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



(1)  Grace period.  There shall be a grace period of
not fewer 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 at a rate to be specified in the contract, but not
exceeding six per cent a year, for the number of days elapsing before such
payment, during which period of grace the contract shall continue in full
force.  However, if a claim arises under the contract on account of death prior
to the expiration of the grace period and before the overdue payment to the
insurer of the deferred payments of the current contract year, if any, are
made, the amount of such payments, with interest on any overdue payments, may
be deducted from any amount payable under the contract in settlement.



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



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



(4)  Misstatement of age or sex.  If the age or sex of
the person or persons upon whose life or lives the contract is made, or of any
of them, has been misstated, the amount payable or benefit accruing under the
contract shall be such as the stipulated payment or payments to the insurer
would have purchased according to the correct age or sex; and that if the
insurer 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 contract
but not exceeding six per cent a year, may be charged against the current or
next succeeding payment to be made by the insurer under the contract.



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



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



(b)  Provisions of this section shall not apply
to:



(1)  Reversionary annuities or survivorship annuities;



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



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