§ 3203. Individual life insurance policies; standard provisions as to\ncontractual rights and responsibilities of policyholders and insurers.\n(a) All life insurance policies, except as otherwise stated herein,\ndelivered or issued for delivery in this state, shall contain in\nsubstance the following provisions, or provisions which the\nsuperintendent deems to be more favorable to policyholders:\n (1) that, for policies in which the amount and frequency of premiums\nmay vary, after payment of the first premium, the policyholder is\nentitled to a sixty-one day grace period, beginning on the day when the\ninsurer determines that the policy's net cash surrender value is\ninsufficient to pay the total charges necessary to keep the policy in\nforce for one month from that day, within which to pay sufficient\npremium to keep the policy in force for three months from the date the\ninsufficiency was determined. For all other policies, after payment of\nthe first premium, the policyholder is entitled to a thirty-one day\ngrace period or of one month following any subsequent premium due date\nwithin which to make payment of the premium then due. During such grace\nperiod, the policy shall continue in full force;\n (2) that if the death of the insured occurs within the grace period\nprovided in the policy, the insurer may deduct from the policy proceeds\nthe portion of any unpaid premium applicable to the period ending with\nthe last day of the policy month in which such death occurred, and if\nthe death of the insured occurs during a period for which the premium\nhas been paid, the insurer shall add to the policy proceeds a refund of\nany premium actually paid for any period beyond the end of the policy\nmonth in which such death occurred, provided such premium was not waived\nunder any policy provision for waiver of premiums benefit. This\nparagraph shall not apply to single premium or paid-up policies;\n (3) that the policy shall be incontestable after being in force during\nthe life of the insured for a period of two years from its date of\nissue, and that, if a policy provides that the death benefit provided by\nthe policy may be increased, or other policy provisions changed, upon\nthe application of the policyholder and the production of evidence of\ninsurability, the policy with respect to each such increase or change\nshall be incontestable after two years from the effective date of such\nincrease or change, except in each case for nonpayment of premiums or\nviolation of policy conditions relating to service in the armed forces.\nAt the option of the insurer, provisions relating to benefits for total\nand permanent disability and additional benefits for accidental death\nmay also be excepted;\n (4) that the policy, together with the application therefor if a copy\nof such application is attached to the policy when issued, shall\nconstitute the entire contract between the parties; but in the case of\npolicies that provide that the death benefit or other policy provisions\nmay be changed by written application or by the written notice of\nexercise of one or more options provided in the policy, or automatically\nby the terms of the policy, the policy may also contain a provision that\nwhen such written application or notice of exercise of an option is\naccepted by the insurer or a notice of any change is issued by the\ninsurer and, in each case, a copy of such application or notice is\nreturned by mail or delivered to the policyholder at the policyholder's\nlast post office address known to the insurer, such application or\nnotice shall become part of the entire contract between the parties;\n (5) that if the age of the insured has been misstated, any amount\npayable or benefit accruing under the policy shall be such as the\npremium would have purchased at the correct age;\n (6) that the insurer shall annually ascertain and apportion any\ndivisible surplus accruing on the policy;\n (7) (A) that, in the case of policies which
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