An Act to amend section 12 of chapter V of the act of June 19, 1934, as amended, entitled ""An Act to regulate the business of life insurance in the District of Columbia.""
PL 83-119 (H.R.2582), enacted 07/16/1953

162 
PUBLIC LAW 119-JULY 16, 1953 
[67 STAT. 
Public Law 119 
CHAPTER 196 
July 16, 1953 
^ ^ A C T 
— [H. R. 2582]— 
TQ amend section 12 of chapter V of the Act of June 19,1934, as amended, entitled 
"An Act to regulate the business of life insurance in the District of Columbia." 
Life Insurance 
Act, D« C , amend-
Be it enacted hy the Seriate and House of Representatives 
of the 
United States of America in Congress assemhled. That section 12 of 
°^^*Stat 1166 
chapter V of the Act of June 19, 1934, entitled "An Act to regulate 
the Tbusiness of life insurance in the District of Columbia", as amended 
(D. C. Code, 1951 edition, sec. 35-712), be amended to read as follows: 
"SEC. 12. INDIVIDUAL. ACCIDENT AND SICKNESS POLICY PROVISIONS 
" l . FILING R E Q U I R E M E N T S 
"No policy of insurance against loss resulting from sickness or 
from bodily injury or death by accident, or both, shall be issued or 
delivered to any person in the District by any company organized 
under this, or any other law of the District, or, if a foreign or alien 
company, authorized to do business in the District, until a copy of the 
form thereof, and of the classification of risks and the premium rates 
appertaining thereto, have been filed with the Superintendent; nor 
shall it be so issued or delivered until the expiration of thirty days 
after it has been so filed, unless the Superintendent shall sooner give his 
written approval thereto. If the Superintendent shall give written 
notice to the company which has filed such form that it does not 
comply with the requirements of law, specifying the reasons for his 
opinion, it shall be unlawful thereafter for any such insurer to issue 
any policy in such form. The action of the Superintendent in this 
regard shall be subject to appeal and review in the form and manner 
D*c!*Code*35- 
prescribed in section 28, chapter II. 
427. 
" 2 . FORM OF P O L I C Y 
"(a) No policy of accident and sickness insurance shall be delivered 
or issued for delivery to any person in the District unless— 
"(1) the entire money and other considerations therefor are 
expressed therein; and 
" (2) the time at which the insurance takes effect and terminates 
is expressed therein; and 
"(3) it purports to insure only one person, except that a policy 
may insure, originally or by subsequent amendment, upon the 
application of an adult member of a family who shall be deemed 
the policyholder, any two or more eligible members of that family, 
including husband, wife, dependent children or any children under 
a specified age which shall not exceed nineteen years and any 
other person dependent upon the policyholder; and 
"(4) the style, arrangement, and over-all appearance of the 
policy give no undue prominence to any portion of the text, and 
unless every printed portion of the text of the policy and of any 
endorsements or attached papers is plainly printed in light-faced 
type of a style in general use, the size of which shall be uniform 
and not less than ten-point with a lower-case unspaced alphabet 
length not less than one hundred and twenty-point (the text 
shall include all printed matter except the name and address of 
the insurer, name or title of the policy, the brief description, if 
any, and captions and subcaptions); and 
"(5) the exceptions and reductions of indemnity are set forth 
in the policy and, except those which are set forth in subsection 
67 S T A T . ] 
PUBLIC LAW 119-JULY 16, 1953 
168 
(3) of this section, are printed, at the insurer's option, either 
included with the benefit provision to which they apply, or under 
an appropriate caption such as 'EXCEPTIONS', or 'EXCEPTIONS AND 
REDUCTIONS' : Provided, That, if an exception or reduction specifi-
cally applies only to a particular benefit of the policy, a statement 
of such exception or reduction shall be included with the benefit 
provision to which it applies; and 
"(6) each such form, including riders and endorsements, shall 
be identified by a form number in the lower left-hand corner of 
the first page thereof; and 
"(7) it contains no provision purporting to make any portion 
of the charter, rules, constitution, or bylaws of the insurer a 
part of the policy unless such portion is set forth in full in the 
policy, except in the case of the incorporation of, or reference to, 
a statement of rates or classification of risks, or short-rate table 
filed with the Superintendent. 
