20-1219. Grace period in annuities
In an annuity or pure endowment contract, other than a reversionary, survivorship or
group annuity, there shall be a provision that there shall be a period of grace of one
month, but not less than thirty days, within which any stipulated payment to the insurer
falling due after the first may be made, subject at the option of the insurer to an
interest charge thereon at a rate to be specified in the contract but not exceeding six
per cent per annum for the number of days of grace elapsing before payment, during which
period of grace the contract shall continue in full force, but in case a claim arises
under the contract on account of death prior to expiration of the period of grace before
the overdue payment to the insurer or the deferred payments of the current contract year,
if any, are made, the amount of the payments, with interest on any overdue payments, may
be deducted from any amount payable under the contract in settlement.
|