Chapter 431 — Chapter 431

§431:10D-206 Agent groups. The lives of a group of individuals may be insured under a policy issued to a principal, or if such principal is a life insurer, by or to such principal covering when issued not less than twenty-five agents of the principal, subject to the following req…

§431:10D-207 Public employee association groups. The lives of a group of individuals may be insured under a policy issued to an association of public employees, which shall be deemed the policyholder, to insure members of the association for the benefit of persons other than the …

§431:10D-208 Mutual benefit society groups. The lives of a group of individuals may be insured under a policy issued to a mutual benefit society, which shall be deemed the policyholder, to insure members of the society for the benefit of persons other than the society or any of i…

§431:10D-209 Professional association groups. The lives of a group of individuals may be insured under a policy issued to an association of professional persons, which shall be deemed the policyholder, to insure members of the association for the benefit of persons other than the…

§431:10D-210 Occupation, industry, or trade association groups. The lives of a group of individuals may be insured under a policy issued to an association of individuals belonging to a single occupation, industry, or trade association, which shall be deemed the policyholder, to i…

§431:10D-211 Credit union groups. The lives of the members of a credit union may be insured under a policy issued to the credit union that shall be deemed the policyholder to insure members of the credit union for the benefit of persons other than the credit union or any of its o…

§431:10D-212 Spouses and dependents of insured individuals. (a) Except for a policy issued under sections 431:10D-203 and 431:10D-211, insurance under any group life insurance policy issued pursuant to this article may be extended to insure the employees or members of such groups…

§431:10D-213 Standard provisions required. (a) No policy of group life insurance shall be delivered or issued for delivery in this State unless it contains in substance the standard provisions set forth below, or provisions that in the opinion of the commissioner are more favorab…

§431:10D-214 Notice to insured regarding conversion right. If any individual insured under a group life insurance policy delivered in this State becomes entitled under the terms of the policy to have an individual policy of life insurance issued to the individual without evidence…

§431:10D-215 Assignment of policies. Subject to the terms of the policy, or pursuant to an agreement between the insured, the group policyholder, and the insurer, any person insured under a group life insurance policy may make to any person, other than the policyholder, an assign…

PART III. INDUSTRIAL LIFE INSURANCE §431:10D-301 Scope. This part shall apply only to industrial life insurance contracts. [L 1987, c 347, pt of §2]

§431:10D-302 General life insurance provisions applicable. The following [sections] of part I of this article shall apply to industrial life insurance policies:

§431:10D-303 Industrial life insurance defined. Industrial life insurance is any life insurance provided by an individual insurance contract issued in face amount of less than $1,000 under which premiums are payable monthly or more often, and bearing the words "Industrial Policy"…

§431:10D-304 Compliance required. No policy of industrial life insurance shall be delivered or be issued for delivery in this State, except in compliance with the provisions of this part, and with other applicable provisions of this code. [L 1987, c 347, pt of §2]

§431:10D-305 Standard provisions required. No policy of industrial life insurance shall be issued or delivered unless it contains in substance the provisions as required by this part, or provisions which in the opinion of the commissioner are at least as favorable to the policyho…

§431:10D-306 Title on policy. There shall be a title on the face of each policy briefly describing its form. [L 1987, c 347, pt of §2]

§431:10D-307 Beneficiary. (a) Each policy shall have a space on the front or back page of the policy for the name of the beneficiary designated with a reservation of the right to designate or change the beneficiary after the issuance of the policy. (b) The policy may also provide…

§431:10D-308 Facility of payment. Such a policy may also provide that if the beneficiary designated in the policy does not surrender the policy with due proof of death within the period stated in the policy, which shall not be less than thirty days after the death of the insured,…

§431:10D-309 Premiums paid direct. In the case of weekly premium policies, there may be a provision that upon proper notice to the insurer while premiums on the policy are not in default beyond the grace period, of the intention to pay future premiums directly to the insurer at i…

§431:10D-310 Application to term and specified insurance. Any of the provisions required by this part or any portion thereof which are not applicable to single premium or term policies or to policies issued or granted pursuant to nonforfeiture provisions, shall to that extent not…

§431:10D-311 Crediting of dividends. An insurer shall credit annually beginning not later than the fifth policy year, any dividend arising under a participating industrial life insurance contract. [L 1987, c 347, pt of §2]

§431:10D-312 Prohibited provisions. No industrial life insurance policy shall contain:

§431:10D-313 Limitation of liability. The insurer may in any such policy limit its liability for the same causes and to the same extent as is provided in section 431:10D-312 for other life insurance contracts. [L 1987, c 347, pt of §2]

§431:10D-407 Delivery of illustration and record retention. (a) If a basic illustration is used by an insurance producer or other authorized representative of the insurer in the sale of a life insurance policy and the policy is applied for as illustrated, a copy of that illustrat…

§431:10D-408 Annual reports and notice to policy owners. (a) In the case of a policy designated as one for which illustrations will be used, the insurer shall provide each policy owner with an annual report on the status of the policy that shall contain at least the following inf…

§431:10D-409 Annual certifications. (a) The board of directors of each insurer shall appoint one or more illustration actuaries. (b) The illustration actuary shall certify that the disciplined current scale used in illustrations is in conformity with the Actuarial Standard of Pra…

§431:10D-410 Penalties. In addition to any other penalties provided by the laws of this State, an insurer or producer that violates a requirement of this part shall be guilty of an unfair or deceptive act or practice in violation of article 13. [L 2000, c 252, pt of §2; am L 2004…

§431:10D-412 REPEALED. L 2000, c 282, §2.

