§431:10D-108  Limitation of liability. 

(a)  No policy of life insurance shall be delivered or issued for delivery in

this State if it contains a provision limiting to less than three years the

time within which an action at law or in equity may be commenced after the

cause of action shall accrue.

     (b)  No policy of life insurance shall be

delivered or issued for delivery in this State if it contains a provision which

excludes or restricts liability for death caused in a certain specified manner

or occurring while the insured has a specified status, except that the policy

may contain provisions excluding or restricting coverage as specified therein

in event of death under any one or more of the following circumstances:

     (1)  Death as a result directly or indirectly of war,

declared or undeclared, or of any act or hazard of such war;

     (2)  Death as a result of aviation under conditions

specified in the policy;

     (3)  Death as a result of a specified hazardous

occupation or occupations;

     (4)  Death while the insured is a resident outside of

the United States and Canada; or

     (5)  Death within two years from the date of issue of

the policy as a result of suicide, while sane or insane.

     (c)  A policy which contains any exclusion or

restriction pursuant to subsection (b) shall also provide that in the event of

death under circumstances to which any such exclusion or restriction is

applicable, the insurer will pay an amount not less than a reserve determined

according to the valuation method prescribed in the minimum standard required

by law upon the basis of the mortality table and interest rate specified in the

policy for the calculation of nonforfeiture benefits (or if the policy provides

no such benefits, computed according to a mortality table and interest rate

determined by the insurer and specified in the policy) with adjustment for

indebtedness or dividend credit.

     (d)  This section shall not apply to annuities

and pure endowment contracts, or to any provision of a life insurance policy

relating to disability benefits or to additional benefits in the event of death

by accident or accidental means.

     (e)  An insurer may specify conditions

pertaining to subsections (a), (b) and (c) which in the commissioner's opinion

are more favorable to the policyholder. [L 1987, c 347, pt of §2]