thissubsectionanissueyearbasisofvaluationreferstoavaluationbasisunderwhichthe
389interestrateusedtodeterminetheminimumvaluationstandardfortheentiredurationofthe
390annuityorguaranteedinterestcontractisthecalendaryearvaluationinterestratefortheyear
391ofissueoryearofpurchaseoftheannuityorguaranteedinterestcontract,andthechangein
392fundbasisofvaluationreferstoavaluationbasisunderwhichtheinterestrateusedto
393determinetheminimumvaluationstandardapplicabletoeachchangeinthefundheldunder
394theannuityorguaranteedinterestcontractisthecalendaryearvaluationinterestrateforthe
395yearofthechangeinthefund.
396 (4)The"referenceinterestrate"referredtoinsubdivision(2)ofthissubsectionshall
397bedefinedasfollows:
398 (a)Foralllifeinsurance,thelesseroftheaverageoveraperiodofthirty-sixmonths
399andtheaverageoveraperiodoftwelvemonths,endingonJunethirtiethofthecalendaryear
400nextprecedingtheyearofissue,oftheMonthlyAverageoftheCompositeYieldonSeasoned
401CorporateBonds,aspublishedbyMoody'sInvestorsService,Inc.;
402 (b)Forsinglepremiumimmediateannuitiesandforannuitybenefitsinvolvinglife
403contingenciesarisingfromotherannuitieswithcashsettlementoptionsandguaranteed
404interestcontractswithcashsettlementoptions,theaverageoveraperiodoftwelvemonths,
405endingonJunethirtiethofthecalendaryearofissueorpurchase,oftheMonthlyAverageof
406theCompositeYieldonSeasonedCorporateBonds,aspublishedbyMoody'sInvestors
407Service,Inc.;
408 (c)Forotherannuitieswithcashsettlementoptionsandguaranteedinterestcontracts
409withcashsettlementoptions,valuedonayearofissuebasis,exceptasstatedinparagraph(b)
410ofthissubdivision,withguaranteedurationinexcessoftenyears,thelesseroftheaverage
411overaperiodofthirty-sixmonthsandtheaverageoveraperiodoftwelvemonths,endingon
412Junethirtiethofthecalendaryearofissueorpurchase,oftheMonthlyAverageofthe
413CompositeYieldonSeasonedCorporateBonds,aspublishedbyMoody'sInvestorsService,
414Inc.;
CCSSSSCSHCSHB2168 28 415 (d)Forotherannuitieswithcashsettlementoptionsandguaranteedinterestcontracts
416withcashsettlementoptions,valuedonayearofissuebasis,exceptasstatedinparagraph(b)
417ofthissubdivision,withguaranteedurationoftenyearsorless,theaverageoveraperiodof
418twelvemonths,endingonJunethirtiethofthecalendaryearofissueorpurchase,ofthe
419MonthlyAverageoftheCompositeYieldonSeasonedCorporateBonds,aspublishedby
420Moody'sInvestorsService,Inc.;
421 (e)Forotherannuitieswithnocashsettlementoptionsandforguaranteedinterest
422contractswithnocashsettlementoptions,theaverageoveraperiodoftwelvemonths,ending
423onJunethirtiethofthecalendaryearofissueorpurchase,oftheMonthlyAverageofthe
424CompositeYieldonSeasonedCorporateBonds,aspublishedbyMoody'sInvestorsService,
425Inc.;
426 (f)Forotherannuitieswithcashsettlementoptionsandguaranteedinterestcontracts
427withcashsettlementoptions,valuedonachangeinfundbasis,exceptasstatedinparagraph
428(b)ofthissubdivision,theaverageoveraperiodoftwelvemonths,endingonJunethirtiethof
429thecalendaryearofthechangeinthefund,oftheMonthlyAverageoftheCompositeYield
430onSeasonedCorporateBonds,aspublishedbyMoody'sInvestorsService,Inc.
431 (5)IntheeventthattheMonthlyAverageoftheCompositeYieldonSeasoned
432CorporateBondsisnolongerpublishedbyMoody'sInvestorsService,Inc.,orintheevent
433thattheNAICdeterminesthattheMonthlyAverageoftheCompositeYieldonSeasoned
434CorporateBondsaspublishedbyMoody'sInvestorsService,Inc.,isnolongerappropriatefor
435thedeterminationofthereferenceinterestrate,thenanalternativemethodfordetermination
436ofthereferenceinterestrate,whichisadoptedbytheNAICandapprovedbyregulation
437promulgatedbythedirector,maybesubstituted.
438 3.Foraccidentandhealthinsurancecontractsissuedonoraftertheoperativedateof
439thevaluationmanual,thestandardprescribedinthevaluationmanualistheminimum
440standardofvaluationrequiredundersubsection2ofsection376.370.Fordisability,accident
441andsickness,andaccidentandhealthinsurancecontractsissuedonoraftertheoperativedate
442providedinsubsection20ofsection376.670andpriortotheoperativedateofthevaluation
443manual,theminimumstandardofvaluationisthestandardadoptedbythedirectorby
444regulation.
445 4.(1)Thissubsectionshallapplytoactuarialopinionsofreservespriortothedateof
446thevaluationmanual.
447 (2)Everylifeinsurancecompanydoingbusinessinthisstateshallannuallysubmit
448theopinionofaqualifiedactuaryastowhetherthereservesandrelatedactuarialitemsheldin
449supportofthepoliciesandcontractsspecifiedbythedirectorbyregulationarecomputed
450appropriately,arebasedonassumptionswhichsatisfycontractualprovisions,areconsistent
451withpriorreportedamountsandcomplywithapplicablelawsofthisstate.Thedirectorby
CCSSSSCSHCSHB2168 29 452regulationshalldefinethespecificsofthisopinionandaddanyotheritemsdeemedtobe
453necessarytoitsscope.
