§ 27-4-6.2. Individual life insurance policy standard provisions.
(a) All individual life insurance policies, except as otherwise stated herein, delivered
or issued for delivery in this state on or after January 1, 2008, shall contain in
substance the following provisions, or provisions that the director deems to be more
favorable to policyholders:
(1) Grace period. A provision that, after payment of the first premium, the policyholder is entitled
to a grace period of thirty-one (31) days or of one month following any subsequent
premium due date within which to make payment of the premium then due, during which
grace period the policy shall continue in full force, and the policy shall further
provide that if the death of the insured occurs within the grace period provided in
the policy, the insurer may deduct from the policy proceeds the portion of any unpaid
premium applicable to the period ending with the last day of the policy month in which
such death occurred, and if the death of the insured occurs during a period for which
the premium has been paid, the insurer shall add to the policy proceeds a refund of
any premium actually paid for any period beyond the end of the policy month in which
such death occurred, provided such premium was not waived under any policy provision
for waiver of premiums benefit. This subsection shall not apply to single premium
or paid-up policies.
(2) Incontestability. A provision that the policy shall be incontestable after being in force during the
lifetime of the insured for a period of two (2) years from its date of issue, and
that, if the policy provides that the death benefit provided by the policy may be
increased, or other policy provisions changed, upon the application of the policyholder
and the production of evidence of insurability, the policy with respect to each such
increase or change shall be incontestable after two (2) years from the effective date
of such increase or change, except in each case for nonpayment of premiums. At the
option of the insurer, provisions relating to benefits for total and permanent disability
and additional benefits for accidental death may be excepted.
(b) Individual life insurance policies delivered or issued for delivery in this state
on or after January 1, 2008, may contain in substance the following provision, or
a provision that the director deems to be more favorable to policyholders: Suicide
— a provision that excludes death from suicide, sane or insane. The suicide exclusion
period for the initial coverage shall not exceed two (2) years from the date of issue
of the policy. The policy may allow a separate suicide period, no greater than two
(2) years from the date of any increase, for any increase in specified amount that
was requested by the owner and subject to evidence of insurability. The suicide limitation
shall be limited to the amount of the increase. At a minimum, a refund of all premiums
paid, less dividends paid, any indebtedness and any partial withdrawals, shall be
paid by the company in the event of death by suicide during the initial suicide exclusion
period. For each increase in specified amount, the settlement for suicide shall be
the return of all premium paid, reduced as specified above for the initial coverage,
applicable to the increased amount.