"(b) If any policy is issued by an insurer domiciled in the District 
for delivery to a person residing in another jurisdiction, and if the 
official havmg responsibility for the administration of the insurance 
laws of such other jurisdiction shall have advised the Superintendent 
that any such policy is not subject to approval or disapproval by such 
official, the Superintendent may by ruling require that such policy 
meet the standards set forth in paragraph (a) of this subsection and 
in subsection (3), 
"3. ACCIDENT AND SICKNESS POLICY PROVISIONS 
"(a) Required provisions: Except as provided in paragraph (c) 
of this subsection each such policy delivered or issued for delivery to 
any person in the District shall contain the provisions specified in this 
paragraph in the words in which the same appear in this paragraph: 
Provided, however, That the insurer may, at its option, substitute for 
one or more of such provisions corresponding provisions of different 
wording approved by the Superintendent which are in each instance 
not less favorable in any respect to the insured or the beneficiary. 
Such provisions shall be preceded individually by the caption ap-
pearing in this paragraph or, at the option of the insurer, by such 
appropriate individual or group captions or subcaptions as the Super-
intendent may approve. 
" (1) A provision as follows: 
" 'ENTIRE CONTRACT; CHANGES: This policy, including the endorse-
ments and the attached papers, if any, constitutes the entire contract 
of insurance. No change in this policy shall be valid until approved 
by an executive officer of the insurer and unless such approval be 
endorsed hereon or attached hereto. No agent has authority to change 
this policy or to waive any of its provisions.' 
" (2) A provision as follows: 
" 'TIME LiMrr ON CERTAIN DEFENSES: (aa) After three years from 
the date of issue of this policy no misstatements, except fraudulent 
misstatements, made by the applicant in the application for such 
policy shall be used to void the policy or to deny a claim for loss 
incurred or disability (as defined in the policy) commencing after the 
expiration of such three-year period.' 
"(The foregoing policy provision shall not be so construed as to 
affect any legal requirement for avoidance of a policy or denial of a 
claim during such initial three-year period, nor to limit the application 
of subsection 3 (b), (1), (2), (3), (4), and (5) in the event of mis-
statement with respect to age or occupation or other insurance.) 
'*A policy which the insured has the right to continue in force subject 
164 
PUBLIC LAW 119-JULY 16, 1953 
[67 
S T A T . 
to its terms by the timely payment of premium (1) until at least age 
60 or, (2) in the case of a policy issued after age 44, for at least five 
years from its date of issue, may contain in lieu of the foregoing the 
following provision (from which the clause in parentheses may be 
omitted at the insurer's option) under the caption 'INCONTESTABLE'. 
" 'After this policy has been in force for a period of three years 
during the lifetime of the insured (excluding any period during which 
the insured is disabled), it shall become incontestable as to the state-
ments contained in the application.' 
"'(bb) No claim for loss incurred or disability (as defined in the 
policy) commencing after three years from the date of issue of this 
policy shall be reduced or denied on the ground that a disease or 
physical condition not excluded from coverage by name or specific 
description effective on the date of loss had existed prior to the effective 
date of coverage of this policy.' 
"(3) A provision as follows: 
"'GRACE PERIOD: A grace period of 
(insert 
a number not less than "7" for weekly premium policies, "10" for 
monthly premium policies, and "31" for all other policies) days will 
be granted for the payment of each premium falling due after the 
first premium, during which grace period the policy shall continue in 
force.' 
"A policy which contains a cancellation provision may add, at the 
end of the above provision, 
" 'subject to the ri^ht of the insurer to cancel in accordance with the 
cancellation provision hereof. 
"A policy in which the insurer reserves the right to refuse any 
renewal shall have, at the beginning of the above provision, 
" 'Unless not less than five days prior to the premium due date the 
insurer has delivered to the insured or has mailed to his last address 
as shown by the records of the insurer written notice of its intention 
not to renew this policy beyond the period for which the premium 
has been accepted,'. 
"(4) A provision as follows: 
" 'REINSTATEMENT : If any renewal premium be not paid within the 
time granted the insured for payment, a subsequent acceptance of 
premium by the insurer or by any agent duly authorized by the insurer 
to accept such premium, without requiring in connection therewith 
an application for reinstatement, shall reinstate the policy; provided, 
however, that if the insurer or such agent requires an application for 
reinstatement and issues a conditional receipt for the premium ten-
dered, the policy will be reinstated upon approval of such application 
by the insurer, or, lacking such approval, upon the forty-fifth day 
following the date of such conditional receipt unless the msurer has 
previously notified the insured in writing of its disapproval of such 
application. 
