J. MILLARD TAWES, Governor                       1195

427.    Grace Period.

The group life insurance policy shall contain a provision that the
policyholder is entitled to a grace period of thirty-one (31) days for
the payment of any premium due except the first, during which grace
period the death benefit coverage shall continue in force, unless the
policyholder shall have given the insurer written notice of discon-
tinuance in advance of the date of discontinuance and in accordance
with the terms of the policy. The policy may provide that the policy
holder shall be liable to the insurer for the payment of a pro rata
premium for the time the policy was in force during such grace
period.

428.    Incontestability.

The group life insurance policy shall contain a provision that the
validity of the policy shall not be contested, except for nonpayment
of premium, after it has been in force for two (2) years from its
date of issue; and that no statement made by any person insured
under the policy relating to his insurability shall be used in contest-
ing the validity of the insurance with respect to which such state-
ment was made after such insurance has been in force prior to the
contest for a period of two (2) years during such person's lifetime
nor unless it is contained in a written instrument signed by him.

429.    Application; Statements Deemed Representations.

The group life insurance policy shall contain a provision that a
copy of the application, if any, of the policyholder shall be attached
to the policy when issued, that all statements made by the policy-
holder or by the persons insured shall be deemed representations
and not warranties, and that no statement made by any person
insured shall be used in any contest unless a copy of the instrument
containing the statement is or has been furnished to such person or
to his beneficiary.

430.    Insurability.

The group life insurance policy shall contain a provision setting
forth the conditions, if any, under which the insurer reserves the
right to require a person eligible for insurance to furnish evidence
of individual insurability satisfactory to the insurer as a condition
to part or all of his coverage.

431.    Misstatement of Age.

The group life insurance policy shall contain a provision specify-
ing an equitable adjustment of premiums or of benefits or of both
to be made in the event the age of a person insured has been mis-
stated, such provision to contain a clear statement of the method of
adjustment to be used.

432.    Payment of Benefits.

The group life insurance policy shall contain a provision that any
sum becoming due by reason of the death of the person insured shall
be payable to the beneficiary designated by the person insured,
subject to the provisions of the policy in the event there is no desig-
nated beneficiary as to all or any part of such sum living at the