New York State regulates insurance companies offering policies that pay a beneficiary upon the death of the insured individual. These types of policies are governed by Article 32 of the Consolidated Laws of New York. This article deals with contracts for insurance, including life insurance policies with a death benefit.
Approval
The Superintendent of the New York Insurance Department must approve every life insurance policy issued in the state. This is to insure no elements of the policy violate the law. The superintendent shall not approve any life insurance policy that has a war or travel restriction, unless the policy has stamped across its face in red capital letters the following: " Read your policy (certificate ) carefully. Certain (war, travel) risks are not assumed."
Grace Period
All life insurance policies sold in New York must give the policyholder a 31-day grace period to make good if she misses a payment. If the policy has a variable premium the grace period is 61 days. If the insured person dies during the grace period, the policy remains in force, although the insurer may subtract the premium owed from the payout to the beneficiary.
Minor
An individual over the age of 14 years and six months has the legal right to take out a life insurance policy on himself or someone with whom he has an insurable interest, according to the Consolidated Laws of New York.The only allowable beneficiaries of such a policy are the minor himself or a parent, grandparent, sibling, spouse or child of the minor.
Equal Portions
A life insurance policy may have more than one beneficiary. If this is the case regarding a policy issued in New York and the amount left to each beneficiary is not specified, proceeds from the policy are distributed among the parties in equal portions, according to New York insurance law.
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