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

(b)  Except as provided in subsection (d), inthe event an action to recover is commenced and a settlement is reached beforethe verdict is rendered or the report or decision is made, interest on thesettlement shall be computed under subsection (c) and paid from the date ofdeath of an insured or annuitant in connection with a death claim on a lifeinsurance policy or annuity contract to the date of payment and from the dateof 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 shallbe computed daily at the rate of interest currently paid by the insurer onproceeds left under the interest settlement option, but the rate of interestshall not be less than six per cent a year computed from the date of death ofan insured or annuitant in connection with a death claim on a life insurancepolicy or annuity contract to the date of payment and from the date of maturityof an endowment or annuity contract to the date of payment, and shall be addedto and be a part of the total sum paid.

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

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

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