Prohibitions and Restrictions OnCertain Type Life Insurance And Annuity

Prohibitions and Restrictions OnCertain Type Life Insurance And Annuity Policies 1.01.1: Profit- Sharing Policies A. No policy shall be sold or approved for use in Mississippi after the effective date of these rules which provides that the policyholder will be eligible to participate in any future distribution of general corporate profit or that the policyholder will receive any special advantage not available to all persons of the same class holding all other participating types of policies which have been issued and which may be issued by the company. B. This section is not intended to restrict or prohibit the sale in this State of policies both of the participating and non-participating type. C. The phrase “same class” which appears in this section and in Chapter II is defined to relate only to those recognized underwriting classifications such as age, occupation, sex, health or similar groupings which have a direct bearing upon expectation of life of the person so classified and it shall not include any classification based in anywise upon the date of purchase or the name given bythe company to the policy purchased by any particular policyholder or group of policyholders. 1.01.2: Coupon Policies OrPolicies With Pure Endowment Benefits No policy containing more than one pure endowment benefit (whether or not evidenced by coupons, passbooks or other material generally identified with savings, banking or investment institutions) shall be sold or approved for sale in Mississippi after the effective date of these rules, unless it meets the following requirements: A. Contains, clearly and prominently displayed on the face of the policy contract, a statement that the premium includes an extra charge for the coupon (or pure endowment, whichever is applicable) benefits. B. The amount of each of the pure endowment benefits shall be separately expressed in dollar amounts and not as percentage of any premium or benefit. C. Payment of any pure endowment benefits shall not be made contingent upon payment of premiums falling due after the policy year in which the pure endowment benefit has matured. D. Participating policies shall be permitted to contain coupons or pure endowment benefits only if they conform to the requirements of Paragraphs 2 (a) and (b). E. The terminology and language of a policy which has one or more pure endowment benefits therein, shall not purport to represent the pure endowmentbenefit of the policy to be anything other than a guaranteed insurance benefit for which a premiumis being paid by the policyholder, and such endowment shall not be referred to as a dividend. F. This section shall not apply to any policy in which the amount of any pure endowment or periodic benefit or benefits actually due and payable during any policy year is greater than the total annual premium on the policy for such years. 1.01.3: Certain Other Special Policies A. No policy shall be sold or approved for use in Mississippi after the effectivedate of these rules which provides that any part of the company profits, premiums, dividends, excess interest, savings on mortality, loadings, lapses, or the earnings and or accumulations therefrom are to be payable only to those of a group of policyholders who live and persist in premium payments to the end of a period of time stated in the policy, or to those of a group of policyholders who live and persist in premium payments to the end of such stated period of time and the beneficiaries of those who die prior theretowhile their policies are in force. The purpose of the foregoing provision is to emphasize and implement Section 5642, Mississippi Code of 1942. B. No policy shall be sold or approved for use in Mississippi after the effective date of these rules which uses a policy name which implies or may be reasonably construed as implying that only a limited number of persons or some limited grouping or classification of persons will be eligible to buy such policy unless the limitation is related toage, occupation, health, sex or some other classification which recognized underwriting practices indicate is directly related to expectation of life.