Pennsylvania Code
Title 31 - INSURANCE
Part IV - Life Insurance
Chapter 88 - INDIVIDUAL ACCIDENT AND SICKNESS INSURANCE MINIMUM STANDARDS
EXCEPTIONS, EXCLUSIONS AND REDUCTIONS
Section 88.87 - Military service exclusions
Universal Citation: 31 PA Code ยง 88.87
Current through Register Vol. 54, No. 44, November 2, 2024
If a policy contains a military service exclusion or a provision suspending coverage during military service, and if the premiums are either reduced or refunded for the period of the military service, the policy shall clearly so state the following:
(1) As to policies other than noncancellable and guaranteed renewable and guaranteed renewable policies, the following provisions apply:
(i) If the policy contains a
"status" type of exclusion which excludes all coverages applicable to an
insured person while in military service on full time active duty, the policy
shall provide, upon receipt of written request, for refund of premiums as
applicable to such person on a pro rata basis.
(ii) If the policy contains a "causation"
type exclusion, that is loss resulting from military service while an insured
person is on full time active duty, refund of premium is not required since the
policy would be operative as to any other loss not resulting from military
service causes.
(iii) A provision
for voluntary suspension of coverage as to an insured person during military
service may be used and if an identifiable premium is charged as to such
person, then upon written request for suspension a pro rata premium must be
refunded.
(2) As to noncancellable and guaranteed renewable and guaranteed renewable policies, the following provisions apply:
(i) The policy may
provide for refund of the entire premium for the period of military service or
for a partial refund of the premium from the date the insurer receives notice
and it may adjust the refund for a change in reserves during the period of
suspension.
(ii) The policy may
contain a military service exclusion or may provide for suspension of coverage
upon entry into military service with the right of reinstatement upon
termination of service within a specified period of not less than 60 days
without evidence of insurability.
(iii) The insurer may charge a partial
premium during the period of suspension which will anticipate accumulation of
reserves required by law or regulation and related cost factors.
Disclaimer: These regulations may not be the most recent version. Pennsylvania may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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