Regulation .12 Military Service Exclusion.
Regulation .12 Military Service Exclusion.LinkCopy Citation
A.
Except as provided in §B of this regulation, a contract shall provide for a refund of premium upon request of the policyholder of pro rata unearned premium for any period during which the insured is not covered if:
(1)
Coverage terminates for an individual when the individual enters military service; or
(2)
The contract excludes any coverage while the individual is in military service.
B.
The refund of premium requirement described in §A of this regulation does not apply to:
(1)
A group contract;
(2)
An individual contract that contains a military exclusion that applies only to loss resulting from military service while in the military service;
(3)
An individual life insurance contract that provides for automatic reinstatement:
(a)
Upon discharge from military service; or
(b)
Within a stated period not exceeding 6 months after discharge; or
(4)
An individual health insurance or nonprofit health service plan contract, if:
(a)
The contract is a noncancellable contract or a guaranteed renewable contract; and
(b)
The contract provides for automatic reinstatement:
(i)
Upon discharge from military service; or
(ii)
Within a stated period not exceeding 6 months after discharge.