The reinstated policy shall cover only loss resulting from 
such accidental injury as may be sustained after the date of reinstate-
ment and loss due to such sickness as may begin more than ten days 
after such date. In all other respects the insured and insurer shall 
have the same rights thereunder as they had under the policy imme-
diately before the due date of the defaulted premium, subject to any 
provisions endorsed hereon or attached hereto in connection with the 
reinstatement. 
Any premium accepted in connection with a reinstate-
ment shall be applied to a period for which premium has not been 
previously paid, but not to any period more than sixty days prior to 
the date of reinstatement.' 
"(The last sentence of the above provision may be omitted from 
any policy which the insured has the right to continue in force subject 
to its terms by the timely payment of premiums (1) until at least age 
67 S T A T . ] 
PUBLIC LAW 119-JULY 16, 1953 
165 
50 or, (2) in the case of a policy issued after age 44, for at least five 
years from its date of issue.) 
"(5) A provision as follows: 
" ' NOTICE or CLAIM : Written notice of claim must be given to the 
insurer within twenty days after the occurrence or commencement of 
any loss covered by the policy, or as soon thereafter as is reasonably 
possible. 
Notice given by or on behalf of the insured or the bene-
ficiary to the insurer at 
(insert the location 
of such office as the insurer may designate for the purpose), or to any 
authorized agent of the insurer, with information sufficient to identify 
the insured, shall be deemed notice to the insurer.' 
"In a policy providing a loss-of-time benefit which may be payable 
for at least two years, an insurer may at its option insert the following 
between the first and second sentences of the above provision: 
" ' Subject to the qualifications set forth below, if the insured suffers 
loss of time on account of disability for which indemnity may be 
payable for at least two years, he shall, at least once in every six months 
after having given notice of claim, give to the insurer notice of continu-
ance of said disability, except in the event of legal incapacity. 
The 
period of six months following any filing of proof by the insured or 
any payment by the insurer on account of such claim or any denial of 
liability in whole or in part by the insurer shall be excluded in apply-
ing this provision. 
Delay in the giving of such notice shall not impair 
the insured's right to any indemnity which would otherwise have 
accrued during the period of six months preceding the date on which 
such notice is actually given.' 
" (6) A provision as follows: 
" 'CLAIM FORMS : The insurer, upon receipt of a notice of claim, 
will furnish to the claimant such forms as are usually furnished by it 
for filing proofs of loss. If such forms are not furnished within fifteen 
days after the giving of such notice the claimant shall be deemed to 
have complied with the requirements of this policy as to proof of loss 
upon submitting, within the time fixed in the policy for filing proofs 
of loss, written proof covering the occurrence, the character and the 
extent of the loss for which claim is made.' 
"(7) A provision as follows: 
" 'PROOFS OF Loss: Written proof of loss must be furnished to the 
insurer at its said office in case of claim for loss for which this policy 
provides any periodic payment contingent upon continuing loss within 
ninety days after the termination of the period for which the insurer 
is liable and in case of claim for any other loss within ninety days 
after the date of such loss. Failure to furnish such proof within 
the time required shall not invalidate nor reduce any claim if it was 
not reasonably possible to give proof within such time, provided 
such proof is furnished as soon as reasonably possible and in no event, 
except in the absence of legal capacity, later than one year from the 
time proof is otherwise required.' 
"(8) A provision as follows: 
" 'TIME OF PAYMENT or CLAIMS : Indemnities payable under this 
policy for any loss other than loss for which this policy provides any 
periodic payment will be paid immediately upon receipt of due writ-
ten proof of such loss. Subject to due written proof of loss, all 
accrued indemnities for loss for which this policy provides periodic 
payment will be paid 
(insert period 
for payment which must not be less frequently than monthly) and 
any balance remaining unpaid upon the termination of liability will 
be paid immediately upon receipt of due written proof.' 
166 
PUBLIC LAW 119-JULY 16, 1953 
[67 S T A T . 
" (9) A provision as follows: 
" 'PAYMENT OF CLAIMS : Indemnity for loss of life will be payable 
in accordance with the beneficiary designation and the provisions 
respecting such payment which may be prescribed herein and effective 
at the time of payment. 
If no such designation or provision is then 
effective, such indemnity shall be payable to the estate of the insured. 
