New York Laws
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.

(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.

Structure New York Laws