§ 3214 — Interest upon proceeds of life insurance policies and annuity contracts

New York § 3214

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

Text

§ 3214. Interest upon proceeds of life insurance policies and annuity\ncontracts. (a) If an action to recover the proceeds due under a policy\nof life insurance or contract of annuity delivered or issued for\ndelivery in this state results in a judgment against the insurer,\ninterest thereon shall be paid from the date of the death of the insured\nor annuitant in connection with a death claim on a policy of life\ninsurance or contract of annuity and from the date of maturity of an\nendowment contract to the date the verdict is rendered or the report or\ndecision is made, computed pursuant to the provisions of subsection (c)\nhereof, and thereafter in accord with the provisions of sections five\nthousand two and five thousand three of the civil practice law and\nrules.\n (b) If an action to recover is commenced and a settlement is reached\nbefore the verdict is rendered or the report or decision is made,\ninterest on the settlement shall be paid from the date of the death of\nthe insured or annuitant in connection with a death claim on such a\npolicy of life insurance or contract of annuity and from the date of\nmaturity of an endowment contract to the date of payment computed under\nthe provisions of subsection (c) hereof.\n (c) If no action has been commenced, interest upon the principal sum\npaid to the beneficiary or policyholder shall be computed daily at the\nrate of interest currently paid by the insurer on proceeds left under\nthe interest settlement option, from the date of the death of an insured\nor annuitant in connection with a death claim on such a policy of life\ninsurance or contract of annuity and from the date of maturity of an\nendowment contract to the date of payment and shall be added to and be a\npart of the total sum paid.\n (d) This section shall not require the payment of interest for any\nperiod during which an insurer is required to pay interest under any\nstate or federal law pertaining to interpleader.\n (e) This section shall not apply to policies or contracts issued prior\nto September first, nineteen hundred seventy-five, which contain\nspecific provisions to the contrary.\n