§ 58-58-23. Standard provisions for annuity and pure endowment contracts.
§58‑58‑23. Standard provisions for annuity and pure endowmentcontracts.
No annuity or pure endowmentcontract, except a reversionary or survivorship annuity and except a groupannuity contract, shall be delivered or issued for delivery in this State unlessit contains in substance the following provisions or provisions that in theopinion of the Commissioner are more favorable to the holders of the contracts:
(1) Grace period. Aprovision for a grace period of not less than 31 days within which any stipulatedpayment to the insurer falling due after the first payment may be made. Duringthe grace period, the contract shall continue in full force. If a claim arisesunder the contract because of death before the expiration of the grace periodand before the overdue payment to the insurer is made, the amount of thepayments, with interest on any overdue payments, may be deducted from anyamount payable under the contract.
(2) Incontestability. If any statements are required as a condition of issue, there shall be aprovision that the contract shall be incontestable during the lifetime of theperson or of each of the persons as to whom the statements are required afterit has been in force for a period of two years after its date of issue, exceptfor nonpayment of stipulated payments to the insurer.
(3) Misstatements of ageor gender. A provision that if the age or gender of any person upon whoselife the contract is made has been misstated, the amount payable or benefitsaccruing under the contract shall be such as the stipulated payment or paymentsto the insurer would have been according to the correct age or gender; and ifthe insurer makes an overpayment because of the misstatement, that amount withinterest at the rate specified in the contract may be charged against anycurrent or subsequent payment by the insurer under the contract.
(4) Reinstatement. Aprovision that the contract may be reinstated at any time within one year aftera default in making stipulated payments to the insurer, unless the cashsurrender value has been paid; but all overdue stipulated payments and anyindebtedness to the insurer on the contract shall be paid or reinstated withinterest at a rate specified in the contract. When applicable, the insurer mayalso require evidence of insurability satisfactory to the insurer. (1995,c. 517, s. 31(a).)