69O-154.002. Statement of Terms; Acknowledgment by Insured Required
Effective on Tuesday, December 24, 1974
1It is the opinion of the Director that the citizens of this state should be aware and should have full knowledge of the meaning of the terms, “This policy is renewable at the option of the company,” “This policy is cancellable by the company,” or similar captions on renewable term policies issued or issued for delivery in this state. To accomplish this, it shall be the duty of an agent writing such application to obtain from each applicant for such a policy a simple signed statement acknowledging that he knows and understands that upon proper notice the company may terminate the insurance at the end of any period for which the premium has been paid, or may cancel the policy if it contains the cancellation provision. Such statement may be a part of the application itself or may be separate. This statement may be obtained at the time of the application, before the policy is delivered, or when the policy is delivered. The wording of the statement will be as follows: “I am aware that the company may terminate this insurance at the end of any period for which the premium has been paid.” Different wording of similar import may be approved so as to accurately describe different renewal conditions or provisions in line with the terms of the contract. If this statement is on the application, it must be isolated or separated, and a separate signature is required at the end of such statement. Such signed statement is to be kept on file by the insurer.
