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



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



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



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



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



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



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



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



(8)  Reinstatement.  The policy be reinstated at any
time 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 any
extended insurance provided by the policy has expired, upon evidence of
insurability, including good health, satisfactory to the insurer and the
payment of all overdue premiums, and payment (or, within the limits permitted
by the then cash values of the policy, reinstatement) of any other indebtedness
to the insurer upon the policy with interest as to both premiums and
indebtedness at a rate not exceeding six per cent a year compounded annually;



(9)  Payment of claims.  When the policy becomes a
claim by the death of the insured, settlement shall be made upon surrender of
the policy and receipt of due proof of death, or after a specified period not
exceeding two months after the surrender and receipt of proof; provided,
however, an insurer is also permitted to require that the premium receipt book
be delivered to it prior to settlement;



(10)  Authority to alter contract.  There shall be a
provision 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 the
option of the insurer, the terms or conditions may be changed by an endorsement
signed by a duly authorized officer of the insurer;



(11)  Conversion; weekly premium policies.  In the case
of weekly premium policies granting, upon proper written request and upon
presentation of evidence of the insurability of the insured satisfactory to the
insurer, the privilege of converting the insured's weekly premium industrial
insurance to any form of life insurance with less frequent premium payments
regularly issued by the insurer, in accordance with terms and conditions agreed
upon with the insurer.  The privilege of making the conversion need be granted
only 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 death
benefits and exclusive of any dividend additions, in an amount not less than
the minimum amount of the insurance with less frequent premium payments issued
by the insurer at the age of the insured on the plan of industrial or ordinary
insurance desired; and



(12)  Conversion; monthly premium policies.  In the
case of monthly premium industrial policies, granting, upon written request and
upon presentation of evidence of the insurability of the insured satisfactory
to the insurer, the privilege of converting the insured's monthly premium
industrial insurance to any form of ordinary life insurance regularly issued by
the insurer, in accordance with terms and conditions agreed upon with the
insurer.  The privilege of making the conversions need be granted only if the
insurer's monthly 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 death benefits and exclusive
of any dividend additions, in an amount not less than the minimum amount of
ordinary insurance issued by the insured at the age of the insured on the plan
of ordinary insurance desired. [L 1987, c 347, pt of §2; am L 2003, c 212, §88]