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Reply to Juvenile Life Insurance     
Old 08-24-2017, 04:46 PM   #1
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Juvenile Life Insurance Juvenile Life Insurance
NY has special law for among of coverage each child can get, does any other state have the same ?
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Old 08-24-2017, 06:20 PM   #2
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Juvenile Life Insurance Re: Juvenile Life Insurance
Doesn't surprise me that NY has that law...as they try to legislate every aspect of a person's life. Most, if not all, life insurance companies have their own specs as far as how much life insurance can be placed on a juvenile...typically, the parent(s) have to have a multiple of 5 or more on their lives.
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Old 08-24-2017, 06:28 PM   #3
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adjusterjack on Juvenile Life Insurance
 
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Juvenile Life Insurance Re: Juvenile Life Insurance
Originally Posted by bluesuit View Post
NY has special law for among of coverage each child can get, does any other state have the same ?
The following is the NY statute:

Insurance - Article 32 - 3207 Life insurance contracts by or for the benefit of minors; on the lives of minors, limitations on amount. :: 2016 New York Laws :: US Codes and Statutes :: US Law :: Justia

I have been unable to find a state by state guide so you will have to check each state's life insurance statutes to find the answer to your question.
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Old 08-24-2017, 06:50 PM   #4
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Juvenile Life Insurance Re: Juvenile Life Insurance
Originally Posted by adjusterjack View Post
The following is the NY statute:

Insurance - Article 32 - 3207 Life insurance contracts by or for the benefit of minors; on the lives of minors, limitations on amount. :: 2016 New York Laws :: US Codes and Statutes :: US Law :: Justia

I have been unable to find a state by state guide so you will have to check each state's life insurance statutes to find the answer to your question.
NC has no statute that I am aware of. Life insurance companies will tailor their requirements to any state-specific statute.
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Last edited by eersfan; 08-24-2017 at 07:54 PM.
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Old 08-25-2017, 11:23 AM   #5
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VolAgent on Juvenile Life Insurance
 
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Juvenile Life Insurance Re: Juvenile Life Insurance
Much ado over nothing.

Only one thing, the law does not make clear if it is the greater/lesser of $50,000 or 50% of what is in force on the parent. It lists both limits but does not say which is the cap. For instance, if a parent had a $1,000,000 policy, are they limited to $500,000 on a child or $50,000? I don't see where the law makes it clear which cap applies.

Many companies have similar guidelines and many go so far as to require coverage be equal on all children.

Also in an amazing show of restraint, NY did not require domestic companies to apply this rule in all states in which they do business, merely NY.

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Old 08-26-2017, 05:55 AM   #6
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Juvenile Life Insurance Re: Juvenile Life Insurance
Originally Posted by VolAgent View Post
Much ado over nothing.

Only one thing, the law does not make clear if it is the greater/lesser of $50,000 or 50% of what is in force on the parent. It lists both limits but does not say which is the cap. For instance, if a parent had a $1,000,000 policy, are they limited to $500,000 on a child or $50,000? I don't see where the law makes it clear which cap applies.

Many companies have similar guidelines and many go so far as to require coverage be equal on all children.

Also in an amazing show of restraint, NY did not require domestic companies to apply this rule in all states in which they do business, merely NY.
My uneducated guess would be 50% of the parent. $50k is not much - especially in the wealthy parts of NY.

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Originally Posted by eersfan View Post
Doesn't surprise me that NY has that law...as they try to legislate every aspect of a person's life. Most, if not all, life insurance companies have their own specs as far as how much life insurance can be placed on a juvenile...typically, the parent(s) have to have a multiple of 5 or more on their lives.
I have not seen companies that require 5x. I guess they could be out there, but most I've dealt with require 2x for one of the parents, and the same amount for the other.
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Old 08-26-2017, 10:02 AM   #7
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Juvenile Life Insurance Re: Juvenile Life Insurance
Originally Posted by pfg1 View Post
My uneducated guess would be 50% of the parent. $50k is not much - especially in the wealthy parts of NY.
Yeah, but you are thinking as an insurance professional and not an uneducated legislator. Also, when was the law passed? Depending upon the age of the law, $50,000 may have been a lot of money.

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