2023 New York Laws › ISC - Insurance › Article 32 - 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.