454 (3)(a)Everylifeinsurancecompany,exceptasexemptedbyorpursuantto
455regulation,shallalsoannuallyincludeintheopinionrequiredbysubdivision(2)ofthis
456subsection,anopinionofthesamequalifiedactuaryastowhetherthereservesandrelated
457actuarialitemsheldinsupportofthepoliciesandcontractsspecifiedbythedirectorby
458regulation,whenconsideredinlightoftheassetsheldbythecompanywithrespecttothe
459reservesandrelatedactuarialitems,includingbutnotlimitedtotheinvestmentearningson
460theassetsandtheconsiderationsanticipatedtobereceivedandretainedunderthepoliciesand
461contracts,makeadequateprovisionforthecompany'sobligationsunderthepoliciesand
462contracts,includingbutnotlimitedtothebenefitsunderandexpensesassociatedwiththe
463policiesandcontracts.
464 (b)Thedirectormayprovidebyregulationforatransitionperiodforestablishingany
465higherreserveswhichthequalifiedactuarymaydeemnecessaryinordertorenderthe
466opinionrequiredbythissubsection.
467 (4)Eachopinionrequiredbysubdivision(3)ofthissubsectionshallbegovernedby
468thefollowingprovisions:
469 (a)Amemorandum,informandsubstanceacceptabletothedirectorasspecifiedby
470regulation,shallbepreparedtosupporteachactuarialopinion;and
471 (b)Iftheinsurancecompanyfailstoprovideasupportingmemorandumattherequest
472ofthedirectorwithinaperiodspecifiedbyregulationorthedirectordeterminesthatthe
473supportingmemorandumprovidedbytheinsurancecompanyfailstomeetthestandards
474prescribedbytheregulationsorisotherwiseunacceptabletothedirector,thedirectormay
475engageaqualifiedactuaryattheexpenseofthecompanytoreviewtheopinionandthebasis
476fortheopinionandpreparesuchsupportingmemorandumasisrequiredbythedirector.
477 (5)Everyopinionrequiredbythissubsectionshallbegovernedbythefollowing
478provisions:
479 (a)Theopinionshallbesubmittedwiththeannualstatementreflectingthevaluation
480ofsuchreserveliabilitiesforeachyearendingonorafterDecember31,1993;
481 (b)Theopinionshallapplytoallbusinessinforceincludingindividualandgroup
482healthinsuranceplans,informandsubstanceacceptabletothedirectorasspecifiedby
483regulation;
484 (c)Theopinionshallbebasedonstandardsadoptedfromtimetotimebythe
485ActuarialStandardsBoardandonsuchadditionalstandardsasthedirectormaybyregulation
486prescribe;
487 (d)Inthecaseofanopinionrequiredtobesubmittedbyaforeignoraliencompany,
488thedirectormayaccepttheopinionfiledbythatcompanywiththeinsurancesupervisory
CCSSSSCSHCSHB2168 30 489officialofanotherstateifthedirectordeterminesthattheopinionreasonablymeetsthe
490requirementsapplicabletoacompanydomiciledinthisstate;
491 (e)Forthepurposesofthissection,"qualifiedactuary"meansamemberingood
492standingoftheAmericanAcademyofActuarieswhomeetstherequirementssetforthinsuch
493regulations;
494 (f)Exceptincasesoffraudorwillfulmisconduct,thequalifiedactuaryshallnotbe
495liablefordamagestoanyperson,otherthantheinsurancecompanyandthedirector,forany
496act,error,omission,decisionorconductwithrespecttotheactuary'sopinion;
497 (g)Disciplinaryactionbythedirectoragainstthecompanyorthequalifiedactuary
498shallbedefinedinregulationsbythedirector;and
499 (h)Anymemoranduminsupportoftheopinion,andanyothermaterialprovidedby
500thecompanytothedirectorinconnectiontherewith,shallbekeptconfidentialbythedirector
501andshallnotbemadepublicandshallnotbesubjecttosubpoena,otherthanforthepurpose
502ofdefendinganactionseekingdamagesfromanypersonbyreasonofanyactionrequiredby
503thissectionorbyregulationspromulgatedhereunder;exceptthatthememorandumorother
504materialmayotherwisebereleasedbythedirector:
505 a.Withthewrittenconsentofthecompany;or
506 b.TotheAmericanAcademyofActuariesuponrequeststatingthatthememorandum
507orothermaterialisrequiredforthepurposeofprofessionaldisciplinaryproceedingsand
508settingforthproceduressatisfactorytothedirectorforpreservingtheconfidentialityofthe
509memorandumorothermaterial.
510
511Onceanyportionoftheconfidentialmemorandumiscitedbythecompanyinitsmarketingor
512iscitedbeforeanygovernmentalagencyotherthanastateinsurancedepartmentorisreleased
513bythecompanytothenewsmedia,allportionsoftheconfidentialmemorandumshallbeno
514longerconfidential.
515 5.(1)Thissubsectionshallapplytoactuarialopinionsofreservesaftertheoperative
516dateofthevaluationmanual.
517 (2)Everycompanywithoutstandinglifeinsurancecontracts,accidentandhealth
518insurancecontracts,ordeposit-typecontractsinMissouriandsubjecttoregulationbythe
519directorshallannuallysubmittheopinionoftheappointedactuaryastowhetherthereserves
520andrelatedactuarialitemsheldinsupportofthepoliciesandcontractsarecomputed
521appropriately,arebasedonassumptionsthatsatisfycontractualprovisions,areconsistentwith
522priorreportedamounts,andcomplywithapplicableMissourilaw.Thevaluationmanual
523shallprescribethespecificsofsuchopinion,includinganyitemsdeemedtobenecessaryto
524itsscope.
CCSSSSCSHCSHB2168 31 525 (3)Everycompanywithoutstandinglifeinsurancecontracts,accidentandhealth
526insurancecontracts,ordeposit-typecontractsinMissouriandsubjecttoregulationbythe
527director,exceptasexemptedinthevaluationmanual,shallalsoannuallyincludeinthe
528opinionrequiredundersubdivision(2)ofthissubsectionanopinionofthesameappointed
529actuaryastowhetherthereservesandrelatedactuarialitemsheldinsupportofthepolicies
530andcontractsspecifiedinthevaluationmanual,whenconsideredinlightoftheassetsheldby
531thecompanywithrespecttothereservesandrelatedactuarialitemsincluding,butnotlimited
532to,theinvestmentearningsontheassetsandtheconsiderationsanticipatedtobereceivedand
533retainedunderthepoliciesandcontracts,makeadequateprovisionforthecompany's
534obligationsunderthepoliciesandcontractsincluding,butnotlimitedto,benefitsunderand
535expensesassociatedwiththepoliciesandcontracts.
