Section 88.87. Military service exclusions

If a policy contains a military service exclusion or a provision suspending coverage during military service, and if the premiums are either reduced or refunded for the period of the military service, the policy shall clearly so state the following:

(1) As to policies other than noncancellable and guaranteed renewable and guaranteed renewable policies, the following provisions apply:

(i) If the policy contains a ‘‘status’’ type of exclusion which excludes all coverages applicable to an insured person while in military service on full time active duty, the policy shall provide, upon receipt of written request, for refund of premiums as applicable to such person on a pro rata basis.

(ii) If the policy contains a ‘‘causation’’ type exclusion, that is loss resulting from military service while an insured person is on full time active duty, refund of premium is not required since the policy would be operative as to any other loss not resulting from military service causes.

(iii) A provision for voluntary suspension of coverage as to an insured person during military service may be used and if an identifiable premium is charged as to such person, then upon written request for suspension a pro rata premium must be refunded.

(2) As to noncancellable and guaranteed renewable and guaranteed renewable policies, the following provisions apply:

(i) The policy may provide for refund of the entire premium for the period of military service or for a partial refund of the premium from the date the insurer receives notice and it may adjust the refund for a change in reserves during the period of suspension.

(ii) The policy may contain a military service exclusion or may provide for suspension of coverage upon entry into military service with the right of reinstatement upon termination of service within a specified period of not less than 60 days without evidence of insurability.

(iii) The insurer may charge a partial premium during the period of suspension which will anticipate accumulation of reserves required by law or regulation and related cost factors.