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TO AMEND SECTION 38-63-220, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROVISIONS THAT MUST BE CONTAINED IN ALL INDIVIDUAL LIFE INSURANCE POLICIES, SO AS TO PROVIDE THAT INCONTESTABILITY DOES NOT ATTACH UNLESS THE POLICY OR ANY RIDER OR SUPPLEMENTAL BENEFITS HAS BEEN IN FORCE FOR MORE THAN TWO YEARS FROM THE DATE OF ISSUE DURING THE LIFETIME OF THE INSURED AND THAT AN INSURED'S DEATH BEFORE THE RUNNING OF THE TWO-YEAR PERIOD DOES NOT BAR THE INSURER FROM ASSERTING THE INSURED'S FRAUD OR FALSE STATEMENTS AS GROUND TO VACATE THE POLICY OR TO DEFEAT THE CLAIM.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 38-63-220(d) of the 1976 Code is amended to read:
"(d) a provision that the policy and any a rider or supplemental benefits attached to the policy are incontestable as to the truth of the application for insurance and to the representations of the insured individual after they have been in force during the lifetime of the insured for a period of two years from their date of issue. Any A rider or supplemental benefits subsequently attached to the policy are incontestable as to the truth of the application for the rider or supplemental benefits and to the representations of the insured individual after they have been in force during the lifetime of the insured for a period of two years from their date of issue. If an insurer institutes proceedings during the lifetime of the insured to vacate a policy on the ground of the falsity of the representations contained in the application for the policy, the proceedings must commence within the time permitted in this subsection. If the insured dies before the two-year contestable period permitted in this section has run, the incontestability provision described in this subsection does not attach and the insurer may either commence proceedings to vacate the policy, or assert defenses to any claim under the policy, based upon the ground of the falsity of the representations contained in the application for the policy;"
SECTION 2. This act takes effect upon approval by the Governor.
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