HRS §431:10D-106
Required rules for reversionary annuity contracts
This section says that any reversionary annuity contract sold in Hawaii must include certain standard provisions. It allows the insurer to reduce payments instead of deducting overdue amounts, and lets the contract be reinstated within three years if you pay what you owe. It does not apply to annuities inside life insurance policies.
buyers
The statute, as written — Reversionary annuities; standard provisions required
(a) No contract for a reversionary annuity shall be delivered or issued for delivery in this State unless it contains in substance the following: (1) Provisions specified in subsection (a)(1) to (5) of section 431:10D-105, except that under subsection (a)(1) of section 431:10D-105 the insurer may at its option provide for an equitable reduction of the amount of the annuity payments in settlement of an overdue or deferred payment in lieu of providing for a deduction of such payments from an amount payable upon a settlement under the contract. (2) Provision that the contract may be reinstated at any time within three years from the date of default in making stipulated payments to the insurer, upon production of evidence of insurability satisfactory to the insurer, and upon condition that all overdue payments and any indebtedness to the insurer on account of the contract be paid, or, within the limits permitted by the then cash values of the contract, reinstated, with interest as to both payments and indebtedness at a rate to be specified in the contract but not exceeding six per cent a year compounded annually. (b) Any of the provisions not applicable to single premium annuities shall not, to that extent, be incorporated therein. (c) This section shall not apply to annuities included in life insurance policies.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.