Page:United States Statutes at Large Volume 48 Part 1.djvu/1188

 1162 73d C ONGRESS. SESS. II. CH. 672 . JUNE 19, 1934 . to the company falling due after the first year may be made, subject, at the option of the company, to an interest charge thereon at a rate to be specified in the contract, but not exceeding 6 per centum per annum for the number of days of grace elapsing before such pay- Deductions in event ment, during which period of grace, the contract shall continue in of death during . full force ; but in case a claim arises under the contract on account of death during the said period of grace before the overdue payment to the company or the deferred payments of the current contract year, if any, are made, the amount of such payments, with interest on any overdue payments, may be deducted from any amount payable under the contract in settlement. Incon testi bili ty. Sec on d. If state ments, othe r than those relat ing t o age and identity, are required, as a condition of issuing the contract, a pro- vision that the contract shall be incontestable after it has been in force during the lifetime of the person or each of the persons as to whom such st atements are required, for a period of t wo years from its date of issue, except where stipulated payments to the company have not been made, and except for violation of the conditions of the contract relating to military or naval service in time of war, and at the option o f the company, provisions relative to be nefits in the event of total and permanent disability and provisions which grant insur ance s pecifi cally again st dea th by accid ent, m ay als o be excepted. entireconta co nst it ute ctn stitute Third. A provision that such contract shall constitute the entire contract between the parties, but if the company desires to make the application a part of the contract it may do so, provided a copy of such application shall be endorsed upon or attached to such con- tract, when issued, and in such case such contract shall contain a provision that it, together with the application therefor, shall con- stitute the entire contract between the parties. Mis sta te men ts re- Fourth. A provision that if the age of the person or persons upon gardmgageg whose life or lives the contract is based, or of any of them, has been misstated, the amount payable under the contract shall be such as the stipulated payments to the company would have purchased at the correct age or ages. companyyments by Any over payment or over payments by the company, on account of misstatement of age, shall with interest thereon at a rate to be specified in the contract, but not exceeding 6 per centum per annum, be charged a gainst the cu rrent or next succeeding pa yment or pay- ments to be made by the c ompany under the contract. Apportionment of Fifth. If the contract is participating, a provision that the divis- contract. nparticipating par tic ipa tin g able surplus shall be app ortioned annu ally and divid ends shall be payable in cash or shall be applicable to any stipulated payment or payments to the company under the contract. Lapsed policy. Sixth. A provision that if the contract after having been in force for three full years, shall, by its terms, lapse or become forfeited because any stipulated pa yment to the company shall not have been made, the r eserve on s uch co ntract, comp uted accord ing to the standard ado pted by said company in ac cordance with this chapter, Appli cati on o f re- shall, after deducting one fifth of the said entire reserve, and any serve. indebtedness to the company under the contract, be applied as a net single payment, according to said standard, for the purchase of a paid-up annuity or pure endowment contract, which may be non- participatin g and which s hall be payab le by the comp any under the same terms and conditions, except as to amount, as the original contracts in lieu of contract. A company may provide, in lieu of such paid-up values, pai d-up values. for a paid- up ann uity or pur e endo wment contr act in an am ount bearing the same proportion to the original annuity or pure endow- ment contract as the number of stipulated payments which shall