408:13 General Policy Requirements for Life Insurance. –
Every life insurance policy subject to this chapter shall comply with the following:
I. Payment of premiums. There shall be a provision relating to the time and place of payment of premiums.
II. Grace period. There shall be a provision that the policyholder is entitled to a grace period for the premium due, except the first, during which grace period the death benefit coverage shall continue in force, unless the policyholder has given the insurer written notice of discontinuance in advance of the date of discontinuance and in accordance with the terms of the policy. The policy may provide that the policyholder shall be liable to the insurer for the payment of a pro rata premium for the time the policy was in force during such grace period. The commissioner may adopt rules to establish the length of the grace period.
III. Entire contract. There shall be a provision that the policy, together with a copy of the signed and completed application, shall constitute the entire contract between the parties.
IV. Incontestability. There shall be a provision that the policy shall be incontestable by the insurer after it has been in force for 2 years during the lifetime of the insured. However, any increase in the amount of the policy's death benefits subsequent to the policy issue date, which occurred upon a new application or request of the owner and was subject to satisfactory proof of the insured's insurability, shall be incontestable after the increase has been in force, during the lifetime of the insured, for 2 years from the date of issue of increase.
V. Misstatement. If there is a misstatement of age or gender in the policy, the amount of the death benefit shall be that which would be purchased by the most recent mortality charge at the correct age or gender. The commissioner may approve other methods which are deemed satisfactory.
VI. Suicide. If the policy includes a suicide exclusion, such exclusion shall not apply after the second anniversary of the effective date of the policy.