MEMORANDUM

DISCUSSION:

The cash surrender value for life insurance and pre-need burial plans must be verified at application and reinvestigation with specific exceptions. See memorandum IM-9 dated January 27, 2017 for exceptions to verifying at reinvestigation. Do not use the table values included in some policies as the only source of verification.

Request the verification from the applicant/participant. If the applicant/participant states they cannot obtain the information from the financial institution offer the:

• IM-9 Insurance and Prepaid Burial Letter,
• FA-306 Prepaid Burial Information Request, or
• FA-307 Life Insurance Information Request.

The signed form is then sent to the insurance or pre-need company for completion.

If the participant requests the form be mailed to them for their signature, send with the FA325 or IM31A. If they fail to return the signed form, or verification of the cash surrender value, the application is rejected or the active case closed.

If the form is signed, sent to the insurance or pre-need company, and not returned, send a second request (FA325 or IM31A) to the applicant/participant advising that FSD has been unable to obtain the verification and it is their responsibility to obtain the information. Allow an addition 10 days for its return. The FA325 or IM31A must specifically state what is needed.

EXAMPLE: ABC Insurance Company has not returned the verification concerning the cash surrender value of your policy # 12345. In order to complete your application/reinvestigation you must provide verification of the cash surrender value of your ABC Life Insurance policy #12345, by the date listed above.

MO HealthNet for the Aged, Blind and Disabled applications do not require a second request for information unless part of the information requested on the first request for information is returned, but not all of it.

NECESSARY ACTION:

• Review this memorandum with appropriate staff.

PL/vb