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

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

(c)  Such fund shall:

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

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

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

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