11066
. After the effective date of the amendments to this section
made during the 1995-96 Regular Session of the Legislature, no life
insurance benefit certificate may be delivered or issued for delivery
in this state unless a copy of the form, the application therefor,
and any attached endorsements or riders have been filed with the
commissioner in the same manner as policies, contracts, or
certificates of life insurance issued by stock or mutual insurers.
The certificate shall have a title clearly and correctly describing
its form on the face and filing back and shall contain in substance
the standard provisions listed below. However, the commissioner may
approve any form that in his or her opinion contains provisions
relating to any one or more of the following requirements that are
more favorable to insured members than the one or ones required here.
(a) A provision stating the amount of premiums that are payable
under the certificate, and a provision that the certificate holder
shall be obligated to pay, as a condition of the continuance in force
of the certificate, additional premiums imposed in accordance with
the constitution or laws of the society then in force or thereafter
lawfully enacted.
(b) A provision that the certificate holder is entitled to a grace
of not less than a full month (or 30 days at the option of the
society) in which the payment of any premium, after the first, may be
made, and that during the grace period, the certificate shall
continue in full force. However, the certificate may provide that in
case a loss occurs during the grace period before the overdue premium
is paid, the amount of the overdue premium or premiums may be
deducted in any settlement under the certificate.
(c) A provision that the certificate holder shall be entitled to
have the certificate reinstated at any time within three years from
the date of default in payment of premiums, unless the certificate
has been completely terminated through the application of a
nonforfeiture benefit, upon the production of evidence of
insurability and good health satisfactory to the society and the
payment of all overdue premiums and any other indebtedness to the
society upon the certificate, together with interest on the premiums
and indebtedness, if any, at a rate not exceeding 6 percent per annum
compounded annually. However, a society may provide for a minimum
interest payment of not exceeding ten cents ($0.10) for each month's
premium in arrears at the date of reinstatement, if the premiums do
not exceed 12 in number.
(d) A provision that, in the event of default in payment of any
premium after three full years' premiums have been paid, or after
premiums for a lesser period have been paid if the contract so
provides, the society will grant, upon proper request not later than
60 days after the due date of the premium in default, a nonforfeiture
benefit on the plan stipulated in the certificate, effective as of
the due date, of the value as specified in this chapter. This
subdivision does not apply to pure endowment, annuity or reversionary
annuity contracts, or term certificates of uniform amount, or
renewal thereof, of 15 years or less expiring before age 66, for
which uniform premiums are payable during the entire term of the
certificate, or term certificates of decreasing amount on which the
granting of a nonforfeiture benefit is not required in order to
comply with the minimum values specified in this chapter.
(e) A provision that one nonforfeiture benefit, as specified in
the certificate, in accordance with the requirements of subdivision
(d) above, shall become effective automatically unless the member
elects another available nonforfeiture benefit or, if society makes
available a cash surrender value, the cash surrender value, not later
than 60 days after the due date of the premium in default.
(f) A statement of the mortality table and rate of interest used
in determining all nonforfeiture benefits and cash surrender values
available under the certificate. After September 21, 1954, a brief
general statement of the method used in calculating the benefits and
values available under the certificate on any certificate anniversary
beyond the last anniversary for which the benefits and values are
consecutively shown in the certificate. The statement shall be
accompanied by an explanation of the manner in which the benefits and
values are altered by the existence of paid-up additions credited to
the certificate or by any indebtedness to the society on the
certificate.
(g) A table showing in figures every nonforfeiture benefit and
cash surrender value available under the certificate for each
certificate anniversary either during the first 20 certificate years
or during the term of the certificate, whichever is shorter, the
benefits and values to be calculated upon the assumption that there
are no dividends or paid-up additions credited to the certificate and
that there is no indebtedness to the society on account of or
secured by the certificate.
(h) A provision that the certificate shall be incontestable after
it has been in force during the lifetime of the insured for a period
of two years from its date of issue except for nonpayment of
premiums, risks limited or not assumed, violation of the provisions
of the certificate relating to military, aviation, or naval service,
or violation of the provisions relating to suspension or expulsion as
substantially set forth in the certificate. At the option of the
society, supplemental provisions relating to benefits in the event of
temporary or permanent disability or hospitalization and provisions
that grant additional insurance specifically against death by
accident or accidental means, may also be excepted. The certificate
shall be incontestable on the ground of suicide after it has been in
force during the lifetime of the insured for a period of two years
from date of issue. The certificate may provide, as to statements
made to procure reinstatement, that the society has the right to
contest a reinstated certificate within a period of two years from
date of reinstatement with the same exceptions as provided here.
(i) A provision that if it shall be found at any time before final
settlement under the certificate that the age or sex of the insured
(or the age or sex of any other person, if considered in determining
the premium) has been misstated, and the discrepancy and the premium
payment involved have not been adjusted, the amount payable under the
certificate shall be such as the premium would have purchased at the
correct age and sex. However, if the correct age was not an
insurable age under the society's charter, constitution, or bylaws,
only the premiums paid to the society, less any payments previously
made to the member, shall be returned. Alternatively, at the option
of the society, the amount payable under the certificate shall be
that which the premiums would have purchased at the correct age and
sex according to the society's promulgated rates and any extension
thereof based upon actuarial principles.
(j) A provision or provisions that recite fully, or that set forth
the substance of, all sections of the charter, constitution, laws,
rules or regulations of the society, in force at the time of issuance
of the certificate, the violation of which will result in the
termination of, or in the reduction of, the benefit or benefits
payable under the certificate.
Any of the foregoing provisions or portions thereof not applicable
by reason of the plan of insurance may, to the extent inapplicable,
be omitted from the certificate. The word "premiums" as used in this
section means premiums, rates, or other required contributions by
whatever name known.