2006 New York Code - Policies Of Insurance; Policies Not To Lapse Or Be Forfeited.

 
    § 316. Policies  of  insurance; policies not to lapse or be forfeited.
  1. No policy which insures the life of a member of a  reserve  component
  of  the armed forces of the United States, including the National Guard,
  who is called to active duty, or no policy which has been brought within
  the benefits of the federal "soldiers' and sailors'  civil  relief  act"
  shall  lapse  or  be  forfeited for the nonpayment of premium during the
  period of such service, or during two years after the expiration of such
  period; provided that any such policy has not lapsed for the  nonpayment
  of  premium before the commencement of the period of military service of
  the insured, provided that in no case shall this prohibition extend  for
  more than one year after this article ceases to be in force.
    2.  For  the purposes of this section, the term "policy" shall include
  any contract of life insurance as defined in paragraph one of subsection
  (a) of section one thousand one hundred thirteen of the  insurance  law.
  It  shall  also  include  any  benefit  in  the nature of life insurance
  arising out of membership in any fraternal benefit society as defined in
  subsection (a)  of  section  four  thousand  five  hundred  one  of  the
  insurance  law.  In  no  case,  however, shall the term "policy" include
  insurance exceeding a total face value of one hundred  thousand  dollars
  whether in one or more companies, but shall not include a policy insured
  under  Servicemen's  Group  Life  Insurance.  The  term  "premium" shall
  include membership dues or assessments in such society, and the date  of
  issuance  of  policy  as  herein  limited  shall  refer  to  the date of
  admission to membership in such association; the  term  "insured"  shall
  include  any  person  who  is  the holder of a policy as defined in this
  section; the term "insurer" shall include any corporation,  partnership,
  or  other  form of association which secures or provides insurance under
  any policy as defined herein.
    3. No individual accident and  health  insurance  policy,  defined  in
  paragraph  three  of  subsection (a) of section one thousand one hundred
  thirteen of the insurance law, which policy  insures  a  member  of  the
  organized  militia  of the state, and has not lapsed for the non-payment
  of premiums before the commencement of a period of active  duty  in  the
  military service of the state of New York by such member, pursuant to an
  order of the governor issued under the authority of section six or seven
  of  this  chapter,  shall  lapse  or be forfeited for the non-payment of
  premiums during a period of sixty days from the date  that  said  member
  begins  such  active duty provided the insurer is furnished with written
  notice of said duty within thirty days after the  commencement  thereof.
  An  insurer  shall have the right to deduct the amount of due and unpaid
  premiums from any benefit that may become payable as a  result  of  this
  subdivision.