2006 New York Code - Notice Of Premium Due Under Life Or Disability Insurance Policy; Notice To Assignees Of Non-payment Of Premium.

 
    §  3211.  Notice  of  premium  due  under life or disability insurance
  policy; notice to assignees of non-payment of premium.
    (a) (1) No policy of  life  insurance  or  non-cancellable  disability
  insurance  delivered  or  issued for delivery in this state, and no life
  insurance certificate delivered or issued for delivery in this state  by
  a  fraternal  benefit  society,  shall  terminate  or lapse by reason of
  default in payment of any  premium,  installment,  or  interest  on  any
  policy  loan  in  less than one year after such default, unless a notice
  shall have  been  duly  mailed  at  least  fifteen  and  not  more  than
  forty-five  days  prior  to  the  day  when  such payment becomes due. A
  separate notice shall not be required for insurance that is supplemental
  to a policy of life insurance.
    (2) If a life insurance policy or life insurance certificate  provides
  that  the  policyholder  or  certificate  holder may vary the amount and
  frequency of premiums to be paid to the insurer, premiums,  installments
  and interest on loans will be considered due on the day when the failure
  of  the  insurer  or  fraternal  benefit society to receive an amount of
  premium, installment or interest on loan  would  cause  such  policy  or
  certificate  to  terminate  or lapse, and the failure to pay such amount
  shall be considered a default.
    (b) The notice required by paragraph  one  of  subsection  (a)  hereof
  shall:
    (1) be duly mailed to the last known address of the person insured, or
  if  any  other  person  shall have been designated in writing to receive
  such notice, then to such other person;
    (2) state the amount of such payment, the date  when  due,  the  place
  where  and  the  person to whom it is payable; and shall also state that
  unless such payment is made on or before the date when due or within the
  specified grace period thereafter, the policy shall terminate  or  lapse
  except  as  to  the  right  to any cash surrender value or nonforfeiture
  benefit.
    (c) If the payment demanded by such notice shall be  made  within  the
  time  limited  therefor, it shall be taken to be in full compliance with
  the requirements of the policy in respect to the time of  such  payment.
  The  statement  of any officer, employee or agent of such insurer, or of
  any one authorized to mail such notice, subscribed and affirmed  by  him
  as  true  under  the penalties of perjury, stating facts which show that
  the notice required by this section has been duly addressed  and  mailed
  shall be presumptive evidence that such notice has been duly given.
    (d)  No  action  shall  be maintained to recover on any life insurance
  policy, or on any such non-cancellable contract of permanent  and  total
  disability insurance, which has lapsed because of default in making such
  payment  (except  an  action  to  recover  the  cash  surrender value or
  nonforfeiture benefit) unless the action is instituted within two  years
  from the date of such default.
    (e)  (1) An assignee of a policy of life insurance under an assignment
  made in this state may request the insurer to give such assignee  notice
  of non-payment of any premium due on such policy.
    (2) The request must be made before default in payment of premium, and
  must be in writing, mailed to the home office of the insurer and specify
  the  name  and  address of the assignee, the name of the insured and the
  policy number.
    (3) When the request is made as provided  herein  the  right  of  such
  assignee  to  the  cash  surrender  value or other nonforfeiture benefit
  under the policy shall continue as it existed on  the  date  of  default
  until  the  expiration  of  ten days after the mailing of notice of such
  default to the last known address of the assignee.
    (4) Upon termination of the assignee's rights  under  the  assignment,
  the assignee shall promptly mail a release thereof to the insurer.
    (5)  This  subsection shall not be construed to affect the contractual
  rights of assignees.
    (f) This section shall not apply to:
    (1) Any policy of group insurance.
    (2) Any policy of insurance requiring the payment of premiums  monthly
  or  at  shorter  intervals,  provided  in  the  case of policies of life
  insurance the insurer issuing such policy elects  with  respect  to  all
  such  policies  to  mail  a  written  notice  within  six  months  after
  termination or lapse to the insured or to any  other  person  who  shall
  have been designated in writing to receive such notice, stating the type
  and amount of any automatic nonforfeiture benefit in force.
    (g)  In  the  case of life insurance policies to which this section is
  applicable and which contain a cash surrender value,  the  insurer  must
  provide an annual notification that the policy contains a cash surrender
  value  and  that  further  information, including the amount thereof, is
  available from the insurer upon written request  from  the  policyowner.
  Such  notification  shall  include  a statement that the insured has the
  right to request an updated policy illustration based, in respect  to  a
  participating policy, on the then current dividend scale, and in respect
  to  a  policy  subject  to  subsection  (a) of section four thousand two
  hundred thirty-two of this  chapter,  on  the  then  current  mortality,
  interest  and  expense  assumptions.  The notification pertaining to the
  cash surrender value shall be set out in a conspicuous manner and  shall
  include the address to which the policyowner may make a written inquiry.
  Any notice or statement which informs a policyowner of the policy's cash
  surrender  value  at  least  annually shall be deemed to comply with the
  requirements of this subsection.
    (h) In the case of life insurance policies described in paragraph  two
  of  subsection  (f)  of  this section and which contain a cash surrender
  value, the notification requirement of subsection (g)  of  this  section
  will  apply in cases where the insurer voluntarily sends a notice of the
  premium due.