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 , 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 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
Related Missouri laws
Definitions
RSMo 287.930
Insurer and advisory organization not to make agreement restraining trade
RSMo 287.935
Director may conduct examinations
RSMo 287.937
Penalties for violations, director may impose
RSMo 287.940
Effective date
RSMo 287.922
Competitive market presumed to exist, when
RSMo 287.942
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