536 (4)Eachopinionrequiredbysubdivision(3)ofthissubsectionshallbegovernedby
537thefollowingprovisions:
538 (a)Amemorandum,informandsubstanceasspecifiedinthevaluationmanualand
539acceptabletothedirector,shallbepreparedtosupporteachactuarialopinion;and
540 (b)Iftheinsurancecompanyfailstoprovideasupportingmemorandumattherequest
541ofthedirectorwithinaperiodspecifiedinthevaluationmanualorthedirectordetermines
542thatthesupportingmemorandumprovidedbytheinsurancecompanyfailstomeetthe
543standardsprescribedbythevaluationmanualorisotherwiseunacceptabletothedirector,the
544directormayengageaqualifiedactuaryattheexpenseofthecompanytoreviewtheopinion
545andthebasisfortheopinionandpreparethesupportingmemorandumrequiredbythe
546director.
547 (5)Everyopinionrequiredbythissubsectionshallbegovernedbythefollowing:
548 (a)Theopinionshallbeinformandsubstanceasspecifiedinthevaluationmanual
549andacceptabletothedirector;
550 (b)Theopinionshallbesubmittedwiththeannualstatementreflectingthevaluation
551ofsuchreserveliabilitiesforeachyearendingonoraftertheoperativedateofthevaluation
552manual;
553 (c)Theopinionshallapplytoallpoliciesandcontractssubjecttosubdivision(3)of
554thissubsection,plusotheractuarialliabilitiesasmaybespecifiedinthevaluationmanual;
555 (d)Theopinionshallbebasedonstandardsadoptedfromtimetotimebythe
556ActuarialStandardsBoardoritssuccessor,andonsuchadditionalstandardsasmaybe
557prescribedinthevaluationmanual;
558 (e)Inthecaseofanopinionrequiredtobesubmittedbyaforeignoraliencompany,
559thedirectormayaccepttheopinionfiledbysuchcompanywiththeinsurancesupervisory
560officialofanotherstateifthedirectordeterminesthattheopinionreasonablymeetsthe
561requirementsapplicabletoacompanydomiciledinMissouri;
CCSSSSCSHCSHB2168 32 562 (f)Exceptincasesoffraudorwillfulmisconduct,theappointedactuaryshallnotbe
563liablefordamagestoanyperson,otherthantheinsurancecompanyandthedirector,forany
564act,error,omission,decision,orconductwithrespecttotheappointedactuary'sopinion;and
565 (g)Disciplinaryactionbythedirectoragainstthecompanyortheappointedactuary
566shallbedefinedinregulationsbythedirector.
567 6.(1)Forpoliciesissuedonoraftertheoperativedateofthevaluationmanual,the
568standardprescribedinthevaluationmanualistheminimumstandardofvaluationrequired
569undersubsection2ofsection376.370,exceptasprovidedundersubdivision(5)or(7)ofthis
570subsection.
571 (2)TheoperativedateofthevaluationmanualisJanuaryfirstofthefirstcalendar
572yearfollowingthefirstJulyfirstasofwhichallofthefollowinghaveoccurred:
573 (a)ThevaluationmanualhasbeenadoptedbytheNAICbyanaffirmativevoteofat
574leastforty-twomembersorthree-fourthsofthemembersvoting,whicheverisgreater;
575 (b)ThestandardvaluationlawasamendedbytheNAICin2009orlegislation
576includingsubstantiallysimilartermsandprovisionshasbeenenactedbystatesrepresenting
577greaterthanseventy-fivepercentofthedirectpremiumswrittenasreportedinthefollowing
578annualstatementssubmittedfor2008:life,accident,andhealthannualstatements;health
579annualstatements;orfraternalannualstatements;
580 (c)ThestandardvaluationlawasamendedbytheNAICin2009orlegislation
581includingsubstantiallysimilartermsandprovisionshasbeenenactedbyatleastforty-twoof
582thefollowingfifty-fivejurisdictions:thefiftystatesoftheUnitedStates,AmericanSamoa,
583theAmericanVirginIslands,theDistrictofColumbia,Guam,andPuertoRico;and
584 (d)Thevaluationmanualbecomeseffectiveunderanorderofthedirector.
585 (3)Unlessachangeinthevaluationmanualspecifiesalatereffectivedate,changesto
586thevaluationmanualshallbeeffectiveonJanuaryfirstfollowingthedatewhenallofthe
587followinghaveoccurred:
588 (a)ThechangetothevaluationmanualhasbeenadoptedbytheNAICbyan
589affirmativevoterepresenting:
590 a.Atleastthree-fourthsofthemembersoftheNAICvoting,butnotlessthana
591majorityofthetotalmembership;and
592 b.MembersoftheNAICrepresentingjurisdictionstotalinggreaterthanseventy-five
593percentofthedirectpremiumswrittenasreportedinthefollowingannualstatementsmost
594recentlyavailablepriortothevoteinsubparagrapha.ofthisparagraph:life,accident,and
595healthannualstatements;healthannualstatements;orfraternalannualstatements;
596 (b)Thevaluationmanualbecomeseffectiveunderanorderofthedirector.
