31A-22-608 - Reinstatement of individual or franchise accident and health insurance policies.
31A-22-608. Reinstatement of individual or franchise accident and healthinsurance policies.
(1) Every individual or franchise accident and health insurance policy shall contain aprovision which reads as follows:
"REINSTATEMENT: If any renewal premium is not paid within the time granted theinsured for payment, a subsequent acceptance of premium by the insurer or by any agent dulyauthorized by the insurer to accept the premium, without also requiring an application forreinstatement, shall reinstate the policy. However, if the insurer or agent requires an applicationfor reinstatement and issues a conditional receipt for the premium tendered, the policy shall bereinstated upon approval of this application from the insurer or, lacking this approval, upon the45th day following the date of the conditional receipt, unless the insurer has previously notifiedthe insured in writing of its disapproval of the application. The reinstated policy shall cover onlyloss resulting from such accidental injury as may be sustained after the date of reinstatement andloss due to such sickness as may begin more than 10 days after that date. In all other respects theinsured and insurer have the same rights under the reinstated policy as they had under the policyimmediately before the due date of the defaulted premium, subject to any provisions endorsed onor attached to this policy in connection with the reinstatement. Any premium accepted inconnection with a reinstatement shall be applied to a period for which premium has not beenpreviously paid, but not to any period more than 60 days prior to the date of reinstatement."
(2) The last sentence of the provision set forth in Subsection (1) may be omitted fromany policy that the insured has the right to continue in force subject to its terms by the timelypayment of premiums until at least age 50, or in the case of a policy issued after age 44, for atleast five years from its date of issue.
Amended by Chapter 116, 2001 General Session