The Office of General Counsel issued the following opinion on December 22, 2005 representing the position of the New York State Insurance Department
Re: Maximum Life Insurance Limits for Juveniles.
Question Presented:
What are the maximum life insurance limits for a juvenile that an individual can apply for?
Conclusion:
As set forth in N.Y. Ins. Law § 3207(b) (McKinney 2000 & 2005 Supp.) in the case of a minor over the age of four and six months, the limits are twenty-five thousand dollars or fifty per centum of the life insurance in force upon the life of the applicant, whichever is greater. For minors under the age of four and six months the limits are twenty-five thousand dollars or twenty-five per centum of the life insurance in force upon the life of the applicant, whichever is greater.
Facts:
This is a general inquiry.
Analysis:
N.Y. Ins. Law § 3207(b) (McKinney 2000 & 2005 Supp.) provides:
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 twenty-five 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. (Emphasis added)
N.Y. Ins. Law § 3207(c) (McKinney 2000 & 2005 Supp.) provides an exception to the limits where the minor is not dependent on the person effectuating the insurance policy:
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.
For further information you may contact Principal Attorney Alan Rachlin at the New York City office.