597 (4)Thevaluationmanualshallspecifyallofthefollowing:
CCSSSSCSHCSHB2168 33 598 (a)Minimumvaluationstandardsforanddefinitionsofthepoliciesorcontracts
599subjecttosubsection2ofsection376.370.Suchminimumstandardsshallbe:
600 a.Thecommissionersreservevaluationmethodforlifeinsurancecontracts,other
601thanannuitycontracts,subjecttosubsection2ofsection376.370;
602 b.Thecommissionersannuityreservevaluationmethodforannuitycontractssubject
603tosubsection2ofsection376.370;and
604 c.Minimumreservesforallotherpoliciesandcontractssubjecttosubsection2of
605section376.370;
606 (b)Whichpoliciesorcontractsortypesofpoliciesorcontractsaresubjecttothe
607requirementsofaprinciple-basedvaluationundersubdivision(1)ofsubsection7ofthis
608sectionandtheminimumvaluationstandardsconsistentwithsuchrequirements;
609 (c)Forpoliciesandcontractssubjecttoprinciple-basedvaluationundersubsection7
610ofthissection:
611 a.Requirementsfortheformatofreportstothedirectorunderparagraph(c)of
612subdivision(2)ofsubsection7ofthissectionandwhichshallincludeinformationnecessary
613todetermineifthevaluationisappropriateandincompliancewithsections376.365to
614376.380;
615 b.Assumptionswhichshallbeprescribedforrisksoverwhichthecompanydoesnot
616havesignificantcontrolorinfluence;
617 c.Proceduresforcorporategovernanceandoversightoftheactuarialfunction,anda
618processforappropriatewaiverormodificationofsuchprocedures;
619 (d)Forpoliciesnotsubjecttoaprinciple-basedvaluationundersubsection7ofthis
620section,theminimumvaluationstandardshalleither:
621 a.Beconsistentwiththeminimumstandardofvaluationpriortotheoperativedateof
622thevaluationmanual;or
623 b.Developreservesthatquantifythebenefitsandguarantees,andthefunding,
624associatedwiththecontractsandtheirrisksatalevelofconservatismthatreflectsconditions
625thatincludeunfavorableeventsthathaveareasonableprobabilityofoccurring;
626 (e)Otherrequirementsincluding,butnotlimitedto,thoserelatingtoreserve
627methods,modelsformeasuringrisk,generationofeconomicscenarios,assumptions,
628margins,useofcompanyexperience,riskmeasurement,disclosure,certifications,reports,
629actuarialopinionsandmemorandums,transitionrules,andinternalcontrols;and
630 (f)Thedataandformofthedatarequiredundersubsection8ofthissection,towhom
631thedatashallbesubmitted,andmayspecifyotherrequirements,includingdataanalysesand
632reportingofanalyses.
633 (5)Intheabsenceofaspecificvaluationrequirementorifaspecificvaluation
634requirementinthevaluationmanualisnot,intheopinionofthedirector,incompliancewith
CCSSSSCSHCSHB2168 34 635sections376.365to376.380,thecompanyshall,withrespecttosuchrequirements,comply
636withminimumvaluationstandardsprescribedbythedirectorbyregulation.
637 (6)Thedirectormayengageaqualifiedactuary,attheexpenseofthecompany,to
638performanactuarialexaminationofthecompanyandopineontheappropriatenessofany
639reserveassumptionormethodusedbythecompany,ortoreviewandopineonacompany's
640compliancewithanyrequirementsetforthinsections376.365to376.380.Thedirectormay
641relyupontheopinionregardingprovisionscontainedinsections376.365to376.380ofa
642qualifiedactuaryengagedbythedirectorofanotherstate,district,orterritoryoftheUnited
643States.Asusedinthissubdivision,engageincludesemploymentandcontracting.
644 (7)Thedirectormayrequireacompanytochangeanyassumptionormethodthatin
645theopinionofthedirectorisnecessaryinordertocomplywiththerequirementsofthe
646valuationmanualorsections376.365to376.380,andthecompanyshalladjustthereservesas
647requiredbythedirector.Thedirectormaytakeotherdisciplinaryactionaspermittedunder
648chapter354andchapters374to385.
649 7.(1)Acompanyshallestablishreservesusingaprinciple-basedvaluationthat
650meetsthefollowingconditionsforpoliciesorcontractsasspecifiedinthevaluationmanual:
651 (a)Quantifythebenefitsandguarantees,andthefunding,associatedwiththe
652contractsandtheirrisksatalevelofconservatismthatreflectsconditionsthatinclude
653unfavorableeventsthathaveareasonableprobabilityofoccurringduringthelifetimeofthe
654contracts.Forpoliciesorcontractswithsignificanttailrisk,thecompany'svaluationshall
655reflectconditionsappropriatelyadversetoquantifythetailrisk;
656 (b)Incorporateassumptions,riskanalysismethods,andfinancialmodelsand
657managementtechniquesthatareconsistentwith,butnotnecessarilyidenticalto,those
658utilizedwithinthecompany'soverallriskassessmentprocess,whilerecognizingpotential
659differencesinfinancialreportingstructuresandanyprescribedassumptionsormethods;
660 (c)Incorporateassumptionsthatarederivedinoneofthefollowingmanners:
661 a.Theassumptionisprescribedinthevaluationmanual;or
662 b.Forassumptionsthatarenotprescribed,theassumptionshall:
663 (i)Beestablishedutilizingthecompany'savailableexperiencetotheextentitis
664relevantandstatisticallycredible;or
665 (ii)Totheextentthatcompanydataisnotavailable,relevant,orstatisticallycredible,
666beestablishedutilizingotherrelevantstatisticallycredibleexperience;
667 (d)Providemarginsforuncertainty,includingadversedeviationandestimationerror,
668suchthatthegreatertheuncertaintythelargerthemarginandresultingreserve.
669 (2)Acompanyusingaprinciple-basedvaluationforoneormorepoliciesorcontracts
670subjecttothissectionasspecifiedinthevaluationmanualshall:
CCSSSSCSHCSHB2168 35 671 (a)Establishproceduresforcorporategovernanceandoversightoftheactuarial
672valuationfunctionconsistentwiththosedescribedinthevaluationmanual;
673 (b)Providetothedirectoranannualcertificationoftheeffectivenessoftheinternal
674controlswithrespecttotheprinciple-basedvaluation.Suchcontrolsshallbedesignedto
675ensurethatallmaterialrisksinherentintheliabilitiesandassociatedassetssubjecttosuch
676valuationareincludedinthevaluationandthatvaluationsaremadeinaccordancewiththe
677valuationmanual.Thecertificationshallbebasedonthecontrolsinplaceasoftheendofthe
678precedingcalendaryear;
679 (c)Develop,andfilewiththedirectoruponrequest,aprinciple-basedvaluation
680reportthatcomplieswithstandardsprescribedinthevaluationmanual.
