Mo. Code Regs. tit. 20 § 600-2.400
Current through Register Vol. 49, No. 24, December 16, 2024
Section 20 CSR 600-2.400 - Credit Dismemberment InsurancePURPOSE: This proposed amendment would replace a citation to 4 CSR 140-5.020 because that rule is now 20 CSR 1140-5.020. This proposed amendment would also clarify and remove unnecessary language which is provided for in the department's general examination recordkeeping regulations as well as to correct punctuation and spelling errors.
PURPOSE: This rule is designed to regulate the sale of credit dismemberment insurance. It makes the requirements concerning credit dismemberment insurance in 20 CSR 1140-5.020 of the rules of the Division of Finance applicable to all creditors.
(1) When accident and health insurance is sold, requisitioned, or accepted by any creditor in connection with any extension of credit, this insurance may be in the form prescribed in section 385.070(2), RSMo or in the form known as dismemberment insurance; under no circumstances may both types of accident and health insurance be sold in connection with the same extension of credit. If credit dismemberment insurance is sold, requisitioned, or accepted in connection with an extension of credit, this insurance is subject to the following requirements, restrictions, and qualifications: (A) Persons Insured. Credit dismemberment insurance may be written on no more than one (1) person on any contract;(B) Written Evidence of Coverage. The debtor must be provided with a copy of the dismemberment policy or certificate of insurance within thirty (30) days of the extension of credit;(C) Availability. The debtor must be able to purchase credit dismemberment insurance as a separate and distinct coverage if the debtor so desires. Credit dismemberment insurance which only may be purchased in conjunction with the purchase of some other form of insurance is not permitted;(D) Cancellation. Credit dismemberment insurance is subject to the refunding provisions as though it were credit life insurance issued pursuant to Chapter 385, RSMo and corresponding rules;(E) Insurance Not to Exceed Contract Terms. Credit dismemberment insurance may not exceed in amount the total indebtedness nor exceed the underlying contract in duration; and(F) Minimum Standards. Credit dismemberment insurance must provide for a total payoff of an underlying indebtedness in the event of loss of the sight of one (1) eye, loss of one (1) hand at or above the wrist, and/or loss of one (1) foot at or above the ankle; no restrictions shall be permitted, that is, full benefits must be payable on any dismemberment or blindness which occurs during the coverage. (2) Credit dismemberment insurance for which no identifiable charge is made to the debtor is exempt from this regulation. AUTHORITY: section 374.045, RSMo Supp. 1993 and Chapter 385, RSMo 1986.* This rule was previously filed as 4 CSR 190-22.070. Original rule filed Sept. 13, 1982, effective March 11, 1983. Amended by Missouri Register June 3, 2019/Volume 44, Number 11, effective 7/31/2019*Original authority: see Missouri Revised Statutes, 1986 and Cumulative Supplement to the Revised Statutes of Missouri, 1993.