§431:10-243  Interest upon proceeds of life
insurance policies.  (a)  Except as provided in subsection (d), in the
event an action to recover the proceeds due under a life insurance policy or
annuity contract is commenced and results in a judgment against the insurer,
interest shall be computed under subsection (c) and paid from the date of death
of an insured or annuitant in connection with a death claim on a life insurance
policy or annuity contract and from the date of maturity of an endowment or
annuity contract to the date the verdict is rendered or the report or decision
is made.



(b)  Except as provided in subsection (d), in
the event an action to recover is commenced and a settlement is reached before
the verdict is rendered or the report or decision is made, interest on the
settlement shall be computed under subsection (c) and paid from the date of
death of an insured or annuitant in connection with a death claim on a life
insurance policy or annuity contract to the date of payment and from the date
of maturity of an endowment or annuity contract to the date of payment.



(c)  In the event no action has been commenced,
interest upon the principal sum paid to the beneficiary or policyholder shall
be computed daily at the rate of interest currently paid by the insurer on
proceeds left under the interest settlement option, but the rate of interest
shall not be less than six per cent a year computed from the date of death of
an insured or annuitant in connection with a death claim on a life insurance
policy or annuity contract to the date of payment and from the date of maturity
of an endowment or annuity contract to the date of payment, and shall be added
to and be a part of the total sum paid.



(d)  This section shall not require the payment
of interest if, in connection with a death claim on a life insurance policy or
annuity contract, the proceeds of the policy or contract is paid within thirty
days from the date of death.



(e)  This section shall not require the payment
of interest for any period during which an insurer is required to pay interest
under any state or federal law pertaining to interpleader.



(f)  This section shall not apply to policies
or contracts issued prior to June 2, 1977, which contain specific provisions to
the contrary. [L 1987, c 347, pt of §2]