Any other accrued indemnities unpaid at the insured's death may, 
at the option of the insurer, be paid either to such beneficiary or to 
such estate. All other indemnities will be payable to the insured.' 
"The following provisions, or either of them, may be included with 
the foregoing provision at the option of the insurer: 
" 'If any indemnity of this policy shall be payable to the estate 
of the insured, or to an insured or beneficiary who is a minor or other-
wise not competent to give a valid release, the insurer may pay such 
indemnity up to an amount not exceeding $ 
(insert an 
amount which shall not exceed $1,000), to any relative by blood or 
connection by marriage of the insured or beneficiary who is deemed 
by the insurer to be equitably entitled thereto. Any payment made 
by the insurer in good faith pursuant to this provision shall fully 
discharge the insurer to the extent of such payment. 
" 'Subject to any written direction of the insured in the application 
or otherwise all or a portion of any indemnities provided by this 
policy on account of hospital, nursing, medical, or surgical services 
may, at the insurer's option and unless the insured requests otherwise 
in writing not later than the time of filing proofs of such loss, be paid 
directly to the hospital or person rendering such services; but it is 
not required that the service be rendered by a particular hospital or 
person.' 
"(10) A provision as follows: 
" 'PHYSICAL EXAMINATIONS AND AUTOPSY : The insurer at its own 
expense shall have the right and opportunity to examine the person 
of the insured when and as often as it may reasonably require during 
the pendency of a claim hereunder and to make an autopsy in case of 
death where it is not forbidden by law.' 
" (11) A provision as follows: 
" 'LEGAL ACTIONS : No action at law or in equity shall be brought to 
recover on this policy prior to the expiration of sixty days after written 
proof of loss has been furnished in accordance with the requirements 
of this policy. No such action shall be brought after the expiration 
of three years after the time written proof of loss is required to be 
furnished.' 
" (12) A provision as follows: 
" 'CHANGE OF BENEFICIARY : Unless the insured makes an irrevo-
cable designation of beneficiary, the right to change of beneficiary is 
reserved to the insured and the consent of the beneficiary or benefi-
ciaries shall not be requisite to surrender or assignment of this policy 
or to any change of beneficiary or beneficiaries, or to any other changes 
in this policy.' 
" (The first clause of this provision, relating to the irrevocable desig-
nation of beneficiary, may be omitted at the insurer's option.) 
"(b) Other provisions: Except as provided in paragraph (c) of 
this subsection, no such policy delivered or issued for delivery to any 
person in the District shall contain provisions respecting the matters 
set forth below unless such provisions are in the words in which the 
same appear in this paragraph: Provided^ however^ That the insurer 
may, at its option, use in lieu of any such provision a corresponding 
provision of different wording approved by the Superintendent which 
is not less favorable in any respect to the insured or the beneficiary. 
Any such provision contained in the policy shall be preceded individ-
67 S T A T . ] 
PUBLIC LAW 119-JULY 16, 1953 
167 
ually by the appropriate caption appearing in this paragraph or, at 
the option of the insurer, by such appropriate individual or group 
captions or subcaptions as the Superintendent may approve. 
"(1) A provision as follows: 
" 'CHANGE OF OCCUPATION : If the insured be injured or contract 
sickness after having changed his occupation to one classified by the 
insurer as more hazardous than that stated in this policy or while 
doing for compensation anything pertaining to an occupation so 
classified, the insurer will pay only such portion of the indemnities 
provided in this policy as the premium paid would have purchased at 
the rates and within the limits fixed by the insurer for such more 
hazardous occupation. If the insured changes his occupation to one 
classified by the insurer as less hazardous than that stated in this 
policy, the insurer, upon receipt of proof of such change of occupa-
tion, will reduce the premium rate accordingly, and will return the 
excess pro-rata unearned premium from the date of change of occupa-
tion or from the policy anniversary date immediately preceding 
receipt of such proof, whichever is the more recent. In applying this 
provision, the classification of occupational risk and the premium 
rates shall be such as have been last filed by the insurer prior to the 
occurrence of the loss for which the insurer is liable or prior to date 
of proof of change in occupation with the official having supervision 
of insurance in the jurisdiction where the insured resided at the time 
this policy was issued; but if such filing was not required, then the 
classification of occupational risk and the premium rates shall be 
those last made effective by the insurer in such jurisdiction prior to 
the occurrence of the loss or prior to the date of proof of change in 
occupation.' 
