The national Life Policy Provisions guide covers the standard provisions, nonforfeiture and dividend options, settlement options and riders. This guide covers the Wyoming rules:

• the provisions required by Wyo. Stat. 26-16
• permitted exclusions, including suicide
• death claim payment and interest
• assignments, insurable interest and consent
• replacement (Rule Ch. 12)

Wyoming has no general free look for life policies. A replacement carries a 30-day right to return.

Required provisions (Wyo. Stat. 26-16)

Other limits:

• A policy can't limit the time to sue to less than three years after the claim arises (26-16-119(a)(i)).
• A policy can't be backdated more than one year before the application to make the insured more than a year younger (26-16-120).

Permitted exclusions (26-16-119)

A life policy may exclude only:

• war and aviation
• specified hazardous occupations, though military service doesn't count as one
• residence outside the continental U.S. and Canada
• suicide within two years of issue

When an exclusion applies, the insurer must pay at least a reserve amount computed as the statute specifies, adjusted for loans and dividend credits (26-16-119(b)).

Death claims (26-16-112; 26-15-124)

• Death benefits are paid within 45 days after proof of loss.
• Interest runs from the date of death at no less than the rate on proceeds left on deposit.
• If an insurer refuses to pay unreasonably, the court may award attorney fees and 10% interest.

Assignments and creditors

• An insurer may deal with an assignee until it receives written notice at its home office that the assignment ended or of a conflicting claim (26-15-122).
• Proceeds payable to a beneficiary other than the insured are protected from the insured's creditors, except premiums paid to defraud creditors (26-15-129).

Insurable interest and consent (26-15-102 to 26-15-106)

• Benefits must be payable to the insured, the insured's estate, or someone with an insurable interest when the contract is made. This rule blocks STOLI.
• Insurable interest comes from love and affection for close relatives, or a lawful economic interest for others. Parties to a business buy-sell agreement qualify.
• The insured applies or consents in writing, except:
  • a spouse insuring the other spouse
  • someone with an insurable interest insuring a minor
  • a parent or spouse signing for a family policy
• A minor at least 15 may own insurance or annuities on their own life.

Replacement (Rule Ch. 12)

• Replacement includes borrowing against an existing policy, in one loan or a series, for more than 25% of its loan value.
• Credit life, group coverage and certain same-insurer conversions are generally excluded.
• The producer presents the replacement notice no later than when the application is taken. Both sign it, and the applicant keeps it.
• The replacing insurer notifies the existing insurer within three working days after receiving the application or issuing the policy, whichever is sooner.
• The replacing insurer gives a 30-day unconditional refund right from delivery.
• Conservation means the existing insurer trying to talk the owner out of replacing. Routine reminders don't count.
• A substantially inaccurate presentation used to replace or conserve a policy is a violation.

Common exam traps

• Wyoming has no general life free look. A replacement gets 30 days.
• Life grace is 30 days (or one month), with interest of up to 6%.
• Incontestability is two years, except for nonpayment.
• The suicide exclusion is limited to two years, and the insurer pays at least the reserve.
• The loan rate cap is 8% fixed. Loans may be deferred 6 months.
• Death claims are paid within 45 days with interest from the date of death.
• A replacement notice goes to the existing insurer within three working days.