Act not applicable, when
Insurance companies can give money back to their customers through dividends or savings. This is allowed and not treated as a pricing system. But the company cannot make that money conditional — meaning they cannot tell a customer they will only get the money back if the customer renews their policy. Doing that is considered an unfair business practice.
287.932. Act not applicable, when — s, when. — 1. Nothing in sections 287.930 to 287.975 prohibits or regulates the payment of s, savings or unabsorbed allowed or returned by insurers to their , members or , but in the payment of such dividends there shall be no unfair discrimination between policyholders.
2. A plan for the payment of dividends, savings or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members or subscribers shall not be considered a .
3. It shall be an unfair trade practice sections 375.934 and 375.936 to make the payment of a dividend or any portion thereof upon renewal of the policy or contract.
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Source & history notes
(L. 1993 S.B. 251 § 18) Effective 1-01-94
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