"(2) A provision as follows: 
" 'MISSTATEMENT OF AGE : If the age of the insured has been mis-
stated, all amounts payable under this policy shall be such as the 
premium paid would have purchased at the correct age.' 
"(3) A provision as follows: 
" 'OTHER INSURANCE IN THIS INSURER : If an accident or sickness 
or accident and sickness policy or policies previously issued by the 
insurer to the insured be in force concurrently herewith, making the 
aggregate indemnity for 
(insert type of cover-
age or coverages) in excess of $ 
(insert maximum limit of 
indemnity or indemnities) the excess insurance shall be void and all 
premiums paid for such excess shall be returned to the insured or to 
his estate.' 
or, in lieu thereof: 
" 'Insurance effective at any one time on the insured under a like 
policy or policies in this insurer is limited to the one such policy 
elected by the insured, his beneficiary or his estate, as the case may 
be, and the insurer will return all premiums paid for all other such 
policies.' 
"(4) A provision as follows: 
" 'INSURANCE W I T H OTHER INSURERS : If there be other valid cover-
age, not with this insurer, providing benefits for the same loss on a 
provision of service basis or on an expense incurred basis and of which 
this insurer has not been given written notice prior to the occurrence 
or commencement of loss, the only liability under any expense incurred 
coverage of this policy shall be for such proportion of the loss as the 
amount which would otherwise have been payable hereunder plus the 
total of the like amounts under all such other valid coverages for the 
same loss of which this insurer had notice bears to the total like 
amounts under all valid coverages for such loss, and for the return 
of such portion of the premiums paid as shall exceed the pro rata 
168 
PUBLIC LAW 119-JULY 16, 1953 
[67 S T A T . 
portion for the amount so determined. 
For the purpose of applying 
this provision when other coverage is on a provision of service basis, 
the "like amount" of such other coverage shall be taken as the amount 
which the services rendered would have cost in the absence of such 
coverage.' 
"(If the foregoing policy provision is included in a policy which 
also contains the next following policy provision there shall be added 
to the caption of the foregoing provision the phrase '—EXPENSE 
INCURRED BENEFITS'. 
The insurer may, at its option, include in this pro-
vision a definition of 'other valid coverage', approved as to form by the 
Superintendent, which definition shall be limited in subject matter 
to coverage provided by organizations subject to regulation by insur-
ance law or by insurance authorities of this or any other jurisdiction 
of the United States or any province of Canada, and by hospital or 
medical service organizations, and to any other coverage the inclusion 
of which may be approved by the Superintendent. 
In the absence 
of such definition such term shall not include group insurance, auto-
mobile medical payments insurance, or coverage provided by hospital 
or medical service organizations or by union welfare plans or employer 
or employee benefit organizations. 
For the purpose of applying the 
foregoing policy provision with respect to any insured, any amount 
of benefit provided for such insured pursuant to any compulsory bene-
fit statute (including any workmen's compensation or employer's 
liability statute) whether provided by a governmental agency or 
otherwise shall in all cases be deemed to be 'other valid coverage' of 
which the insurer has had notice. In applying the foregoing policy 
provision no third party liability coverage shall be included as 'other 
valid coverage'.) 
"(5) A provision as follows: 
" 'INSURANCE W I T H OTHER INSURERS : If there be other valid cover-
age, not with this insurer, providing benefits for the same loss on other 
than an expense-incurred basis and of which this insurer has not been 
given written notice prior to the occurrence or commencement of loss, 
the only liability for such benefits under this policy shall be for such 
proportion of the indemnities otherwise provided hereunder for such 
loss as the like indemnities of which the insurer had notice (including 
the indemnities under this policy) bear to the total amount of all like 
indemnities for such loss, and for the return of such portion of the 
premium paid as shall exceed the pro-rata portion for the indemnities 
thus determined.' 
"(If the foregoing policy provision is included in a policy which 
also contains the next preceding policy provision there shall be added 
to the caption of the foregoing provision the phrase '—OTHER BENE-
FITS'. The insurer may, at its option, include in this provision a defini-
tion of 'other valid coverage', approved as to form by the Superin-
tendent, which definition shall be limited in subject matter to coverage 
provided by organizations subject to regulation by insurance law or 
by insurance authorities of this or any other jurisdiction of the United 
States or any province of Canada, and to any other coverage the in-
clusion of which may be approved by the Superintendent. 
