215 ILCS 5/229
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article XIV - Legal Reserve Life Insurance

 (from Ch. 73, par. 841)Sec. 229.         Standard  Provisions for Industrial Life Insurance.  (1) After the effective date  of this Section and any amendments thereto, no policy of industrial life  insurance shall be issued or delivered in this State, unless the same shall  contain in substance the following provisions, and shall be subject to the  other provisions of this section:(a) A provision that the insured is entitled to a grace period of four  weeks within which the payment of any premium after the first, may be made,  during which period of grace the policy shall continue in full force but in  case the policy becomes a claim during said grace period before the overdue  premiums are paid, the amount of overdue premiums may be deducted in any  settlement under the policy.(b) A provision that the policy shall contain the entire contract  between the parties, nothing to be incorporated therein by reference to any  constitution, bylaws, rules, application or other writing unless endorsed  upon or attached to the policy.(c) A provision that the policy shall be incontestable after it shall  have been in force during the lifetime of the insured for a specified  period, not more than two years from its date, except for nonpayment of  premiums and except for violation of the conditions of the policy relating  to naval or military service in time of war and except as to provisions  relating to benefits in the event of total and permanent disability and  those granting additional insurance specifically against death by accident.(d) A provision that if it shall be found at any time before final  settlement on the policy that the age of the insured (or the age of any  other person considered in determining the premium) has been misstated, the  amount payable under the policy shall be such as the premium would have  purchased at the correct age or ages at the time the policy was issued.(e) If a participating policy a provision indicating the conditions  under which the company shall annually ascertain and apportion any  divisible surplus accruing on the policy.(f) A provision for nonforfeiture benefits in accordance with the  requirements of section 229.1 (2) or section 229.2.(g) If more than one option is provided, a provision as to which of such  options shall apply in the event of the insured's failure to notify the  company of his selection of an option.(h) A provision for cash surrender values in accordance with the  requirements of section 229.1 (2) or section 229.2.(i) A provision that the policy may be reinstated, if not surrendered  for its cash value or if the period of extended term insurance has not  expired, within one year from the date of default in payment of premiums  upon presentation of evidence satisfactory to the company of the  insurability of the insured and the payment of arrears of premiums and the  payment or reinstatement of any other indebtedness to the company upon said  policy, with interest on said premiums and indebtedness at a rate not  exceeding six per centum per annum payable annually.(j) A table showing in figures the nonforfeiture options available  under the policy every year upon default in payment of premiums during at  least the first twenty years of the policy, and a provision that the  company will furnish upon request an extension of such table beyond the  years shown in the policy.(k) A provision that when a policy shall become a claim by the death of  the insured, settlement shall be made upon receipt of due proof of death  and not later than two months after the receipt of such proof.(l) Title on the face of the policy clearly and correctly describing its  form.(m) A provision, or a notice attached to the policy, to the effect that  during a period of 10 days from the date the policy is delivered to the  policy owner it may be surrendered to the insurer together with a written  request for cancellation of the policy, and that in such event the insurer  will refund any premium paid for the policy, including any policy fees or  other charges. The Director  may by rule exempt specific types of policies from this paragraph.(2) Any of the provisions of subsection (1) or portions thereof not  applicable to nonparticipating or term policies shall to that extent not  be incorporated therein. The provisions of this section shall not apply to  policies issued or granted pursuant to the nonforfeiture provisions  prescribed in clauses (f), (g) and (h) of subsection (1).(3) Upon proper written request, a named beneficiary shall be designated  in, or be endorsed on, the policy, to receive the benefits thereof on the  death of the insured, and there shall be reserved the power to change the  beneficiary at any time upon proper written request to the company at its  home office, accompanied by the policy for endorsement of the change  thereon by the company. The company shall have the right to refuse to  designate a beneficiary if evidence satisfactory to the company of such  beneficiary's insurable interest in the life of the insured is not  furnished on request. The policy may provide in substance that any payment  thereunder may be made or any nonforfeiture benefit may be granted to the  insured or to the insured's estate or to any relative by blood or  connection by marriage of the insured, or, to the extent of such portion of  any payment under the policy as may reasonably appear to the company to be  due to such person, to any other person equitably entitled thereto by  reason of having incurred expense occasioned by the maintenance or illness  or burial of the insured. If the policy shall be in force at the death of  the insured, the proceeds thereof shall be payable to the named beneficiary  if living, but unless proof of claim in the manner and form required by the  policy, accompanied by delivery of the policy for surrender, has been made  by such beneficiary within fifteen days after the death of the insured,  then upon the expiration of said fifteen days, or if the beneficiary is the  estate of the insured, or is a minor, or is not legally qualified to give a  valid release or dies before the insured, the company may pay to any person  permitted by the policy.    (Source: P.A. 82-594.)