Section 184
SEC. 184. Hereafter no policy of life or endowment insurance shall be issued or delivered within the Philippine Islands unless it shall contain in substance the following provisions: (a) A provision that the insured is entitled to a grace either of thirty days or of one month within which the payment of any premium after the first year may be made, subject at the option of the company to any interest charge not in excess of six per centum per annum for the number of days of grace elapsing before the payment of the premium, during which period of grace the policy shall continue in full force, but in case the policy becomes a claim during the said period of grace before the overdue premium or the deferred premiums of the current policy year if any are paid, the amount of such premiums, with interest on any overdue premium, may be deducted from any amount payable under the policy in settlement. (b) A provision that the policy shall, in the absence of fraud, be incontestable after two years from its date of issue except for nonpayment of premiums and except for violation of the conditions of the policy relating to military or naval service in time of war. (c) A provision that the policy shall constitute the entire contract between the parties, but if the company desires to make the application a part of the contract it may do so provided a copy of such application shall be indorsed upon or attached to the policy when issued, and in such case the policy shall contain a provision that the policy and the application therefor shall constitute the entire contract between the parties. (d) A provision that if the age of the insured has been misstated the amount payable under the policy shall be such as the premium would have purchased at the correct age. (e) A provision that the policy shall participate in the surplus of the company. (f) A provision specifying the options to which the policy-holder is entitled in the event of default in a premium payment after three full annual premiums shall have been paid. (g) A provision that after three full years premiums have been paid, the company at any time, while the policy is in force, will advance, on proper assignment or pledge of the policy and on the sole security thereof, at a specified rate of interest, a sum equal to, or at the option of the owner of the policy less than, the reserve at the end of the current policy year on the policy and on any dividend additions thereto, less a sum not more than two and one-half per centum of the amount insured by the policy and of any dividend additions thereto; and that the company will deduct from such value any existing indebtedness on the policy and balance of the premium for the current policy year, and may collect interest in advance on the loan to the end of the current policy year; which provision may further provide that such loan may be deferred for not exceeding six months after the application therefor is made. A company may, in lieu of the provision hereinabove permitted for the deduction from a loan on the policy of a sum not more than two and one-half per centum of the amount insured by the policy and of any dividend additions thereto, insert in the policy a provision that one-fifth of the entire reserve may be deducted in case of a loan under the policy, or may provide therein that the deduction may be the said two and one-half per centum or the one-fifth of the said entire reserve at the option of the company. (h) A table showing in figures the loan values, if any, and the options available under the policy each year upon default in premium payments, during at least the first twenty years of the policy. (i) In case the proceeds of a policy are payable in installments or as an annuity, a table showing the amounts of the installments or annuity payments. (j) A provision that the holder of a policy shall be entitled to have the policy reinstated at any time within three years from the date of default unless the cash value has been duly paid, or the extension period expired, upon the production of evidence of insurability satisfactory to the company and the payment of all overdue premiums and any other indebtedness to the company upon said policy with interest at a rate which shall be stipulated in the policy and not exceeding ten per centum per annum, payable annually. Any of the foregoing provisions or portions thereof not applicable to single premium or nonparticipating or term term policies, policies shall to that extent not be incorporated therein; and any such policy may be issued or delivered in the Philippine Islands which in the opinion of the insurance commissioner contains provisions on any one or more of the several foregoing requirements more favorable to the policy holder than hereinbefore required. The provisions of this section shall not apply to policies of reinsurance.