[PART V.] REPLACEMENT OF LIFE INSURANCE POLICIES AND ANNUITIES §431:10D-501 Purpose and scope. (a) The purpose of this part is to: (b) Unless otherwise specifically included, this part shall not apply to transactions involving: (c) Registered contracts shall be exempt from the re…

§431:10D-502 Definitions. For the purposes of this part: "Direct-response solicitation" means a solicitation through a sponsoring or endorsing entity or individual solely through mails, telephone, the Internet, or other mass communication media. "Existing insurer" means the insur…

§431:10D-503 Duties of producers. (a) A producer who initiates an application shall submit to the insurer, with or as part of the application, a statement signed by both the applicant and the producer as to whether the applicant has existing policies or contracts. If the answer i…

§431:10D-504 Duties of insurers that use producers. Each insurer shall:

§431:10D-505 Duties of replacing insurers that use producers. (a) Where a replacement is involved in the transaction, the replacing insurer shall: (b) In transactions where the replacing insurer and the existing insurer are the same or subsidiaries or affiliates under common owne…

§431:10D-507 Duties of insurers with respect to direct-response solicitations. (a) In the case of an application that is initiated as a result of a direct-response solicitation, the insurer shall require, with or as part of each completed application for a policy or contract, a s…

§431:10D-508 Violations and penalties. (a) Any failure to comply with this part shall be considered a violation of article 13 of this chapter. Violations shall include but are not limited to: (b) Policy and contract owners have the right to replace existing life insurance policie…

§431:10D-510 REPEALED. L 2000, c 282, §2.

§431:10D-603 Standards for the disclosure document and buyer's guide. (a) Where the application for an annuity contract is taken: (b) A solicitation for an annuity contract provided in other than a personal meeting shall include a statement that the prospective applicant may cont…

Part VII. SUITABILITY IN ANNUITY TRANSACTIONS §431:10D-621 Scope. (a) This part applies to any recommendation or sale of an annuity. (b) This part does not apply to transactions involving: (c) Nothing in this part shall be construed to affect in any manner any provision of chapte…

§431:10D-622 Definitions. For the purposes of this part: "Annuity" means an annuity that is an insurance product under state law that is individually solicited, whether the product is classified as an individual or group annuity. "Approved continuing education course provider" me…

§431:10D-623 Duties of insurers and producers. (a) A producer, when making a recommendation of an annuity, shall act in the best interest of the consumer under the circumstances known at the time the recommendation is made, without placing the producer's or the insurer's financia…

§431:10D-624 Compliance mitigation; penalties; enforcement. (a) An insurer shall be responsible for compliance with this part. If a violation occurs because of the action or inaction of the insurer or its producer, the commissioner may order: (b) Any penalty applicable to an insu…

§431:10D-625 Recordkeeping. Insurers, managing general agents, independent agencies, and producers shall maintain or make available to the commissioner records of the information collected from the consumer; disclosures made to the consumer, including summaries of oral disclosure…

§431:10D-626 Producer training. (a) A producer shall not solicit the sale of an annuity product unless the producer has adequate knowledge of the product to recommend the annuity and the producer is in compliance with the insurer's standards for product training. A producer may r…

ARTICLE 10E PROPERTY INSURANCE PART I. INSURABLE INTEREST IN PROPERTY; OVER-INSURANCE §431:10E-101 Insurable interest in property required. No contract of insurance on property or of any interest therein or arising therefrom shall be enforceable except for the benefit of persons …

§431:10E-102 Over-insurance prohibited; exceptions. (a) Over-insurance shall be deemed to exist if property or an insurable interest in the property is insured by one or more insurance contracts against the same hazard in any amount in excess of the actual cash value of the prope…

§431:10E-103 Exceptions. Section 431:10E-102 does not apply to:

ARTICLE 10F SURETY INSURANCE §431:10F-101 Requirements deemed met by surety insurer. Whenever by law or by rule of any court, public official, or public body, a surety bond is required or is permitted to be given, provided the bond is otherwise proper and its conditions are guara…

§431:10F-102 Fiduciary bonds, expense. Any fiduciary required by law to give bonds, may include, as part of the fiduciary's lawful expense to be allowed by the court or official by whom the fiduciary was appointed, the reasonable amount paid as premium for the bonds to the surety…

§431:10F-103 Court bonds, costs. In any proceeding, the party entitled to recover costs may include in the costs such reasonable sum as was paid to the surety insurer as premium for any bond or undertaking required therein, and as may be allowed by the court having jurisdiction o…

§431:10F-104 Release from liability. A surety insurer may be released from its liability on the same terms and conditions as are provided by law for the release of individuals as sureties. [L 1987, c 347, pt of §2]