§431:10D-111  Premium deposits.  (a)  A
life insurer may, under such policy provisions or agreements as have been
approved by the commissioner consistent with this section, contract for and
accept premium deposits in addition to the regular premiums specified in the
policy, for the purpose of paying future premiums, or to facilitate conversion
of the policy, or to increase the benefits thereof.



(b)  The unused accumulation from such deposits
shall be held and accounted for as a premium deposit fund, and the policy or
agreement shall provide for the manner of application of the premium deposit
fund to the payment of premiums otherwise in default and for the disposition of
the fund if it is not sufficient to pay the next premium.



(c)  Such fund shall:



(1)  Be available upon surrender of the policy, in
addition to the cash surrender value;



(2)  Be payable upon the insured's death or upon
maturity of the policy; and



(3)  Be paid to the insured whenever the cash
surrender value together with the premium deposit fund equals or exceeds the
amount of insurance provided by the policy, unless the amount of the deposit
does not exceed that which may be required to facilitate conversion of the
policy to another plan in accordance with its terms.



(d)  No part of the premium deposit fund shall
be paid to the insured during the continuance of the policy except at such
times and in such amounts as is specified in the policy or in the deposit
agreement. [L 1987, c 347, pt of §2]