Prohibited life insurance policy provisions

No life insurance company may issue or deliver any life insurance policy subject to this chapter under Section 31A-21-101 which contains any provision: (1) forfeiting the policy for failure to repay any loan on the policy or to pay interest on the loan while the total indebtedness on the policy is less than its loan value, and in ascertaining the indebtedness due upon policy loans, the interest, if not paid when due, may be added to the principal of those loans and may bear interest at the same rate as the principal; (2) claiming that the policy was issued or became effective more than one year before the original application for the insurance is executed, if the insured would then be rated at an age more than one year younger than the insured's age at the date of the insured's application, unless the aggregate amount of the annual premiums for the whole term of the back-dated period is paid in cash; (3) allowing assessments or calls to be made upon policyholders; or (4) allowing an insurer to cancel or terminate a policy for a reason other than: (a) nonpayment of a premium when due; or (b) as allowed pursuant to Subsection 31A-21-105(2).