681 (3)Aprinciple-basedvaluationmayincludeaprescribedformulaicreserve
682component.
683 8.Forpoliciesinforceonoraftertheoperativedateofthevaluationmanual,a
684companyshallsubmitmortality,morbidity,policyholderbehavior,orexpenseexperienceand
685otherdataasprescribedinthevaluationmanual.
686 9.(1)Forpurposesofthissubsection,"confidentialinformation"means:
687 (a)Amemoranduminsupportofanopinionsubmittedundersubsection4or5of
688thissectionandanyotherdocuments,materials,andotherinformationincluding,butnot
689limitedto,allworkingpapersandcopiesthereofcreated,produced,orobtainedbyor
690disclosedtothedirectororanyotherpersoninconnectionwithsuchmemorandum;
691 (b)Alldocuments,materials,andotherinformationincluding,butnotlimitedto,all
692workingpapersandcopiesthereofcreated,produced,orobtainedbyordisclosedtothe
693directororanyotherpersoninthecourseofanexaminationmadeundersubdivision(6)of
694subsection6ofthissection;provided,however,thatifanexaminationreportorothermaterial
695preparedinconnectionwithanexaminationmadeundersection374.205isnotheldasprivate
696andconfidentialinformationundersection374.205,anexaminationreportorothermaterial
697preparedinconnectionwithanexaminationmadeundersubdivision(6)ofsubsection6of
698thissectionshallnotbeconfidentialinformationtothesameextentasifsuchexamination
699reportorothermaterialhadbeenpreparedundersection374.205;
700 (c)Anyreports,documents,materials,andotherinformationdevelopedbya
701companyinsupportoforinconnectionwithanannualcertificationbythecompanyunder
702paragraph(b)ofsubdivision(2)ofsubsection7ofthissectionevaluatingtheeffectivenessof
703thecompany'sinternalcontrolswithrespecttoaprinciple-basedvaluationandanyother
704documents,materials,andotherinformationincluding,butnotlimitedto,allworkingpapers
705andcopiesthereofcreated,produced,orobtainedbyordisclosedtothedirectororanyother
706personinconnectionwithsuchreports,documents,material,andotherinformation;
CCSSSSCSHCSHB2168 36 707 (d)Anyprinciple-basedvaluationreportdevelopedunderparagraph(c)of
708subdivision(2)ofsubsection7ofthissectionandanyotherdocuments,materials,and
709otherinformationincluding,butnotlimitedto,allworkingpapersandcopiesthereofcreated,
710produced,orobtainedbyordisclosedtothedirectororanyotherpersoninconnectionwith
711suchreport;and
712 (e)Anydocuments,materials,data,andotherinformationsubmittedbyacompany
713undersubsection8ofthissection(collectively,"experiencedata")andanyotherdocuments,
714materials,data,andotherinformationincluding,butnotlimitedto,allworkingpapersand
715copiesthereofcreatedorproducedinconnectionwithsuchexperiencedata,ineachcasethat
716includeanypotentiallycompany-identifyingorpersonallyidentifiableinformation,thatis
717providedtoorobtainedbythedirector(togetherwithany"experiencedata",the"experience
718materials")andanyotherdocuments,materials,data,andotherinformationincluding,but
719notlimitedto,allworkingpapersandcopiesthereofcreated,produced,orobtainedbyor
720disclosedtothedirectororanyotherpersoninconnectionwithsuchexperiencematerials.
721 (2)(a)Exceptasprovidedinthissubsection,acompany'sconfidentialinformationis
722confidentialbylawandprivileged,andshallnotbesubjecttochapter610,shallnotbesubject
723tosubpoena,andshallnotbesubjecttodiscoveryoradmissibleinevidenceinanyprivate
724civilaction;provided,however,thatthedirectorisauthorizedtousetheconfidential
725informationinthefurtheranceofanyregulatoryorlegalactionbroughtagainstthecompany
726asapartofthedirector'sofficialduties.
727 (b)Neitherthedirectornoranypersonwhoreceivedconfidentialinformationwhile
728actingundertheauthorityofthedirectorshallbepermittedorrequiredtotestifyinany
729privatecivilactionconcerninganyconfidentialinformation.
730 (c)Inordertoassistintheperformanceofthedirector'sduties,thedirectormayshare
731confidentialinformationwith:
732 a.Otherstate,federal,andinternationalregulatoryagenciesandwiththeNAICand
733itsaffiliatesandsubsidiaries;and
734 b.Inthecaseofconfidentialinformationspecifiedinparagraphs(a)and(d)of
735subdivision(1)ofthissubsectiononly,theActuarialBoardforCounselingandDisciplineor
736itssuccessoruponrequeststatingthattheconfidentialinformationisrequiredforthepurpose
737ofprofessionaldisciplinaryproceedingsandwithstate,federal,andinternationallaw
738enforcementofficials.
739 (d)Thesharingofconfidentialinformationdetailedinparagraph(c)ofthis
740subdivisionshallbecontingentonsuchrecipientagreeingandhavingthelegalauthorityto
741agreetomaintaintheconfidentialityandprivilegedstatusofsuchdocuments,materials,data,
742andotherinformationinthesamemannerandtothesameextentasrequiredforthedirector.
CCSSSSCSHCSHB2168 37 743 (e)Thedirectormayreceivedocuments,materials,data,andotherinformation,
744includingotherwiseconfidentialandprivilegeddocuments,materials,data,orinformation,
745fromtheNAICanditsaffiliatesandsubsidiaries,fromregulatoryorlawenforcement
746officialsofotherforeignordomesticjurisdictions,andfromtheActuarialBoardfor
747CounselingandDisciplineoritssuccessorandshallmaintainasconfidentialorprivileged
748anydocument,material,data,orotherinformationreceivedwithnoticeortheunderstanding
749thatitisconfidentialorprivilegedunderthelawsofthejurisdictionthatisthesourceofthe
750document,material,orotherinformation.
