Hospital Indemnity Contracts Not Affected by Government Hospital

PURPOSE: This rule prohibits insurers from refusing to pay benefits under certain contracts because of hospitalization in government hospitals and was promulgated pursuant to the provisions of section 374.045, RSMo and implements sections 376.405 and 376.777, RSMo. (1) The term hospital indemnity policy includes all insurance contracts, riders or forms supplementary to them, where the contingency insured against is loss of time due to or resulting from hospitalization, with cash benefits derived being payable daily, weekly or monthly or in any other manner. (2) No policy, rider endorsement or other form supplemental to them will be approved for sale in this state, if the policy or form excludes any indemnity payments for time spent in a veterans’ or any other government-sponsored or supported hospital. Nor shall indemnity benefits be reduced or altered because of confinement in a government-sponsored or supported institution which otherwise meets the definition of hospital in the contract. Existing contracts excluding indemnity payments shall be disapproved for sale in Missouri until the exclusion is deleted. Disapprovals of policies under this rule shall be effected as provided in section 376.405 or 376.777(7), RSMo (1986). AUTHORITY: sections 374.045, 376.405 and 376.777, RSMo 1986.* This rule was previously filed as 4 CSR 190-14.030. Original rule filed June 22, 1970, effective July 2, 1970. Amended: Filed Dec. 20, 1974, effective Dec. 30, 1974. *Original authority: 374.045, RSMo 1967; 376.405, RSMo 1959; and 376.777, RSMo 1959, amended 1984.