§ 58-58-22. Individual policy standard provisions. - North Carolina Statutes

§58‑58‑22.  Individual policy standard provisions.

No policy of individual lifeinsurance shall be delivered in this State unless it contains in substance thefollowing provisions, or provisions that in the Commissioner's opinion are morefavorable to the person insured:

(1)        Grace period. – Aprovision that the insured is entitled to a grace period of 31 days for thepayment of any premium due except the first, during which grace period thedeath benefit coverage shall continue in force. The policy may provide that ifa claim arises under the policy during the grace period, the amount of anypremium due or overdue may be deducted from any amount payable under the policyin settlement.

(2)        Incontestability. –A provision that the validity of the policy shall not be contested, except fornonpayment of premium, once it has been in force for two years after its dateof issue; and that no statement made by any person insured under the policyabout that person's insurability shall be used during the person's lifetime tocontest the validity of the policy after the insurance has been in force fortwo years.

(3)        Misstatement of ageor gender. – A provision specifying an equitable adjustment of premiums orbenefits, or both, to be made if the age or gender of the person insured hasbeen misstated; the provision to contain a clear statement of the method ofadjustment to be used.

(4)        Suicide. – Aprovision that may not limit payment of benefits for a period more than twoyears after the date of issue of the policy because of suicide and thatprovides for at least the return of premiums paid on the policy if there issuicide during the two‑year period.

(5)        Reinstatement. – Aprovision that, unless the policy has been surrendered for its cash surrendervalue, or its cash surrender value has been exhausted, the policy will bereinstated at any time within five years after the date of premium default uponwritten application therefor, the production of evidence of insurabilitysatisfactory to the insurer, the payment of all overdue premiums, and thepayment of reinstatement of any other indebtedness to the insurer upon thepolicy, all with interest at the rate specified. (1995, c. 517, s. 31(a).)