New York Laws
Article 32 - Insurance Contracts - Life, Accident and Health, Annuities
3220 - Group Life Insurance Policies; Standard Provisions.

(1) That the policy is incontestable after two years from its date of
issue, except for nonpayment of premiums by the policyholder; and that
no statement made by any person insured under the policy relating to his
insurability shall be used in contesting the validity of the insurance
with respect to which such statement was made after such insurance has
been in force prior to the contest for a period of two years during such
person's lifetime and in no event unless it is in a written instrument
signed by him, a copy of which is or has been furnished to such person
or to his beneficiary.
(2) That the rights of the policyholder or of any insured or
beneficiary thereunder shall not be affected by any provision other than
one contained in the policy or the riders or endorsements thereon or in
the amendments thereto signed by the policyholder and the insurer, or in
the copy of the policyholder's application attached to the policy or in
the individual statements, if any, submitted in connection therewith.
(3) For the equitable adjustment of the premium or if the amount of
insurance depends upon the age of the insured, for the equitable
adjustment of the amount of insurance and the premium in the event of a
misstatement of the age of the person insured.
(4) That the insurer will issue to the policyholder for delivery to
the person whose life is insured under such policy a certificate
containing a statement of the insurance protection to which he is
entitled including any changes in such protection depending on the age
of the person whose life is insured and the rights to which he is
entitled in accordance with paragraphs six and seven hereof.
(5) That the benefits payable under any such policy shall be payable
to the beneficiary or beneficiaries designated by the insured except,
where the policy contains conditions pertaining to family status, the
beneficiary may be the family member specified by the policy terms, but
if there is no such designated or specified beneficiary as to all or any
part of the insurance payable at the death of the insured, then the
amount of insurance so payable for which there is no such designated or
specified beneficiary shall be payable to the estate of the insured,
except that the policy may provide that the insurer may in such case, at
its option, pay such insurance to any one or more of the following
surviving relatives: wife, husband, mother, father, child or children,
brothers or sisters; and except that the policy may provide that the
insurer may, in any case, deduct from the aggregate sum payable under
such policy on account of the death of the insured, an amount not to
exceed five hundred dollars to be paid to any person or persons
appearing to the insurer to be equitably entitled to same by reason of
having incurred expenses on behalf of the insured or for his or her
burial. Payment in accordance with any of the foregoing provisions shall
completely discharge the insurer's liability with respect to the amount
of insurance so paid.
(6) That if the insurance on an employee or member covered under the
policy, other than one issued in accordance with paragraph three or
eight of subsection (b) of section four thousand two hundred sixteen of
this chapter, (A) ceases because of termination of (i) employment or of
membership in the class or classes eligible for coverage under the
policy, or (ii) the policy, or (B) is reduced (i) in the case of a
policy covering an employee or union member under a plan arranged by the

insured person's employer or union, on or after the employee's or union
member's attainment of age sixty in any increment or series of
increments aggregating twenty percent or more of the amount of coverage
in force before the first reduction on account of such age, (ii) in the
case of a policy covering any member other than as described in item (i)
of this subparagraph, at the time of the first reduction of insurance,
(iii) due to change in class or (iv) due to an amendment of the policy
to take effect immediately or at any subsequent date, such employee or
such member shall be entitled to have issued to him by the insurer,
without evidence of insurability, upon application made to the insurer
within thirty-one days after such termination or reduction of insurance
and payment of the premium applicable to the class of risk to which he
belongs and to the form and amount of the policy at his then attained
age, a policy of life insurance only, in any one of the forms
customarily issued by such insurer, except term insurance, in an amount
equal to the amount of his protection under such group insurance policy
at the time of such termination or reduction, less any amount of life
insurance remaining in force, except however, in the case of a reduction
in accordance with item (ii) of subparagraph (B) of this paragraph, in
an amount equal to eighty percent of his insurance coverage under such
group policy immediately prior to such reduction. Under a group policy
issued pursuant to paragraph twelve, thirteen or fourteen of subsection
(b) of section four thousand two hundred sixteen of this chapter, an
insured shall be entitled to convert, just as if he had terminated
membership in the class or classes eligible for coverage, within
thirty-one days after notice from the insurer that, in order to continue
his coverage under the group policy, he must contribute more than one
hundred thirty-three percent of the net premiums computed according to
the Commissioners 1960 Standard Group Mortality Table at three percent
interest. The group policy may contain a provision that if the
policyholder or insurer shall terminate the policy, the amount of life
insurance that may be converted shall in no event exceed the amount of
such employee's or member's life insurance protection less any amount of
life insurance for which he may be or may become eligible under any
group policy issued or reinstated by the same or another insurer within
forty-five days after the date of such cessation. However, at the option
of such employee or member, he shall be entitled to have issued to him
in accordance with the conditions prescribed above, a policy of life
insurance only, in any one of such forms, preceded by term insurance for
a period of one year with the premium payable, at the option of the
employee or member, in any mode customarily offered by the insurer. In
addition, the group policy shall contain a provision that if the
coverage of an employee or member ceases because of termination of
employment due to the employee's total and permanent disability or
termination of membership due to the member's total and permanent
disability, the employee or member, at the option of such employee or
member, shall be entitled to have issued to him, a policy of life
insurance only, in any one of such forms, preceded by term insurance for
a period of one year with the premium payable, at the option of the
employee or member, in any mode customarily offered by the insurer, in
the amount of such employee's or member's life insurance protection in
effect immediately before termination, less the amount of any life
insurance which is replaced with the same or another insurer within
forty-five days after cessation of the group life insurance protection.
Each such group policy shall contain a further provision to the effect
that upon the death of any such employee or member during such
thirty-one day period and before any such individual policy has become
effective, the amount of insurance for which such employee or member was

