(215 ILCS 5/225) (from Ch. 73, par. 837)
Sec. 225.
Prohibited
Provisions for Life Policies.
(1) After the effective date of this Code no policy of life insurance
may be issued or delivered in this State if it includes any of the
following provisions:
(a) A provision limiting the time within which any action may be commenced
to less than 3 years after the cause of action
accrues.
(b) A provision by which the policy purports to be issued or take effect
more than 6 months before the original application for the insurance was
made, but this provision does not apply in any case of a transfer from one
form of policy to another in connection with which the policy owner
receives credit for any reserve accumulation under the form of policy from
which the transfer was made.
(c) A provision for any mode of settlement at maturity after the
expiration of the contestable period of the policy of less value than the
amount insured plus dividend additions, if any,
less any indebtedness to the company on or secured by the policy, and less
any premium that may by the terms of the policy be deducted, except as
permitted by clause (c) of subsection (1) of Section 224.
(d) A provision for forfeiture of the policy for failure to repay any
loan on the policy, or to pay interest on such loan, while the total
indebtedness on the policy, including interest, is less than the loan value
thereof.
(e) A provision to the effect that the agent soliciting the insurance is
the agent of the person insured under the policy, or making the acts or
representations of such agent binding upon the person so insured under the
policy.
(f) A provision limiting the amount payable under a policy by reason of
death occurring after the expiration of the contestable period to less than
the face amount thereof on account of the kind or character of disease
causing the insured's death.
(2) The provisions of this section do not apply to policies of
reinsurance, nor to policies issued or granted under the nonforfeiture
provisions prescribed in clause (g) of subsection (1) of Section 224.
(Source: P.A. 83-345.)
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