§ 3227 — Interest upon surrenders, policy loans and other funds

New York § 3227

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

Text

§ 3227. Interest upon surrenders, policy loans and other funds. (a)\nInterest, at the rate provided for in section three thousand two hundred\nfourteen of this article, shall be payable by life insurers, fraternal\nbenefit societies, and life insurance departments of savings banks upon:\n(1) the value of policies surrendered by policyholders for cash values,\nincluding the rollover of annuity funds to other entities, and (2) the\nfunds disbursed as policy loans. Such interest payment shall be added to\nand be a part of the total sum paid or be paid separately at the option\nof the insurer.\n (b) The interest calculated on amounts described in paragraphs one and\ntwo of subsection (a) hereof shall be calculated from the date the\ndocumentation necessary to complete the transaction is received by the\ninsurer and shall be payable if the funds are not mailed or delivered by\nthe insurer within ten working days of said receipt.\n (c) No interest need be payable pursuant to this section unless the\namount of such interest is at least twenty-five dollars or if the\npayment of benefits by the insurer has been deferred pursuant to other\nprovisions of this chapter.\n (d) Irrespective of the payment of interest in accordance with the\nabove provisions, such life insurers, fraternal benefit societies and\nlife insurance departments of savings banks shall make disbursements\nunder paragraphs one and two of subsection (a) hereof as expeditiously\nas possible.\n