SPONSOR: Douglas
Currently, a life insurance policy can exclude or restrict liability for a death as a result of suicide in the event the insured dies as a result of suicide within one year from the date the policy was issued. Additionally, if an insured applies for additional death benefits or an increase in death benefits after the initial coverage starts, the policy can have an exclusion for suicide that occurs within one year after the addition or increase in benefits. In both cases, the insurance company is required to refund all premium paid for the excluded or restricted coverage of the insured.
This bill changes the amount of time from one year to two years for both the initial issuance of policies and the increase in benefits.
Statutes affected: