20-1225. Standard provisions required in
reversionary annuities
A. Except as stated herein, no contract for a reversionary annuity shall be
delivered or issued for delivery in this state unless it contains in substance each of
the following provisions:
1. The reversionary annuity contract shall contain the provisions specified in
sections 20-1219, 20-1220, 20-1221, 20-1222 and 20-1223, except that under section
20-1219 the insurer may at its option provide for an equitable reduction of the amount of
the annuity payments in settlement of an overdue or deferred payment in lieu of providing
for deduction of such payments from an amount payable upon settlement under the contract.
2. In reversionary annuity contracts there shall be a provision that the contract
may be reinstated at any time within three years from the date of default in making
stipulated payments to the insurer, upon production of evidence of insurability
satisfactory to the insurer, and upon condition that all overdue payments and any
indebtedness to the insurer on account of the contract be paid, or, within the limits
permitted by the then cash values of the contract, reinstated, with interest as to both
payments and indebtedness at a rate to be specified in the contract but not exceeding six
per cent per annum compounded annually.
B. This section shall not apply to group annuities or to annuities included in life
insurance policies, and any such provisions not applicable to single premium annuities
shall not to that extent be incorporated therein.
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