33-20-117. Nonforfeiture rights -- policies issued before operative date. (1) This section shall apply only to policies of life insurance issued prior to the operative date of 33-20-213.
     (2) In event of default in payment of any premium due on any policy, provided not less than three full years' premiums shall have been paid, there shall be secured to the insured, without action on his part, either paid-up or extended insurance as specified in the policy, the net value of which shall be at least equal to the entire net reserve held by the insurer of such policy, less 2 1/2% of the amount insured by the policy and dividend additions, if any, and less any outstanding indebtedness to the insurer on the policy at time of default. There shall be secured to the insured the right to surrender the policy to the insurer at its home office within 1 month after date of default for cash value otherwise available for the purchase of the paid-up or extended insurance as aforesaid.

     History: En. Sec. 326, Ch. 286, L. 1959; R.C.M. 1947, 40-3832.