N.Y. Comp. Codes R. & Regs. tit. 11 § 220.4

Current through Register Vol. 46, No. 50, December 11, 2024

Section 220.4 - Interest on proceeds

(a) Where claims are resolved and settled in accordance with this Part, interest on the proceeds of policies or annuities shall be payable, and shall be calculated as provided by this section, which implements section 2701(d) of the Insurance Law.

(b) Where the policy or annuity states a method for the calculation of interest on proceeds, then that method shall apply.

(c) Where the policy or annuity does not state a method for the calculation of interest on proceeds, then:

(1) in the case of life insurance policies and annuities in respect of which benefits became payable because of the death of the insured or annuitant or the maturity of an endowment or similar contract, the department has concluded that the legislative approach set forth in section 3214 of the Insurance Law presents an appropriate general guide for determining reasonable interest on proceeds pursuant to section 2701(d) of the Insurance Law. Accordingly, interest upon the principal sum paid to the beneficiary or policyholder shall be computed daily at the applicable rates of interest paid by the insurer over the course of time on proceeds left under the interest settlement option, from the date of the death of an insured or annuitant in connection with a death claim on such a policy of life insurance or contract of annuity and from the date of maturity of an endowment or similar contract to the date of payment and shall be added to and be a part of the total sum paid; and

(2) in all other cases and in respect of all other types of policies or annuities, interest shall be calculated in accordance with a reasonable standard agreed upon by the insurer and the claimant, or, if the superintendent prescribes a standard, according to such standard as the superintendent may prescribe, including those instances in which the insurer and the claimant cannot agree upon a standard.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 220.4