627.4035  Cash payment of premiums; claims.--

(1)  The premiums for insurance contracts issued in this state or covering risk located in this state shall be paid in cash consisting of coins, currency, checks, or money orders.

(2)  Subsection (1) is not applicable to:

(a)  Reinsurance agreements;

(b)  Pension plans;

(c)  Premium loans, whether or not subject to an automatic provision;

(d)  Dividends, whether to purchase additional paid-up insurance or to shorten the dividend payment period;

(e)  Salary deduction plans;

(f)  Preauthorized check plans;

(g)  Waivers of premiums on disability;

(h)  Nonforfeiture provisions affording benefits under supplementary contracts; or

(i)  Such other methods of paying for life insurance as may be permitted by the department pursuant to rule or regulation.

(3)  All payments of claims made in this state under any contract of insurance shall be paid in cash consisting of coins, currency, checks, drafts, or money orders and, if by check or draft, shall be in such form as will comply with the standards for cash items adopted by the Federal Reserve System to facilitate the sorting, routing, and mechanized processing of such items.