US Laws, Codes, Statutes & Cases

45-5-610. Construction of power relating to insurance transactions.

In a statutory power of attorney, the language granting power with respect to insurance and annuity transactions empowers the agent to:   

(1)     continue, pay the premium or assessment on, modify, rescind, release or terminate a contract procured by or on behalf of the principal which insures or provides an annuity to either the principal or another person, whether or not the principal is a beneficiary under the contract;   

(2)     procure new, different and additional contracts of insurance and annuities for the principal and the principal's spouse, children and other dependents; and select the amount, type of insurance or annuity and mode of payment;   

(3)     pay the premium or assessment on, modify, rescind, release or terminate a contract of insurance or annuity procured by the agent;   

(4)     designate the beneficiary of the contract, but an agent may be named a beneficiary of the contract, or an extension, renewal or substitute for it, only to the extent the agent was named as a beneficiary under a contract procured by the principal before executing the power of attorney;   

(5)     apply for and receive a loan on the security of the contract of insurance or annuity;   

(6)     surrender and receive the cash surrender value;   

(7)     exercise an election;   

(8)     change the manner of paying premiums;   

(9)     change or convert the type of insurance contract or annuity, with respect to which the principal has or claims to have a power described in this section;   

(10)     change the beneficiary of a contract of insurance or annuity, but the agent may not be designated a beneficiary except to the extent permitted by Paragraph (4);   

(11)     apply for and procure government aid to guarantee or pay premiums of a contract of insurance on the life of the principal;   

(12)     collect, sell, assign, hypothecate, borrow upon or pledge the interest of the principal in a contract of insurance or annuity; and   

(13)     pay from proceeds or otherwise, compromise or contest, and apply for refunds in connection with, a tax or assessment levied by a taxing authority with respect to a contract of insurance or annuity or its proceeds or liability accruing by reason of the tax or assessment.