N.Y. Insurance Law § 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.