Life insurance policy provisions

What this document is

S.C. Code Ann. ch. 38-63: Life insurance policy provisions is a state statute published by South Carolina Legislature (scstatehouse.gov). It is one of the South Carolina documents that insurance license exam questions are written from, including south carolina life & health practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• S.C. Code Ann. § 38-63-220(i) (Required Policy Provisions - Grace Period)

  “a provision that the insured is entitled to a grace period of not less than thirty-one days within which the payment of any premium after the first may be made. During the grace period, the policy continues in full force.”

• S.C. Code Ann. § 38-63-220(d) (Required Policy Provisions - Incontestability)

  “the policy and any rider or supplemental benefits attached to the policy are incontestable as to the truth of the application for insurance and to the representations of the insured individual after they have been in force during the lifetime of the insured for a period of two years from their date of issue.”

• S.C. Code Ann. § 38-63-220(e) (Required Policy Provisions - Misstatement of Age)

  “if it is found that the age or sex of the insured, or of any individual considered in determining the premium, has been misstated, any amount payable or benefit accruing under the policy is that as the premium would have purchased according to the correct age or sex;”

• S.C. Code Ann. § 38-63-520(2) (Standard Nonforfeiture Law; cash surrender value on surrender)

  “Upon surrender of the policy within sixty days after the due date of any premium payment in default after premiums have been paid for at least three full years in the case of ordinary insurance or five full years in the case of industrial insurance, the insurer shall pay, in lieu of any paid-up...”

• S.C. Code Ann. § 38-63-220(l) (Required policy provisions; policy loan deferral)

  “The policy must reserve to the insurer the right to defer the granting of a loan, other than for the payment of any premium to the insurer, for six months after application for the loan.”

• S.C. Code Ann. § 38-63-220(j) (Required policy provisions; reinstatement)

  “(j) a provision that the policy may be reinstated at any time within three years after the date of default in the payment of any premium, unless the policy has been surrendered for its cash value or unless the extended term insurance, if any, has expired, upon evidence of insurability satisfactory...”

• S.C. Code Ann. § 38-63-40(A)(3) (Exception for a Creditor Holding a Valid Assignment)

  “a creditor possessing a valid assignment from the policyowner may recover from either the cash surrender value or the proceeds of the life insurance policy the amount secured by the assignment with interest.”

• S.C. Code Ann. § 38-63-210 (Whole contract, including application, must appear in policy)

  “Every insurer doing a life insurance business in the State shall deliver with each policy of insurance issued by it a copy of the application made by the insured so that the whole contract appears in the application and policy of insurance. If the insurer violates this requirement, no defense is...”

• S.C. Code Ann. § 38-63-220(i) (Required policy provisions - grace period)

  “the insured is entitled to a grace period of not less than thirty-one days within which the payment of any premium after the first may be made. During the grace period, the policy continues in full force. If a claim arises under the policy during the grace period, the amount of any premium due or...”

• S.C. Code Ann. § 38-63-80 (Interest on Lump Sum Payment of Life Insurance Proceeds)

  “When an individual life insurance policy provides for payment of its proceeds in a lump sum upon the death of the insured and the insurer fails to pay the proceeds within thirty days of submission of proof of death and all necessary claim papers needed in order to pay the claim properly, the...”

• S.C. Code Ann. § 38-63-220(e) (Required policy provisions - misstatement of age or sex)

  “if it is found that the age or sex of the insured, or of any individual considered in determining the premium, has been misstated, any amount payable or benefit accruing under the policy is that as the premium would have purchased according to the correct age or sex;”

• S.C. Code Ann. § 38-63-50 (Spendthrift Provisions in Settlement Agreements)

  “When the proceeds of a life insurance policy becoming a claim by death of the insured are left with an insurance company under a trust or other agreement, the benefits accruing thereunder after the death of the insured are not transferable nor subject to computation or encumbrance nor to legal...”

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• S.C. Code Ann. ch. 38-57: Unfair trade practices in the business of insuranceState statute
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• South Carolina Code of Laws Title 38, Chapters 5, 43 and part of 55 (first third)State statute
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• South Carolina Insurance Content OutlinesCandidate handbook or exam outline
• South Carolina Insurance Licensing Candidate HandbookCandidate handbook or exam outline