2014 New York Laws
ISC - Insurance
Article 32 - (3201 - 3241) INSURANCE CONTRACTS - LIFE, ACCIDENT AND HEALTH, ANNUITIES
3211 - 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, for
  scheduled premium policies, 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, or for life insurance policies  in  which  the
  amount  and  frequency  of premiums may vary, no earlier than and within
  thirty days after the day when the insurer determines that the net  cash
  surrender  value  under  the  policy  is  insufficient  to pay the total
  charges that are necessary to keep  the  policy  in  force.  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 policyowner, 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.