In the 
absence of such definition such term shall not include group insurance, 
or benefits provided by union welfare plans or by employer or em-
ployee benefit organizations. For the purpose of applying the fore-
going policy provision with respect to any insured, any amount of 
benefit provided for such insured pursuant to any compulsory bene-
fit statute (including any workmen's compensation or employer's lia-
bility statute) whether provided by a governmental agency or other-
wise shall in all cases be deemed to be 'other valid coverage' of which 
the insurer has had notice. In applying the foregoing policy provision 
67 STAT.] 
PUBLIC LAW 11 9 - J U L Y 16, 1953 
169 
no third party liability coverage shall be included as 'other valid 
coverage'.) 
" (6) A provision as follows: 
" 'RELATION OF EARNINGS TO INSURANCE : If the total monthly 
amount of loss-of-time benefits promised for the same loss under all 
valid loss-of-time coverage upon the insured, whether payable on a 
weekly or monthly basis, shall exceed the monthly earnings of the 
insured at the time disability commenced or his average monthly earn-
ings for the period of two years immediately preceding a disability 
for which claim is made, whichever is the greater, the insurer will 
be liable only for such proportionate amount of such benefits under 
this policy as the amount of such monthly earnings or such average 
monthly earnings of the insured bears to the total amount of monthly 
benefits for the same loss under all such coverage upon the insured 
at the time such disability commences and for the return of such part 
of the premiums paid during such two years as shall exceed the pro 
rata amount of the premiums for the benefits actually paid hereunder; 
but this shall not operate to reduce the total monthly amount of bene-
fits payable under all such coverage upon the insured below the sum 
of two hundred dollars or the sum of the monthly benefits specified 
in such coverages, whichever is the lesser, nor shall it operate to reduce 
benefits other than those payable for loss of time.' 
"(The foregoing policy provision may be inserted only in a policy 
which the insured has the right to continue in force subject to its terms 
by the timely payment of premiums (1) until at least age 50 or, (2) in 
the case of a policy issued after age 44, for at least five years from 
its date of issue. The insurer may, at its option, include in this pro-
vision a definition of 'valid loss-of-time coverage', approved as to 
form by the Superintendent, which definition shall be limited in 
subject matter to coverage provided by governmental agencies 
or by organizations subject to regulation by insurance law or by 
insurance authorities of this or any other jurisdiction of the United 
States or any province of Canada, or to any other coverage the 
inclusion of which may be approved by the Superintendent or any 
combination of such coverages. 
In the absence of such definition 
such term shall not include any coverage provided for such insured 
pursuant to any compulsory benefit statute (including any workmen's 
compensation or employer's liability statute), or benefits provided by 
union welfare plans or by employer or employee benefit organizations.) 
"(7) A provision as follows: 
" 'UNPAID PREMIUM : Upon the payment of a claim under this policy, 
any premium then due and unpaid or covered by any note or written 
order may be deducted therefrom.' 
" (8) A provision as follows: 
" 'CANCELLATION : The insurer may cancel this policy at any time by 
written notice delivered to the insured, or mailed to his last address 
as shown by the records of the insurer, stating when, not less than five 
days thereafter, such cancellation shall be effective; and after the 
policy has been continued beyond its original term the insured may 
cancel this policy at any time by written notice delivered or mailed to 
the insurer, effective upon receipt or on such later date as may be 
specified in such notice. 
In the event of cancellation, the insurer will 
return promptly the unearned portion of any premium paid. 
If the 
insured cancels, the earned premium shall be computed by the use of 
the short-rate table last filed with the official having supervision of 
insurance in the jurisdiction where the insured resided when the policy 
was issued. 
If the insurer cancels, the earned premium shall be com-
puted pro rata. 
Cancellation shall be without prejudice to any claim 
originating prior to the effective date of cancellation.' 
170 
PUBLIC LAW 119-JULY 16, 1953 
[67 S T A T . 
"(9) A provision as follows: 
" 'CONFORMITY W I T H STATE STATUTES : Any provision of this policy 
which, on its effective date, is in conflict with the statutes of the 
jurisdiction in which the insured resides on such date is hereby 
amended to conform to the minimum requirements of such statutes.' 
