20-1210. Nonforfeiture options in old policies
A. There shall be a provision specifying the option to which the policyholder is entitled in the event of default in a premium payment after three full annual premiums have been paid. This provision shall not be required in term insurance of twenty years or less, for which uniform premiums are payable during the entire term of the policy, nor to any term policy of decreasing amount. A provision may also be inserted in the policy that in the event of default in a premium payment before such options become available the reserve on any dividend addition then in force may at the option of the insurer be paid in cash or applied as a net premium to the purchase of paid-up term insurance for any amount not in excess of the face of the original policy.
B. This section shall not apply to policies issued on or after the operative date of section 20-1231.
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