751 (f)Thedirectormayenterintoagreementsgoverningsharinganduseofinformation
752consistentwiththissubdivision.
753 (g)Nowaiverofanyapplicableprivilegeorclaimofconfidentialityinthe
754confidentialinformationshalloccurasaresultofdisclosuretothedirectorunderthissection
755orasaresultofsharingasauthorizedinparagraph(c)ofthissubdivision.
756 (h)Aprivilegeestablishedunderthelawofanystateorjurisdictionthatis
757substantiallysimilartotheprivilegeestablishedunderthissubdivisionshallbeavailableand
758enforcedinanyproceedingin,andinanycourtof,Missouri.
759 (i)Inthissubsection,regulatoryagency,lawenforcementagency,andtheNAIC
760include,butarenotlimitedto,theiremployees,agents,consultantsandcontractors.
761 (3)Notwithstandingsubdivision(2)ofthissubsection,anyconfidentialinformation
762specifiedinparagraphs(a)and(d)ofsubdivision(1)ofthissubsection:
763 (a)Maybesubjecttosubpoenaforthepurposeofdefendinganactionseeking
764damagesfromtheappointedactuarysubmittingtherelatedmemoranduminsupportofan
765opinionsubmittedundersubsection4or5ofthissectionorprinciple-basedvaluationreport
766developedunderparagraph(c)ofsubdivision(2)ofsubsection7ofthissectionbyreasonof
767anactionrequiredbysections376.365to376.380orbyregulationspromulgatedhereunder;
768 (b)Mayotherwisebereleasedbythedirectorwiththewrittenconsentofthe
769company;and
770 (c)Onceanyportionofamemoranduminsupportofanopinionsubmittedunder
771subsection4or5ofthissectionoraprinciple-basedvaluationreportdevelopedunder
772paragraph(c)ofsubdivision(2)ofsubsection7ofthissectioniscitedbythecompanyinits
773marketing,orispubliclyvolunteeredtoorbeforeagovernmentalagencyotherthanastate
774insurancedepartment,orisreleasedbythecompanytothenewsmedia,allportionsofsuch
775memorandumorreportshallnolongerbeconfidential.
776 10.Thedirectormayexemptspecificproductformsorproductlinesofadomestic
777companythatislicensedanddoingbusinessonlyinMissourifromtherequirementsof
778subsection6ofthissectionprovided:
CCSSSSCSHCSHB2168 38 779 (1)Thedirectorhasissuedanexemptioninwritingtothecompanyandhasnot
780subsequentlyrevokedtheexemptioninwriting;and
781 (2)Thecompanycomputesreservesusingassumptionsandmethodsusedpriortothe
782operativedateofthevaluationmanualinadditiontoanyrequirementsestablishedbythe
783directorandpromulgatedbyregulation.
784
785Foranycompanygrantedanexemptionunderthissection,subsection3ofsection376.370
786andsubsections1to5ofthissectionshallbeapplicable.Withrespecttoanycompany
787applyingthisexemption,anyreferencetosubsection6ofthissectionfoundinsubsection3of
788section376.370andsubsections1to5ofthissectionshallnotbeapplicable.
789 [11.(1)Acompanythathaslessthanthreehundredmilliondollarsofordinarylife
790premiumandthatislicensedanddoingbusinessinMissouriandthatissubjecttothe
791requirementsofsubsections6and7ofthissectionmayholdreservesbasedonthemortality
792tablesandinterestratesdefinedbythevaluationmanualfornetpremiumreservesandusing
793themethodologydefinedintheprovisionsofparagraphs(b)through(i)ofsubdivision(2)of
794subsection1ofthissectionandsubsection3ofsection376.370astheyapplytoordinarylife
795insuranceinlieuofthereservesrequiredbysubsections6and7ofthissection,providedthat:
796 (a)Ifthecompanyisamemberofagroupoflifeinsurers,thegrouphascombined
797ordinarylifepremiumsoflessthansixhundredmilliondollars;
798 (b)Thecompanyreportedtotaladjustedcapitalofatleastfourhundredfiftypercent
799ofauthorizedcontrollevelrisk-basedcapitalintherisk-basedcapitalreportfortheprior
800calendaryear;
801 (c)Theappointedactuaryhasprovidedanunqualifiedopiniononthereservesin
802accordancewithsubsections4and5ofthissectionforthepriorcalendaryear;
803 (d)Thecompanyhasprovidedacertificationbyaqualifiedactuarythatanyuniversal
804lifepolicywithasecondaryguaranteeissuedaftertheoperativedateofthevaluationmanual
805meetsthedefinitionofanonmaterialsecondaryguaranteeuniversallifeproductasdefinedin
806thevaluationmanual.
807 (2)Forpurposesofsubdivision(1)ofthissubsection,ordinarylifepremiumsare
808measuredasdirectpremiumplusreinsuranceassumedfromanunaffiliatedcompany,as
809reportedinthepriorcalendaryearannualstatement.
810 (3)Adomesticcompanymeetingalloftheaboveconditionsmayfileastatement
811priortoJulyfirstwiththedirectorcertifyingthattheseconditionsaremetforthecurrent
812calendaryearbasedonpremiumsandothervaluesfromthepriorcalendaryearfinancial
813statements.ThedirectormayrejectsuchstatementpriortoSeptemberfirstandrequirea
814companytocomplywiththevaluationmanualrequirementsforlifeinsurancereserves.]
