{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-4037","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-4037","heading":"Definitions to be delivered to applicant for replacement","body":"life insurance policy or annuity.\n\nThe following definitions shall be on a form prepared by the\n\ninsurer and shall be delivered to the applicant for a replacement\n\nlife insurance policy or a replacement annuity policy along with the\n\nnotice and statement provided for in Sections 4035 and 4036 of the\n\nLife Insurance and Annuity Policyholders Protection Act, Sections\n\n4031 et seq. of this title:\n\nDEFINITIONS\n\nPremiums: Premiums are the payments you make on the\n\nlife insurance or annuity contract. They are unlike deposits in a\n\nsavings or investment program because if you drop the policy you\n\nmight get back less than you paid in.\n\nCash Surrender Value: This is the amount of money\n\nyou can get if you surrender your life insurance policy or annuity.\n\nIf there is a policy loan, the cash surrender value is the\n\ndifference between the cash value printed in the policy and the loan\n\nvalue. Not all policies have cash surrender values.\n\nLapse: A life insurance policy may lapse when you do\n\nnot pay the premiums within the grace period. If your policy had a\n\ncash surrender value, the insurer might change your policy to as\n\nmuch extended term insurance or paid-up insurance as the cash\n\nsurrender value will buy. Sometimes the policy lets the insurer\n\nborrow from the cash surrender value to pay the premiums.\n\nSurrender: You surrender a life insurance policy\n\nwhen you either let it lapse or tell the company you want to drop\n\nit. If a policy has a cash surrender value, you can receive such\n\nvalue in cash if you return the policy to the company with a written\n\nrequest.\n\nPlace on Extended Term: This means you use your cash\n\nsurrender value to change your insurance to term insurance with the\n\nsame insurer. In this case, the net death benefit will be the same\n\nas before but you will only be covered for a specified period of\n\ntime.\n\nBorrow Policy Loan Values: If your life insurance\n\npolicy has a cash surrender value, you can usually borrow all or\n\npart of said amount from the insurer. Interest will be charged\n\naccording to the terms of the policy, and if the loan and unpaid\n\ninterest ever exceeds the cash surrender value the policy will be\n\nterminated. If you die, the amount of the loan and any unpaid\n\ninterest due will be subtracted from the death benefits.\n\nEvidence of Insurability: This means proof that you\n\nare an acceptable risk. You have to meet the standards of the\n\ninsurer regarding age, health, occupation, and such other standards\n\nas the insurer feels necessary to be eligible for coverage.\n\nIncontestable Clause: This says that after one (1)\n\nor two (2) years, according to the provisions of the contract, the\n\ninsurer shall not resist a claim because you made a false or\n\nincomplete statement when you applied for the policy. During the\n\nfirst two (2) years if there are false or incomplete answers on the\n\napplication and the insurer discovers them, the insurer can deny a\n\nclaim as if the policy has never existed.\n\nSuicide Clause: This says that if you commit suicide\n\nafter being insured for less than two (2) years, your beneficiaries\n\nwill receive only a refund of the premiums that were paid.\n\nThe definitions of incontestable clause and suicide clause shall be\n\nin 12-point type.","path":["OK Code","Title 36"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os36.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"2c1b230a4653978ab4a77fd7c91339e962bcb9e56885cdbc1b99c202a333abff","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-4036","next":"us-ok/okla.-stat.-tit.-36-36-4038"},"notice":"GroundRules: Original legal text. Not legal advice."}