1351

In an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity there shall be a provision that there shall be a period of grace of one (1) month, but not less than thirty (30) days, within which any stipulated payment to the insurer falling due after the first may be made, subject, at the option of the insurer, to an interest charge thereon at a rate to be specified in the contract but not exceeding six percent (6%) per annum for the number of days of grace elapsing before such payment, during which grace period the contract shall continue in full force and effect; but in case a claim arises under the contract during the grace period before the overdue premium is paid, or the deferred premiums or considerations of the current contract year, if any, are paid, the amount of such premium or considerations, with interest thereon, may be deducted in any settlement under the contract.\nHistory —Ins. Code, added as § 13.170 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.