§ 27-1-12-35 — Life insurance proceeds; payment; time limit; liability for interest

(a) Any resident of this state who becomes
entitled to receive payment of an obligation in cash under the terms of
a policy of individual life insurance issued in this state, including any
death benefit riders attached thereto, endowment insurance or an
individual annuity contract, shall be entitled to receive payment of
interest from the insuring company if any payment is not received by
such resident within thirty (30) days after the event giving rise to the
obligation, or within thirty (30) days after the scheduled date of
payment as the case may be. Interest payable shall be calculated from
the date of the event or the scheduled date of payment. However, any
interest awarded by a court shall be in lieu of that provided in this
section.
(b) The rate of interest payable pursuant to this section shall be not
less than that rate, as determined from time to time by the insuring
company, applicable to proceeds of life insurance left on deposit with
the insuring company and subject to withdrawal on demand.
(c) For the purposes of this section, payment shall be deemed to
have been received by a resident when manually delivered by an agent
or representative of the insuring company or when deposited by the
insuring company in the United States mails, postage prepaid, and
directed to the resident at his last known address as evidenced by the
business records of the insuring company.
As added by Acts 1978, P.L.8, SEC.15.