§431:10D-105  Annuities and pure endowmentcontracts; standard provisions required.  (a)  No annuity or pure endowmentcontract shall be delivered or issued for delivery in this State unless itcontains in substance each of the provisions set forth below:

(1)  Grace period.  There shall be a grace period ofnot fewer than thirty days, within which any stipulated payment to the insurerfalling due after the first may be made, subject at the option of the insurer,to an interest charge at a rate to be specified in the contract, but notexceeding six per cent a year, for the number of days elapsing before suchpayment, during which period of grace the contract shall continue in fullforce.  However, if a claim arises under the contract on account of death priorto the expiration of the grace period and before the overdue payment to theinsurer of the deferred payments of the current contract year, if any, aremade, the amount of such payments, with interest on any overdue payments, maybe deducted from any amount payable under the contract in settlement.

(2)  Incontestability.  If any statements, other thanthose relating to age, sex, and identity, are required as a condition toissuing an annuity or pure endowment contract, subject to paragraph (4), thecontract shall be incontestable after it has been in force during the lifetimeof the person or of each of the persons as to whom such statements arerequired, for a period of two years from its date of issue, except fornonpayment of stipulated payments to the insurer.  At the option of theinsurer, the contract may also except any provisions relative to benefits inthe event of disability and any provisions that grant insurance specificallyagainst death by accident or accidental means.

(3)  Entire contract.  The contract shall constitutethe entire contract between the parties, or, if a copy of the application isendorsed upon or attached to the contract when issued, a provision that thecontract and the application therefor shall constitute the entire contract betweenthe parties.

(4)  Misstatement of age or sex.  If the age or sex ofthe person or persons upon whose life or lives the contract is made, or of anyof them, has been misstated, the amount payable or benefit accruing under thecontract shall be such as the stipulated payment or payments to the insurerwould have purchased according to the correct age or sex; and that if theinsurer makes or has made any overpayment on account of any such misstatement,the amount thereof, with interest at the rate to be specified in the contractbut not exceeding six per cent a year, may be charged against the current ornext succeeding payment to be made by the insurer under the contract.

(5)  Dividends.  In participating contracts theinsurer shall annually ascertain and apportion any divisible surplus accruingon the contract except that at the option of the insurer the participation maybe deferred to the end of the third contract year.

(6)  Reinstatement.  The contract may be reinstated atany time within one year from the date of default in making stipulated paymentsto the insurer, unless the cash surrender value has been paid, but all overduestipulated payments and any indebtedness to the insurer on the contract shallbe paid or reinstated, with interest thereon at a rate to be specified in thecontract but not exceeding six per cent a year compounded annually.  In caseswhere applicable, the insurer may also include a requirement of evidence ofinsurability satisfactory to the insurer.

(b)  Provisions of this section shall not applyto:

(1)  Reversionary annuities or survivorship annuities;

(2)  Contracts for annuities included in, or upon thelives of beneficiaries under, life insurance policies; or

(3)  Single premium annuities or single premium pureendowment contracts. [L 1987, c 347, pt of §2; am L 2004, c 122, §46]