The Mount Holly news. [volume] (Mount Holly, Burlington Co., N.J.) 1891-1942, 1895-07-30
CHAPTER CCOLv1

An Act to provide for the paid up or cash sur
render values of life insurance policies
l. Be it enacted by the Senate and General As
sembly of the State of New Jersey, That when
any policy of life insurance hereafter issued
by any domestic life insurance corporation of this
state, after being in force three full years. SHALL
by its terms, lapse become forfeited for the
payment of any premium or any note given for a
premium or loan made in cash on such policy ms
security, or of any interest on such note or loan
the net reserve on such policy, including existing
dividend additions, computed according to the
American experience table of mortality at the rate
of four and One-half per centnm per annum. shall,
on demand made in writing with the surrender of
the policy within three months after such lapse or
forfeiture. be taken a single premium of life in
surance at the published rates of the corporation
at the time the policy was issued. and shall be APP
piled, as shall have been agreed in the application
or policy, either to continue the insurance of the
policy in force at its full amount, including dvi-
dend additions, so long as such single premium
will purchase temporary insurance for that
amount at the age of the insured at the time OF the
lapse or forfeiture, or to purchase upon the same
life, at the same age paid-up insurance, payable
at the same time and under the same conditions
except as to payments of premiums, as the origin
al policy; if no such agreement be expressed in
may be applied in either Of the modes above spec
| flied. at the option of the owner of the policy
notice OF such option to be contained in the de-
| the forfeiture of the policy.
g. And be it enacted, That if there be any in
debtedness on the policy which has been acknowI-
edged by tho assured in writing such indeb tedness
shall be paid off in cash before the provisions OF
this act shall be applicable to the policy
g. And be it enacted That the net value of the
| insurance given for such single premium under
this act, computed according to the American ex-
perience table of mortality, with interest at the
rate of four and one half per centum per annum,
shall in no case be less than two-thirds of the en-
tire reserve. computed according to the rule pre-
scrlbed in this act but such insurance shall moi
participate in the profits of the corporation.
a. And be it enacted, That if the reserve upor
any endowment policy applied according to the
provisions of this act. as a single premium Of
temporary insurance be more than sufficient to
continue the insurance to the end of the endow-
ment term named in the policy. and if the insured
survive that term the shall be paid in cash
at the end of such term on the conditions which
the original policy was issued.
5. And be it enacted, That any policy issued by
any insurance company Of this state shall be in
contestable after two years from its date OF Issue
provided all due premiums have been paid, except
that such policy may be adjusted for misstatemeni
| of age in the application for original policy.
| g. And be II enacted That on policies Of pru-
dental or industrial insurance the paid nj
value of which, in accordance herewith, shall bs
| less than fifty dollars, it shall be optional will
the company issuing such policy to pay to the lie.
gal holder or holders thereof the cash equivalent
| and upon such payment, the company shall be alb
mands whatsoever, under or by reason of said pol
| lev which shall thereupon be cancelled.
I. And be it enacted, That the provisions of thii
act shall not apply to policies issued the lives
\ of persons under twelve years of age. until three
years after such persons shall attain that age.
g. And be it enacted, That all acts and parts of
acts inconsistent with this act be and the same
are hereby repealed
Approved March g. 1895.