376.1800.1.Asusedinthissection,thefollowingtermsshallmean:
CCSSSSCSHCSHB2168 39 2 (1)"Medicalretaineragreement",acontractbetweena[physician] providerandan
3individualpatientorsuchindividualpatient'slegalrepresentativeinwhichthe[physician]
4provideragreestoprovidecertainhealthcareservicesdescribedintheagreementtothe
5individualpatientforanagreed-uponfeeandperiodoftime;
6 (2)["Physician"] "Provider", achiropractorlicensedunderchapter331,a
7dentistlicensedunderchapter332,oraphysicianlicensedunderchapter334.[Physician]
8Providerincludesanindividual[physician] provideroragroupof[physicians] providers.
9 2.Amedicalretaineragreementisnotinsuranceandisnotsubjecttothischapter.
10Enteringintoamedicalretaineragreementisnotthebusinessofinsuranceandisnotsubject
11tothischapter.
12 3.A[physician] provideroragentofa[physician] providerisnotrequiredtoobtain
13acertificateofauthorityorlicenseunderthissectiontomarket,sell,oroffertosellamedical
14retaineragreement.
15 4.Tobeconsideredamedicalretaineragreementforthepurposesofthissection,the
16agreementshallmeetallofthefollowingrequirements:
17 (1)Beinwriting;
18 (2)Besignedbythe[physician] provideroragentofthe[physician] providerand
19theindividualpatientorsuchindividualpatient'slegalrepresentative;
20 (3)Alloweitherpartytoterminatetheagreementonwrittennoticetotheotherparty;
21 (4)Describethespecifichealthcareservicesthatareincludedintheagreement;
22 (5)Specifythefeefortheagreement;
23 (6)Specifytheperiodoftimeundertheagreement;and
24 (7)Prominentlystateinwritingthattheagreementisnothealthinsurance.
25 5.(1)Foranypatientwhoentersintoamedicalretaineragreementunderthissection
26andwhohasestablishedahealthsavingsaccount(HSA)incompliancewith26U.S.C.
27Section223,orwhohasaflexiblespendingarrangement(FSA)orhealthreimbursement
28arrangement(HRA),feesunderthepatient'smedicalretaineragreementmaybepaidfrom
29suchhealthsavingsaccountorreimbursedthroughsuchflexiblespendingarrangementor
30healthreimbursementarrangement,subjecttoanyfederalorstatelawsregardingqualified
31expendituresfromahealthsavingsaccount,orreimbursementthroughaflexiblespending
32arrangementorahealthreimbursementarrangement.
33 (2)Theemployerofanypatientdescribedinsubdivision(1)ofthissubsectionmay:
34 (a)Makecontributionstosuchpatient'shealthsavingsaccount,flexiblespending
35arrangement,orhealthreimbursementarrangementtocoveralloranyportionoftheagreed-
36uponfeesunderthepatient'smedicalretaineragreement,subjecttoanyfederalorstate
37restrictionsoncontributionsmadebyanemployertoahealthsavingsaccount,or
CCSSSSCSHCSHB2168 40 38reimbursementthroughaflexiblespendingarrangement,orhealthreimbursement
39arrangement;or
40 (b)Paytheagreed-uponfeesdirectlytothe[physician] providerunderthemedical
41retaineragreement.
42 6.Nothinginthissectionshallbeconstruedasprohibiting,limiting,orotherwise
43restrictinga[physician] providerinacollaborativepracticearrangementfromenteringintoa
44medicalretaineragreementunderthissection.
379.011.1.Asusedinthissection,thefollowingtermsmean:
2 (1)"Deliveredbyelectronicmeans",includesdeliverytoanelectronicmailaddressat
3whichapartyhasconsentedtoreceivenoticesordocuments,orpostingonanelectronic
4networkorsiteaccessibleviatheinternet,mobileapplication,computer,mobiledevice,
5tablet,oranyotherelectronicdevice,togetherwithaseparatenoticetoapartydirectedtothe
6electronicmailaddressatwhichthepartyhasconsentedtoreceivenoticeoftheposting;
7 (2)"Party",anyrecipientofanynoticeordocumentrequiredaspartofaninsurance
8transaction,includingbutnotlimitedtoanapplicant,aninsuredorapolicyholder.
9 2.Subjecttosubsection3ofthissection,anynoticetoapartyoranyotherdocument
10requiredunderapplicablelawinaninsurancetransactionorthatistoserveasevidenceof
11insurancecoveragemaybedelivered,stored,andpresentedbyelectronicmeanssolongasit
12meetstherequirementsofsections432.200to432.295.Deliveryofanoticeordocumentin
13accordancewiththissubsectionshallbeconsideredequivalenttoanydeliverymethod
14requiredunderapplicablelaw,includingdeliverybyfirstclassmail,firstclassmailpostage
15prepaid,certifiedmail,orcertificateofmailing.
16 3.Anoticeordocumentmaybedeliveredbyelectronicmeansbyaninsurertoa
17partyunderthis[subsection] sectionif:
18 (1)Thepartyhasaffirmativelyconsentedtothatmethodofdeliveryandhasnot
19withdrawntheconsent;
20 (2)Theparty,beforegivingconsent,isprovidedwithaclearandconspicuous
21statementinformingthepartyof:
22 (a)Anyrightoroptiontohavethenoticeordocumentprovidedinpaperoranother
23nonelectronicformatnoadditionalcost;
24 (b)Therightofthepartytowithdrawconsenttohaveanoticeordocumentdelivered
25byelectronicmeans;
26 (c)Whethertheparty'sconsentappliesonlytotheparticulartransactionastowhich
27thenoticeordocumentmustbegivenortoidentifiedcategoriesofnoticesordocumentsthat
28maybedeliveredbyelectronicmeansduringthecourseoftheparties'relationship;
29 (d)Themeans,afterconsentisgiven,bywhichapartymayobtainapapercopyofa
30noticeordocumentdeliveredbyelectronicmeansatnoadditionalcost;and
CCSSSSCSHCSHB2168 41 31 (e)Theprocedureapartymustfollowtowithdrawconsenttohaveanoticeor
32documentdeliveredbyelectronicmeansandtoupdateinformationneededtocontactthe
33partyelectronically;
34 (3)Theparty,beforegivingconsent,isprovidedwithastatementofthehardwareand
35softwarerequirementsforaccesstoandretentionofanoticeordocumentdeliveredby
36electronicmeansandconsentselectronically,andconfirmsconsentelectronically,inamanner
37thatreasonablydemonstratesthatthepartycanaccessinformationintheelectronicformthat
38willbeusedfornoticesordocumentsdeliveredbyelectronicmeansastowhichthepartyhas
39givenconsent;and
40 (4)Afterconsentofthepartyisgiven,theinsurer,intheeventachangeinthe
41hardwareorsoftwarerequirementsneededtoaccessorretainanoticeordocumentdelivered
42inelectronicmeanscreatesamaterialriskthatthepartywillnotbeabletoaccessorretaina
43subsequentnoticeordocumenttowhichtheconsentapplies:
44 (a)Providesthepartywithastatementoftherevisedhardwareandsoftware
45requirementsforaccesstoandretentionofanoticeordocumentdeliveredbyelectronic
46meansandoftherightofthepartytowithdrawconsentpursuanttoparagraph(b)of
47subdivision(2)ofthissubsection;and
48 (b)Complieswithsubdivision(2)ofthissubsection.
