58-16-40. Termination of group policy--Issuance of individual policy to insured person, amount of policy. Except as provided in § 58-16-31, a group life insurance policy shall contain a provision that if the group policy terminates or is amended to terminate the insurance of any class of insured persons, any person insured at the termination date whose insurance terminates and who has been so insured for at least five years prior to that termination date may have an individual life insurance policy issued to him by the insurer. That policy is subject to the conditions and limitations provided in § 58-16-39. However, the group policy may provide that the total amount of the individual policy may not exceed the difference between the amount of the person's group life insurance protection that ended because of the group policy termination or amendment and the amount of any life insurance for which he is eligible under any group policy issued or reinstated by any insurer within thirty-one days after that termination date.
Source: SL 1966, ch 111, ch 24, § 3 (9); SL 1983, ch 374, § 1.
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