Effective 28 Aug 1939

377.270. Limited payment policies — reserve — deposit. — 1. Any corporation, company or association transacting business under the provisions of sections 377.200 to 377.460 may issue limited payment or any form of investment policies; provided, that the premiums shall not be less than the net term rate for the kind of policy issued, increased by such sum as will, improved at four percent, equal the net single premium for the attained age, at the end of the paying term of the policy, according to the actuaries' or combined experience table of mortality on which its calculations are based.

2. Said increase of premium shall be reserved in a separate fund for the purpose of sustaining such policies after the cessation of premium payments, and shall be deposited with the department of commerce and insurance in such securities as are now required by law.

3. If any such corporation doing business under the provisions of sections 377.200 to 377.460 shall fail to state in its limited payment policies the portion of each of the premiums to be held by it for the purpose of sustaining the policy after the years during which the premiums are to be paid, then all such limited payment policies or investment policies that may be issued shall be valued according to the actuaries' or combined experience table and interest at four percent.

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(RSMo 1939 § 5876)

Prior revisions: 1929 § 5765; 1919 § 6175; 1909 § 6969

(1954) Where stipulated premium company took over assets and assumed liabilities of former funeral benefit societies, the membership and benefit certificates originally issued by such societies became limited payment life insurance policies with § 377.270 and company was required to maintain account and reserves for each such certificate in the same manner as if the certificate was originally issued by the stipulated premium company. Old Reliable Soc. v. Leggett, 364 Mo. 630, 265 S.W.2d 302.

(1968) Reserves deposited by insurance company with the superintendent of insurance for the benefit of policyholders are not included in the language "par value of its outstanding shares and surplus" contained in the franchise tax law and are not to be included in the computation of franchise tax liability of insurance companies. American Life and Accident Insurance Co. v. Love (Mo.), 431 S.W.2d 177.