Page:United States Statutes at Large Volume 48 Part 1.djvu/1186

 1100 Surrender of policy for cash value. Deferred payment. Not applicable in term insurance. Net sing le p remi um rate. Specification of op- tions in event of pre- mium defa ult. Not ap pl ica ble in term insuranc e. Option of company, when premium default. Table sho wing loan val ues. Purchase of other in- surance. Re instatement. Death settlement. Amount of install. ma nta . 'title . 73d C ONGRESS. SESS. II. CH. 672 . JUNE 19, 1934 . made of said 2 1/2 per centum or one fifth of said reserve, at the option of the company : Provided further, That the policy may be surrendered to the company at its home office within one month of the due date of defaulted premium for a specific cash value at least equal to the sum which would otherwise be available for the purchase of insurance as aforesaid : And provided further, That the company may defer payment for not more than six months after the application therefor is made. This provision shall not be required in term insurance of twenty years or less. The net single premium rate employed in computing the terns of temporary insur- ance or the amount of pure endowment insurance granted as a non- forfeiture value under any life-insurance policy may at the option of the company be based upon a table of mortality showing rates of mortality not greater than 130 per centum of those shown by the Amer ican M en Ult imate Table of Mo rtalit y ins tead o f the table used in computing the reserve on the policy, or in case of substand- ard p olicies not g reater than 13 0 per centuui of the rates of mor tality shown by the table of mortality approved by the Superintendent for computing the reserve on the policy, anything herein to the con- trary notwit hstanding. (8) A provision specifying the options to which the policyholder is entitled in the event of default in a premium payment after three full annual premiums shall have been paid. This provision shall not be required in term insurance of twenty years or less. A pro- vision may also be inserted in the policy that in event of default in a premium payment before such options become available the reserve on any dividend additions then in force may at the option of the company be paid in cash or applied as a net premium to the pur- chase of paid-up term insurance for any amount not in excess of the face of the original policy. (9) A table showing in fi gures the loa n values and t he options available under the policy each year upon default in premium pay- ments, during at least the first twenty years of the policy or during the premium paying period if less than twenty years. (10) A provision that if in event of default in premium payments the value of the policy shall have been applied to the purchase of other insurance as provided for in this section, and if such insurance shall be in force and the original policy shall not have been stir- rendered to the company and canceled, the policy may be reinstated within three years from such default, upon evidence of insurability satisfactory to the company and payment of arrears of premiums and the payment or reinstatement of any other indebtedness to the company upon said policy, with interest on said premium and indebt- edness at the rate of not exceeding 6 per centum per annum payable annually, and that such reinstated policy shall be contestable, on account of suicide, fraud, or misrepresentation of material facts pertaining to the reinstatement, for the same period after reinstate- ment as provided in the policy with respect to the original issue. (11) A provision that when a policy shall become a claim by the death of the insured settlement shall be made upon receipt of due proof of death. (12) A table showing the amount of installments, if any, in which the policy may provide its proceeds may be payable. (13) Title on the face and on the back of the policy briefly describing its form. Any of the foregoing provisions or portions thereof not applicable to single premium or nonparticipating or term policies shall, to that extent, not be incorporated therein ; and any such policy may be issued or delivered in the District which in the opinion of the Super-