§ 26-16-119 — Provisions limiting liability in life insurance policies prohibited; exceptions

(a) No life insurance policy shall be delivered or issued
for delivery in this state if it contains any provision:
(i) Limiting the time within which an action at law
or in equity may be commenced on the policy to less than three
(3) years after the cause of action has accrued;
(ii) Which excludes or restricts liability for death
caused in a certain specified manner or occurring while the
insured has a specified status, except that a policy may contain
provisions excluding or restricting coverage as specified
therein in case of death under any of the following
circumstances:
(A) Death as a result, directly or indirectly,
of war, declared or undeclared, or of any act or hazard of a war
or action;
(B) Death as a result of aviation or any air
travel or flight;
(C) Death as a result of a specified hazardous
occupation. Service in the military, naval or air forces or in
civilian forces auxiliary thereto shall not be a specified
hazardous occupation under this subparagraph;
(D) Death while the insured is a resident
outside [the] continental United States and Canada; or
(E) Death within two (2) years from the date of
issue of the policy as a result of suicide, while sane or
insane.
(b) A policy which contains any exclusion or restriction
pursuant to subsection (a) of this section shall also provide
that in case of death under the circumstances to which the
exclusion or restriction applies, the insurer shall pay an
amount not less than a reserve determined according to the
commissioners' reserve valuation method upon the basis of the
mortality table and interest rate specified in the policy for
the calculation of nonforfeiture benefits, or if the policy does
not provide for such benefits, computed according to a mortality
table and interest rate determined by the insurer and specified
in the policy, with adjustment for indebtedness or dividend
credit.
(c) This section does not apply to group life insurance,
disability insurance, reinsurance or annuities, or to any
provision in a life insurance policy or contract supplemental
thereto relating to disability benefits or to additional
benefits in case of death by accident or accidental means.
(d) Nothing in this section prohibits any provision which
in the commissioner's opinion is more favorable to the
policyholder than a provision permitted by this section.