20-1348. Reinstatement
A. There shall be a provision as follows: "Reinstatement: If any renewal premium
is not paid within the time granted the insured for payment, a subsequent acceptance of
premium by the insurer or by any agent duly authorized by the insurer to accept such
premium, without requiring in connection therewith an application for reinstatement,
shall reinstate the policy, provided, however, that if the insurer or such agent requires
an application for reinstatement and issues a conditional receipt for the premium
tendered, the policy will be reinstated upon approval of such application by the insurer
or, lacking such approval, upon the forty-fifth day following the date of such
conditional receipt unless the insurer has previously notified the insured in writing of
its disapproval of such application. The reinstated policy shall cover only loss
resulting from such accidental injury as may be sustained after the date of reinstatement
and loss due to such sickness as may begin more than ten days after such date. In all
other respects the insured and insurer shall have the same rights thereunder as they had
under the policy immediately before the due date of the defaulted premium, subject to any
provisions endorsed hereon or attached hereto in connection with the reinstatement. Any
premium accepted in connection with a reinstatement shall be applied to a period for
which premium has not been previously paid, but not to any period more than sixty days
prior to the date of reinstatement."
B. The last sentence of the provision set forth in subsection A of this section may
be omitted from any policy which the insured has the right to continue in force subject
to its terms by the timely payment of premiums until at least age fifty or, in the case
of a policy issued after age forty-four for at least five years from its date of issue.
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