Missouri Life Insurance Policy Requirements

Missouri law imposes specific requirements on life insurance policies sold in the state. These requirements protect consumers and ensure policy standardization under Missouri Revised Statutes Chapter 376.

Regulatory Authority

The Missouri Department of Commerce and Insurance (DCI) regulates all insurance in Missouri:

• Licenses insurance producers
• Reviews and approves policy forms
• Investigates consumer complaints
• Enforces insurance laws and regulations
• Administers continuing education requirements

Free Look Period

Missouri provides a 10-day free look period for life insurance policies:

During the free look period, the policyholder can:

• Review the policy
• Return it for a full refund of premiums paid
• Cancel without penalty or fees
• The period begins on the date of delivery of the policy

Exam Tip: Missouri provides an extended 20-day free look for replacement policies, longer than the standard 10-day period.

Incontestability Clause

Missouri requires a 2-year incontestability clause in all life insurance policies:

• After 2 years from issue, the insurer cannot contest the policy based on misstatements in the application
• Exceptions: Fraud, non-payment of premiums, or violation of policy conditions
• The clause protects beneficiaries from having claims denied due to application errors

Missouri Specific Rules

• Incontestability period begins from the issue date
• If policy lapses and is reinstated, a new 2-year period begins
• Material misrepresentation of age may result in benefit adjustment

Suicide Clause

Missouri limits the suicide exclusion:

• Suicide exclusion cannot exceed 2 years from policy issue
• After 2 years, death by suicide is covered as any other death
• If policy is reinstated, new 2-year period may apply
• Accidental death benefits may have separate rules

Grace Period Requirements

Missouri requires a 31-day grace period for premium payments on life insurance policies:

Key Points

• Policy remains in force during the grace period
• If death occurs during grace period, benefits are paid minus any due premium
• Policy cannot be cancelled solely for late payment during grace period
• After grace period expires, policy may lapse

Standard Policy Provisions

Missouri life insurance policies must include:

Required Provisions

Beneficiary Protections

Missouri provides beneficiary protections:

Death Benefit Protections

• Proceeds generally exempt from creditors of the insured
• Beneficiary designations must be honored as specified
• Insurers must make good-faith efforts to locate beneficiaries

Missouri Life and Health Insurance Guaranty Association

If an insurer becomes insolvent:

• Death benefits protected up to $300,000
• Cash surrender values protected up to $100,000
• Beneficiaries can file claims with the guaranty association

Policy Delivery Requirements

Missouri requires:

• Policy must be delivered to the policyholder
• Free look notice must be prominently displayed
• All riders and endorsements must be attached
• Premium due notices must be provided