N.Y. Military Law § 316: 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.