Section 3207. Life insurance contracts by or for the benefit of minors; on the lives of minors, limitations on amount

(a) A minor above the age of  fourteen years and six months shall be deemed competent to enter into  a
  contract  for,  be  the owner of, and exercise all rights relating to, a
  policy of life insurance upon the life of the minor or upon the life  of
  any  person  in  whom  the  minor  has  an  insurable  interest, but the
  beneficiary of such policy may be only the minor or the parent,  spouse,
  brother, sister, child or grandparent of the minor.
    (b)  An  insurer  may  deliver  or  issue for delivery in this state a
  policy or policies of life insurance upon the life of a minor under  the
  age  of  fourteen  years  and  six  months, provided that such policy or
  policies are effectuated by a person  or  persons  having  an  insurable
  interest  in  the life of such minor or by a person or persons upon whom
  such minor is dependent for support and maintenance and provided further
  that an insurer shall not knowingly issue such a policy or policies  for
  an  amount  which,  together with the amount of life insurance under any
  other policy or policies then in force upon the life of such  minor,  is
  in  excess  of the limit of fifty thousand dollars or the limit of fifty
  per centum or the limit of twenty-five per centum in the case of a minor
  under the age of four years  and  six  months  of  the  amount  of  life
  insurance  in  force  upon  the  life  of  the  person  effectuating the
  insurance at the date of issue of the policy on the life of such  minor,
  whichever  limit is the greater, and any amount of life insurance on the
  life of such minor not in excess of such limit when issued shall not  be
  deemed  to be in excess thereof by reason of any reduction thereafter in
  the amount of life insurance in  force  upon  the  life  of  the  person
  effectuating the insurance.
    (c)  An  insurer  may  deliver  or  issue for delivery in this state a
  policy or policies of life insurance upon the life of a minor under  the
  age  of  fourteen  years and six months for an amount or amounts of life
  insurance which may be in excess of the limit  specified  in  subsection
  (b)  of  this  section if the policy or policies are effectuated and the
  premiums paid by a person or persons having an insurable interest in the
  life of the minor and if the minor is not dependent upon such person  or
  persons for support and maintenance.
    (d)  (1)  If  an  insurer  shall deliver or issue for delivery in this
  state any policy of life insurance on the life of a minor for an  amount
  in excess of the limit prescribed by subsection (b) of this section, the
  amount  under  such  policy  which  is  in excess shall not be valid, or
  payable as a claim by death, so long  as  and  to  the  extent  that  it
  continues  to  be  in  excess,  provided that no such insurance shall be
  deemed to be in excess on or after the date upon which the minor attains
  the age of fourteen years and six months.
    (2) The  insurer  which  issues  such  excess  amount,  determined  by
  priority  of date of issue of policies if there is more than one policy,
  shall upon demand therefor or upon the death of  the  insured  and  upon
  proof satisfactory to the insurer that such excess exists at the time of
  such  demand  or  death refund with interest, at the rate assumed in the
  valuation of the policy, the premiums paid less  dividends  allowed,  on
  the  amount of insurance that is in excess at the date of such demand or
  death, and such excess insurance and  all  of  the  obligations  of  the
  insurer  thereunder  shall terminate. Any indebtedness to the insurer on
  any excess insurance shall be deducted by the insurer from such refund.
    (3) If only a part of the amount of insurance under such a  policy  is
  in  excess  of such limits, the refund shall bear the same proportion to
  the total premiums paid less dividends allowed under such policy as  the
  amount  of  such  excess  insurance  bears to the amount of insurance in
  force under the policy at the date of such refund,  and  the  amount  or

  amounts  thereafter  payable  under  such policy shall be reduced in the
  same proportion.
    (4)  If  an  insurer  shall  have  made payment as a death claim of an
  amount in excess of such limits without having had proof satisfactory to
  it that such insurance was in excess, such insurer shall not  be  liable
  for the refund specified above.
    (f)  Notwithstanding  the  foregoing  limitations,  any  domestic life
  insurance company may issue for delivery in  another  state  or  foreign
  country  any  policy  which  is  governed  by  the laws of such state or
  country for any amount not prohibited by the laws of such other state or
  country.
    (g) The amount of life insurance within the meaning  of  this  section
  shall  not be deemed to include return premium benefits or the return of
  cash value or any additional benefits payable in the event of  death  by
  accident,  any variable death benefit above the guaranteed minimum death
  benefit  provided  under  a  variable  life  insurance  policy,  or  any
  additional  insurance provided by the application of dividends or by the
  application of additional amounts  credited  to  a  policy  pursuant  to
  subsection  (b)  of section four thousand two hundred thirty-two of this
  chapter.