New York Clarifies Rules On War Risk Policy Limitations
In answer to repeated inquiries, 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 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 letter:
-The underlying life policy must warn the policyholder about any war risk exclusions or restrictions in red capital letters on the policys face page.