Rhode Island Life Insurance Policy Requirements

Rhode Island law imposes specific requirements on life insurance policies sold in the state under Title 27 of the Rhode Island General Laws. These requirements protect consumers and ensure policy standardization.

Free Look Period

Rhode Island provides a standard free look period for life insurance:

During the free look period, the policyholder can:

• Review the policy thoroughly
• Return it for a full refund of premiums paid
• No questions asked, no penalty

Exam Tip: Rhode Island's 10-day free look for life insurance follows the standard period used in most states.

Incontestability Clause

Rhode Island requires a 2-year incontestability clause in all life insurance policies under R.I. Gen. Laws Section 27-4-6.2:

• After 2 years from issue, the insurer cannot contest the policy based on misstatements in the application
• Exceptions: Fraud, non-payment of premiums, or violation of policy conditions
• The clause protects beneficiaries from having claims denied due to application errors

Rhode Island Specific Rules

• Incontestability period begins from the issue date
• If policy lapses and is reinstated, a new 2-year period begins
• Provisions for accidental death and total/permanent disability may be excepted at insurer's option

Suicide Clause

Rhode Island limits the suicide exclusion:

• Suicide exclusion cannot exceed 2 years from policy issue
• After 2 years, death by suicide is covered
• If policy is reinstated, new 2-year period may apply
• Accidental death benefits may have different exclusion rules

Grace Period Requirements

Rhode Island mandates grace periods for premium payments:

During the grace period:

• Policy remains in full force
• Death benefits are payable (minus unpaid premium)
• Policy lapses at end of grace period if premium not paid

Beneficiary Protections

Rhode Island has specific beneficiary protection laws:

Creditor Protection

Under Rhode Island law:

• Life insurance proceeds payable to a named beneficiary are generally exempt from the insured's creditors
• Cash surrender values may have some protection
• Proceeds payable to the estate are subject to creditor claims

Change of Beneficiary

• Policyowner has the right to change beneficiary unless irrevocably designated
• Changes must be made in writing to the insurer
• Change is effective when received by the insurer

Policy Delivery Requirements

Rhode Island requires:

• Policy delivered within reasonable time of issue
• Delivery must include policy and any required disclosures
• Receipt should be obtained
• Electronic delivery permitted with consent

Misstatement of Age Provision

If age is misstated on the application:

• Benefits are adjusted to the amount the premium would have purchased at the correct age
• This provision prevents policy voidance for innocent age errors