Section 5-1502F. Construction--insurance transactions

In a statutory short
  form power of attorney, the language conferring general  authority  with
  respect to "insurance transactions, " must be construed to mean that the
  principal authorizes the agent:
    1.  To  continue,  to  pay the premium or assessment on, to modify, to
  rescind, to release or to terminate  any  contract  of  life,  accident,
  health,  disability  or  liability  insurance or any combination of such
  insurance procured by or  on  behalf  of  the  principal  prior  to  the
  creation  of  the agency which insures either the principal or any other
  person, without  regard  to  whether  the  principal  is  or  is  not  a
  beneficiary   thereunder;   provided,  however,  with  respect  to  life
  insurance  contracts  existing  at  the  creation  of  the  agency,  the
  authority  granted  hereby shall not include the power to add, delete or
  otherwise change the designation of beneficiaries in effect for any such
  contract, unless the authority to  make  such  additions,  deletions  or
  changes  is  conveyed  in  a  statutory major gifts rider to a statutory
  short form power of attorney or in a  non-statutory  power  of  attorney
  signed  and  dated  by the principal with the signature of the principal
  duly acknowledged in the manner prescribed for the acknowledgment  of  a
  conveyance  of  real  property,  and  which  is executed pursuant to the
  requirements of paragraph (b) of subdivision nine of section  5-1514  of
  this title;
    2.  To  procure  new,  different  or additional contracts of insurance
  protecting  the  principal  with  respect  to  ill-health,   disability,
  accident  or  liability  of  any sort, to select the amount, the type of
  insurance contract and the mode of payment under each  such  policy,  to
  pay  the  premium or assessment on, to modify, to rescind, to release or
  to terminate, any contract so procured by the agent;
    3. To apply for and to receive any available loan on the  security  of
  the  contract  of insurance, whether for the payment of a premium or for
  the procuring of cash, to surrender and thereupon to  receive  the  cash
  surrender  value,  to  exercise an election as to beneficiary or mode of
  payment, to change the manner of paying premiums, and to  change  or  to
  convert  the type of insurance contract, with respect to any contract of
  life, accident, health, disability or liability insurance  as  to  which
  the  principal  has,  or  claims  to have, any one or more of the powers
  described in this section; provided, however, that the authority granted
  hereby shall not include the power to add, delete  or  otherwise  change
  the designation of beneficiaries in effect for any such contract, unless
  the  authority  to make such additions, deletions or changes is conveyed
  in a statutory major gifts rider to a  statutory  short  form  power  of
  attorney or in a non-statutory power of attorney signed and dated by the
  principal  with  the signature of the principal duly acknowledged in the
  manner prescribed  for  the  acknowledgment  of  a  conveyance  of  real
  property,  and  which  is  executed  pursuant  to  the  requirements  of
  paragraph (b) of subdivision nine of section 5-1514 of this title;
    4.  To  demand,  to  receive,  to  obtain  by  action,  proceeding  or
  otherwise,  any  money,  dividend,  or other thing of value to which the
  principal is, or may become, or may claim to be entitled as the proceeds
  of any contract of insurance or of  one  or  more  of  the  transactions
  enumerated  in  this  section, to conserve, to invest, to disburse or to
  utilize anything so received for purposes enumerated  in  this  section,
  and  to reimburse the agent for any expenditures properly made by him in
  the execution of the powers conferred on him by the statutory short form
  power of attorney;
    5. To apply for and to procure any available governmental aid  in  the
  guaranteeing  or  paying of premiums of any contract of insurance on the
  life of the principal;

    6. To sell, to assign, to hypothecate, to borrow upon,  or  to  pledge
  the interest of the principal in any contract of insurance;
    7.  To  pay,  from  such  proceeds  or  otherwise, to compromise or to
  contest, and to apply  for  refunds  in  connection  with,  any  tax  or
  assessment  levied by a taxing authority with respect to any contract of
  insurance or the proceeds thereof or liability  accruing  by  reason  of
  such tax or assessment;
    8. To agree and to contract, in any manner, and with any person and on
  any  terms,  which the agent may select for the accomplishment of any of
  the purposes enumerated in this section, and to perform, to rescind,  to
  reform, to release or to modify any such agreement or contract;
    9.  To  execute,  to  acknowledge, to seal and to deliver any consent,
  demand,  request,  application,  agreement,  indemnity,   authorization,
  assignment,  pledge,  notice, check, receipt, waiver or other instrument
  which the agent may think useful for the accomplishment of  any  of  the
  purposes enumerated in this section;
    10.  To  continue, to procure, to pay the premium or assessment on, to
  modify, to rescind, to release, to terminate or otherwise to  deal  with
  any  contract  of insurance, other than those enumerated in subdivisions
  one  or  two  of  this  section,   whether   fire,   marine,   burglary,
  compensation, disability, liability, hurricane, casualty, or other type,
  or  any  combination of insurance, to do any act or acts with respect to
  any such contract or with respect to its proceeds or  enforcement  which
  the  agent  thinks  to  be  desirable  or necessary for the promotion or
  protection of the interests of the principal;
    11. To prosecute, to defend, to submit to arbitration, to settle,  and
  to  propose or to accept a compromise with respect to any claim existing
  in favor of, or  against,  the  principal  based  on  or  involving  any
  insurance  transaction  or  to  intervene  in  any  action or proceeding
  relating thereto;
    12. To hire, to discharge, and to compensate any attorney, accountant,
  expert witness or other assistant or assistants  when  the  agent  shall
  think such action to be desirable for the proper execution by him of any
  of  the  powers  described in this section and for the keeping of needed
  records thereof; and
    13. In general, and in addition to  all  the  specific  acts  in  this
  section enumerated, to do any other act or acts, which the principal can
  do   through  an  agent,  in  connection  with  procuring,  supervising,
  managing, modifying, enforcing and terminating contracts of insurance in
  which  the  principal  is  the  insured  or  is  otherwise  in  any  way
  interested.
    All   powers   described  in  this  section  5-1502F  of  the  general
  obligations law shall be exercisable with respect  to  any  contract  of
  insurance  in which the principal is in any way interested, whether made
  in the state of New York or elsewhere.