40-421. Provisions insurance policy not to contain.
40-421
40-421. Provisions insurance policy not to contain.From and after the first day of January, 1928, no policy of lifeinsurance, other than industrial insurance, annuities and pure endowmentswith or without return of premiums or of premiums and interest, shall beissued or delivered in this state or be issued by a life insurance companyorganized under the laws of this state if it contain any of the followingprovisions:
(1) A provision by which the policy shall purport to be issued or takeeffect more than six months before the original application for theinsurance was made.
(2) A provision for any mode of settlement at maturity after theexpiration of the contestable period of the policy of less value than theamount insured on the face of the policy plus dividend additions, if any,less any indebtedness to the company on or secured by the policy, and lessany premium that may by the terms of the policy be deducted. This paragraphshall not apply to any nonforfeiture provision which employs the methodprovided by subsection 6 of section 40-420 of this code less indebtedness,if any, to purchase automatic paid-up or extended insurance, nor toreadjustment because of misstatement of age, nor to any liability in eventof violation of the conditions described in paragraph (2) section 40-420.
(3) A provision for forfeiture of the policy for failure to repay anyloan on the policy, or to pay interest on such loan, while the totalindebtedness on the policy, including interest, is less than the loan valuethereof.
(4) A provision to the effect that the agent soliciting the insurance isthe agent of the person insured under said policy, or making the acts orrepresentations of such agent binding upon the person so insured under saidpolicy.
(5) A provision to the effect that payment of dividends on any form ofparticipating policies shall be deferred for more than five years.
History: L. 1927, ch. 231, 40-421; L. 1939, ch. 210, § 1; June 30.