376.422. Direct response solicitation and sponsoring or endorsing entity, defined--certain group or individual insurers paying compensation to policyholder or sponsoring entity to notify policyholders
Direct response solicitation and sponsoring or endorsing entity,defined--certain group or individual insurers paying compensation topolicyholder or sponsoring entity to notify policyholders.
376.422. 1. As used in this section, the following termsshall mean:
(1) "Direct response solicitation", a solicitation through asponsoring or endorsing entity or through the mails, telephone,or other mass communications medium;
(2) "Sponsoring or endorsing entity", an organization whichhas arranged for the offering of a program of insurance in amanner which communicates that eligibility for participation inthe program is dependent upon affiliation with such organizationor that it endorses participation in the program.
2. With respect to a program of insurance, whether issued onan individual basis or a group basis, which would not qualifyunder subdivisions (1), (2), (3), (4) and (6) of subsection 1 ofsection 376.421, if issued on a group basis, if compensation ofany kind will or may be paid to a policyholder in the case of agroup policy, or a sponsoring or endorsing entity in the case ofindividual, blanket or franchise policies marketed by means ofdirect response solicitation, the insurer shall cause to bedistributed to prospective insureds a written notice thatcompensation will or may be paid. Such notice shall bedistributed whether compensation is direct or indirect andwhether such compensation is paid to or retained by thepolicyholder or sponsoring or endorsing entity or paid to orretained by a third party at the direction of the policyholder orsponsoring or endorsing entity or any entity affiliated therewithby way of ownership, contract or employment. The notice requiredby this subsection shall be placed on or shall accompany anyapplication or enrollment form provided prospective insureds.
(L. 1985 H.B. 623)