§ 3207 — Life insurance contracts by or for the benefit of minors; on the lives of minors, limitations on amount

New York § 3207

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 32: Insurance Contracts - Life, Accident and Health, Annuities

Text

§ 3207. Life insurance contracts by or for the benefit of minors; on\nthe lives of minors, limitations on amount. (a) A minor above the age of\nfourteen years and six months shall be deemed competent to enter into a\ncontract for, be the owner of, and exercise all rights relating to, a\npolicy of life insurance upon the life of the minor or upon the life of\nany person in whom the minor has an insurable interest, but the\nbeneficiary of such policy may be only the minor or the parent, spouse,\nbrother, sister, child or grandparent of the minor.\n (b) An insurer may deliver or issue for delivery in this state a\npolicy or policies of life insurance upon the life of a minor under the\nage of fourteen years and six months, provided that such policy or\npolicies are effectuated by a person or persons having an insurable\ninterest in the life of such minor or by a person or persons upon whom\nsuch minor is dependent for support and maintenance and provided further\nthat an insurer shall not knowingly issue such a policy or policies for\nan amount which, together with the amount of life insurance under any\nother policy or policies then in force upon the life of such minor, is\nin excess of the limit of fifty thousand dollars or the limit of fifty\nper centum or the limit of twenty-five per centum in the case of a minor\nunder the age of four years and six months of the amount of life\ninsurance in force upon the life of the person effectuating the\ninsurance at the date of issue of the policy on the life of such minor,\nwhichever limit is the greater, and any amount of life insurance on the\nlife of such minor not in excess of such limit when issued shall not be\ndeemed to be in excess thereof by reason of any reduction thereafter in\nthe amount of life insurance in force upon the life of the person\neffectuating the insurance.\n (c) An insurer may deliver or issue for delivery in this state a\npolicy or policies of life insurance upon the life of a minor under the\nage of fourteen years and six months for an amount or amounts of life\ninsurance which may be in excess of the limit specified in subsection\n(b) of this section if the policy or policies are effectuated and the\npremiums paid by a person or persons having an insurable interest in the\nlife of the minor and if the minor is not dependent upon such person or\npersons for support and maintenance.\n (d) (1) If an insurer shall deliver or issue for delivery in this\nstate any policy of life insurance on the life of a minor for an amount\nin excess of the limit prescribed by subsection (b) of this section, the\namount under such policy which is in excess shall not be valid, or\npayable as a claim by death, so long as and to the extent that it\ncontinues to be in excess, provided that no such insurance shall be\ndeemed to be in excess on or after the date upon which the minor attains\nthe age of fourteen years and six months.\n (2) The insurer which issues such excess amount, determined by\npriority of date of issue of policies if there is more than one policy,\nshall upon demand therefor or upon the death of the insured and upon\nproof satisfactory to the insurer that such excess exists at the time of\nsuch demand or death refund with interest, at the rate assumed in the\nvaluation of the policy, the premiums paid less dividends allowed, on\nthe amount of insurance that is in excess at the date of such demand or\ndeath, and such excess insurance and all of the obligations of the\ninsurer thereunder shall terminate. Any indebtedness to the insurer on\nany excess insurance shall be deducted by the insurer from such refund.\n (3) If only a part of the amount of insurance under such a policy is\nin excess of such limits, the refund shall bear the same proportion to\nthe total premiums paid less dividends allowed under such policy as the\namount of such excess insurance bears to the amount of insurance in\nforce under the policy at the date of such refund, and the amount or\namounts thereafter payable under such policy shall be reduced in the\nsame proportion.\n (4) If an insurer shall have made payment as a death claim of an\namount in excess of such limits without having had proof satisfactory to\nit that such insurance was in excess, such insurer shall not be liable\nfor the refund specified above.\n (f) Notwithstanding the foregoing limitations, any domestic life\ninsurance company may issue for delivery in another state or foreign\ncountry any policy which is governed by the laws of such state or\ncountry for any amount not prohibited by the laws of such other state or\ncountry.\n (g) The amount of life insurance within the meaning of this section\nshall not be deemed to include return premium benefits or the return of\ncash value or any additional benefits payable in the event of death by\naccident, any variable death benefit above the guaranteed minimum death\nbenefit provided under a variable life insurance policy, or any\nadditional insurance provided by the application of dividends or by the\napplication of additional amounts credited to a policy pursuant to\nsubsection (b) of section four thousand two hundred thirty-two of this\nchapter.\n