49 4.Notwithstandinganyotherprovisionsofthissection,ifapolicyofinsuranceis
50purchaseddirectlythroughaninsurer'swebsite,portal,orapplication,andisinitially
51deliveredbyelectronicmeans,aparty'sconsenttohaveallfuturenoticesand
52documentsrelatedtothepolicy,orclaimsthereunder,deliveredbyelectronicmeans
53shallbepresumed.Nothinginthissubsectionshallaffecttherightofapartyunderthis
54sectiontowithdrawitsconsenttohaveanoticeordocumentdeliveredbyelectronic
55means.
56 5.Thissectiondoesnotaffectrequirementsrelatingtocontentortimingofanynotice
57ordocumentrequiredunderapplicablelaw.Ifanyprovisionofapplicablelawrequiringa
58noticeordocumenttobeprovidedtoapartyexpresslyrequiresverificationor
59acknowledgmentofreceiptofthenoticeordocument,thenoticeordocumentmaybe
60deliveredbyelectronicmeansonlyifthemethodusedprovidesforverificationor
61acknowledgmentofreceipt.Absentverificationoracknowledgmentofreceiptoftheinitial
62noticeordocumentonthepartoftheparty,theinsurershallsendtwosubsequentnoticesor
63documentsatintervalsoffivebusinessdays.Thelegaleffectiveness,validity,or
64enforceabilityofanycontractorpolicyofinsuranceexecutedbyapartymaynotbemade
65contingentuponobtainingelectronicconsentorconfirmationofconsentofthepartyin
66accordancewithsubdivision(3)ofsubsection3ofthissection.
CCSSSSCSHCSHB2168 42 67 [5.]6.Awithdrawalofconsentbyapartydoesnotaffectthelegaleffectiveness,
68validity,orenforceabilityofanoticeordocumentdeliveredbyelectronicmeanstotheparty
69beforethewithdrawalofconsentiseffective.Awithdrawalofconsentbyapartyiseffective
70withinthirtydaysafterreceiptofthewithdrawalbytheinsurer.Failurebyaninsurerto
71complywithsubdivision(4)ofsubsection3ofthissectionmaybetreated,attheelectionof
72theparty,asawithdrawalofconsentforpurposesofthissection.
73 [6.]7.Thissectiondoesnotapplytoanoticeordocumentdeliveredbyaninsurerin
74anelectronicformbeforeAugust28,2013,toapartywho,beforethatdate,hasconsentedto
75receivenoticesordocumentsinanelectronicformotherwiseallowedbylaw.Iftheconsent
76ofapartytoreceivecertainnoticesordocumentsinanelectronicformisonfilewithan
77insurerbeforeAugust28,2013,andpursuanttothissection,aninsurerintendstodeliver
78additionalnoticesordocumentstosuchpartyinanelectronicform,thenpriortodelivering
79suchadditionalnoticesordocumentselectronically,theinsurershallnotifythepartyof:
80 (1)Thenoticesordocumentsthatmaybedeliveredbyelectronicmeansunderthis
81sectionthatwerenotpreviouslydeliveredelectronically;and
82 (2)Theparty'srighttowithdrawconsenttohavenoticesordocumentsdeliveredby
83electronicmeans.
84 [7.]8.Apartywhodoesnotconsenttodeliveryofnoticesordocumentsunder
85subsection3ofthissection,orwhowithdrawstheirconsent,shallnotbesubjecttoany
86additionalfeesorcostsforhavingnoticesordocumentsprovidedormadeavailabletothem
87inpaperoranothernonelectronicform.
88 [8.]9.Ifanyprovisionofapplicablelawrequiresasignatureornoticeordocumentto
89benotarized,acknowledged,verified,ormadeunderoath,therequirementissatisfiedifthe
90electronicsignatureofthepersonauthorizedtoperformthoseacts,togetherwithallother
91informationrequiredtobeincludedbytheprovision,isattachedtoorlogicallyassociated
92withthesignature,notice,ordocument.
93 [9.]10.Thissectionmaynotbeconstruedtomodify,limit,orsupercedethe
94provisionsofsections354.442,376.1450,or432.200to432.295.Theprovisionsofthis
95sectionshallapplytonoticesanddocumentsissuedbyinsurersorganizedunderthischapter
96orchapter380andtonoticesanddocumentsrelatingtolifeinsuranceproductsissuedby
97insurersorganizedunderchapter376.
98 [10.]11.Nothinginthissectionshallpreventaninsurerfromofferingadiscounttoan
99insuredwhoelectstoreceivenoticesanddocumentselectronicallyinaccordancewiththis
100section.
SectionB.Therepealandreenactmentofsection288.132andtheenactmentof
2section288.133shallbecomeeffectiveJanuary1,2023.
CCSSSSCSHCSHB2168 43 SectionC.Therepealandreenactmentofsections303.025and303.041shalltake
2effectonJanuary1,2024.
âś”
CCSSSSCSHCSHB2168 44