New York Regulators Clarify Rules On War Risk Policy Limitations

By Staff Writer

October 24, 2003 at 08:00 PM

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NU Online News Service, Oct. 24, 2003, 6:12 p.m. EDT – New York state insurance regulators say disability benefits and accidental death benefits sold along with life insurance policies are exempt from three war risk exclusion provisions that apply to the underlying life insurance policies.

The Life Bureau of the New York State Insurance Department issued Circular Letter Number 6, a summary of the rules governing war risk limitations, in March.

According to the circular letter:

- The underlying life insurance policy must warn the policyholder about any war risk exclusions or restrictions in red capital letters on the policy's face page.

- The issuer of a life policy must notify regulators about any war risk exclusions or restrictions.

- The issuer of a life policy that includes war risk exclusions or restrictions must end the limitations six months after the insured permanently leaves the war zone.

The Life Bureau reports that it has received many questions since March about whether the same rules apply to extra disability benefits and accidental death benefits that are included with life insurance policies.

None of the three major war risk exclusion provisions that apply to life insurance policies apply to extra disability and accidental death benefits sold along with the policies, the Life Bureau says.

The new Life Bureau guidance is on the Web at http://www.ins.state.ny.us/ilwexcl.htm

The original circular letter is at http://www.ins.state.ny.us/cl03_06.htm

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