§ 5-1502F — Construction--insurance transactions

§ 5-1502F. Construction--insurance transactions. In a statutory short\nform power of attorney, the language conferring general authority with\nrespect to "insurance transactions," must be construed to mean that the\nprincipal authorizes the agent:\n 1. To continue, to pay the premium or assessment on, to modify, to\nrescind, to release or to terminate any contract of life, accident,\nhealth, disability or liability insurance or any combination of such\ninsurance procured by or on behalf of the principal prior to the\ncreation of the agency which insures either the principal or any other\nperson, without regard to whether the principal is or is not a\nbeneficiary thereunder; provided, however, with respect to life\ninsurance contracts existing at the creation of the agency, the\nauthority granted hereby shall not include the power to add, delete or\notherwise change the designation of beneficiaries in effect for any such\ncontract, unless the authority to make such additions, deletions or\nchanges is stated otherwise in the "Modifications" section of a\nstatutory short form power of attorney or in a non-statutory power of\nattorney signed and dated by the principal with the signature of the\nprincipal duly acknowledged in the manner prescribed for the\nacknowledgment of a conveyance of real property, and which is executed\npursuant to the requirements of section 5-1501B of this title;\n 2. To procure new, different or additional contracts of insurance\nprotecting the principal with respect to ill-health, disability,\naccident or liability of any sort, to select the amount, the type of\ninsurance contract and the mode of payment under each such policy, to\npay the premium or assessment on, to modify, to rescind, to release or\nto terminate, any contract so procured by the agent;\n 3. To apply for and to receive any available loan on the security of\nthe contract of insurance, whether for the payment of a premium or for\nthe procuring of cash, to surrender and thereupon to receive the cash\nsurrender value, to exercise an election as to beneficiary or mode of\npayment, to change the manner of paying premiums, and to change or to\nconvert the type of insurance contract, with respect to any contract of\nlife, accident, health, disability or liability insurance as to which\nthe principal has, or claims to have, any one or more of the powers\ndescribed in this section; provided, however, that the authority granted\nhereby shall not include the power to add, delete or otherwise change\nthe designation of beneficiaries in effect for any such contract, unless\nthe authority to make such additions, deletions or changes is expressly\nstated otherwise in the "Modifications" section of a statutory short\nform power of attorney or in a non-statutory power of attorney signed\nand dated by the principal with the signature of the principal duly\nacknowledged in the manner prescribed for the acknowledgment of a\nconveyance of real property, and which is executed pursuant to the\nrequirements of section 5-1501B of this title;\n 4. To demand, to receive, to obtain by action, proceeding or\notherwise, any money, dividend, or other thing of value to which the\nprincipal is, or may become, or may claim to be entitled as the proceeds\nof any contract of insurance or of one or more of the transactions\nenumerated in this section, to conserve, to invest, to disburse or to\nutilize anything so received for purposes enumerated in this section,\nand to reimburse the agent for any expenditures properly made by him in\nthe execution of the powers conferred on him by the statutory short form\npower of attorney;\n 5. To apply for and to procure any available governmental aid in the\nguaranteeing or paying of premiums of any contract of insurance on the\nlife of the principal;\n 6. To sell, to assign, to hypothecate, to borrow upon, or to pledge\nthe interest of the principal in any contract of insurance;\n 7. To pay, from such proceeds or otherwise, to compromise or to\ncontest, and to apply for refunds in connection with, any tax or\nassessment levied by a taxing authority with respect to any contract of\ninsurance or the proceeds thereof or liability accruing by reason of\nsuch tax or assessment;\n 8. To agree and to contract, in any manner, and with any person and on\nany terms, which the agent may select for the accomplishment of any of\nthe purposes enumerated in this section, and to perform, to rescind, to\nreform, to release or to modify any such agreement or contract;\n 9. To execute, to acknowledge, to seal and to deliver any consent,\ndemand, request, application, agreement, indemnity, authorization,\nassignment, pledge, notice, check, receipt, waiver or other instrument\nwhich the agent may think useful for the accomplishment of any of the\npurposes enumerated in this section;\n 10. To continue, to procure, to pay the premium or assessment on, to\nmodify, to rescind, to release, to terminate or otherwise to deal with\nany contract of insurance, other than those enumerated in subdivisions\none or two of this section, whether fire, marine, burglary,\ncompensation, disability, liability, hurricane, casualty, or other type,\nor any combination of insurance, to do any act or acts with respect to\nany such contract or with respect to its proceeds or enforcement which\nthe agent thinks to be desirable or necessary for the promotion or\nprotection of the interests of the principal;\n 11. To prosecute, to defend, to submit to alternative dispute\nresolution, to settle, and to propose or to accept a compromise with\nrespect to any claim existing in favor of, or against, the principal\nbased on or involving any insurance transaction or to intervene in any\naction or proceeding relating thereto;\n 12. To hire, to discharge, and to compensate any attorney, accountant,\nexpert witness or other assistant or assistants when the agent shall\nthink such action to be desirable for the proper execution by him of any\nof the powers described in this section and for the keeping of needed\nrecords thereof; and\n 13. In general, and in addition to all the specific acts in this\nsection enumerated, to do any other act or acts, which the principal can\ndo through an agent, in connection with procuring, supervising,\nmanaging, modifying, enforcing and terminating contracts of insurance in\nwhich the principal is the insured or is otherwise in any way\ninterested.\n All powers described in this section 5-1502F of the general\nobligations law shall be exercisable with respect to any contract of\ninsurance in which the principal is in any way interested, whether made\nin the state of New York or elsewhere.\n