Cross References
Civil relief for state military forces, see chapter 657D.
Risk-based capital for insurers, see §§431:3-401 to 414.
PART I. INDIVIDUAL LIFE INSURANCE, ANNUITIES
AND PURE ENDOWMENT CONTRACTS
§431:10D-111 Premium deposits. (a) A life insurer may, under policy provisions or agreements, contract for and accept premium deposits in addition to the regular premiums specified in the policy, for the purpose of paying future premiums, to facilitate conversion of the policy, or to increase the benefits of the policy, according to this section.
(b) The unused accumulation from such deposits shall be held and accounted for as a premium deposit fund, and the policy or agreement shall provide for the manner of application of the premium deposit fund to the payment of premiums otherwise in default and for the disposition of the fund if it is not sufficient to pay the next premium.
(c) Such fund shall:
(1) Be available upon surrender of the policy, in addition to the cash surrender value;
(2) Be payable upon the insured's death or upon maturity of the policy; and
(3) Be paid to the insured whenever the cash surrender value together with the premium deposit fund equals or exceeds the amount of insurance provided by the policy, unless the amount of the deposit does not exceed that which may be required to facilitate conversion of the policy to another plan in accordance with its terms.
(d) No part of the premium deposit fund shall be paid to the insured during the continuance of the policy except at such times and in such amounts as is specified in the policy or in the deposit agreement. [L 1987, c 347, pt of §2; am L 2010, c 116, §1(20)]
Section: Previous 431-10d-104 431-10d-105 431-10d-106 431-10d-107 431-10d-108 431-10d-109 431-10d-110 431-10d-111 431-10d-112 431-10d-113 431-10d-114 431-10d-115 431-10d-116 431-10d-117 431-10d-118 NextLast modified: October 27, 2016