[§657D-32]  Persons entitled to
benefits; applications; amount of insurance protected.  The benefits and
privileges of this part shall apply to any insured when the insured, or a
person designated by the insured, makes written application for protection under
this part, unless the insurance commissioner in passing on the application
finds that the policy is not entitled to protection under this part.  The
adjutant general shall give notice to the state military forces of the
provisions of this part, and shall include in the notice an explanation of the
provisions for the information of those desiring to make application for
benefits.  The original of the application shall be sent by the insured to the
insurer, and a copy to the insurance commissioner.  The total amount of
insurance on the life of one insured under policies covered by this part shall
not exceed $10,000.  If an insured applies for protection of policies on the
insured's life totaling insurance in excess of $10,000, the insurance
commissioner may have the amount of insurance divided into two or more policies
so that the protection of this part may be extended to include policies for a
total amount of insurance not to exceed $10,000, and a policy which affords the
best security to the government shall be given preference. [L 1994, c 257, pt
of §2]