40-411. Notice of intention to cancel policy for nonpayment of premium; time for payment.

40-411

Chapter 40.--INSURANCE
Article 4.--GENERAL PROVISIONS RELATING TO LIFE INSURANCE COMPANIES

      40-411.   Notice of intention to cancel policy for nonpayment ofpremium; time for payment.Before any such cancellation or forfeiture can be made for thenon-payment of any such premium the insurance company shall notify thepolicyowner of any such policy that the premium thereon, stating the amountthereof, is due and unpaid, and of its intention to forfeit or cancel thesame, and such policyowner shall have the right, at any time within thirty(30) days after such notice has been duly deposited in the post office,postage prepaid, and addressed to such policyowner to the address lastknown by such company, to pay such premium: Provided, That in lieu ofthe notice hereinbefore provided, in the case of policies providing for aperiod of grace of not less than thirty (30) days, or one month, for thepayment of premiums and containing any provision for cancellation orforfeiture in case of nonpayment of premiums at the end of such period, theinsurance company may, not more than thirty (30) days prior to the datespecified in such policy when any premium will become due and payablewithout grace, in like manner notify the policyowner under any such policy,of the date when such premium will fall due, stating the amount thereof,and its intention to forfeit or cancel the same if such premium be not paidwithin the period of grace provided in the policy; and any attempt on thepart of such insurance company, within six (6) months after default in thepayment of any premium, to cancel or forfeit any such policy without thenotice herein provided shall be null and void. The affidavit of anyresponsible officer, clerk or agent of the corporation authorized to mailsuch notice, that the notice required by this section has been dulyaddressed and mailed by the corporation issuing such policy shall be primafacie evidence that such notice has been duly given.

      History:   L. 1927, ch. 231, 40-411; L. 1959, ch. 214, § 2; June 30.