J. MILLARD TAWES, Governor                       1181

liability to the same extent that such liability might have been or
was excluded or restricted when the policy or contract was originally
issued, and such exclusion or restriction shall be effective from the
date of reinstatement.

413.    Policy Settlements.

Any life insurer shall have the power to hold under agreement the
proceeds of any policy issued by it, upon such terms and restrictions
as to revocation by the policyholder and control by beneficiaries,
and with such exemptions from the claims of creditors of benefi-
ciaries other than the policyholder as set forth in the policy or as
agreed to in writing by the insurer and the policyholder. Upon
maturity of a policy, in the event the policyholder has made no such
agreement, the insurer shall have the power to hold the proceeds of
the policy under an agreement with the beneficiaries. The insurer
shall not be required to segregate the funds so held but may hold
them as part of its general assets.

414.    Standard Nonforfeiture Law—Life Insurance.

(a)   This section shall be known as the standard nonforfeiture
law.

(b)   In the case of policies issued on or after the operative date
of this section as defined in subsection (n) of this section, no policy
of life insurance, except as set forth in subsection (m), of this section,
shall be delivered or issued for delivery in this State unless it shall
contain in substance the following provisions, or corresponding pro-
visions which in the opinion of the Commissioner are at least as
favorable to the defaulting or surrendering policyholder:

(1)   That in the event of default in any premium payment, after
premiums have been paid for at least one full year, the insurer will
grant, upon proper request not later than sixty (60) days after the
due date of the premium in default, a paid-up nonforfeiture benefit
on a plan stipulated in the policy, effective as of such due date of
such value as may be hereinafter specified.

(2)   That upon surrender of the policy within sixty (60) days
after the due date of any premium payment in default after pre-
miums have been paid for at least three (3) full years in the case of
ordinary insurance, or five (5) full years in the case of industrial
insurance, the insurer will pay, in lieu of any paid-up nonforfeiture
benefit, a cash surrender value of such amount as may be herein-
after specified.

(3)   That a specified paid-up nonforfeiture benefit shall become
effective as specified in the policy unless the person entitled to make
such election elects another available option not later than sixty (60)
days after the due date of the premium in default.

(4)   That if the policy shall have become paid up by completion
of all premium payments, or if it is continued under any paid-up
nonforfeiture benefit which became effective on or after the third
policy anniversary in the case of ordinary insurance, or the fifth
policy anniversary in the case of industrial insurance, the insurer
will pay, upon surrender of the policy within thirty (30) days after
any policy anniversary, a cash surrender value of such amount as
may be hereinafter specified.