[§657D-37]  Guarantee of premiums and
interest by State; settlement of amounts due upon expiration of protection;
subrogation of state crediting debt repayments.  Payment of premiums and
interest thereon at the rate specified in section 657D-36 becoming due on a
policy while protected under this part is guaranteed by the State, and if the
amount so guaranteed is not paid to the insurer prior to the expiration of the
period of insurance protection under this part, the amount then due shall be
treated by the insurer as a policy loan.  If at the expiration of that period
the cash surrender value is less than the amount then due, the policy shall
then cease and the State shall pay the insurer the difference between the
amount and the cash surrender value.  The amount paid by the State to an
insurer on account of applications approved under this part shall become a debt
due to the State by the insured on whose account payment was made and,
notwithstanding any other law, the amount may be collected either by deduction
from any amount due the insured by the State or as otherwise authorized by
law.  Any moneys received as repayment of debt incurred under this part shall
be credited to the appropriation for the payment of claims under this part. [L
1994, c 257, pt of §2]