entitled to make application shall be payable as a death benefit by the
insurer; provided, however, each such policy may contain a provision
obligating the policyholder to pay a premium to the insurer for coverage
extended during such thirty-one day period in the event the extension of
coverage is a direct result of the policyholder's voluntary termination
of the policy and the policyholder replaces coverage under the policy
within six months of its termination either with the insurer or with
another insurer. The individual conversion policy may provide that any
statement made by the person insured under the group policy relating to
his insurability under such group policy may be used in contesting the
validity of the insurance under the individual conversion policy to the
same extent that such statement could have been used in contesting the
validity of his insurance under the group policy if his insurance under
the group policy had not ceased. An individual conversion policy shall
not exclude or restrict liability in the event of suicide of the insured
after two years from the date that the insured became covered under the
group policy. Notwithstanding the foregoing, the superintendent may
require conversion or continuation of insurance under conditions as set
forth in a regulation for insureds under a policy issued in accordance
with paragraph three of subsection (b) of section four thousand two
hundred sixteen of this chapter.
(7) At the option of the employee or member, any converted policy or
policies shall provide coverage for the dependents or class of
dependents of such employee or member who were insured under the group
policy. The effective date of the converted policy or policies shall be
the date of termination of the employee's or member's insurance under
the group policy. The conversion privilege shall be available (A) upon
termination or reduction of insurance as described in paragraph six of
this subsection, (B) upon the death of the employee or member to the
surviving spouse with respect to such spouse and children as are then
insured by the group policy, (C) to a child upon his attaining the
limiting age of coverage under the group policy while insured as a
dependent thereunder, and (D) upon the divorce or annulment of the
marriage of the employee or member to the spouse or former spouse of
such employee or member.
(8) That in the event a group life insurance policy issued for
delivery in this state permits a certificate holder to convert to
another type of life insurance within a specified time after the
happening of an event, such certificate holder shall be notified of such
privilege and its duration within fifteen days before or after the
happening of the event, provided that if such notice be given more than
fifteen days, but less than ninety days after the happening of such
event, the time allowed for the exercise of such privilege of conversion
shall be extended for forty-five days after the giving of such notice.
If such notice be not given within ninety days after the happening of
the event, the time allowed for the exercise of such conversion
privilege shall expire at the end of such ninety days. Written notice by
the policyholder given to the certificate holder or mailed to the
certificate holder at his last known address, or written notice by the
insurer mailed to the certificate holder at the last address furnished
to the insurer by the policyholder, shall be deemed full compliance with
the provisions of this paragraph for the giving of notice.
(9) That all new employees of the employer or all new members of the
labor union or other association or group as defined in this chapter, or
all new debtors of the vendor or creditor, as the case may be, in the
groups or classes eligible for such insurance must be added to such
groups or classes for which they are respectively eligible.
(10) In the case of a policy covering members of a labor union, or
other association or group as defined in this chapter (other than a
group as defined in paragraph one or three of subsection (b) of section
four thousand two hundred sixteen of this chapter, a notice in such
policy to the effect that the premium for the renewable term as therein
provided depends upon the attained ages of the members in the group and
increases with advancing ages.
(11) If the policy is in whole or in part on a plan of insurance other
than the term plan, it shall contain a nonforfeiture provision or
provisions which in the opinion of the superintendent is or are
equitable to the insured persons and to the policyholder, but this
paragraph does not require that such policy contain the same
nonforfeiture provisions required for individual life insurance
policies.
(12) In every group plan issued in accordance with paragraph three of
subsection (b) of section four thousand two hundred sixteen of this
chapter insuring loans made by production credit associations organized
pursuant to an Act of Congress of the United States, entitled the "Farm
Credit Act of 1933", approved June sixteenth, nineteen hundred
thirty-three as amended, or insuring loans made by a bank, trust company
or industrial bank to a borrower engaged in the business of farming,
crop production or the raising, breeding, fattening or marketing of
livestock for the purpose of such business and other requirements of the
borrower, a provision that, upon renewal of the loan commitment each
year prior to the attainment of age fifty by the certificate-holder,
coverage may be renewed by the certificate-holder without additional
requirements each year in an amount equal to the loan commitment or the
previous year's coverage, whichever is less, unless coverage has been
previously terminated by action of the certificate-holder, and further
provided that the group policy is in full force and effect on the date
of renewal.
(b) None of the provisions of subsection (a) hereof relating to a
certificate issued under any group life insurance policy shall be deemed
applicable to any such policy which is issued to a vendor or creditor,
as defined in section four thousand two hundred sixteen of this chapter
and under the provisions of which no individual certificates are issued
or are issuable.
(c) (1) Notwithstanding any provision of law, a person whose life is
insured under any policy of group life insurance, whether or not such
policy is otherwise subject to this section, is permitted to make an
assignment of all or any part of his incidents of ownership in such
insurance, including, without limitation, any right to designate a
beneficiary or beneficiaries thereunder and any right to have an
individual policy issued upon termination either of employment or of
said policy of group life insurance, provided that the insurer and the
group policyholder may prohibit or restrict such assignment by
appropriate policy provisions except as otherwise provided in paragraph
three of this subsection.
(2) Paragraph one of this subsection shall be construed as declaring
the law as it existed prior to its enactment and not as modifying it.
(3) A group policy that permits assignment of an insured person's
rights by gift shall also allow assignment for value to the same extent
that it allows assignment by gift.
(d) The provisions of paragraphs four, five, six, seven, eight, nine
and ten of subsection (a) of this section and paragraph one of
subsection (c) of this section shall not apply to policies issued under
the authority of subsection (d) or subparagraph (B) of paragraph (1) of

subsection (a) of section three thousand two hundred five of this
article.

Structure New York Laws