§ 10-7-102 — Life insurance policies - requirements

Colorado § 10-7-102

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Life Insurance

Text

(1) It is unlawful for any
foreign or domestic life insurance company to issue or deliver in this state any life
insurance policy unless the policy contains the following provisions:

(a) A provision that all premiums shall be payable in advance, either at the
home office of the company or to an agent of the company, upon delivery of a
receipt signed by one or more of the duly authorized officers, unless the first
payment is set forth in the policy, in which case the policy itself shall be a receipt;

(b) A provision that the policy shall constitute the entire contract between
the parties and shall be incontestable after it has been in force during the lifetime
of the insured for two years from its date, except for nonpayment of premiums and
except for violation of the conditions of the policy relating to naval and military
service in time of war or other prohibited risks, and, at the option of the company,
provisions relative to benefits in the event of total and permanent disability and
provisions which grant additional insurance specifically against death by accident
may also be excepted;

(c) A provision that no statement made by the insured shall avoid the policy
unless it is contained in a written application and a copy of such application is
endorsed upon or attached to the policy when issued;

(d) A provision that, if the age of the insured is misstated, the amount
payable under the policy shall be such as the premium would have purchased at the
correct age;

(e) A provision which fulfills the requirements of section 10-3-205. This
provision shall not be required in nonparticipating policies.

(f) As to any policy issued prior to the operative date of the Standard
Nonforfeiture and Valuation Act, a provision fulfilling the requirements of section
10-7-107; except that such provision is not required in term insurance of twenty
years or less; as to any policy issued on or after the operative date of the Standard
Nonforfeiture and Valuation Act, provisions which fulfill the provisions of sections
10-7-302 to 10-7-307;

(g) A table showing in figures the loan values, if any, and the options
available under the policies each year upon default in premium payments, during at
least the first twenty years of the policy or during the life of the policy, if less than
twenty years, beginning with the year in which such values and options become
available;

(h) A table showing the amounts of installments in which the policy provides
its proceeds are payable;

(i) A provision for a grace of one month, not less than thirty days, for the
payment of every premium after the first year which is subject to an interest
charge, during which month the insurance shall continue in force; but if the insured
dies within the month of grace, the unpaid premium for the current policy year may
be deducted in any settlement under the policy;

(j) If a policy is advertised or marketed as a means of payment of final
expenses for final disposition or funeral merchandise or services other than
according to the provisions of article 15 of this title 10, the policy must state in
predominate type:

THIS POLICY DOES NOT GUARANTEE THAT ITS PROCEEDS WILL BE
SUFFICIENT TO PAY FOR ANY PARTICULAR SERVICES OR MERCHANDISE AT
TIME OF NEED OR THAT SERVICES OR MERCHANDISE SHALL BE PROVIDED BY
ANY PARTICULAR PROVIDER.

(2) Any of the provisions of subsection (1) of this section or portions thereof
relating to premiums not applicable to single premium policies shall to that extent
not be incorporated therein.

Legislative History

Source: L. 13: p. 350, � 43. C.L. � 2516. L. 27: p. 449, � 1. CSA: C. 87, � 57. CRS 53: � 72-3-4. L. 61: p. 465, � 10. C.R.S. 1963: � 72-3-4. L. 95: (1)(j) added, p. 1046, � 2, effective May 25. L. 2021: IP(1) and (1)(j) amended, (SB 21-006), ch. 123, p. 489, � 4, effective September 7.