CONVERSION PRIVILEGES
§ 88.151. Compliance.
If a policy contains a conversion privilege, it shall comply, in substance, with the following:
(1) The caption of the provision shall be ‘‘Conversion Privilege,’’ or words of similar import. The provision shall indicate the persons eligible for conversion. The circumstances applicable to the conversion privilege, including any limitations on the conversion, and the person by whom the conversion privilege may be exercised, shall be described in the provision. The provision may indicate that the privilege is subject to the underwriting standards of the insurer relating to overinsurance.
(2) A business overhead expense policy issued on a guaranteed renewable basis, on a noncancellable basis, or a renewable at the option of the insurer basis may, at the option of the insurer, provide for continuation as a loss of time policy upon termination of the business interest.
(3) When a policy is issued pursuant to the exercise of a conversion privilege the converted policy or a rider attached thereto shall reflect the relative rights of each person covered under the converted policy.
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