Commentary on Sections Structure of Chapters Overview Section 488: Disregard of some events after alterations of life insurance policy terms
1933.This section and the next are based on ESC A96. See Change 89 in Annex 1.
1934.The disregard applies where a policy which is at least 20 years old is effectively made paid-up by the insurer. A chargeable event which might have arisen afterwards as a result of that variation is disregarded if the changes made to the policy would not themselves give rise to a chargeable event.
1935.Subsection (3) extends the disregard to a replacement policy issued by the insurer in lieu of the old, where the issue of such a policy is what the insurer does to give effect to the alteration of the original policy’s terms.