§431:10D-108  Limitation of liability. (a)  No policy of life insurance shall be delivered or issued for delivery inthis State if it contains a provision limiting to less than three years thetime within which an action at law or in equity may be commenced after thecause of action shall accrue.

(b)  No policy of life insurance shall bedelivered or issued for delivery in this State if it contains a provision whichexcludes or restricts liability for death caused in a certain specified manneror occurring while the insured has a specified status, except that the policymay contain provisions excluding or restricting coverage as specified thereinin event of death under any one or more of the following circumstances:

(1)  Death as a result directly or indirectly of war,declared or undeclared, or of any act or hazard of such war;

(2)  Death as a result of aviation under conditionsspecified in the policy;

(3)  Death as a result of a specified hazardousoccupation or occupations;

(4)  Death while the insured is a resident outside ofthe United States and Canada; or

(5)  Death within two years from the date of issue ofthe policy as a result of suicide, while sane or insane.

(c)  A policy which contains any exclusion orrestriction pursuant to subsection (b) shall also provide that in the event ofdeath under circumstances to which any such exclusion or restriction isapplicable, the insurer will pay an amount not less than a reserve determinedaccording to the valuation method prescribed in the minimum standard requiredby law upon the basis of the mortality table and interest rate specified in thepolicy for the calculation of nonforfeiture benefits (or if the policy providesno such benefits, computed according to a mortality table and interest ratedetermined by the insurer and specified in the policy) with adjustment forindebtedness or dividend credit.

(d)  This section shall not apply to annuitiesand pure endowment contracts, or to any provision of a life insurance policyrelating to disability benefits or to additional benefits in the event of deathby accident or accidental means.

(e)  An insurer may specify conditionspertaining to subsections (a), (b) and (c) which in the commissioner's opinionare more favorable to the policyholder. [L 1987, c 347, pt of §2]