THEODORE R. McKELDIN, GOVERNOR                   1029

holder shall be attached to the policy when issued, that all statements
made by the policyholder or by the persons insured shall be deemed
representations and not warranties, and that no statement made by
any person insured shall be used in any contest unless a copy of the
instrument containing the statement is or has been furnished to such
person or to his beneficiary.

(4) A provision setting forth conditions, if any, under which the
insurer reserves the right to require a person eligible for insurance to
furnish evidence of individual insurability satisfactory to the insurer
as a condition to part or all of his coverage.

(5) A provision specifying an equitable adjustment of premiums or
of benefits or of both to be made in the event the age of a person in-
sured has been misstated, such provision to contain a clear statement
of the method of adjustment to be used.

(6)  A provision that any sum becoming due by reason of the death
of the person insured shall be payable to the beneficiary designated
by the person insured, subject to the provisions of the policy in the
event there is no designated beneficiary, as to all or any part of such
sum, living at the death of the person insured, and subject to any
right reserved by the insurer in the policy and set forth in the certifi-
cate to pay at its option a part of such sum not exceeding $500. to any
person appearing to the insurer to be equitably entitled thereto by
reason of having incurred funeral or other expenses incident to the
last illness or death of the person insured.

(7)  A provision that the insurer will issue to the policyholder for
delivery to each person insured an individual certificate setting forth
a statement as to the insurance protection to which he is entitled, to
whom the insurance benefits are payable, and the rights and condi-
tions set forth in Subsections (8), (9) and (10) of this section.

(8)  A provision that if the insurance, or any portion of it, on a
person covered under the policy ceases because of termination of
employment or of membership in the class or classes eligible for
coverage under the policy, such person shall be entitled to have issued
to him by the insurer, without evidence of insurability, an individual
policy of life insurance without disability or other supplementary
benefits, provided application for the individual policy shall be made,
and the first premium paid to the insurer within thirty-one days after
such termination, and provided further that,

(a)  the individual policy shall, at the option of such person be on
any one of the forms, except term insurance, then customarily issued
by the insurer at the age and for the amount applied for;

(b)  the individual policy shall be in an amount not in excess of the
amount of life insurance which ceases because of such termination,
less, in the case of a person whose membership in the class or classes
eligible for coverage terminates but who continues in employment
in another class, the amount of any life insurance for which such
person is or becomes eligible under any other group policy within
thirty-one days after such termination, provided that any amount of
insurance which shall have matured on or before the date of such
terminaton as an endowment payable to the person insured, whether
in one sum or in instalments or in the form of an annuity, shall not,