§431:10D-305  Standard provisions required. No policy of industrial life insurance shall be issued or delivered unless itcontains in substance the provisions as required by this part, or provisionswhich in the opinion of the commissioner are at least as favorable to thepolicyholder.  There shall be a provision that:

(1)  Grace period.  The insured is entitled to a graceperiod of four weeks within which the payment of any premium after the firstmay be made, except that in policies the premiums for which are payablemonthly, the grace period shall be not less than thirty days; and that duringsuch period the policy shall continue in full force, but if during the graceperiod the policy becomes a claim, then any overdue and unpaid premiums may bededucted from any settlement under the policy;

(2)  Entire contract.  The policy shall constitute theentire contract between the parties, or, if a copy of the application isendorsed upon or attached to the policy when issued, the policy and theapplication therefor shall constitute the entire contract.  If the applicationis so made a part of the contract, the policy shall also provide that allstatements made by the applicant in the application shall, in the absence offraud, be deemed to be representations and not warranties;

(3)  Incontestability.  The policy shall beincontestable after it has been in force during the lifetime of the insured fora specific period not more than two years from its date of issue, except fornonpayment of premiums and except for provisions relative to benefits in theevent of total and permanent disability and provisions which grant additionalinsurance specifically against death by accident or accidental means;

(4)  Misstatement of age.  If it is found that the ageof the individual insured, or the age of any other individual considered indetermining the premium, has been misstated, any amount payable or benefitaccruing under the policy shall be such as the premium would have purchased atthe correct age or ages;

(5)  Participation.  If a participating policy, theinsurer shall annually ascertain and apportion any divisible surplus accruingon the policy.  This provision shall not prohibit the payment of additionaldividends on default of payment of premiums or termination of the policy;

(6)  Nonforfeiture benefits.  There shall be aprovision for nonforfeiture benefits as required by section 431:10D-104;

(7)  Cash surrender value.  There shall be a provisionfor a cash surrender value as required by section 431:10D-104;

(8)  Reinstatement.  The policy be reinstated at anytime within two years after the date of default in the payment of any premium,unless the policy has been surrendered for its cash value or the period of anyextended insurance provided by the policy has expired, upon evidence ofinsurability, including good health, satisfactory to the insurer and thepayment of all overdue premiums, and payment (or, within the limits permittedby the then cash values of the policy, reinstatement) of any other indebtednessto the insurer upon the policy with interest as to both premiums andindebtedness at a rate not exceeding six per cent a year compounded annually;

(9)  Payment of claims.  When the policy becomes aclaim by the death of the insured, settlement shall be made upon surrender ofthe policy and receipt of due proof of death, or after a specified period notexceeding two months after the surrender and receipt of proof; provided,however, an insurer is also permitted to require that the premium receipt bookbe delivered to it prior to settlement;

(10)  Authority to alter contract.  There shall be aprovision that no producer shall have the power or authority to waive, change,or alter any of the terms or conditions of any policy; except that, at theoption of the insurer, the terms or conditions may be changed by an endorsementsigned by a duly authorized officer of the insurer;

(11)  Conversion; weekly premium policies.  In the caseof weekly premium policies granting, upon proper written request and uponpresentation of evidence of the insurability of the insured satisfactory to theinsurer, the privilege of converting the insured's weekly premium industrialinsurance to any form of life insurance with less frequent premium paymentsregularly issued by the insurer, in accordance with terms and conditions agreedupon with the insurer.  The privilege of making the conversion need be grantedonly if the insurer's weekly premium industrial policies on the life insured,in force as premium paying insurance and on which conversion is requested,grant benefits in event of death, exclusive of additional accidental deathbenefits and exclusive of any dividend additions, in an amount not less thanthe minimum amount of the insurance with less frequent premium payments issuedby the insurer at the age of the insured on the plan of industrial or ordinaryinsurance desired; and

(12)  Conversion; monthly premium policies.  In thecase of monthly premium industrial policies, granting, upon written request andupon presentation of evidence of the insurability of the insured satisfactoryto the insurer, the privilege of converting the insured's monthly premiumindustrial insurance to any form of ordinary life insurance regularly issued bythe insurer, in accordance with terms and conditions agreed upon with theinsurer.  The privilege of making the conversions need be granted only if theinsurer's monthly premium industrial policies on the life insured, in force aspremium paying insurance and on which conversion is requested, grant benefits inevent of death, exclusive of additional accidental death benefits and exclusiveof any dividend additions, in an amount not less than the minimum amount ofordinary insurance issued by the insured at the age of the insured on the planof ordinary insurance desired. [L 1987, c 347, pt of §2; am L 2003, c 212, §88]