72A.207 GRADED DEATH BENEFITS.
For the purpose of this section, a graded death benefit is a provision within a life insurance
policy in which the death benefit, in the early years of the policy, is less than the face amount of
the policy, but which increases with the passage of time.
No policy of life insurance paying a graded death benefit may be issued in this state unless
the graded death benefit is equal to at least four times the first year premium. This section does
not prohibit the return of premiums or premiums plus interest in connection with the voluntary
or judicially ordered rescission of the policy, or according to the terms of the exclusions from
coverage for suicide, aviation, or war risk.
History: 1996 c 446 art 1 s 66