Ohio § 3915.05

§ 3915.05.

No policy of life insurance shall be issued or delivered in this state or be issued

by a life insurance company organized under the laws of this state unless such policy

contains: (A) A provision that all premiums shall be payable in advance, either at the home office

of the company or to an agent of the company, upon delivery of a receipt signed by

one or more of the officers named in the policy; (B) A provision for a grace of one month for the payment of every premium after the first,

which extension period may be subject to an interest charge and during which month

the insurance shall continue in force, which provision may contain a stipulation that

if the insured dies during the month of grace the overdue premium will be deducted

in any settlement under the policy; (C) A provision that the policy and the application therefor, a copy of which application

must be indorsed on the policy, shall constitute the entire contract between the parties

and shall be incontestable after it has been in force during the lifetime of the insured

for a period of not more than two years from its date, except for nonpayment of premiums,

except for violations of the conditions relating to naval or military service in time

of war or to aeronautics, and except at the option of the company, with respect to

provisions relative to benefits in the event of total and permanent disability and

provisions which grant additional insurance specifically against death by accident

or by accidental means; (D) A provision that all statements made by the insured in the application shall, in

the absence of fraud, be deemed representations and not warranties; (E) A provision that if the age of the insured has been understated the amount payable

under the policy shall be such as the premium would have purchased at the correct

age; (F) A provision that the policy shall participate in the surplus of the company and that,

beginning not later than the end of the third policy year, the company will annually

determine and account for the portion of the divisible surplus accruing on the policy,

and that the owner of the policy has the right each year to have the current dividend

arising from such participation paid in cash or applied to the purchase of paid-up

additions, and if the policy provides other dividend options, it shall further provide

that if the owner of the policy does not elect any such other option the dividend

shall be applied to the purchase of paid-up additions. In lieu of such provision, the policy may contain a provision that: (1) The policy shall participate in the surplus of the company; (2) Beginning not later than the end of the fifth policy year, the company will determine

and account for the portion of the divisible surplus accruing on the policy; (3) The owner of the policy has the right to have the current dividend arising from such

participation paid in cash; (4) Such accounting and payment shall be had at periods of not more than five years,

at the option of the policyholder. Renewable term policies of ten years or less may provide that the surplus accruing

to such policies shall be determined and apportioned each year after the second policy

year and accumulated during each renewal period, and that at the end of any renewal

period, on renewal of the policy by the insured, the company shall apply the accumulated

surplus as an annuity for the next succeeding renewal term in the reduction of premiums. The provisions described in this division are not required in nonparticipating policies. (G) A provision that after three full years' premiums have been paid, the company, at

any time while the policy is in force, will advance, on proper assignment of the policy

and on the sole security thereof, at a rate of interest calculated pursuant to section 3915.051 of the Revised Code , a sum equal to, or at the option of the owner of the policy, less than, the amount

required by section 3915.08 of the Revised Code under the conditions specified in said section, and that the company will deduct

from such loan value any indebtedness not already deducted in determining such value

and any unpaid balance of the premium for the current policy year, and may collect

interest in advance on the loan to the end of the current policy year.  It shall be further stipulated in the policy that failure to repay any such advance

or to pay interest does not void the policy unless the total indebtedness thereon

to the company equals or exceeds such loan value at the time of such failure nor until

one month after notice has been mailed by the company to the last known address of

insured and of the assignee. No conditions, other than as provided in this division or in section 3915.08 of the Revised Code , shall be exacted as a prerequisite to any such advance. This provision is not required in term insurance nor does it apply to any form of

insurance granted as a nonforfeiture benefit. (H) A provision for nonforfeiture benefits and cash surrender values in accordance with

the requirements of section 3915.06 , 3915.07 , or 3915.071 of the Revised Code ; (I) Except for policies which guarantee unscheduled changes in benefits upon the happening

of specified events or upon the exercise of an option without change to a new policy,

a table showing in figures the loan values and the options available under the policies

each year upon default in premium payments, during at least the first twenty years

of the policy; (J) A provision that if, in the event of default in premium payments, the value of the

policy is applied to the purchase of other insurance, and if such insurance is in

force and the original policy has not been surrendered 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 with interest; (K) A provision that when a policy becomes a claim by the death of the insured, settlement

shall be made upon receipt of due proof of death, or not later than two months after

receipt of such proof; (L) A table showing the amounts of installments in which the policy provides its proceeds

may be payable; (M) A title on its face and back, correctly describing such policy. Any of the provisions described in this section or portions thereof, relating to premiums

not applicable to single premium policies, shall to that extent not be incorporated

in such policies.