In an annuity or pure endowment contract, other than a reversionary, survivorship, or group annuity, there shall be a provision for a grace period of one month, but not less than 30 days, within which a stipulated payment other than the first one may be made, subject at the option of the insurer to make an interest charge on the late payment at a rate to be specified in the contract, but not exceeding six percent a year, for the number of days of grace elapsing before the payment, during which period of grace the contract shall continue in full force, but in case a claim arises under the contract on account of death before expiration of the period of grace before the overdue payment to the insurer or the deferred payments of the current contract year, if any, are made, the amount of the payments, with interest on any overdue payments, may be deducted from the amount payable under the contract in settlement.
Section: Previous 21.45.110 21.45.120 21.45.130 21.45.140 21.45.150 21.45.160 21.45.170 21.45.180 21.45.190 21.45.200 21.45.210 21.45.220 21.45.230 21.45.240 21.45.250 NextLast modified: November 15, 2016