"(10) A provision as follows: 
" 'ILLEGAL OCCUPATION : The insurer shall not be liable for any loss 
to which a contributing cause was the insured's commission of or 
attempt to commit a felony or to w hich a contributing cause was the 
insured's being engaged in an illegal occupation.' 
"(11) A provision as follows: 
" 'INTOXICANTS AND NARCOTICS : The insurer shall not be liable for 
any loss sustained or contracted in consequence of the insured's being 
intoxicated or under the influence of any narcotic unless administered 
on the advice of a physician.' 
"(c) Inapplicable or inconsistent provisions: If any provision of 
this subsection is in whole or in part inapplicable to or inconsistent 
with the coverage provided by a particular form of policy the insurer, 
with the approval of the Superintendent, shall omit from such policy 
any inapplicable provision or part of a provision, and shall modify 
any inconsistent provision or part of the provision in such manner as 
to make the provision as contained in the policy consistent with the 
coverage provided by the policy. 
"(d) Order of certain policy provisions: The provisions which are 
the subject of paragraphs (a) and (b) of this subsection, or any 
corresponding provisions which are used in lieu thereof in accordance 
with such paragraphs, shall be printed in the consecutive order of the 
provisions in such paragraphs or, at the option of the insurer, any 
such provision may appear as a unit in any part of the policy, with 
other provisions to which it may be logically related, provided the 
resulting policy shall not be in whole or in part unintelligible, uncer-
tain, ambiguous, abstruse, or likely to mislead a person to whom the 
policy is offered, delivered, or issued. 
"(e) Third party ownership: The word 'insured', as used in this 
section, shall not be construed as preventing a person other than the 
insured with a proper insurable interest from making application for 
and owning a policy covering the insured or from being entitled under 
such a policy to any indemnities, benefits and rights provided therein. 
"(f) Filing procedure: The Superintendent may make such rea-
sonable rules and regulations concerning the procedure for the filing 
or submission of policies subject to this section as are necessary, proper 
or advisable to the administration of this section. 
This provision 
shall not abridge any other authority granted the Superintendent by 
law. 
" 4 . CONFORMING TO STATUTE 
"(a) Other policy provisions: No policy provision which is not 
subject to subsection (3) of this section shall make a policy, or any 
E
ortion thereof, less favorable in any respect to the insured or the 
eneficiary than the provisions thereof which are subject to this 
section. 
"(b) Policy conflicting with this section: A policy delivered or 
issued for delivery to any person in the District in violation of this 
section shall be held valid but shall be construed as provided in this 
section. When any provision in a policy subject to this section is in 
conflict with any provision of this section, the rights, duties, and 
obligations of the insurer, the insured, and the beneficiary shall be 
governed by the provisions of this section. 
67 S T A T . ] 
PUBLIC LAW 119-JULY 16, 1953 
171 
" 5 . APPLICATION 
"(a) The insured shall not be bound by any statement made in an 
application for a policy unless a copy of such application is attached 
to or endorsed on the policy when issued as a part thereof. If any 
such policy delivered or issued for delivery to any person in the Dis-
trict shall be reinstated or renewed, and the insured or the beneficiary 
or assignee of such policy shall make written request to the insurer 
for a copy of the application, if any, for such reinstatement or 
renewal, the insurer shall within fifteen days after the receipt of such 
i*equest at its home office or any branch office of the insurer, deliver 
or mail to the person making such request, a copy of such application. 
If such copy shall not be so delivered or mailed, the insurer shall be 
precljLided from introducing such application as evidence in any action 
or proceeding based upon or involving such policy or its reinstate-
ment or renewal. 
"(b) No alteration of any written application for any such policy 
shall be made by any person other than the applicant without his writ-
ten consent, except that insertions may be made by the insurer, for 
administrative purposes only, in such manner as to indicate clearly 
that such insertions are not to be ascribed to the applicant. 
"(c) The falsity of any statement in the application for any policy 
covered by this section may not bar the right to recovery thereunder 
unless such false statement materially affected either the acceptance 
of the risk or the hazard assumed by the insurer. 
"e. NOTICE; WAIVER 
"The acknowledgment by any insurer of the receipt of notice given 
under any policy covered by this section, or the furnishing of forms 
for filing proofs of loss, or the acceptance of such proofs, or the investi-
gation of any claim thereunder shall not operate as a waiver of any 
of the rights of the insurer in defense of any claim arising under such 
policy. 
