2023 New York Laws › ISC - Insurance › Article 32 - Insurance Contracts - Life, Accident and Health, Annuities › 3207 - Life Insurance Contracts by or for the Benefit of Minors; on the Lives of Minors, Limitations on Amount.

§  3207.  Life insurance contracts by or for the benefit of minors; on
the lives of minors, limitations on amount. (a) A minor above the age of
fourteen years and six months shall be deemed competent to enter into  a
contract  for,  be  the owner of, and exercise all rights relating to, a
policy of life insurance upon the life of the minor or upon the life  of
any  person  in  whom  the  minor  has  an  insurable  interest, but the
beneficiary of such policy may be only the minor or the parent,  spouse,
brother, sister, child or grandparent of the minor.
(b)  An  insurer  may  deliver  or  issue for delivery in this state a
policy or policies of life insurance upon the life of a minor under  the
age  of  fourteen  years  and  six  months, provided that such policy or
policies are effectuated by a person  or  persons  having  an  insurable
interest  in  the life of such minor or by a person or persons upon whom
such minor is dependent for support and maintenance and provided further
that an insurer shall not knowingly issue such a policy or policies  for
an  amount  which,  together with the amount of life insurance under any
other policy or policies then in force upon the life of such  minor,  is
in  excess  of the limit of fifty thousand dollars or the limit of fifty
per centum or the limit of twenty-five per centum in the case of a minor
under the age of four years  and  six  months  of  the  amount  of  life
insurance  in  force  upon  the  life  of  the  person  effectuating the
insurance at the date of issue of the policy on the life of such  minor,
whichever  limit is the greater, and any amount of life insurance on the
life of such minor not in excess of such limit when issued shall not  be
deemed  to be in excess thereof by reason of any reduction thereafter in
the amount of life insurance in  force  upon  the  life  of  the  person
effectuating the insurance.
(c)  An  insurer  may  deliver  or  issue for delivery in this state a
policy or policies of life insurance upon the life of a minor under  the
age  of  fourteen  years and six months for an amount or amounts of life
insurance which may be in excess of the limit  specified  in  subsection
(b)  of  this  section if the policy or policies are effectuated and the
premiums paid by a person or persons having an insurable interest in the
life of the minor and if the minor is not dependent upon such person  or
persons for support and maintenance.
(d)  (1)  If  an  insurer  shall deliver or issue for delivery in this
state any policy of life insurance on the life of a minor for an  amount
in excess of the limit prescribed by subsection (b) of this section, the
amount  under  such  policy  which  is  in excess shall not be valid, or
payable as a claim by death, so long  as  and  to  the  extent  that  it
continues  to  be  in  excess,  provided that no such insurance shall be
deemed to be in excess on or after the date upon which the minor attains
the age of fourteen years and six months.
(2) The  insurer  which  issues  such  excess  amount,  determined  by
priority  of date of issue of policies if there is more than one policy,
shall upon demand therefor or upon the death of  the  insured  and  upon
proof satisfactory to the insurer that such excess exists at the time of
such  demand  or  death refund with interest, at the rate assumed in the
valuation of the policy, the premiums paid less  dividends  allowed,  on
the  amount of insurance that is in excess at the date of such demand or
death, and such excess insurance and  all  of  the  obligations  of  the
insurer  thereunder  shall terminate. Any indebtedness to the insurer on
any excess insurance shall be deducted by the insurer from such refund.
(3) If only a part of the amount of insurance under such a  policy  is
in  excess  of such limits, the refund shall bear the same proportion to
the total premiums paid less dividends allowed under such policy as  the
amount  of  such  excess  insurance  bears to the amount of insurance in
force under the policy at the date of such refund,  and  the  amount  or

amounts  thereafter  payable  under  such policy shall be reduced in the
same proportion.
(4)  If  an  insurer  shall  have  made payment as a death claim of an
amount in excess of such limits without having had proof satisfactory to
it that such insurance was in excess, such insurer shall not  be  liable
for the refund specified above.
(f)  Notwithstanding  the  foregoing  limitations,  any  domestic life
insurance company may issue for delivery in  another  state  or  foreign
country  any  policy  which  is  governed  by  the laws of such state or
country for any amount not prohibited by the laws of such other state or
country.
(g) The amount of life insurance within the meaning  of  this  section
shall  not be deemed to include return premium benefits or the return of
cash value or any additional benefits payable in the event of  death  by
accident,  any variable death benefit above the guaranteed minimum death
benefit  provided  under  a  variable  life  insurance  policy,  or  any
additional  insurance provided by the application of dividends or by the
application of additional amounts  credited  to  a  policy  pursuant  to
subsection  (b)  of section four thousand two hundred thirty-two of this
chapter.