AUTHORITY TO PAY ACCELERATED TERM LIFE BENEFITS

An insurer may pay an accelerated benefit under an individual or group term life insurance policy or certificate if: (1) the insurer has received a written medical opinion, satisfactory to the insurer, that the insured has: (A) a terminal illness; (B) a long-term care illness; or (C) an illness or physical condition that is likely to cause permanent disability or premature death, including: (i) acquired immune deficiency syndrome (AIDS); (ii) a malignant tumor; (iii) a condition that requires an organ transplant; or (iv) a coronary artery disease that results in acute infarction or requires surgery; and (2) the amount of the accelerated benefit is deducted from: (A) the amount of the death benefit payable under the policy or certificate; and (B) any amount the insured would otherwise be entitled to convert to an individual contract.