"7. AGE LIMIT 
"If any such policy contains a provision establishing, as an age limit 
or otherwise, a date after which the coverage provided by the policy 
will not be effective, and if such date falls within a period for which 
premium is accepted by the insurer or if the insurer accepts a premium 
after such date, the coverage provided by the policy will continue in 
force subject to any right of cancellation until the end of the period 
for which premium has been accepted. In the event the age of the 
insured has been misstated and if, according to the correct age of the 
insured, the coverage provided by the policy would not have become 
effective, or would have ceased piror to the acceptance of such pre-
mium or premiums, then the liability of the insurer shall be limited 
to the refund, upon request, of all premiums paid for the period not 
covered by the policy. 
u 
8. NGN 
A P P L I C A T I O N TO CERTAIN POLICIES 
"Nothing in this section shall apply to or affect (1) any policy of 
group accident, group health, or group accident and health insurance; 
or (2) life insurance, endowment or annuity contracts, or contracts 
supplemental thereto which contain only such provisions relating to 
accident and sickness insurance as (a) provide additional benefits in 
case of death or dismemberment or loss of sight by accident, or as (b) 
operate to safeguard such contracts against lapse, or to give a special 
surrender value or special benefit or an annuity in the event that the 
172 
PUBLIC LAW 120-JULY 16, 1953 
[67 S T A T . 
Superintendent. 
48 Stat. 1128. 
66 Stat. 824. 
insured or annuitant shall become totally and permanently disabled, 
as defined by the contract or supplemental contract: Provided, That 
no such supplemental contract shall be issued or delivered to any 
person in the District unless and until a copy of the form thereof has 
been submitted to and approved by the Superintendent under such 
reasonable rules and regulations as he shall make concerning the 
provisions in such contracts and their submission to and approval by 
him." 
SEC. 2. Section 2 of chapter I of such Act of June 19,1934, as amended 
(D. C, Code, 1951 edition, sec. 35-302), is amended by striking there-
from the definition of the word "Superintendent", and inserting in 
lieu thereof the following: "Superintendent" means the Superin-
tendent of Insurance of the District of Columbia, or the officer or 
officers, agency or agencies succeeding to his functions under Reorgani-
zation Plan Numbered 5 of 1952. 
Ante, 
pp. 162, 
163, 170. 
EFFECTIVE DATE OF ACT 
SEC. 3. This Act shall take effect ninety days after approval. 
A 
policy, rider, or endorsement, which could have been lawfully used or 
delivered or issued for delivery to any person in the District imme-
diately before the effective date of this Act, may be used or delivered 
or issued for delivery to any such person during three years after the 
effective date of this Act without being subject to the provisions of 
subsection (2), (3), or (4) of section 12: Provided, however, That, 
when any provision in such policy is in conflict with any provision of 
such section, the obligations of the insurer shall be governed by the 
provisions of such section. 
Approved July 16, 1953. 
July 16. 1953 
[S. 1078] 
Public Law 120 
CHAPTER 19? 
AN ACT 
To authorize the use of certificates by officers of the Armed Forces of the United 
States, in connection with certain pay and allowance accounts of military 
and civilian personnel. 
Armed Forces. 
Pay and allows 
ance certificates. 
Effective date. 
Termination. 
Be it enacted hy the Senate cmd House of Representatives 
of the 
United States of America in Congress assembled, That certificates of 
officers of the Army, Navy, Air Force, Marine Corps, and Coast Guard 
of the United States, executed on and after December 8,1941, attesting 
to the existence of the stated facts, and which are filed with and relate 
to vouchers and papers involving pay and allowances of civilian and 
militarj^ personnel of the departments concerned shall be accepted as 
supporting such payments so far as said facts are concerned without 
the necessity of any other supporting evidence or certificates. 
The 
Secretaries of the departments concerned shall prescribe regulations 
governing the conditions under which, and the classes and types of 
facts to which, the above authority will be applicable, and those regu-
lations shall, as far as practicable, be uniform. Such regulations ^YQ-
scribed by the Secretaries of military departments shall be subject 
to the approval of the Secretary of Defense. 
SEC. 2. This Act shall take effect on April 2, 1953, and shall termi-
nate upon the issuance of a proclamation by the President, or the 
adoption by the Congress of a concurrent resolution, terminating the 
national emergency existing on the date of the enactment of the Act, 
or on April 1,1954, whichever is earlier. 
Approved July 16, 1953.