War Exclusions and Restrictions

The Department issued Circular Letter No. 6 (2003) to remind insurers and fraternal benefit societies of certain provisions in the Insurance Law pertaining to war risk exclusions and restrictions for the payment of life insurance death benefits. Since the issuance of the Circular Letter, the Department has received numerous inquiries on the applicability of such provisions to additional benefits paid for death by accident and to disability benefits provided in conjunction with life insurance policies. In an effort to address these questions, we offer the following guidance:

War Risk Exclusion; Notification to the Department Pursuant to Section 336

Section 336 which requires notice to the Department prior to issuing a life policy with war restrictions or exclusions is not applicable to additional benefits paid for death by accident or to disability benefits under Section 3215 provided either in the life insurance policy itself or by rider to the policy.

Notice of War Exclusion on the Face Page of the Policy Pursuant to Section 3201(c)(4)

Section 3201(c)(4) which requires that any life insurance policy form containing any war or travel exclusion or restriction must have a disclosure notice on the policy’s face page in red and capital letters is not applicable to additional benefits paid for death by accident or to disability benefits under Section 3215 provided either in the life insurance policy itself or by rider to the policy.

Termination of War Risk Exclusions Pursuant to Section 3203(c)(5)

Section 3203(c)(5) which requires that any war exclusion shall terminate 6 months after the end of the war or after discharge, release, separation from active military service, after demobilization or after the insured permanently leaves the war area which ever occurs first is not applicable to additional benefits paid for death by accident or to disability benefits under Section 3215 provided either in the life insurance policy itself or by rider to the policy.

Notice of War Restrictions in Applications Pursuant to Section 45.1 of Regulation 19 (11NYCRR45)

Section 45.1 of Regulation 19 which requires that applications contain a notice if war restrictions are included in life insurance policies is not applicable to additional benefits paid for death by accident or to disability benefits under Section 3215 provided either in the life insurance policy itself or by rider to the policy.